"As a result, homeowners, who paid approximately 32 percent of Minneapolis property taxes in 1997, are expected to shoulder 53 percent of the burden next year." .....from Mike Mosedale's article.
[Vicky] This is a VERY important sentence. But percentages can distort what's really happening. As Minneapolis loses its business tax base, residents make up the difference. As Minneapolis reduces commercial tax values, residents make up the difference. As Minneapolis removes commercial property from the tax rolls, residents make up the difference. As Minneapolis turns formerly commercial property into residential property, commercial taxes drop and residential taxes increase - at a lower rate. Think Condomania. In real dollars, not percentages..... My Minneapolis property is classified as "commercial." An old warehouse at 1507 S. 5th Street has a 2005 tax value of $185,000 and my property taxes on this building are $7,153.28. A residence in Minneapolis valued at $185,000 would pay around $1,800.00 in property taxes. Even though the Legislature SLIGHTLY reduced commercial tax rates, my Minneapolis property taxes continue to go up, up, up each year. Terry Fiedler wrote in the Strib "While the Minnesota manufacturer with a 70,000 square foot building saw taxes go down to $124,646 last year, a company with a similar building in Iowa or Wisconsin would have paid about half as much, $66,285 and $64,428, respectively." Commercial property taxes are STILL a lot higher in Minnesota (including Minneapolis) than other locations. In part, this is why businesses are leaving the City and the State. Now onto residential property: Ron Leurquin wrote...."When I lived in Milwaukee I paid 2,400 in taxes on a 65,000 home. I then moved to Mpls, bought a house for 79,000 and paid only 1,100 in taxes. I was just checking my old hood in Milwaukee recently and found my old home has 3,600 in taxes and is valued at 110,000. My house here was worth 200,000 and I paid about 1,700 in taxes." Residential property taxes are STILL a lot lower in Minnesota (including Minneapolis) than other locations. Even the Star Tribune predicted that property taxes in Minneapolis will have to TRIPLE in the next six years - just to maintain current services. As a business owner I can tell you that a statement like that is a warning bell to get out of town pronto. Despite all of the "cuts" in spending, the total Minneapolis budget has stayed the same for the past three years at around $1.2 billion. Less than 1/4th of the total budget comes from property taxes, or $252 million in 2005. Also remember that $72 million of the tax take is earmarked as TIF, so only $180 million goes into the City's general fund. So the way I see things is condensed as follows: Minneapolis has spent money like crazy year after year, Minneapolis has borrowed money like crazy year after year, Minneapolis is now overburdened with debt, Minneapolis can't pay its bills and promises, Minneapolis won't increase its voters' taxes, Minneapolis won't sell any of its assets to raise cash, So what does Minneapolis do? Blame the Governor! My suggestion to default on some of the debt has been rebuffed, so my more recent suggestion is to immediately triple residential property taxes which would bring them in line with Milwaukee and other similar cities. Keep in mind that the commercial taxes are ALREADY double. This suggestion only works if Minneapolis residents actually accept responsibility for the actions of their elected officials. I won't hold my breath. Vicky Heller North Oaks and Cedar-Riverside 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
