Taxes rise faster than values
Citizens League compares ratesBy FRITZ BUSCH — Journal Staff Writer
ST. PAUL - With a 10.1% tax hike this year, New Ulm's property tax burden climbed from 47th to 46th among 226 greater Minnesota cities with more than 2,000 population, according to a study done by the non-profit Citizens League.
The average tax on a New Ulm home was in 2007 was $1,444. That amount climbed to $1,589 this year as the local effective tax rate rose from 1.211% to 1.255%.
The tax rate is the percentage of a home's market value that's paid in taxes to the city, county and school district.
The average market value of a New Ulm home in 2007 was $119,225. The figure climbed to $126,595 in 2008, a 6.2% increase.
In Sleepy Eye, the average market value rose from $85,756 in 2007 to $89,056 in 2008 - a 3.8% hike.
Meanwhile, property taxes on the average Sleepy Eye home climbed from $744 in 2007 to $871 in 2008, a 17% increase.
Sleepy Eye's 2008 effective tax rate was 0.978%. It's 2007 tax rank was 173rd among 226 greater Minnesota cities and 139th in 2008.
Sleepy Eye City Manager Mark Kober said the 2008 tax hike hike was due to a voter- approved $2 million referendum vote in 2006 that funded a new aquatic center and the renovation of the former Sleepy Eye Herald-Dispatch building into a community center.
Project financing was done with 20-year bonds that cost taxpayers $155,000 per year.
On Tuesday, the Sleepy Eye City Council approved a 2009 city budget and levy resolution that will increase city taxes 3.8 percent next year.
In Springfield, the average home market value was $60,758 in 2007 and $62,987 in 2008, a 3.7% hike.
Property taxes on the average Springfield home rose from $869 in 2007 to $939 in 2008, an 8.1% rise.
Springfield's 2007 effective tax rate of 1.430% rose to 1.491% in 2008. Its 2007 tax rank was 11th. It rose to 10th in 2008.
Redwood Falls' 2007 average market value of $99,410 rose to $100,773 in 2008, a 1.4% hike.
Property taxes on the average market value climbed from $1,463 in 2007 to $1,538 in 2008, a 5.1% boost.
Madelia's 2007 average market value of $91,793 rose to $94.083 in 2008, a 2.5% hike. Average market value taxes climbed from $1,215 in 2007 to $1,237 in 2008, a 1.8% increase.
In St. James, the 2007 average market value of $78,540 rose to $80,012 in 2008, a 1.9% climb. Average market value taxes climbed from $749 in 2007 to $834 in 2008, an 11.4% hike.
The Citizens League said the trend of tax rates rising faster than average home market values will continue in 2009.
When taxes rise faster than tax base growth, a higher percentage of property value is taxed, according to the Citizens League.
For more information, visit www.citizensleague.org
Fritz Busch can be e-mailed at fbusch@nujournal.com.
