Legislative Change to the Homestead Credit

An item in the budget agreement that ended the state government shutdown that has received a lot of attention recently is the repeal of the market value homestead credit (MVHC) and the creation, in its place, of a new market value homestead exclusion.
The MVHC was enacted in 2001, along with a number of other property tax reforms. The MVHC provided qualifying homesteads with a credit on their tax statements which reduced their taxes. The credit was based on a formula that used a sliding scale, with the maximum credit being $304 at $76,000 in market value and zeroing out at $413,800 of market value.
The new homestead market value exclusion was created to provide substantially the same benefit to homesteads as the MVHC by excluding some of a homestead's market value from being taxed. The exclusion equals 40% of the first $76,000 in market value and phases down to $0 at $413,000 of market value.
What does all of this mean? It means there is still a tax benefit for homesteads. It also means locally elected officials remain accountable for their levy decisions.
Locally elected officials need to consider a variety of variables when setting a levy, including the conversion of the MVHC to a market value homestead exclusion, local government aid (LGA) reductions AND how levy decisions will affect local taxpayers.
What can we do? For our part as taxpayers, we should take advantage of the opportunity to influence levy decisions by making the priority of affordable property taxes and the value of the homestead exclusion and reduced property taxes on our principle residences known to our elected officials.

610 Grand Opening

MN DOT is nearing the completion of the Hwy 610 extension project, and the roadway is currently scheduled to open to traffic on Aug. 19.

They're holding a public ribbon cutting ceremony next week:

Hwy 610 Ribbon Cutting
Wednesday, Aug. 17
On the new freeway, below the Zachary Lane Bridge
Event begins at 2 p.m. (program begins at approximately 2:30 p.m.)
The program includes remarks by dignitaries and an official ribbon cutting. Other event attractions include a children's art contest, classic cars, fire trucks, ice cream, and an opportunity to walk/bike a portion of the new freeway.

Click here for information on the benefits and details of the Hwy 610 extension project.