Regardless of what side of the referendum issue you are on, you need to be aware of an important property tax issue that comes into play in 2012. Starting next year, homes in Minnesota, will no longer receive the homestead tax credit which lowers property tax liability for homes assessed below $413,800. This credit will be replaced with a "valuation exclusion" for a portion of the assessed value on certain homes assessed below $413,800. It is too early to say with precision how this will affect individual tax bills across different communities, but the Star Tribune has an informative article written on the subject. The general consensus is property tax bills will rise.
Part of the shift will go toward industrial and commercial properties. Anyone who has lived in Westonka very long knows we don't have a very large inventory of those types of properties.
House Research also has a very informative piece on this topic.
As your school board representative, I will always strive to keep you informed on the issues as they pertain to critical and difficult decisions.
Follow up story:
ReplyDeletehttp://www.startribune.com/politics/statelocal/129769163.html
Follow up story:
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{Mound City Councilor David Osmek said that that shift could have resulted in a "massive tax increase" to some properties in the cities, so city officials made the decision to lower the preliminary tax levy. Osmek said that the new preliminary tax levy is about a $250,000 reduction from the 2011 levy.}
{"The state failed to reimburse counties for the full amount of the homestead credit in seven of the last eight years, Davids told commissioners, adding, "The state of Minnesota is the largest delinquent taxpayer in the state." The change will begin with the 2012 tax year.}
ReplyDeleteOther than the fact the state is "broke," why hasn't there been any movement to collect what is owed to cities due to the "defaulted" MVHC payments from the state? How is what the state has done, any different from a deadbeat dad--or mom--not paying his/her child support?
Interesting non-metro artcle:
http://bluffcountrynews.com/main.asp?SectionID=26&SubSectionID=137&ArticleID=39321
Another follow up:
ReplyDeletehttp://www.startribune.com/local/130092028.html