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Capitol View®
Tim Pugmire

Pawlenty, Senate at odds over property tax cap

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Gov. Tim Pawlenty is criticizing a bill that lifts a cap on local property taxes.

Legislation approved this week by the Senate tax committee would allow local officials to raise property tax levies without state interference. The bill eliminates a 3.9 percent levy limit passed in the 2008 session. The committee's chairman, Sen. Tom Bakk, DFL-Cook, says the governor broke the cap agreement by proposing cuts in state aid to cities and counties.

"We haven't lived up to the intent of the agreement that was reached in May with the governor," Bakk said. "So, I guess if part of the agreement is going to fall apart, then I guess the portion that the governor received in exchange needs to be reconsidered also."

Pawlenty responded today , saying he doesn't like the move. The Republican governor told reporters that limiting increases to 3.9 percent is a reasonable way to control local taxes.

"It allows local units of government to have some flexibility to raise property taxes, but it doesn't allow them to go crazy," Pawlenty said. "And we need that kind of discipline if we're going to control property taxes in Minnesota. It's an important and effective tool."

Pawlenty pointed out the cap is scheduled to sunset in three years.

The Senate bill also eliminates the annual requirement for local officials to hold "truth in taxation" hearings.