The Downside To Rising Home Values In Minneapolis And What To Do About It
Property taxes increase with home values. Home owners that were paying $70 a month in property taxes in 2012 are paying $285 a month in 2019. These increases has hurt the average Minneapolis residence since most don't have a lot of disposable income. The city of Minneapolis can help offset this burden by providing property tax credits. In addition, the city could pass a property tax credit to any landlord that then gave that tax credit to lower the rent. So if any Minneapolis home owner passes their $3,000 property tax credit on to their renters, then the home owners get an additional $3,000 tax credit. So it would be a $6,000 property tax credit total that would get split between the renter and the home owner. That is a win for the renter and the home owner. It puts cash directly into their pockets.
We can help low income people in the city by providing financial education income tax credits that they can use to learn how to own land and create wealth. Wealth is created in owning land, not just being a renter your entire life. We can also provide construction training income tax credits, so people can transfer into good paying jobs that increase their monthly income. If they can’t work because of disability, then they get a fixed monthly income and health care. All of this could be paid for with the money already allocated in the budget and with the surplus money from the property tax increases over the last 7 years.