Proposed property tax hikes in Minneapolis and St. Paul will hit homeowners hardest in less wealthy pockets of the urban core, where fervent demand for low-cost houses is driving up values.
Minneapolis and St. Paul officials say median-valued homes will see a 7.8% and 6.3% increase, respectively, in the city portion of their tax bills next year. But roughly one in six residential properties in the two cities will see a spike of more than 15% next year, based on a Star Tribune analysis of Minneapolis and Ramsey County projected tax data.
The value of those homes is less than each city’s median, on average. And the houses — which include rentals — are generally in areas with low but rising values, such as the East Side, North End and Frogtown areas of St. Paul, and the North Side, Powderhorn and Phillips areas of Minneapolis.
Some homeowners say the property tax hikes are a good reason for fresh leadership at City Hall.
The value of Jean Hawkins-Koch’s home in the Shingle Creek area of north Minneapolis has risen from $269,000 to $350,000 in the last four years. The total tax bill, including other jurisdictions, has risen about 40%.
Hawkins-Koch, who runs a “Flip the Council” Facebook page aimed at ousting the entire Minneapolis City Council, said history tells her to expect to continue getting hammered by rising property taxes.
“I don’t know how we’re going to continue to live there with these tax increases. They’re just not sustainable,” Hawkins-Koch said. “Anyone who has a ‘regular job’ doesn’t get these kind of increases in their paycheck.”