Property taxes set to rise in ’17, but at slower pace
Property taxes levied by cities, counties, schools and other entities across Minnesota would rise an average of 3.8 percent for 2017 if preliminary rates don't come down after upcoming Truth-in-Taxation meetings.
The total proposed increase -- about $344 million -- is considerably lower than that suggested and ultimately adopted for 2016. Last year, property taxes across the state rose by a combined $397 million, or about 4.5 percent. That was below the 5 percent recommended by local governments in their preliminary assessments.
The figures are based on the total amount the various taxing jurisdictions are aiming to raise through property taxes. It doesn't necessarily represent how much more or less homeowners or commercial property owners will pay, because parcel-specific rates differ by area, property type and changes to the makeup of the local tax base. Property owners should receive notices about how much they would be expected to pay next year, pending challenges.
Levies in some cities and counties are slated to fall while they could rise substantially or remain flat in other places.
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Cities are pushing for the largest percentage increase in their levies, hoping to collectively raise $2.261 billion compared with $2.129 for this year. That represents a 6.2 percent increase.
For counties, there is a combined 4.2 percent increase on the table that would draw in about $3.03 billion in 2017. Changes to the levies of townships and schools are more modest.
The proposed increases are subject to change as local governments hold meetings where residents can challenge the bumps. After receiving the input, local leaders must set their final levies by Dec. 28. By law, they can drop the proposed levies lower but not increase them after this stage.
The school district levies are different because those are primarily the result of voter-approved levies in the November election.