Tag Archives: Property tax

City of Bloomington lowers Tax Levy


Well this was certainly great news, especially for me since I own property in Bloomington.  The City has lowered their property tax levy for 2012, not by much but at least they are trying.  Given the changes in the Homestead Taxes, I don’t expect to see any actual reduction in the property taxes.  Funny how one takes this with relative nature, “at least it didn’t go up more..”

Bloomington reduced its total City levy despite state changes in Market Value Homestead Credit and relative values between residential and commercial properties. The City Council’s objective is to hold the median value home’s 2012 property taxes for City services at $67.82 per month, the same amount as in 2010 and 2011, with the average value home seeing a 1.45 percent decrease for 2012. See table below.

Property tax cost of services

Levy
amount

Change from
prior yr.

Median value home monthly cost of tax-supported services

Average value home monthly cost of tax-
supported services

2010

$44,606,281

+2.98%

$67.82

$78.01

2011

$44,582,753

-0.12%

$67.82

$79.73

2012
prelim.

$44,441,371

-0.25%

$67.82

$78.58

The property tax dollar levy for a median value and average value home is shown for the past three years. In 2011, the City Council approved a levy decrease. Over the past 20 years through 2011, the average levy increase was 3.24%. 2012 figures are preliminary. It can be reduced but not increased.

2012 median value home – $207,300; 2010 average value home: $235,500.

The City of Bloomington does a fairly good job on explaining why the taxes continue to increase even while our values are decreasing.  If you read this blog you will recognize the flow of this chart from another post of mine comparing the CPI with the FHFA Home Price Index.  The City property taxes seem to be pacing along the track of inflation, give or take.  Our home values are heading back down to keep more in line with the inflation.  Things are balancing back out naturally.

One of the great things about Bloomington is their fiscal responsibility, compared with other nearby Cities.  The only downside is we are still subject to Hennepin County tax levies and Schools district levies.  But for the Twin Cities area, Bloomington offers very nice affordable homes and a relatively low property tax rate.

If you are interested in further detail on The City of Bloomington’s property taxes, the City has published a very in-depth explanation you can read on their website.

If you are considering relocating, I highly recommend you look into Bloomington.  It is a great location within the Twin Cities at a great value.  Contact me if you would like further information about Bloomington Real Estate.

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The Tax Assessor-Should You Let Them In Your Home


It is Property Tax season, the Assessors have been making their rounds valuing the properties and your 2nd Half property taxes are due Friday…

Every year property taxes keep increasing while our values keep dropping.  This coming year most of the Cities property taxes are going up, the State reworked the Homestead Tax Credit to the Homestead Exclusion and to top that off there is talk of many school districts wanting an increase also.  We all feel like victims to this cycle and that there is nothing we can do.  Michael Bolton, a local appraiser has a great post about the process of valuations and the procedures for appealing your property taxes.

Take a few minutes to read his post and ask specific questions about your situation.

The Tax Assessor-Should You Let Them In Your Home

 

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Its not a scam, though it sounds like one Property Tax Information


City seal of Detroit, Michigan.

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Date:� Wed, 09/07/2011 Mike Allende Some Detroit homeowners are taking advantage of a loophole to avoid tax debt, and other homeowners think it�s just plain wrong. The Detroit News reports that some property owners are allowing their

via Its not a scam, though it sounds like one Property Tax Information.

Only in Detroit!  (at least for now…)

 

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Reminder: 2nd Half Property Taxes Due


Property market

Image by alancleaver_2000 via Flickr

Just a reminder that your 2nd Half Property Taxes are Due October 15th.  (that’s coming up soon!)  (enough time to secure a loan!)

If you are in Hennepin County you can pay your 2nd Half Property Taxes Online at:

http://www.hennepin.us/PropertyTaxPayments

Property Taxes are due May 15 and October 15. If the date falls on a weekend or holiday, taxes are due the next business day.

* if you escrow your property taxes, your mortgage lender is paying the taxes that you have paid monthly.  If you are uncertain if you escrow, look on your mortgage loan statement and call the lender.

 

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Commercial Real Estate Market set to rebound.


Maybe I should have finished that Headline off with a question mark.  There is a great post from HousingWire reporting on the SF Fed’s report suggesting the Cap Rates are indicating a turn around in the commercial real estate market.   I agree the cap rates are the key factor on investing in commercial property, however I don’t believe the economy is sound enough yet.  In order to achieve these rates of returns you need tenants (businesses) to occupy the space and pay the rent.  You also need a stable tax environment where property taxes aren’t skyrocketing underneath you undermining your rate of return.

Investors are expecting a widespread rebound in U.S. commercial real estate markets, according to an analysis published Monday by the San Francisco Federal Reserve Bank.

With the two most widely followed measures of commercial real estate prices showing divergent trends since early 2010, economists at the San Francisco Fed turned to capitalization rates as an indicator of expected returns on commercial properties.

“Recent declines in these cap rates appear to be signaling a commercial real estate rebound, indicating improved investor expectations of price growth in the market,” said the San Francisco Fed’s economic letter.

…..Price appreciation in Kansas City, Minneapolis, Salt Lake City and Austin, Texas, is expected to be about 2% higher than national trends would indicate, said Hobijn and Krainer.

Read Full Article to get their Graphs and details of the report.

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County property tax levels set for first stage of approval today


The Pioneer Press has a great breakdown of the Twin Cities County taxes.  It is well written, concise and I can not add anything to it other than to comment:  Way to go Anoka County!

See the County Tax rates at the Pioneer Press.

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MinnPost – Hennepin County Board sets 1 percent levy increase


Seal of Hennepin County, Minnesota

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Hennepin County board decided that the tax levy will go up no more than 1 percent next year. 

The board set the maximum property tax levy of $676.1 million, and will now hold public hearings before setting the final levy on Dec. 13. They say it could go down but can’t go up.

MinnPost – Hennepin County Board sets 1 percent levy increase.

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City of Minneapolis Tax Board Meeting next Tuesday, tax levy increase


City hall of Minneapolis, Minnesota (USA).

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The City of Minneapolis is having the Tax Board Meeting Tuesday at 5:05 pm in room 317 at the City Hall.   This will be in discussion of R.T. Rybak’s property tax increase proposal, the overall tax levy not the item by item budget.   Somehow this seems to have gotten scheduled conveniently to limit residents input.

From the Star & Tribune

After 55 minutes of griping about property taxes Tuesday, Minneapolis residents might have to take a two-hour intermission.

A six-member board that determines the city’s property tax ceiling is preparing to interrupt its most important meeting of the year Tuesday because of an obscure state law that bars public meetings on the evening of a special election. On Tuesday that is the DFL primary for the seat vacated by Sen. Linda Berglin.

“It’s a very awkward situation,” said David Wheeler, president of the city’s Board of Estimate and Taxation.

The board will set the maximum levy at their meeting Tuesday after hearing public testimony. They cannot meet between 6 and 8 p.m. If testimony lasts more than an hour — it traditionally does not — citizens will have to wait.

Carol Becker, another elected member of the board, said the interruption is compounded by the fact that Mayor R.T. Rybak delayed presenting his full budget. That means the public will have a day, rather than weeks, to review it before the hearing.

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Combine the City of Minneapolis property tax increase with the new Homestead Exclusion tax and City of Minneapolis residents could really feel the pinch from property taxes.

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Rosemount gets it right! Rosemount City Council lowers Property Taxes!


That was so much fun to write that!  Having been bombarded by news of property tax hikes across the Twin Cities metro, I saw this headline and had to share it.   A City Council that understands and worked hard to get it right.  Congratulations.  If you live in Rosemount, you should call your City Council and Thank them for their hard work.  Their hard work has made many twin city residents envious of Rosemount residents, but it also shows that it CAN be done.

The approved preliminary levy reduced the levy over 2011 by 5.75 percent. This is the fourth year in a row the city’s share of taxes has decreased. Over the four-year period the property tax on a median value home has decreased $204. A median value home in Rosemount is worth $201,600.

The city council voted to decrease the tax levy by $630,325. Most of that is because of the repeals of the market value homestead credit. The city saved additional money when it got its insurance rate for 2012. The council had planned on a 20 percent increase, but the number came back at a 5 percent increase.

Read Full Article here.

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The Homestead Market Value Exclusion, MN property taxes going higher.


Minnesota State Capitol

Image by Mulad via Flickr

There are some recent changes to the way the State calculates their tax rates for your property taxes.  We are currently under the Market Value Homestead Credit (MVHC) formula, but  will now be under what they are calling the Homestead Market Value Exclusion.

Basically your property taxes are going up.   The State will longer be covering levies, so the jurisdictions are picking that portion up.  I am still trying get a better understanding of this formula, so I am holding my opinion off until I understand the entire legislation better.  Even though I don’t like the result right now, in the overall picture it might be a better system.  I have thought for years they should scrap the whole “homestead” value all together, because a  House is a House and should be taxed as a House (whether it is rented or owner-occupied, or a vacation house.)

But in the mean time we can go into what it will mean to the Homestead property owner.  The following information comes from the House legislators website. (read full document here)

How It Works
The exclusion provides for a portion of each home’s market value to be excluded from its value for property tax calculations.  The amount of value excluded is directly proportional to the MVHC the home received under the old law.  In this way, each home contributes a smaller amount to each taxing jurisdiction’s tax base.  The tax rate tends to be a little higher because of the reduced tax base, which is why taxes increase for the other types of property.   The tax burden on any given homestead could be lesser or greater depending upon the mix of properties in the jurisdiction (more nonhomestead properties increases the likelihood that homestead taxes will be reduced and vice versa) and the level of the tax rate (higher tax rates make it more likely that homestead taxes will be reduced and vice versa).

Rather than pasting the entire document, I will jump to the visuals of what this means to the Homestead owner.  Below is how the Calculations used to work, and how they will work.  If you are anything like me you will re-read this 14 times and still be scratching your head.

Homestead Market Value Exclusion - How it's calculated

 
Below they put it to a “practical” demonstration, making it more understandable.  Let’s get to the point, we are looking at about 4.24% increase on our property taxes according to their sample.
 

Homestead Market Value Exclusion sample property tax calculation

 
 
 
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