Minnesota businesses carry some of the highest business property tax burdens in the United States. In rural areas, such as southern Minnesota, our businesses pay the second highest rates in the nation!

One of the main reasons for this high burden is that here in Minnesota the state levies an additional property tax on businesses (and cabins) over and above local taxes that are used to support our schools, our city and county. This tax accounts for nearly one-third of a local business owner’s property tax bill, and it goes directly to the state’s General Fund. Statewide, the business property tax totals more than $860 million! And that amount increases each and every year automatically with no additional need or action required by our elected officials.

Businesses have been singled out for this tax, separate from other property owners. The tax they pay not only effects their bottom line, but also their ability to support local units of government, charities, and most importantly, grow their business and create employment opportunities right here at home.

Our business owners face more than their share of challenges — workforce shortages, government mandates, burdensome regulations….and on top of that, they also pay this extra property tax. Much of the current state budget surplus has been gained by increasing taxes on business, making it increasingly difficult for them to invest and grow. With a huge state surplus, now is a great time to reduce that burden.

Ask your legislators to support a decrease in the statewide business property tax. We need to keep those dollars working in our hometown!

Doug Loon and Sandy Forstner,

Minnesota Chamber of Commerce and Austin Area Chamber of Commerce