- Minnesota Cities & The League
- Governing & Managing
- Risk Management
- Legislative Action Center
- Training & Conferences
Statewide proposed 2013 levy increases are again below the five- and 10-year averages.
(Published Dec 19, 2012)
Earlier this month, the Minnesota Department of Revenue (DOR) released information on the proposed 2013 property tax levies for cities, counties, school districts, townships, special taxing districts, and the state. The proposed property tax levies are the initial tax levy amounts adopted in September and used to compute the parcel-specific property tax statements that are sent to property owners each fall.
For 2013, proposed property taxes statewide for all property taxing entities increased by $187 million or 2.3 percent over the final pay 2012 property tax levels (see table below). This overall levy increase includes school referendum levy results of the Nov. 6 general election. Except under very limited circumstances, local units of government cannot increase their final 2013 levy beyond their proposed levy and, therefore, when final levies are certified this month, it is likely that the final total increase will be somewhat lower.
By comparison, last year, the proposed statewide total property tax increase for all taxing jurisdictions in 2012 was $170 million, or 1.7 percent, while the final certified 2012 levy increase over the pay 2011 level was reduced to 1.2 percent, or an increase of $94.8 million. Last year’s final levy increase for all property taxing entities was one of the lowest increases in recent years.
Although this DOR report deals with proposed 2013 levies, these results can be generally compared to recent annual final tax increases. Over the past three years (2009 to 2012), statewide property tax levy increases for all taxing jurisdictions averaged 2.1 percent. The average for the past five years (2007 to 2012) was 3.8 percent while over the past decade (2002 to 2012), the average increase was 5.7 percent.
For cities, the proposed 2013 levy increase was $57.8 million, or 3.1 percent. This compares to last year’s proposed levy increase of $37.4 million (2 percent), which was later reduced to $17 million, or a 0.9 percent year-over-year increase.
The average annual statewide property tax increase for cities has averaged 2.3 percent for the most recent three years (2009 to 2012), 3.9 percent for the most recent five years (2007 to 2012), and 5.8 percent for the most recent 10 years (2002 to 2012).
According to the Department of Revenue, local jurisdictions have historically reduced their proposed levy increases by 5 percent to 35 percent after the fall tax hearings. In 2012, final levies were $48 million less than the proposed, which was a 34 percent reduction in the proposed levy increases. The Department of Revenue generally compiles final property tax levy information and makes it available in February of each year.
* By posting you are agreeing to the LMC Comment Policy.
Contact Gary Carlson
(651) 281-1255 or (800) 925-1122