Property Taxes

updated: Thursday, December 29, 2011

Property taxes are set each year by determining the amount needed to provide services to the community. This amount is spread across the community based on taxable market values and property class rates. (The residential rate is different than a commercial or apartment rate.)

Minnesota law requires that the assessed value of your home reflect its market value: the price a buyer would typically pay for your home in today's real estate market. Assessors set your home's value by comparing what similar homes in your neighborhood actually sold for in the last year. For questions about your home's assessed value, call the city assessor's office at (952) 924-2535.

Hennepin County mails property tax statements in late March. If you have a question about your tax statement or need a new copy, call the County Property Tax Statement Office at (612) 348-3011.

Taxes can be paid in two installments. The first half-payment is due no later than May 15, and the second payment is due no later than October 15. Most property owners pay their property taxes as part of their monthly mortgage payment.

2012 Preliminary Property Tax Levy

On September 6th, 2011, a Preliminary Property Tax Levy was adopted which represented an increase of 5% over the 2010 levy.  The levy increase is largely attributed to funding for debt service for our new fire stations along with a modest increase to the General, and Parks and Recreation Funds. For 2012, the combined preliminary General, and Parks and Recreation Fund expenditure budget is $29,765,137 as compared to $29,416,249 in 2011 or approximately a 1.19% increase.
 
The 2012 Preliminary Property Tax Levy of $23,830,726 supports the operations of the General Fund, Parks and Recreation Fund, Park Improvement Fund, Capital Replacement Fund, Pavement Management Fund and Debt Service.  As noted earlier, a majority of the levy increase is being used to start paying off the bonds for the new fire stations. The remaining amount is used for General Fund, and Parks and Recreation operations, which includes the addition of one new police officer.

Potential Tax Impacts Based On State Legislative Changes
The 2011 State Legislature repealed the Market Value Homestead Credit program and replaced it with the Market Value Homestead Exclusion.  This law will result in several changes at the local level for residential homestead properties even if the City of St. Louis Park adopted the exact same property tax levy as in 2011:
The State of Minnesota is no longer reducing total taxes through the Market Value Homestead Credit program. The entire property tax levy will be paid by the taxpayers.
 
The reduction in taxable value due to the Market Value Homestead Exclusion will result in a higher City tax rate. With less taxable value in the city, the total same levy as the prior year would still result in a higher City tax rate.

The reduction in taxable value shifts the relative burden of who pays, meaning the shift is to other property types such as commercial/industrial and homes with higher values.  

 

Learn more about the Market Value Homestead Credit:
The Homestead Credit Shift of 2011 - How it Will Affect City and County Property Taxes and TIF Districts by Mark Ruff & Joel Sutter

What's Going on with My Tax Bill - League of Minnesota Cities' brochure

Video: Why are Minnesota property taxes going up? - Molly Bloom & Curtis Gilbert, Minnesota Public Radio
 

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