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<br /> Property Tax Duluth(709) $1,320; Cloquet(94) the nonmetro cities, Counties' share other tax calculations in the sur-
<br /> $1.299; St. Peter(508) $1,287; of the 1994 tax rate averages 28 vey,)
<br /> Continued from page 6 Hutchinson(423) $1,248; and Hib- percent in the metro cities and 32
<br /> bing(701) $1,243. percent nonmetro. The city share Many communities have voter-
<br />.e school tax rate increased by 57 averages 18 percent metro and 23 approved levies to provide addi-
<br /> rcent. According to School Dis- The five lowest tax nonmetro cities percent nonmetro. Miscellaneous tional income for their school dis-
<br /> trict 110 business manager Larry in the $90,000 home comparison taxing jurisdictions average four tricts. St. Paul is the only one of the
<br /> Sharratt, the increase is due partly are: percent metro and less than one 95 metro communities whose
<br /> to a new debt levy to pay for con- percent nonmetro. school district does not have a ref-
<br /> struction of a $16 million high Elk River(728) $931; Mar- erendum levy affecting 1994 taxes,
<br /> school set to open this fall and part- shaU(413) $938; Red Wing(256) (These tax-rate share figures do not Only five of the 27 nonmetro com-
<br /> ly to health and safety work on the $956; Owatonna(761) $1,033; and include school levy referenda munities are in school districts
<br /> district's buildings and increases in Brainerd(181) $1,038. passed after Nov. 1, 1992, which without referendum levies.
<br /> the general education levy. At the are based on market value, rather
<br /> same time, the city tax rate Changes in property tax levels than tax capacity, or other levy ref- Lynn Reed is a research associate
<br /> increased as the city decided to cut Taxes vary from year to year for a erenda based on market value. ofthe Minnesota Taxpayers Associ-
<br /> back its reliance on state aid for number of reasons, including Among the 95 largest metro com- ation (MJA) and Dana Schroeder
<br /> general purpose spending. changes in the value of the proper- munities, two school districts- is editor of the Minnesota Journal.
<br /> Although the school tax rate ty. In all but eight of the communi- affecting five of the 95 communi- The MJA did the data preparation
<br /> declined slightly in 1994, increases ties in the survey, the average value ties-and two cities have such and arullysis for the property tax
<br /> in the city and county tax rates of a home increased from 1992 to market-value referenda in place. survey, The complete study, Min-
<br /> resulted in an increase in the total 1993. (There is a one-year lag in Among the 27 largest nonmetro nesota Homestead Property Tax
<br /> tax rate that moved Waconia's the home values used for tax pur- communities, eight school dis- Review 1994, is available for pur-
<br /> taxes to highest in the ranking. poses.) Six cities showing a decline tricts-affecting nine of the 27 chase from the Citizens League at
<br /> were in the metro area and two communities-and one city have 338-0791 or the MJA at 224-7477.
<br /> Neither St. Paul nor Minneapolis were nonmetro communities. In the market-value referenda These ref-
<br /> ranked in the top five last year; metro area cities the median erenda levies are included in the
<br /> Minneapolis ranked seventh last increase in average-home value
<br /> year and St. Paul 16th. The reason was 2.2 percent, compared to 9.7 TABLE 2: TAXON HOME SEWNG FOR $90,(0)*
<br /> for the change in the two cities' rel- percent in the nonmetro cities,
<br /> ative rankings? St. Paul's total tax IN 2r* NONMETROPOUTAN COMMUNmes, 1994
<br /> rate increase from 1993 to 1994-- Increases in the tax rates set by Assessors Percent
<br /> at 8.6 percent-was among the local units of government also help Community MaItet 1994 Tax Change in
<br />.est in the metro cities. Only account for increases in estimated (School District) Value- Tax Rank Taxes '93-94
<br />e other cities of the 95 had per- taxes. Homeowners in more than
<br /> centage increases as high or higher. two-thirds (65) of the metro cities Albert Lea (241) $ 79,470 $1,077 21 -5.0%
<br /> Most of the increase in St. Paul was and over three-fourths (20) of the Austin (493) 78,570 1 ,200 7 -82
<br /> due to a nearly 14 percent increase nonmetro cities saw increases in the 8emidji (31) 80,01 0 1,217 6 1.5
<br /> in the school tax rate. The county cumulative tax rates in 1994. The Brainerd (181) 79,560 1,038 23 -3.9
<br /> tax rate also increased, while the cumulative rate is the sum of tax Cloquet (94) 78,660 1 ,299 2 5.0
<br /> city rate declined, rates of the city, the school district, Duluth (709) 81,540 1,320 1 13.5
<br /> the county and other taxing juris- Elk River (728) 77,130 931 27 -1.0
<br /> Part of the rate increase in St. Paul dictions (such as hospital or water- Fairmont (454) 87,480 1,140 14 14.4
<br /> was due to an overall decline in the shed districts), Tax rates increase if Faribautt (656) 78,300 1,129 15 -42
<br /> city's tax base, due almost entirely taxes grow at a faster rate than Fergus Falls (544) 80,910 1,105 18 122
<br /> to a drop in the city's commercial- property value, or if taxes remain Hibbing (701) 82,800 1,243 5 15.4
<br /> industrial tax base. The total tax constant and property value Hutchinson (423) 78,390 1,248 4 3.8
<br /> levy also increased, mainly due to declines. Property taxes can Mankato rrn 78,840 1,076 22 -3.1
<br /> an increase in school spending, increase if spending increases or if Marshall (413) 78,300 938 26 0.4
<br /> there is a loss of revenue from Moorhead (152) 79,650 1,147 11 2.0
<br /> While the total tax rate increase for another source, such as state aid. New Ulm (88) 80,370 1,108 17 4.7
<br /> Minneapolis-at 2.7 percent-was North Mankatorrn 75,690 1,092 20 -8.1
<br /> not large, it was high enough rela- Interestingly, nine of the 30 metro NorthfieId (659) 78,480 1,145 12 42
<br /> tive to other cities to push the city cities with tax rate decreases in Owatonna (761) 81,540 1,033 24 102
<br /> up three places to fourth highest in 1994 were located in Anoka Coun- Red Wing (256) 81,540 956 25 12
<br /> the rankings. The school, city, and ty. The tax rates decreased in three Rochester (535) 81,270 1,167 8 9.8
<br /> county tax rates all increased in school districts in which eight of St. CIoud(742) 81,000 1,143 13 2.5
<br /> Minneapolis. those nine communities are located, St. Peter (508) 79,380 1,287 3 8.5
<br /> Also, Anoka County's tax rate Vrrginia (700) 82,800 1,157 9 14,3
<br /> Three of the five lowest metro cities declined slightly (by less than one Willmar (347) 81,180 1,155 10 -3.3
<br /> -Ham Lake, Ramsey and Andover percent}-the only one of the seven Winona (861) 81,450 1,110 16 12.4
<br /> -are located in School District 11, metro counties showing a tax rate Worthington (518) 83,340 1,104 19 4,8
<br />e has the third lowest tax rate of decrease. 'A ntrnber of nonmetrcpotitan communities have few homes selling for S90,lXXl, but the table is
<br />hool districts in which the 95 included for comparative puposes. The S90,lXXl selling price is adjusted for differences n assess-
<br /> metro cities are located. School districts typically account men! p-actices arrong communities, as shown in the "Assessor's Mar1<et VU. c:okm1.
<br /> for the largest share of the property -rhe 27 cities outside the metropolitan area with populations of 9,lXXl IX' above.
<br />The five highest tax nonmetro cities tax rates-an average of 50 percent -see footnote on Table 1.
<br /> in the $90,000 home comparison of the total 1994 tax rate in the
<br /> are: metro area cities and 45 percent in SOURCES: Citizens league and Minnesota Taxpayers Association
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