On March 17th, the Minnesota Legislature’s House Property Tax Division Committee heard testimony in support of HF 1735, a bill authored by Rep. Youakim. The bill would increase the renter’s credit property tax refund, which provides a critical tax refund to over 300,000 low and moderate-income Minnesotans.
Michael Dahl, Public Policy Director for HOME Line, testified to representatives about the importance of the renter’s credit to Minnesota renters. The credit helps to offset high property taxes, but also the rising cost of rent. According to a report by the Minnesota Housing Partnership, since 2000, the median renter income has increased by 1 percent, yet the median gross rent has increased by 14 percent. Renters can’t keep up: 22 percent of renter households have to pay more than 50 percent of their income in rent. “Renters are often made to choose between essential items and paying rent. The renter’s credit allows people to purchase the things they need and have sometimes been waiting for.”’
Citing notes that HOME Line has received from renters, Michael shared that people use their refunds to buy school supplies, Christmas gifts for kids, food, and even toilet paper. More expensive purchases include necessities like dental care, medical bills, car insurance, and medicine. In one case, they heard from an elderly woman who had to cut her pills in half to make them last longer—with the renter’s credit, she was able to afford the medication she needed. When renters are able to make all of these purchases, it also supports Minnesota’s economy.
Nan Madden, director of the Minnesota Budget Project, emphasized the impact of the renter’s credit for people on a fixed income. 30 percent of recipients are seniors and people with disabilities. In some countries, the percentage is over 50 percent. She also highlighted another population that receives the credit: “many of those who would benefit are the essential workers who we’ve all come to count on more than ever.” Paul Eger, vice president of governmental affairs for the Minnesota Realtors Association, also spoke in support of the bill, stating that the section that increases the homestead credit makes owning a home more affordable.
Link to committee hearing video
Emily Sailors is a third-year International Studies student at St. Catherine University. She is interning at HOME Line through her university’s Community Leaders program.
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