There has been plenty of fuss over proposed double-digit property tax increases in Minneapolis. Good news for the state: Minneapolis is not representative of a trend — quite the opposite.
According to data just released by the Minnesota Department of Revenue, the average proposed tax increase for Minnesota property owners is just 2.6 percent — a 10-year low. The statewide average for the past three years is 5.3 percent.
Minneapolis property owners will not be surprised to learn that their city ranks high on the list of highest increases in cities with a population of 50,000 or more. Only one city is proposing a higher increase: Rochester’s 8.4 percent increase tops the list.
The proposed Minneapolis increase — driven by the burden of a city pension fund hollowed out by the recent stock market crash — is at 7 percent. Maple Grove and Burnsville are tied for third with 5.5 percent increases. The lowest increases for cities with a population of 50,000 or more are Bloomington (-0.1 percent) and St. Cloud (-3.0 percent).
Minneapolis property owners would do well not to ask their friends in St. Paul how they’re faring. Property owners there won’t see any change in what they pay to the city. St. Paul is one of 173 Minnesota cities with no proposed change in property tax levels.
Here’s a chart showing the highest city levy increases in cities with over 50K population:
Minneapolis property owners can at least be grateful that their county didn’t add to their tax bill. Hennepin County isn’t proposing any changes for 2011. Ramsey County is proposing a 2.75 percent increase.
Here are Minnesota’s five largest counties ranked proposed property tax increases:
Want to know what the increase is for your county or city? Check out our interactive map of Minnesota counties over at Many Eyes. Zoom in and click on your county to find out how much more or less money you’ll be sending to the county in 2011.