Property Tax Talking Points

 
Property Tax Talking Points Flyer | Hard copies available at no charge - send requests to info@naiopmn.org

   

Housing Minnesota's business is our business.

           
We thank Minnesota's employers for their loyalty and commitment to our state. A more stable, predictable and friendly business environment will enable them to grow and thrive.

For Minnesota's thousands of job-creating small businesses, our dozens of Fortune 500 employers, and our tens of thousands of entrepreneurs innovating and working to build a brighter economic future...


- COSTS MATTER -


...and the costs that matter most are the fixed costs they cannot control, such as the property taxes they must pay on the buildings they own or in which they lease space to office or operate.

                                   
         
   

 
Minnesota's Classification System
 
                      
Shifts the burden of local property taxes onto commercial/industrial (C/I) properties.
In effect, owners and their employer-tenants end up subsidizing all other taxpayers in the same jurisdiction.

   
     Minnesota's Classification System   The employers who ultimately pay theses property taxes already contribute far more than their fair share - in fact, nearly three times their share based on estimated market value.

In 2012, business property owners and their employer-tenants paid 31.1% of all property taxes, but represented only 12.8% of total statewide estimated market value.
   
             
            
            
                                                           
         
   


Minnesota's State General Tax
 
 
Places an additional fixed cost on every employer, no matter their size, profitable or not.

   
    Like homeowners, all businesses pay property taxes to their local city, county and school district. Unlike homeowners, businesses - along with cabin owners - are then taxed a second time on the same property by the state itself.

In 2013, the State General Tax will have collected a total of $841 million, paid into and spent by the state's General Fund - 95% of it paid by Minnesota's bussinesses and employers - on top of all of the local property taxes they have paid in their local taxing jurisdictions.
   Minnesota State General Tax    
         
         
                       


           

The property tax is the one tax that every private sector business and employer must pay - large or small, profitable or not, whether they lease space or own the building they occupy - a fixed cost over which they have no control.

Many policymakers labor under the misconception that the owner of an office tower, a shopping center, or an industrial building with multiple tenants actually pays the property taxes. In fact, each tenant business in these buildings pays its own pro rata share of both local and statewide general property taxes, along with all other operating expenses.