Vox.MN Contributor - January 30, 2019
Hennepin County Property Tax Comparison
When someone asks me why their property taxes are going up so much, I have to explain that there are two pieces to the question:
- how much property taxes are increasing in general - how much their share of the overall pie is changing.
A lot of attention is focused on the first point, with little attention on the second point. But oftentimes, how your property is fairing in relationship to other properties is a much larger determinant of your taxes than the the overall levy.
In Minneapolis, during the housing bubble, property values in North Minneapolis increased faster than the rest of the city. I knew someone who bought a house for $30,000 and then sold it for $150,000 for example. Values went up in other parts of the city also, but not this dramatically. The result was that property tax burden shifted onto North and other poorer parts of town and off of Southwest and other more wealthy parts of the City.
Again, this isn't speaking about the overall levy but how much of the pie different parts of the city pays. When the bubble burst, property values declined dramatically in North, as did the property taxes paid by those properties. The result was tax burden shifted off North. Property values in Southwest and other wealthier parts of town recovered faster, shifting burden back onto them. I had been looking for some maps that showed this shift and finally I was able to find them. They show the changes by property in how much each pays. You can see this changing burden in these maps.
Minneapolis Property Tax comparison