GOP Senate candidate received tax relief for a townhouse she doesn't live in

Kathleen Fowke, the Republican candidate in November's special election for the 45th Senate District, received a property tax abatement last year on a property she does not live on and that is outside the district she seeks to represent.

Fowke, a west metro real estate agent and wife of former Xcel Energy CEO Ben Fowke, lives in a Tonka Bay home worth nearly $4.9 million, but according to Hennepin County land records, they don't list it as their residence for tax purposes. Properties valued over $413,800 don't qualify for the exemption.

Instead, through an LLC, Fowke declares a Plymouth townhouse a “relative” residence — meaning a relative lives there — and receives a statutory property tax break despite owning millions of dollars' worth of real estate. This underscores how wealthy people are often able to use clever planning to use the tax law to their advantage.

Republicans are hoping Fowke can pull off a surprise win in the special Senate election – the only Senate election in November – to replace former Sen. Kelly Morrison, DFL-Deephaven, who resigned from her seat in June to run for Congress. Morrison beat Fowke by over 12 percentage points in 2022.

The DFL candidate this year is former Senator Ann Johnson Stewart. With the Senate tied 33-33 between Democrats and Republicans, the Senate race is expected to attract millions in outside funding as Republicans try to break up the Democratic-Farmer-Labor trifecta.

The 45th Senate District includes the western suburbs of the Twin Cities: Minnetonka, Wayzata, St. Bonifacius, Orono and Excelsior.

While Fowke argues that a vote for her would restore balance to state government after the momentous DFL tripleheader from 2023 to 2034, Democrats are sure to portray Fowke as a rich candidate out of touch with the concerns of average Minnesotans.

Fowke's husband, Ben Fowke, was CEO of Xcel Energy from 2011 to 2021. In his final year, he earned a total of $22 million.

Property owners in Minnesota can file home classification applications with their county assessor to qualify for the state's home market value exemption. The property tax program reduces the taxable market value of a home, which in turn reduces the amount of property taxes a homeowner owes.

Although Fowke's home is too valuable to qualify for the property tax exemption, Fowke owns a townhouse in Plymouth valued at about $335,000, according to her statement of beneficial interest and land records. According to Hennepin County property tax records, Fowke is the principal of the LLC that owns the home, and the company's address is her Tonka Bay residence, according to the Minnesota Secretary of State's office.

Hennepin County property records from 2024 show that the property's taxable value was reduced by $6,532 through the state's Homestead Market Value Exclusion program for the Plymouth townhouse.

When asked about the tax relief, Fowke told reformer that she had bought the terraced house for her elderly mother and registered the property as a relative's residence on the advice of a financial expert.

“The sad reality is that the high cost of everyday goods is hitting many Minnesotans hard, especially our seniors who often live on a fixed income,” Fowke said. “Like any daughter, I helped my mother through a perfectly legitimate tax process; however, a simplified tax code would benefit every Minnesotan. I look forward to the rest of this campaign and hearing from voters across the district about the challenges they face and the solutions I will offer if elected.”

In 2020, Fowke appeared in Living on the Gulf Coasta lifestyle magazine in Southwest Florida to highlight the design of her home there. The house was not reported on her statement of economic interest, but the Minnesota Campaign Finance Board asks candidates to only report property located in Minnesota.

According to her most recent campaign finance report, Fowke loaned her campaign $125,000 in July. In 2022, Fowke loaned her campaign $376,000, and that loan is still outstanding — meaning her campaign currently owes her more than $500,000.

This story was originally published by the Minnesota Reformer