David Brauer writes:
On Dec 30, 2004, at 8:02 AM, Victoria Heller wrote:
>
> http://www.twincities.com/mld/twincities/news/local/10525468.htm
>
> Minneapolis residential taxes take 1ST PLACE - and they're going to 
> triple!
>
What's as interesting is that Mpls property taxes DROPPED 36 bucks from 
2003 to 2004 (from $2,940 in 2003 to $2,904 in '04) on the baseline 
$195,000 home.

Mark Anderson replies:
Oh come on, David, you know better than that.  Taxes are on people, not
house values.  Whose house has kept the same value form 2003 to 2004?  How
much did the average Mpls increase in assessed value this year?  Is there
anywhere to find this?  From what I've heard, the average is around 10%
(although my house has increased more than that).  Since the tax on a given
value is about flat, per your data above, then the average tax increase per
household must be at whatever the average house value increased, presumably
about 10%.

Admittedly, the Pioneer Press article Vicky referenced is somewhat deceptive
also.  It doesn't make sense to compare taxes on a $195,000 home across
cities.  If the houses are less expensive in one jurisdiction than another,
then the less expensive city will need to tax at a higher tax per dollar of
house value to raise the same amount of tax.  Someone who owns a $195,000
house in Eden Prairie is living on the poor side of the tracks, while the
same house value in Mpls constitutes an average middle class home.  I'd much
rather see data on tax per resident than tax per dollar of house value.

David Brauer continues:
Also of note, according to 
http://www.startribune.com/stories/535/5160616.html:

"A 'driving factor' in [Minneapolis's] rise from third in the 2003 
rankings to first this year appears to be a state-enacted change in how 
voter-approved school and city levy costs are assessed, the 
public-affairs nonprofit said. According to the Citizens League, 
voter-approved levies cancel out a benefit that homeowners typically 
enjoy in property-tax calculations. The change was made during the 
1990s as part of a state effort to reduce business taxes."

In other words, it's not the spending, it's the state-mandated tax 
shift onto homeowners...

Mark Anderson replies:
I don't get this.  Every city in the state is subject to the same law, so
why would that law drive up the Mpls ranking?  Is it because Mpls has a lot
more businesses than the cities whose ranking they passed?

By the way, I hope everyone realizes how regressive business taxes are.
Most these taxes are ultimately paid by consumers and employees, not
business owners.  I'm not sure but I suspect that business taxes are more
regressive than home owner property taxes.

Mark V Anderson
Bancroft


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