Every year, Minnesota property owners know that they will have to pay property taxes to local government authorities. The size of the tax liability is based on property valuations and rates set by officials.
It may come as a relief, however, to know that a recent non-partisan legislative report indicates that property taxes in Minnesota would have increased by about $124 million without certain rental and property credits offered by the legislature. In fact, some homeowners could see reductions by as much as 5.2 percent this year.
Of course, this is an issue that’s ripe for political fodder, but that will not be the focus of our blog post. Rather, this post simply provides an update on an issue facing so many Minnesota residents. Any increases in payments can really hit a person’s pocketbook, so it’s important to make sure that tax assessments are accurate and fair.
From time to time, a person’s property may not be accurately valued. In an effort to capture more revenue, local authorities may inflate property values. Or, on the other hand, mistakes might simply be made during the valuations process.
Either way, tax payers shouldn’t have to pay more than they actually should. For business owners or farmers with valuable tracts of land, an inflated valuation can prove to be very detrimental. As such, it may be helpful to see what options are available to ensure that taxes are assessed based on an accurate value. This way, property owners can actually take advantage of lower rates this year.
Source: Star Tribune, “Minnesota property taxes down, with help of state aid, credits,” Baird Helgeson, July 15, 2014