The Minnesota Department of Revenue recently predicted that local property tax levies will increase statewide by a modest 3.5%. Depending on where you live, however, your city’s portion of your property taxes could increase more. Property owners with property in cities that received larger cuts through the governor’s unallotment will see higher increases in their city’s levy.
As part of the governor’s unallotment, cities could see a cut between 0% and 7.6% for 2010. Cities over 1,000 in population that are slated to see a reduction in state aids and credits larger than 3.3% of their levy plus aid will increase their levies by an average of 6.3% (most cities fewer than 1,000 saw no reduction in state aids and credits). Cities over 1,000 in population with cuts smaller than 3.3% will increase their levies by an average of 2.4%. The estimate is based on maximum levy amounts proposed by local governments prior to the truth-in-taxation hearings and may be reduced, but cannot be increased.