Local Tax Liens and Levies Expected to Rise in Minnesota in 2015

Published On: 9th December 2014

From the internet

In November, Minnesota released new numbers that showed that property taxes are set to rise throughout Minnesota in 2015.

The Minnesota Department of Revenue released a list of preliminary maximum property tax levies in Minnesota. It shows that cities expect a raise from 3 percent to 4.6 percent. Townships are set to raise 2.2 percent. School districts are set to see a 5.7 percent increase.

Local governments set the preliminary levies in September, ahead of the truth-in0taxation hearings that give citizens the ability to give input. The 2015 estimates for specific properties have started showing up in mail boxes. The final levies must be set by December 26. Local leaders are able to reduce the preliminary number, but they are not allowed to exceed it.

State officials will not release the big picture of property taxes until February. However, this is how the state department has summarized the preliminary levies:

  • The 2015 preliminary property tax levies for counties will go up from $2.7837 billion to $2.819 billion in 2014. That is a 3.0 percent increase
  • The preliminary property tax levies for city will increase from $1.957 billion to $2.047 billion. That is a 4.6 percent increase.
  • Townships will see an increase from $234 million to $239 million. That is a 2.2 percent increase.
  • Schools will see an increase from $2.356 billion to $2.490 billion. That is a 5.7 percent increase. School levies were expected to increase by $90 million. Voters approved $44 million of this money in renewed and new referenda. That makes the total increase for 2015 $134 million.
  • Special taxing districts will total approximately $335 million and that is up from $325 million in 2014. That is a 3.0 percent increase.

All of these increases average out to a total increase of four percent. This makes them approximately twice as large as they were last year.

In 2013, state and local officials worked on trying to reduce annual property taxes. The goal was to reduce the levies and produce more property tax refunds. This resulted in a reduction for the first time in over a decade.

But now, local officials are under pressure again to spend more money on infrastructure improvements and increase salaries. This has resulted in them having to raise the property taxes again.

It is very possible that the local governments will set their levies lower rather than higher, so these preliminary numbers are not the final numbers. In fact, the final levy totals are usually $20 million to $50 million lower than the preliminary numbers.

This property tax increase comes on the heels of an announcement that the state has a $1 billion surplus that could result in income tax credits for some individuals throughout the state. However, this surplus may or may not have a considerable impact on local government. The governor is not set to reveal his budgetary plan until January 27.