Minneapolis property taxes higher than most other Minnesota cities

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August 8, 2011
By: Nick Halter
Nick Halter

Budget Breakdown // Part 4

Part 1: Coping with property tax pain
Part 2: Four factors that contribute to property tax increases
Part 3: Answering city budget questions


Minneapolis residents pay high property taxes compared to other metro cities, but they’re not the highest taxed residents, based on a Southwest Journal review of tax rates from across the state.

The Southwest Journal compared 2011 tax bills for $200,000 homes in 14 metro municipalities as well as three Greater Minnesota cities.

The Journal also looked at property taxes from 2010, using the League of Minnesota Cities’ online property tax estimator. The LMC plans to update the database with 2011 figures, but had its process delayed because it was unable to get data from the state government while it was shut down.  

The owner of a $200,000 home in Minneapolis will pay $3,142 in property taxes in 2011. That’s far more than some Hennepin County neighbors, like Edina ($2,275), Plymouth ($2,315) and Orono ($1,860). But a Minneapolis tax bill is less than in Brooklyn Center, where a $200,000 homeowner will pay $3,340 in 2011.

In 2010, the most recent year of data collected by the LMC, only 15 of 142 metro municipalities had higher property taxes than Minneapolis.

Since that data was calculated, however, residential property taxes in Minneapolis have increased by 4.7 percent. The owner of a $200,000 Minneapolis home in 2010 paid $2,725 in property taxes, compared to $3,142 in 2011.

How does Minneapolis stack up with other urban centers? Using 2011 data, the owner of a $200,000 home in Duluth will pay $2,262. In Rochester and Mankato, $200,000 homes have $2,429 and $2,158 tax bills, respectively.

While a Minneapolis homeowner will pay $3,142 this year, the owner of a $200,000 home in St. Paul will pay $2,777, or about $365 less.

Comparing property tax bills isn’t always an apples-to-apples evaluation.

Minneapolitans pay less, per capita, in special assessments than their neighbors across the river. According to 2009 data from the Minnesota State Auditor, residents here pay, on average, $54 a year in special assessments, while St. Paul residents pay $123. Those figures include special assessments paid by businesses.

In Hennepin County, property taxes generally get lower the further from Minneapolis. Inner-ring suburbs like Brooklyn Center and Richfield ($2,903) have higher property taxes than second-ring suburbs like Plymouth ($2,315) and Eden Prairie ($2,469).

Lower yet are the property taxes in the exurbs, such as Minnetrista, where the tax bill on a $200,000 home is just $1,901.

The Minneapolis Board of Estimation and Taxation has tentatively scheduled an Aug. 25 hearing on the city’s maximum potential property tax levy. The board will set that maximum on Sept. 13.