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Reduction Homeowners will pay more a a(0"a3
<br /> ONLINE
<br /> Increased local tax levies,voter-approved school levies and increasing •
<br /> +' home values are driving forces behind an average 15 percent increase
<br /> disappears S in homeowners'property tax bills statewide.Owners of low-value For information about
<br /> homes will see the steepest increases across the board.Average state property tax refunds,
<br /> .. increases in the east metro range from 11.4 percent in Dakota County go to http://www.taxes.
<br /> (continued) to 21.3 percent in St. Paul. state.mn.us,click on "2002 •
<br /> 2003 Percent tax forms,"then click on
<br /> and business property, also taxes change "Property tax refund."
<br /> 'enacted in 2001, was tied to Statewide , LoW value . • $94,300 ' ,• $931 17,2%
<br /> Inflation and increased only , • ,., Average value,'" $141,200 $1,579 ''•••;•,14,8%i t
<br /> ,slightly last year, shifting mote . . •._�•• .High value,'•; $188,300- ->'$2,231 ,',.13,9%: Taxpayers Association. "I don't
<br /> Of the tax burden to homes. Anoka Low value $101,200 $964 24.3% think we necessarily should sit
<br /> in
<br /> The analysis of final tax CountyAverage value 151,800 $1,633 21.0% judgment(of)whether that is
<br /> levies imposed by cities, coon ggood or bad."
<br /> ties and school districts was High value $202,300 $2,299 19.6% i Salomone said many taxpay-
<br /> performed by Jack Paulson ofWashington Low value ' $128,800 $1,322 '.,-18.5% ers this year will still be paying
<br /> the state Senate Counsel and :County : Average value $193,200 $2,169•:,,;'•16.7%; property taxes at significantly
<br /> i3.esearch staff and released at a •High value $257,500 • ' $3,015 • '`15.9"h; lower effective tax rates than
<br /> Senate Tax Committee meeting. before the 2001 changes.
<br /> Finance Commissioner Dan Dakota Low value $119,500 $1,116 12.8% The biggest beneficiaries of
<br /> 'Salomone did not challenge its County Average value $179,100 $1,859 11.4% those changes are the owners of
<br /> Conclusions. High value $238,700 $2,601 10.8% high-value homes, apartments,
<br /> Part of the philosophy c cabins and business property.
<br /> behind the 2001 tax change was Suburban •, • Iciw value $113,200 • $1,149 20.2%`• The 2001 legislation required
<br /> ,to take the Legislature out of Ramsey •• Average value, $169,700 , $1,908 •,.17.9%, the state to assume some school
<br /> i decisions about local property County High value $226,300. - $2,669; , .„.16.9%;1 costs previously borne by prop-
<br /> `taxes, especially school taxes, Minneapolis Low value $90,100 $1,154 18.9% erty taxpayers and eliminated
<br /> �Itid leave those choices to local Average value $135,200 1,918 16.7% many of the tax breaks that
<br /> officials and voters. owners of low-value homes for-
<br /> High': This year, Pawlenty is pro- value 4180,200 $2,680 15.9% merly enjoyed.
<br /> posing firm limits on the tax St Paul lowvalue $80,400 ' - $807 . ,22.6%' Taxes on commercial and
<br /> Increases that cities or counties ' Average value • $120,500 . $1,396 213%'. industrial buildings will
<br /> could enact to make up for the • " • • , High Value ••$160,600 •$1,984 19.6% ' increase less than 4 percent
<br /> Cuts he recommended in state statewide, according' to Paul-
<br /> aid to local governments. He Source.Minnesota Senate Counsel and Research PIONEER PRESS' son's analysis.Apartment taxes
<br /> also wants so-called "reverse will decrease,and taxes on cab-
<br /> referendums" that would allow increase in school district prop- now face reflect local decisions ins will increase an average of
<br /> IVoters to challenge tax increas- erty taxes. Cities and counties that voters and officials made. 11 percent.
<br /> •es. raised their taxes by 6 percent "Obviously, the referendum Senate Tax Committee11111
<br /> Voters last year approved and 6.7 percent respectively, levies were a big factor," said Chairman Larry Pogemiller,
<br /> 4117 million in new or increased more than three times the rate Salomone, who argued for the who voted against the 2001 tax
<br /> taxes in 47 school district refer- of inflation. 2001 tax changes in his previous bill,said Monday he believes the
<br /> endums across Minnesota, con- Salomone said the property job as executive director of the big increases awaiting home-
<br /> tributing to an 18.4 percent tax jumps that homeowners business-funded Minnesota owners are the predictable
<br /> result of shifting the tax burden
<br /> from businesses to homes.
<br /> ' I. "The so-called reform prom-
<br /> ised a better day for homeown-
<br /> ers,'i Pogemiller said."That's just
<br /> not true,that didn't happen."
<br /> Rep. R'on Abrams, R-Min-
<br /> netonka,chairman of the House
<br /> i Tax Committee and an architect
<br /> of the 2001 tax changes,blamed
<br /> this year's property tax increas-
<br /> es for homeowners on the city
<br /> and ,county levy increases. In
<br /> addition,he said no one in 2001
<br /> Predicted that home values
<br /> would go tip much faster than
<br /> industrial and commercial val-
<br /> ues,,*
<br /> al-
<br /> ues,'accentuating the shift of
<br /> burden ,from businesses to
<br /> libmea:'.
<br /> Abrains, and Salomone said
<br /> homeowners shoilld not expect
<br /> that, the average 15 percent
<br /> property tax increases this year
<br /> _ will be'followed by similar dou-
<br /> ble-digit increases next year.
<br /> Pogemiller said: "I think the
<br /> long-term•trend is a massive •
<br /> shift onto property taxes"
<br /> l3ut, for some property'oWii.
<br /> ers facing those tax jumps this
<br /> year,there is hope in a law that
<br /> offers a state-paid refund of 6011
<br /> percent. of. any homeowner
<br /> property`tax increase in eitcess
<br /> of 12 percent. There is a$1,000
<br /> maximum on the refund.
<br /> - . Dorothy McClung, Ramsey
<br /> County's property tax director,;
<br /> predicted the number of home-
<br /> owners eligible for the refund
<br /> will "balloon dramatically" this
<br /> year. Salamone said the cost of
<br /> providing the refunds is virtual-
<br /> ly certain to exceed the$14 Mil-
<br /> lion that Pawlenty currently has
<br /> budgeted, but he said Pawlenty ill
<br /> would find additional money to
<br /> meet the demand.
<br /> Staff writer Amy Sherman
<br /> contributed to this story.
<br /> Patrick Sweeney can be reached
<br /> at psweeney@pioneer press.com
<br /> i or(651)228-5253.
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