Proposed property tax rebate contingent on tobacco case

The House Republicans and Gov. Pawlenty have proposed a property tax rebate for homeowners this session. This is however contingent on the state supreme court upholding the tobacco fee passed last session as a way to balance the state's budget. Attorneys for the tobacco companies argued that the tobacco fee was in violation of the agreement that it had with the state regarding health care costs. The assistant state attorney general argued that the agreement only prohibits future lawsuits by the state and also said that the states legislative authority cannot be hindered by contractual obligation. The state supreme court heard oral arguments this week and is expected to issue a ruling soon.