Minnesota property taxes heading higher

Minnesota State Capitol

Image by Mulad via Flickr

Stumbled upon this article on Kare11 and thought it would be worth sharing.  This certainly will not help with the homeowners struggling to make their payments..  I wonder if this will increase the foreclosure rate??  It certainly will put an added strain on property values depending how big of tax increase we actually see.

It leaves me with one question, if St Paul increases their mil rate by 6% and Minneapolis by 2%, then if you add in the States mill rate increase by another 6%….  Where are the School Districts??  How much of an increase are they going to be asking for?  Let’s go for the trifecta while we are at it.

Article from Kare11:

The Homestead Market Value Credit – a $261 million pile of money set aside each year for property tax relief – is gone.

In its place legislators and Governor Dayton agreed to a new system that excludes a percentage of a home’s value from property taxes, up to $414,000.  A sliding scale favors homes with lower valuations….

….So what kind of numbers are we talking about? Researchers for the Minnesota House of Representatives applied the new system to last year’s numbers and found property taxes statewide would have spiked by an additional 3.3 percent under the changes.

The simulation showed property tax increases would have ranged from a high of 6.7 percent in Southeastern Minnesota towns, to a low of 1.6 percent in southeast and southwest Hennepin County.

What is potentially destructive is the mention of shifting more of the tax burden onto apartment housing and commercial properties.  I can’t possibly imagine how that will help business’s hire more employees…

… for instance, your city has a lot of offices and large businesses – as a homeowner you’ll get a break. In cities like Minneapolis and Bloomington, property taxes can be shifted to apartment houses, office towers and factories, off-setting homes.






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4 responses to “Minnesota property taxes heading higher

  1. Pingback: Hennepin County & Minneapolis/St. Paul, Minnesota Unemployment Rates August 31 2011 | craigkamman

  2. Pingback: The Homestead Market Value Exclusion, MN property taxes going higher. | craigkamman

  3. Pingback: MinnPost – Hennepin County Board sets 1 percent levy increase | craigkamman

  4. Pingback: The Tax Assessor-Should You Let Them In Your Home | craigkamman

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