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.
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.
- Minneapolis property taxes, not so bad?? (craigkamman.wordpress.com)
- Twin Cities Metro Area Property Tax Rates (craigkamman.wordpress.com)
- Case Shiller Home Value Index MN vs. MN Property Tax revenue (craigkamman.wordpress.com)
- St. Paul Mayor Coleman proposes 6.5 pct. levy hike | Minnesota Public Radio News (craigkamman.wordpress.com)
- Rybak proposes 2% property tax increase in Minneapolis (craigkamman.wordpress.com)