Posted 3/7/01 Greatest need for property tax reform falls in greater Minnesota Further reductions in Minnesotaís business property tax rates should be a top tax priority of lawmakers this legislative session, especially legislators from rural Minnesota. The most recent rankings show that businesses in greater Minnesota continue to pay some of the highest property taxes in the nation. ìAnyone who wants to improve the economic health of rural Minnesota should be extremely concerned abut how poorly we compare with the rest of the nation in terms of commercial and industrial property burdens,î said David Olson, president of the Minnesota Chamber. ìReducing business property tax rates is the highest legislative priority for the Chamber and the thousands of business members from across the state.î The most recent study conducted by the Minnesota Taxpayers Association shows that in 2000, Minnesotaís rural business property tax rates were far less competitive than neighboring states and the rest of the nation. Commercial property with value of $100,000 in rural Minnesota has the 7th highest property tax burden in the nation, 51.5% higher than the U.S. average. Commercial property in rural Minnesota with value of $1 million has the 3rd highest burden in the nation, 97.2% higher than the U.S. average. Rural industrial property tax burdens rank slightly better. Industrial property with value of $100,000 has the 15th highest property tax burden in the nation, 7.8% higher than the U.S. average. Industrial property in rural Minnesota with value of $1 million has the 8th highest burden in the nation, 40.8% higher than the U.S. average. The Minnesota Chamber commended Governor Ventura for recognizing the scope of the business property tax problem in his 2001 budget proposal. The plan offers an immediate 15% business property reduction and reduces the business share of the local property tax by 41%, making a significant increase in accountability for those who levy the local property tax. ìLocal governments that oppose reduction in business property tax rates are, in effect, opposing rural economic growth,î Olson said. ìWith the current economic slowdown, we cannot handicap business growth. The current tax rankings reveal that Minnesota must continue to level the playing field to help insure rural prosperity.î ©Post Review