Property tax levies up, but not as much

Property tax levies look like they are going up 3.5 percent across Minnesota.

The state Revenue Department reports that is less than the three-year average of 6.9 percent (property taxes went up 5.6 percent last year).

Revenue Commissioner Ward Einess credits a property cap promoted by his boss, Gov. Tim Pawlenty, as the reason property tax levies are being kept "relatively modest.”

“It’s clear that the property tax cap has imposed some fiscal discipline on local government spending, even after many jurisdictions experienced reductions in local government aid this year,” Einess said.

The levy limit went into law last year and caps how much counties and cities with more than 2,500 residents can raise taxes. However, there is no limit on how much property taxes may rise to support public safety and a few other needs.

City levy increases are reported to be 5.4 percent, followed by school districts and counties at 3.2 percent and townships at 2.1 percent.

Duluth's levy is expected to increase 11.26 percent, second only to Minneapolis in the state's large-city category, the Revenue Department reported.

Posted by: Don Davis on 11/19/2009 at 10:44 AM | Permalink

Tags: property tax