Minnesota's property tax is regressive, meaning that a disproportionate share of the property-tax burden falls upon those with the least ability to pay. In recent years, both the amount of statewide property taxes and the degree of property-tax regressivity have increased, contributing to the overall growth in tax regressivity in Minnesota.

Credit the Minnesota House with coming up with a resourceful way of tackling tax fairness.

The simplest way of dealing with the property tax's regressivity is to reduce the state's reliance on property taxes and increase the reliance on fair, progressive taxes such as the income tax. However, this option has been precluded by Gov. Tim Pawlenty and his "no new tax" allies, who refuse to consider an increase in progressive income taxes to cut regressive property taxes.

 

Rather than resigning themselves to a deeper slide into the pit of tax regressivity, the House has come up with a novel approach, which passed May 5 on an 80-52 vote.

If a substantial decrease in reliance on the property tax is impossible due to the governor's obstructions, at least measures can be taken to make the property tax less regressive.

 

To ready Jeff's report, go to www.mn2020.org.