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Dayton budget impacts on Cottage Grove, Washington County

Washington County's nearly 3,000 wealthiest residents would pay higher income taxes under Gov. Mark Dayton's budget proposal.

The Democratic governor on Tuesday proposed raising taxes on the wealthiest Minnesotans - the top 2 percent of the state's income tax filers - and dramatically changing the state sales tax structure as ways to erase a budget deficit and increase spending on state programs.

The Dayton income tax plan would raise the rate from 7.85 percent to 9.85 percent for couples earning more than $250,000 and individuals making at least $150,000.

That would affect 2,858 Washington County taxpayers, according to information provided by the governor's office. There are 109,575 taxpayers in Washington County.

The governor also proposes a property tax rebate of up to $500 for homeowners.

Washington County homeowner property taxes would decrease 10 percent under the proposal, while business property taxes would decrease 1 percent, Dayton's office said.

Aid to cities, county

State aid to Washington County and local cities also would increase.

Washington County's state aid of $6.98 million in 2013 would jump $1.66 million to $8.65 million in 2014, according to Dayton administration estimates. That is a 24 percent increase, similar to the increase that would be seen by most Minnesota counties.

Cottage Grove, which has not received Local Government Aid payments for a number of years, would receive $121,000 in LGA in 2014, if the Legislature approved Dayton's budget plan.

Newport's LGA would jump from an estimated $554,000 in 2014 to $692,000.

St. Paul Park also would see an LGA increase next year, from an expected $205,000 to $302,000.

Scott Wente

Scott Wente has been editor at the South Washington County Bulletin since 2011. He worked as a reporter at other Forum Communications newspapers from 2003 to 2011.

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