GOP Senate candidate received a tax break for a townhouse she doesn’t live in

Kathleen Fowke, the Republican candidate running in the November special election for Senate District 45, last year received a homestead property tax break for a property she doesn’t live in and outside the district she hopes to represent.

Fowke, a west metro real estate agent and wife of former Xcel Energy CEO Ben Fowke, lives in a Tonka Bay home valued at nearly $4.9 million, but they do not claim it as their homestead for tax purposes, according to Hennepin County property records. Properties valued over $413,800 do not qualify for the tax exclusion.

Instead, Fowke, via an LLC, declares a Plymouth townhome as a “relative” homestead — meaning a relative lives there — and receives a legal property tax break despite owning millions of dollars in property, underscoring how wealthy people are often able to use the tax code to their advantage with shrewd planning.

Republicans hope Fowke can win an upset in the special Senate election — the sole state Senate race on the ballot 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 state Sen. Ann Johnson Stewart. With the Senate evenly split 33-33 between Democrats and Republicans, the Senate race is expected to draw millions in outside spending, as Republicans seek to break up the Democratic-Farmer-Labor Party’s trifecta.

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

While Fowke argues a vote for her would restore balance to state government after the consequential DFL trifecta of 2023-34, Democrats are sure to paint Fowke as a wealthy candidate out of touch with the concerns of average Minnesotans.

Fowke’s husband, Ben Fowke, was Xcel Energy’s CEO from 2011 to 2021. In his last year, he made $22 million in total compensation.

Property owners in Minnesota may file homestead classification applications with their county assessor to qualify for the state’s Homestead Market Value Exclusion. The property tax program reduces the taxable market value of a home, which decreases the amount of property taxes a homeowner owes.

Although Fowke’s home is too valuable to qualify for the homestead exclusion, Fowke owns a Plymouth townhome valued at about $335,000, according to her economic interest statement and property records. According to Hennepin County property tax records, Fowke is the manager of the LLC that owns the home, and the business’ address is her Tonka Bay residence, according to the Office of the Minnesota Secretary of State.

Hennepin County 2024 property records show the taxable value of the property was reduced by $6,532* through the state’s Homestead Market Value Exclusion program on the Plymouth townhome.

When asked about the tax break, Fowke told the Reformer that she bought the townhome for her elderly mother and registered the property as a relative homestead on the advice of a financial professional.

“The unfortunate reality is that the high cost of everyday goods is hitting many Minnesotans hard, especially our seniors, who often live on fixed incomes,” Fowke said. “Like any daughter, I helped my mom with 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 once elected.”

In 2020, Fowke was featured in Gulfshore Life, a lifestyle magazine in southwest Florida, to highlight the design of her home there. The home was not declared in her economic interest statement, but the Minnesota Campaign Finance Board asks candidates to only declare property located in Minnesota.

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

*Correction: A previous version of this article mischaracterized the amount of Fowke’s tax break from the Homestead Market Value Exclusion.

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