CGMC plan would bring tax relief
The Coalition of Greater Minnesota Cities (CGMC) -- of which Worthington is a member -- is proposing a $325 million Property Tax Relief Act that would provide $325 million in tax relief to all levels of local government and property owners across...
The Coalition of Greater Minnesota Cities (CGMC) -- of which Worthington is a member -- is proposing a $325 million Property Tax Relief Act that would provide $325 million in tax relief to all levels of local government and property owners across the state.
We believe it's a plan worthy of endorsement, particularly because of the balance it proclaims to offer in terms of tax relief -- 49.7 percent to the metro area, and 50.3 percent to Greater Minnesota.
The most important component of the proposal for Worthington and other southwest Minnesota communities is $125 million in local government aid (LGA) that would be restored. Under the CGMC plan, LGA would be restored to its pre-2003 cuts level (not including inflation), with some modifications to the formula that the CGMC says will increase fairness and stability. Should the proposal have been in effect this year, for instance, Worthington -- which will receive $2,980,671 in LGA for 2007 -- would have gotten $3,371,261 (a difference of $390,590) instead. Additional LGA would undoubtedly make a difference to municipalities statewide, as levels of LGA cuts and property tax increases practically mirror one another.
The CGMC proposal also includes $175 million for school property tax levy equalization, which the organization says would especially help low-wealth, fast-growing school districts. An additional $25 million would to restore county aid cuts made in 2003.
Plenty of legislators across Minnesota have promised tax relief to their constituents. The Coalition's plan appears to be a practical, and equitable, way of doing so.