Due to some potentially confusing numbers reported in the media after my
budget address yesterday, I want to point out that my proposed budget
would result in an estimated increase of $26 to the property tax on a
typical home in Minneapolis, valued at $211,500.
 

The total increase in property taxes on that same home in 2005 is
estimated at $214. 
 

The remainder of the increase not impacted by the City's budget consists
of:

 
$74.00 - Caused by increased property value (the State is phasing out
limited market value) and the State's decision to shift tax burden from
commercial property to residential property, which leaves Minneapolis
homeowners responsible for a larger percentage of tax collected.*
 

$114.00 - Property tax revenue to the County, School District, and
Watershed District. 
 

*Clarification to Star Tribune article of August 13, 2004: The $100
increase referenced in the Star Tribune is the total of the $26 and $74
above. However, due to lost commercial property tax revenue, this $74
does not represent a net increase in revenue to the City.

 

A lot of different numbers and figures were reported on today in various
media outlets. I hope this helps clarify the actual result of my
proposed budget on homeowner's property taxes.

R.T. Rybak 

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