The legislation will reduce Minnesota businesses' share of theproperty tax burden from 30% to 24.5%. In addition to the $180million incommercial/industrial property tax relief, apartmentproperty tax reductions of $67 million will help in the creation ofmore affordable housing by encouraging more construction within thestate, the Chamber says.
Minnesota's current tax burden for apartment housing is doublethe national average.
Under the bill, the classification rate on commercial/industrialproperty with value under $150,000 is reduced to 1.5%; the rateoncommercial/industrial property over $200,000 falls to 2%. Inaddition to the immediate property tax cuts, Minnesota electricrates will be reduced by nearly $30 million because the billexempts from the statewide property tax the equipment used togenerate electricity.
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