Assistant Senate Majority Leader Taryl Clark, DFL-St. Cloud, today claimed that for the first time, collections from the property tax will be greater than collections from the income tax.
Is this true?
We turn to veteran political calculator Mike Mulcahy.
This does appear to be true if you’re talking individual income taxes. House research made this handy chart.
But there are also some caveats. It looks like income tax collections took a big drop because of the recession. Handy chart here on page 3
Also worth noting that the property tax figures include the statewide property tax on businesses but the individual income tax totals do not include the corporate tax, which raises $792 million this year…a little more than the statewide business property tax.
Also not sure if it’s fair to say this is the first time ever. The state had no individual income tax before 1933.
Update 5:33 p.m. (From Mulcahy)
According to information Tom Scheck just got from the Revenue Department, the state collected more in property taxes than income taxes from 1962 to 1978 (the year of the Minnesota Miracle) and fiscal years 91-96. (The records they gave us only go back to ’62). It also looks like there were a few years in the early 1980s when property tax revenues where higher than income taxes (that may have been due to the recession then, but it’s a little hard to read their chart).