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2012 Legislative Change <br />Market Value Homestead Credit (MVHC) <br />property tax & market value <br />other revenue Jiat homestead <br />sources credit <br />ALA <br />COMBINED REVENUES PAY FOR CITY SERVICES <br />The intent of the law was for the state to subsidize a <br />homeowner's property tax bill by promising to pay part of <br />that bill to the city. Those MVHC dollars, combined with <br />revenue from property taxes and other city revenue sources, <br />were to provide the necessary funds to pay for city services <br />like police, fire, clean water, parks, etc. <br />property tax & <br />other revenue <br />sources <br />market value <br />homestead <br />credit <br />INCONSISTENT REIMBURSEMENT LEAVES HOLE <br />The state fails to reimburse cities for some or all of the <br />property tax credit each year. City revenues fall short of <br />those needed to fund city services, forcing responses like <br />reduced services and increased property taxes. <br />L Market Value Homestead Credit (MVHC) currently given to <br />homesteads valued at $413,800 or less eliminated in 2012. State <br />Legislature Repealed $260M in tax credits to MN homeowners. <br />17 <br />