It does not take very much to understand that the renter’s credit is a big issue for HOME Line. It is something that government officials have been quick to propose as a tool for balancing the state budget, and renters have been quick to fight for it. Since 2004, the renter’s credit has continued to come under attack during all but one or two legislative sessions. HOME Line has worked each of those years with organizational partners and tenants to educate elected officials about how important this tax credit is to renters, as well as how it contributes to a more progressive and fair tax system.
Most of these past proposed cuts were prevented thanks to:
1. Tenants calling and writing their representatives and testifying at hearings
2. Legislators listening to and working for their constituents
This year, proponents of the renter’s credit have been sitting tight for the governor’s proposed changes to the tax system. According to this Star Tribune blog post, some of those changes include a $500 property tax rebate for homeowners, a 1.4% reduction in the corporate tax rate, and a freeze in property taxes that businesses pay. It includes no cuts to the renter’s credit, but increases to restore it to previous levels aren’t in there either.
There is good news, however. There are three bills out there with proposed changes to the renter’s credit—they all propose to restore it partially, if not completely. This will be the first session that HOME Line will be talking with tenants and elected officials about a positive measure that will assist renters, rather than a negative one that harms them.
The percent of rent that tenants could claim on their tax return used to be 19%. Last year, that percentage was reduced to 17%. This year, HF 2 and HF 126 both propose increases to 18%. HF 24 proposes to restore the credit back to the 19% tenants could once claim.
Do you know who is representing you at the capitol this year? If you are not sure, you can look it up by following this link. If your state representative is one of these bill authors, please contact them and thank them for doing something good for renters. Encourage them to consider fully restoring the credit to 19%. Find out if your elected official is authoring one of these bills by clicking on the following file numbers:
If your state official is not an author of one of these bills, contact them and ask them to support an increase in the credit back to the full 19%. If you get the renters credit, let them know why it is important to you, and if you were harmed by last year’s cut.
Tips for calling or emailing:
If you call, you will probably talk to the legislative assistant or leave a voice mail. Try to be brief and clear about why you are calling. Be prepared to give them your full name, and sometimes you are asked for your address or zip code. If you reference one of the bill numbers above, that will help them better understand the issue you are contacting them about. Be sure to tell them you are a constituent or that you live in their district. Always try to be courteous and thank them, even if you do not agree with them on an issue. Don’t take it personally if you do not get a call or email back or get to speak directly with your representative. They do keep track of issues they are contacted about, and they keep track of who contacts them. Your calls and emails matter.
If you would like an answer about their position, be clear that you would like to hear back from them or their assistant, and make sure you leave a way for them to get in touch with you.
Background on the renters credit:
The Minnesota Budget Project explains that 315,000 low and middle income renters are expected to get a property tax rebate this year. More than 75% of these households have incomes that are less than $30,000, and over 25% of these households include people with disabilities and senior citizens. Renters we hear from at HOME Line say they use their renter’s credit to pay bills, stock up on groceries, toiletries, and clothing like underwear and winter clothes. They make car repairs and pay for medical expenses not covered by health insurance; things like glasses, dental work and prescription medications.
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