MN Property Taxes by the Numbers 2009 1
Executive Summary___________________
Since 2002, Minnesota property taxes, in general, and homeowner property taxes, in parcular, have increasedrapidly. The cause of the statewide growth in property taxes is not growth in local government budgets.These property tax hikes are the result of state policies that require more public costs to be borne by propertytaxpayers and a larger share of total property taxes to be borne by homeowners.Of the 854 cies in Minnesota, 677 (79.3 percent) experienced an increase in per capita property taxes from
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*A “homestead” refers to an owner-occupied housing unit.
2002 to 2009, while560 (65.6 percent)
experienced an increase
of ten percent or more.The average homestead
*
property tax among
Minnesota cies hasincreased even more
rapidly than per capita
taxes. Of Minnesota’s854 cies, 746 (87.4percent) saw an increasein the average homesteadproperty tax from 2002to 2009, while 530 (62.1percent) experienced anincrease of 20 percent or
more.
It is important to adjust for the impact of inaon when assessing changes in state and local governmentrevenue over me so as to disnguishbetween real spending growth versusgrowth caused by erosion in thepurchasing power of the dollar. In thisreport, all changes in tax and revenueamounts over me are adjustedfor inaon in the cost of state andlocal government purchases, unless
otherwise noted.Appendices A and B show growth
from 2002 to 2009 in per capitaproperty taxes and averagehomestead property taxes for allMinnesota cies with a populaonover 5,000.
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