2016 Minnesota Legislative Session Update: Death of the Tax Bill

June 8, 2016 at 2:14 pm

The bipartisan $259 million tax bill has died on Gov. Mark Dayton’s desk. His veto puts at risk an important first step toward meaningful commercial property tax relief.

What this means for #MnCRE

The tax bill exempts the first $100,000 of business property value from the state general property tax.  When fully implemented, the exemption will reduce business property taxes $57 Million annually.  Minnesota is among the top states for high commercial real estate taxes.  Without these property tax cuts Minnesota’s ranking may get worse, rather than better.

Many of you have heard stories, or have stories of your own, about the difficult decisions that are made when business property taxes become uncompetitive. Conversely, low property taxes allow business owners to invest back into their business and keep prices affordable, which is good for Minnesota employees and consumers.

If business property taxes remain high, Minnesota will be passed up by companies looking to establish, expand or relocate their business here, and Minnesota businesses will look elsewhere for a more competitive place to call home.

Hopes for a special session

The tax bill has now joined other priority legislation—bonding and transportation bills—as possible agenda items in a special session. Stay tuned, and here’s hoping there’s life left in this bill that has real benefits for Minnesota’s important commercial real estate industry.

Entry filed under: Featured Articles.

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For more information about NAIOP Minnesota, visit www.NAIOPMN.org.

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