Overview of 2016 taxes by Dale Martinson

Here is a note from Dale on tax amounts. Basically those that are seeing big tax increases are seeing them because they have had big increases in the value of their land. Our unemployment rates remain low and wage growth and occupancy rates are high so the market is adjusting. It would be nice to get rid of some surface parking lots though…

Mayor and Councilmembers:

Please find attached my ‘rough and not pretty’ work paper spreadsheet on the combined total tax impact for all taxing jurisdictions. There is a new taxing jurisdiction this year of the Olmsted County HRA, for a total of 5 now on commercial properties.

You will note pretty minor increase percentages in combined total tax for all three property classes (residential ~1.1%, commercial 0.0%, and apartments 1.2%) in the very last column of this spreadsheet across the various valuations of properties.

However, this does NOT reflect any increases in market valuations and, at least in this year, that is the largest impact of those bills that have increased significantly. This summary from County Assessor, Mark Krupski, reflects these valuation changes:

Property taxes:

  • Commercial Property Countywide increased on average 6.83%
  • Residential Property Countywide increased on average 4.11%
  • Agricultural Property Countywide increased on average 10.05%
  • Apartments Countywide increased on average 10.44%

It is important to understand that direct City choices can have only a limited impact on this total tax bill. State law determines distribution of the five jurisdiction’s taxes levied based on property class and individual property valuations. Valuations are based on sales of like properties. Valuation changes can and do have significant impact on the total tax bill.

Just for comparative purposes, if the City were to have a 0% increase in property tax levy for pay 2016 this would shave off approximately two (2) percentage points off from those averages listed above. Of course a zero increase in City levy would place significant strain on trying to accomplish just what we completed last year, not to mention our acknowledged need to better fund asset replacements (streets, facilities, etc.) than we are able to now.

Dale
Dale Martinson
dmartinson@rochestermn.gov
507-328-2861

Link to Dale’s spreadsheet

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