Tax fairness won a victory in the 2012 Legislative Session. A proposal to make more cuts to property tax refunds for renters did not become law, although it had support in the House.
We’ve released a fact sheet detailing 2012 legislative activities on the Renters’ Credit, which is an important tool to ensure that low- and moderate-income Minnesotans do not pay more than their fair share in taxes.
The fact sheet explains the House tax bill that included a startling 38 percent cut to the Renters’ Credit, which would have been used to pay for tax cuts primarily for businesses and investors. The bill would have made thousands of households ineligible for refunds, and those that still qualified would see substantial reductions in their refunds.
Fortunately, the idea did not win support from the Senate or Governor Dayton, and it did not become reality.
Cuts to the Renters’ Credit not only would have harmed struggling Minnesotans, but it would have also harmed Minnesota’s fragile economic recovery.
As policymakers consider changes to Minnesota’s tax system, they should make choices that move us toward a fair system that raises adequate revenues to fund the state’s priorities. Maintaining the Renters’ Credit is one way to achieve those goals.