05/20/2008
CONTACT: Mike Hickey, 651-293-1283 or Tony Malandra, 415-664-9685
Chief executive's property tax cap, line in the sand on other issues, will help state economy
ST. PAUL, Minn. -- The representative association for Minnesota's small business owners -- and largest business group by number of entities -- today applauded Gov. Tim Pawlenty for his leadership in winning a cap on property taxes and for his steadfast resistance to raising costs on the entrepreneurs of the state who employ the majority of working Minnesotans and generate almost all new jobs.
"We really want to thank Governor Pawlenty for standing up for small business and all other property tax payers," said Mike Hickey, Minnesota state director for the National Federation of Independent Business. The provision, which passed in the tax bill capping local government spending at 3.9 percent a year, was supported by Pawlenty and NFIB. "Without his strong advocacy for this critical provision, it never would have occurred."
Hickey noted that the Legislature has tried just about every other type of levy limit over the years, including a very weak one that was tied to the landmark 2001 property tax reform that allowed for huge increases by some cities. The provision does allow some exceptions, including hiring more police and fire personnel and allows a higher level of spending due to financial problems caused by a significant number of mortgage foreclosures. Most cities that desire to raise taxes higher than 3.9% per year will now need to submit the proposed tax increase to the voters in a referendum.
The new property tax cap is projected to save taxpayers $78.5 million next year and $460.5 million for the three-year period it will be in effect. The cap will expire after 2011.
Hickey also thanked Pawlenty for opposing an unrealistic increase in the minimum wage, a raid on a critical workers' compensation fund that would have likely affected the premiums businesses must pay, a bad unemployment insurance provision that would have penalize employers for generously providing severance, and an unworkable prohibition on the use of arrest records by employers making hiring decisions.
"Thanks to Governor Pawlenty's opposition, none of these proposals passed. The governor stood very tall for small businesses, and we really appreciate his efforts in helping defeat these proposals that would worsened the Minnesota business climate."
