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Metro/State SUNDAY, NOVEMBER 15' 1998
<br />
<br /> ~Vhat they're saying
<br /> about Truth in Taxation notices:
<br />
<br />"I believe in them. The simple fact ~,,,
<br />is, we have gone to that hearing
<br />before. We had problems when we
<br />first built our home with water
<br />coming in, so we wanted our taxes
<br />lowered until that was resolved....
<br />I like the fact thatyou see the
<br />breakdown, and what's happening
<br />with the special school levies com-
<br />ing on and off-- how it breaks
<br />down and where the money goes.'
<br />
<br />-- Kirsten Sandv~, homeowner, Coon Rapids
<br />
<br />"I look at it, and if it hasn't changed
<br />any, I don't worry about it. I've
<br />never had a problem. It's a good
<br />thing. Everyone has the right to
<br />know what to expect in taxes, and
<br />not just get billed, l've got a feeling
<br />that if it went away, taxes might run
<br />a-~ok. I would definitely get in-
<br />t ediftaxesweregoingupalot."
<br />
<br />-- Chris Reed, unemployed engineer, Cottage Grove
<br />
<br />"I don't pay much attention to it, to
<br />tell you the truth. All I know is, I
<br />have to pay taxes. [The noticel really
<br />doesn't stand out to me, and I'm
<br />sure l get rid of it as soon as it comes
<br />out. Maybe government people
<br />should do something differently to
<br />get a bigger response than they do
<br />now. I do think it's good infor-
<br />mation to have."
<br />
<br />-- Rachel Ramirez, office manager, St. Paul
<br />
<br />budget deadlines, complicated
<br />state funding formulas and con-
<br />tinuing demands for more ser-
<br />vices find that their ability to re-
<br />spond is limited.
<br />"Our big criticism is that the
<br />'ting comes so late in the
<br />get process that's it's pretty
<br />~ough to make a big change," said
<br />Lynn Reed, research director for
<br />the Minnesota Taxpayers Associ-
<br />ation, a group whose aims in-
<br />clude educating Minnesotans
<br />about state tax and spending pol-
<br />icies. "If a government gets a real
<br />negative reaction, they might
<br />shave a little off, but that doesn't
<br />strike me as real citizen in-
<br />volvement.''
<br /> Sometimes, though, citizen
<br />protests can have a delayed ef-
<br />
<br />Shifting burden
<br />~fifle§ota legislators have steadily reduced the difference
<br />between classification rates on residential and commercial properties, effec-
<br />tively forcing local homeowners to pay a greater share of city and county prop-
<br />erty tax levies. Some predict that increasing the tax burden of homeowners will
<br />spur them to take a greater interest in the city and county budget and tax proc-
<br />ess. Increased state aid to education has reduced the portion of school funds
<br />raised from taxes on residential property. Individual property tax bills are calcu-
<br /> lated by multiplying the property value by the state classification rate to arrive at
<br /> a property's tax capacity. That number is then multiplied by the local tax rate. /
<br /> /
<br /> Property i 1998 ! 1999 /
<br /> class / Classification rate i Classification rate
<br /> Residential homestead " .......... i .................
<br /> First $75,000 of value 1% ] 1%
<br /> Valueover $75,000 i 1.85% I 1.7%
<br />
<br /> Commercial and industrial ~
<br /> First $150,000 of value i 2.7% ] 2.45%
<br /> Value over $150,000 ~1 4% I 3.5%
<br />
<br />From 1997 to 1999 the share of city and county property taxes paid by Min-
<br />nesota homeowners will have risen from 39 percent to 44 percent; the portion
<br />paid by business properties will have shrunk from 32 percent to 29 percent. In
<br />both years, business property accounted for about 15 percent of market value
<br />
<br />in Minnesota; homes
<br />made up about 58
<br />percent of market
<br />value.
<br />
<br />Source: Minnesota
<br />Department of Revenue;
<br />Minnesota Taxpayers
<br />Association
<br />
<br />Property tax revenue sources
<br />
<br /> 1997
<br />Other* Residential .
<br /> 29%~ 39% 1999
<br /> ~/~al~ ~ Other* Residential
<br />
<br /> Business ~_. ~
<br /> 32% ] ~
<br /> Business
<br /> 29%
<br />
<br /> spring and summer budget ses-
<br /> sions in local papers and on cable
<br /> televis,!on. "But people just don't
<br /> come, said former auditor/trea-
<br /> ! surer Richard Stafford, who was
<br /> elected to the County Board this
<br /> I year. "When times are good and
<br /> peop, le are pretty comfortable,
<br /> ,~ they re not going to drive dow,,n
<br />~:l to Stillwater on a Tuesday night.'
<br /> · Lynn Reed hopes continuing
<br /> i '/state efforts to shift the.~p_Lo_E~ty
<br /> /tax burde'h ~~ss proper-
<br /> [ t f T6--ti 6Tn e~-~_~e~r.T_~ !-~J ~s p i r e
<br /> ~ mb. Le-'~-C~a-~f~ o s c r u t in !.z..e_[o c_c_al
<br /> '~ spreE.ding plans. Since 1997, the
<br />
<br />fect, Coutu said.
<br /> "Because of the way the bud-
<br />get process is set up, it may ap-
<br />pear the commissioners aren't
<br />listening because they don't
<br />make changes," she said. "But
<br />what they've heard from the pub-
<br />lic is very much a consideration
<br />when they set the next year's
<br />budget."
<br /> In the wake of the angry St.
<br />Paul hearings in 1993, city offi-
<br />cials, aided by a healthy econo-
<br />my, have kept the tax levy flat for
<br />five years. County and school tax
<br />increases have also dropped dra-
<br />matically, as has attendance at
<br />the annual property tax hearing.
<br /> Washington County has tried
<br />to involve citizens earlier in the
<br />fiscal process, advertising the
<br />
<br /> Star Tribune graphic
<br />share of city and county property
<br />taxes paid by Minnesota home-
<br />owners has risen from 39 percent
<br />to 44 percent.
<br /> "Homeowners have been
<br />shielded from the tax pain,' Lynn
<br />Reed said. "We don't presume to
<br />say what the level of tax should
<br />be, but to decide what level of
<br />services people want, they need
<br />to know what the price really is."
<br /> Staff writer Mary Lynn Smith
<br />contributed to this report.
<br />
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