As the font of knowledge for all things real estate, I bring to your attention an article from MPR which unpacks the recent changes to Minnesota property taxes.
For those just picking up on this issue, quick background: Earlier this summer, while everyone was distracted by the govt shutdown, the legislature eliminated something called the market value homestead credit.
But because our property tax system is tougher to keep track of than the latest changes to Facebook, nobody really knew what the impact would be, other than to assume the worst.
Anyway, somebody published a 900 page (!!) study to unravel the mystery, and MPR read it, so you don’t have to.
Here’s an excerpt/money quote from the article linked above:
“Communities with lots of commercial and industrial property and high value homes would have escaped major shifts. But some homeowners in cities with lower value homes and little non-residential property (think outstate Minnesota) would have seen tax bills greater by 10 percent or more.”
“Statewide, property taxes would have been $272 million greater. That’s a 3.4 percent increase. The percentage hike would have been greatest outstate and it would have been slightly greater for residential property than for commercial-industrial property, the two largest classes of property.”
Rumor has it (we did not check) that within the 903 page PDF you even can lookup every city in the state to see the impact.
Minnesota’s property tax change comes into focus — kind of [MPR]