reprinted from

Fairmont Sentinel                                        August 11, 2006

Otto: Changes needed to reduce property taxes

By LEE SMITH
Sentinel Staff Writer

FAIRMONT - Rebecca Otto knows the race for Minnesota state auditor is not glamorous, so she is appealing to citizens' pocketbooks.

The DFL-endorsed candidate for auditor, Otto visited Fairmont on Thursday during campaign swing. She describes "property taxes and competence" as the roots of her campaign.

Otto, 43, argues that prior to the election of Republican
Patricia Anderson, the office of state auditor was non-political, focusing on compliance in government spending and making sure government officials were not pocketing tax dollars.

''Auditors also worked to make sure local governments were healthy financially," Otto said.

She says Anderson "greased the skids" for cuts in state aid to local governments, helping spark rising local property taxes in Minnesota cities and counties. While Gov. Tim Pawlenty and others may argue that local governments are free to spend what they want locally. Otto says services like libraries, parks, roads, public safety and public health are hardly "non-essential." And charging people more in property taxes and fees serves as regressive taxation, meaning it is unrelated to a person's ability to pay, she said.

Otto says the result has been more local option sales taxes, more bond sales and "wheelage" taxes, in which counties charge flat fees to owners of vehicles.

While the debate over Pawlenty's "no-new-taxes" pledge, local government aid and the Democratic response has become a broader political issue, Otto says the auditor's office has a responsibility to advocate "good policy." She believes the state's actions have made local governments less able to respond quickly to changing economic conditions, thus making them financially weaker.

"Minnesota finances have moved away from a 'One Minnesota' approach and toward an 'every man, woman and child for him or herself philosophy that will have negative long-term economic and quality of life impacts across Minnesota," Otto argues.

She recommends a 12 per cent property tax rebate with the closing of Foreign Operating Corporation tax loopholes, with future revenue from the change going to local government aid. She estimates the loophole would account for $160 million per year.

Otto served in the Minnesota House for a year after winning special election in a Republican- dominate district in 2003. She lost her re-election fight in 2004.

She, her husband and son live in Marine on St. Croix. She holds degrees in life science from Macalester College and from the University of Minnesota. Otto previously served on the Forest Lake School Board.