I caught this article from MPR and had to link to it. MPR reports that the City of Minneapolis and the City of St Paul are both to release their budgets this week. And to what surprise, another tax levy.
Here we go again…
Coleman says he’ll propose to increase the city’s property tax levy by about 2 percent. In spite of that, most homeowners will actually see their tax bills go down, because residential property values have fallen further than other types of real estate.
Minneapolis Mayor R.T. Rybak presents his budget to the city council on Wednesday. His spokesman says he’s aiming for a tax levy increase of less than 3 percent.
But don’t worry, with the tax increase you won’t actually be paying more because your biggest asset and family nest egg has shrunk so much in value. (umm.. the values are starting to go back up.) I suppose it’s not like anyone is unemployed or underemployed struggling to make ends meet as it is..
Higher property taxes bring values down! People purchase based on their monthly payments, if you keep dedicating more and more of that monthly payment to property taxes then the value has to drop. (or monthly income has to go up…)
Detroit is an extreme case in high property taxes and home values, but property owners found a loophole. Apparently some don’t pay their property taxes and liens and then the City condemns them to resell the property to collect. The owners then buy back the property at auction for a fraction less than what the tax liens were for. Check out the details here.
I should refrain until I see the budgets… but it seems like we just went through this.