On 2/18/04 11:05 AM, "Victoria Heller" <[EMAIL PROTECTED]> wrote:
> Here are some facts to go along with varied opinions.... > > Commercial property taxes in Minnesota are DOUBLE those in Wisconsin > and Iowa (see Terry Fiedler's 2/9/04 article in the Strib.) That's a shame. But what does it have to do with Minneapolis specifically? > Minneapolis commercial property taxes are 400% higher than residential > homestead property taxes. A homeowner pays roughly 1% of his/her > market value, a businessowner pays 4%. A $200,000 home would generate > approximately $2,000 this year, a $200,000 small business property > would generate $8,000. I'd be interested in hearing arguments in > favor of the discrepancy. > > A specific example: 504 Cedar Avenue South.... > Property taxes last year: $8,230.84. This year: $19,228.76. I found this hard to believe so I looked up the actual property tax rates in the state statutes. Turns out that Vicky's numbers are a bit off. Here are the real rates: Residential: 1% up to $500K, then 1.25% for remaining value above $500K Commercial: 1.5% up to $150K, then 2% for remaining value above $150K Here's the source of my information: http://www.revisor.leg.state.mn.us/stats/273/13.html However, even if Vicky had gotten the numbers right, what does this have to do with Minneapolis specifically? The property tax rates are set by the state, not the city. And the state Legislature cut the rates for commercial property a couple years ago and homeowners make up the difference, so again, I'd be cautious of whining about commercial property taxes right now. As for the "arguments in favor of the discrepancy" - it's pretty simple. Commercial property earns income for the owner. Residential property does not. Personally, I view the higher rate on commercial property as effectively serving as an alternate income tax for folks who seek to avoid paying real income tax by hiding their profits through the various loopholes and deductions that exist in the tax code. > January gas bill last year: $1300. This year: $2,400. Again, a shame, but what does that have to do with Minneapolis given that the city has no control over natural gas prices? And further, how much of this gas bill increase is due to a higher price per therm vs. number of therms used? According to my gas bill, this past January was on average, six degrees colder than January 2003. That adds up to a lot of therms. Try installing programmable thermostats - they help a lot! > Insurance premium last year: $5,400. This year: $22,000. Yet again, a shame, but unless there's some significant difference in premium trends for Minneapolis vs. other parts of the metro or other cities of comparable size, it's completely irrelevant as far as the "cost of doing business in Minneapolis" is concerned. > Minneapolis water/sewer bills are significantly higher than > surrounding communities. State Auditor Pat Awada's office is looking > into this issue. Got any numbers to back this statement up? It would be interesting to see which surrounding communities have lower water/sewer bills than Minneapolis consider that Minneapolis supplies water to many of them. But even if it's true, I'd rather pay more for Minneapolis water that has been tested and found clean than the trichloroethylene-laced well water that's being served up in New Brighton, Arden Hills and Bayport right now. Mmmm...carcinogens sure are yummy for my tummy! > The question to consider and debate is: Do businesses (including > landlords) pay taxes? Or....do they simply COLLECT taxes from their > customers, tenants, and employees? Each time taxes are increased, the > price of goods/services/rent increases too. I wondered about this myself for a while. I don't think this is a simple case of businesses always being one or the other, especially landlords. It depends a lot on the level of competition that exists. If vacancy rates are low, then landlords effectively collect taxes from tenants because they can just pass along those costs since tenants don't have many options. But when vacancy rates are higher, then landlords must compete and so they are forced to absorb taxes or otherwise they'll be pricing themselves out of the market. Given the current vacancy rates, I'd say landlords are paying taxes right now. Darnit! Mark Snyder Windom Park REMINDERS: 1. Think a member has violated the rules? Email the list manager at [EMAIL PROTECTED] before continuing it on the list. 2. Don't feed the troll! Ignore obvious flame-bait. For state and national discussions see: http://e-democracy.org/discuss.html For external forums, see: http://e-democracy.org/mninteract ________________________________ Minneapolis Issues Forum - A City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:[EMAIL PROTECTED] Subscribe, Un-subscribe, etc. at: http://e-democracy.org/mpls
