State speeds up payments to flood-damaged towns and counties

(AP) - Minnesota towns and counties hit by this month's flooding will collect their local government aid payments almost four months early.

Gov. Tim Pawlenty on Thursday ordered the payments be sent out early. They are usually sent twice a year, in July and December.

The payments amount to about $25 million. The checks will be sent out to affected areas in Dodge, Fillmore, Houston, Olmsted, Steele, Wabasha and Winona counties.

Flood damage has been estimated at $67 million for private property and infrastructure, including 1,500 damaged homes. Some people and businesses hit by flooding will also get a little relief when it comes to paying required state taxes that have accumulated since the flood, the Minnesota Department of Revenue said.

The deadline to pay those state taxes - such as individual income taxes or corporate taxes - is Nov. 1. But Revenue Commissioner Ward Einess said there will be no penalties or interest on taxes that would've been owed between Aug. 19 and Oct. 31.

In addition, he said, those affected will have until the end of the calendar year to pay the taxes.

Taxpayers with questions about the deadline extension can call the Revenue Flood Hotline at (800) 657-3606.

The forgiveness does not apply to local property taxes. But Einess added there's a disaster credit in place for property taxes that will be due in 2008, and the Legislature may seek other remedies if a special session is held this fall.

Einess said flood victims expecting a property or renter's tax refund in the next few weeks should let the Revenue Department know where to send the refund if they've been displaced by the flooding.

The number to call is (800) 657-3676.

(Copyright 2007 by The Associated Press. All Rights Reserved.)

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