Minnesota Budget Project - Renters' Credit At Risk

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The Minnesota Budget Project is an initiative of the Minnesota Council of Nonprofits.

Renters' Credit At Risk

2008 Proposal by Governor to Cut Renters' Credit is Defeated

The Renters' Credit provides a tax refund to over 271,000 Minnesota households with high housing costs. Seniors and persons with disabilities make up 29% of all Renters' Credit recipients.

In his budget proposal released to the 2008 Legislature, the Governor proposed cutting the Renters' Credit by 21%, which would not only have a significant impact on these low-income households, but also would have increased the regressivity of the property tax. The Minnesota Budget Project and many other nonprofits quickly organized to defeat this proposal. Both the Senate and House Tax Committee did not make any cuts to the Renters' Credit in their omnibus tax bills. The final omnibus tax bill (HF 3149) signed into law by the Governor made no changes to the Renters' Credit.

For more information on the Renters' Credit and efforts to defeat the proposed cuts to the Credit, see:

An open letter to Minnesota policymakers opposing cuts to the Renters' Credit signed by over 100 organizations.
What is the Renters' Credit/Circuit Breaker Property Tax Refund? - an overview of the Renters' Credit
Who Receives the Renters' Credit? - information by county on the number of persons receiving the credit, total amounts of Renters' Credit received by county residents, and more. Some of this data has been made into maps by Minnesota 2020.
Testimony on the Renters' Credit - The Minnesota Budget Project testified on behalf of the Renters' Credit in both the House and Senate Tax Committees in mid-March.
Governor Proposes $34 million Tax Increase on Low-Income Renters, an issue brief by Minnesota 2020.

Renters' Credit Threatened in 2005 Legislative Session

In the 2005 Legislative Session, Governor Pawlenty proposed cutting the Renters' Credit by 20%. The Minnesota House of Representatives proposed cutting the credit by 44% in Fiscal Year 2007, while the Senate made no cuts.

Over 160 Minnesota organizations joined the Renters' Credit Coalition, which strongly opposed any cuts to the Renters' Credit. The coalition argued that Minnesota's low- and moderate-income renters should not be expected to shoulder such a large share of the cost of balancing the budget.

Analysis and other materials used in the coalition's successful efforts to defeat cuts to the Renters' Credit in 2005 include:

Cuts to Renters' Credit Would Increase Unfairness of Property Taxes - finds that rental property taxes would become one of the most regressive taxes in the state if proposed cuts to the Renters' Credit are enacted
House Omnibus Tax Bill Would Hurt Minnesota Renters - describes the House proposal to cut the Renters' Credit by 44% and the impact it would have on Minnesotans
Governor's Proposal to Cut Renters' Credit Would Hurt Minnesotans - describes the Governor's proposal to cut the Renters' Credit by 25%
Legislative testimony - forward your browser to approximately 32 minutes into the hearing
Written testimony by the Minnesota Budget Project
Talking points developed by the Minnesota Coalition for the Homeless

Updated July 28, 2008

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