ST. PAUL - Property taxes in Minnesota are expected to decrease by $8 million this year, the first drop in a dozen years, according to a report issued late last week by the state Revenue Department.
The state is offering refunds and credits worth $133 million to offset an increase of $125 million in property taxes levied by local governments.
“This drop in property taxes is good news for Minnesotans, who for years have been hammered by double-digit property tax increases,” Gov. Mark Dayton said.
The average increase over the past 12 years was $332 million a year, according to the Revenue Department.
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The Association of Minnesota Counties said Monday that the levy rose just 1.5 percent over 2013, the second-lowest one-year increase.
However, the savings for taxpayers were not as significant as the Dayton administration had believed. The Revenue Department had predicted a $121 million decrease.
Republicans said that property taxes had increased.
“In 2013, Democrats sent local governments $292 million in new money claiming it would lower property taxes," Rep. Paul Torkelson, R-Hanska, said Friday. “Despite Democrats’ repeated promises to reduce property taxes, Minnesotans learned today they are facing the highest property tax levy in state history.”
Cuts vary
According to the Revenue Department, counties raised property taxes $32.7 million, an increase of 1.2 percent compared to 2013. Cities raised taxes $30.1 million, a 1.6 percent increase. Townships raise taxes $4.5 million, a 2 percent increase. School districts raised taxes $39.6 million, a 1.7 percent increase. And special taxing districts, such as watershed boards, raised taxes $4 million, a 1.2 percent increase.
But tax changes varied among taxing jurisdictions.
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In Polk County, county taxes went up $393,200 or 2 percent. The city of East Grand Forks raised taxes $37,100 or 1.3 percent and the city of Crookston kept taxes the same as in 2013. The East Grand Forks schools cut taxes by $131,400 or 6.7 percent while Crookston schools cut taxes by $26,400 or 0.8 percent.
Throughout the rest of northwest Minnesota, taxes increased in Clearwater, Kittson, Marshall, Norman, Pennington, and Red Lake counties. Taxes remained the same as 2013 in Beltrami, Lake of the Woods, Mahnomen and Roseau counties.
Among cities in the region showing increases are Alvarado, Argyle, Bagley, Baudette, Greenbush, Grygla, Gully, McIntosh, Middle River, Oslo, Red Lake Falls, Stephen, Viking and Warren.
Cities with overall property tax decreases this year are Bemidji, Donaldson, Hallock, Twin Valley and Warroad.
Cities with tax levies that stayed the same are Ada, Badger, Climax, Halstad, Hendrum, Mahnomen, Perley, Roosevelt, Roseau, Strandquist, Strathcona and Thief River Falls.
School districts with property tax levy increases are Lancaster, Mahnomen, Newfolden, Goodridge, Climax, Fisher, Fosston, Red Lake Falls, Kittson Central, Warren-Alvarado-Oslo, Norman County East, Halstad-Hendrum, Win-E-Mac, Ada-Borup and Red Lake County Central.
School districts with tax levy decreases are Bagley, Bemidji, Grygla, Lake of the Woods, Fertile-Beltrami, Badger, Roseau, Warroad, Clearbrook and Karlstad-Strandquist.
Those that remained the same are Red Lake and Greenbush-Middle River.
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On the Web: For more detailed information on local property taxes go to tinyurl.com/nnypbbu .
Forum News Service Writer Don Davis contributed to this report.
