Rising property taxes a pressure for DFL

11/29/2006

A looming $516 million increase in Minnesota's state and local property taxes may build pressure for relief as the new DFL-dominated Legislature convenes next year.


Star Tribune
Last update: November 28, 2006 – 9:25 PM


A looming $516 million increase in Minnesota's state and local property taxes may build pressure for relief as the new
DFL-dominated Legislature convenes next year.


State revenue officials say the 8.2 percent rise in property taxes they project for 2007 could be trimmed pending the results of local levy hearings beginning this week. Typically, the hearings have led to statewide reductions of $20 million to $30 million in the taxes proposed by local governments.


Property taxes rose 9.2 percent this year and an average of 7 percent over the past three, according to the state Department of Revenue. The department also said residential property taxes as a share of market value have fallen from 1.67 percent a decade ago to a projected 1.05 percent in 2007.


The average tax increase on existing homes for 2007 is projected at 6.6 percent, the department said.


The biggest overall property tax increases are expected to come from school districts ($159.4 million, 9.5 percent), counties ($149.8 million, 7 percent) and cities ($129.6 million, 9 percent). Special taxing districts ($31.7 million, 13.5 percent), state taxes on commercial and industrial property ($34.4 million, 5.2 percent) and townships ($11.6 million, 6.5 percent) account for the rest of the projected increase.


Gov. Tim Pawlenty said Tuesday that he expects to enact some property tax relief next year. Rep. Loren Solberg, DFL-Grand Rapids, the incoming chairman of the House Ways and Means Committee, suggested that that will be a legislative priority as well.