St. Paul, Minn. – November 13, 2013 – (RealEstateRama) — Every year at this time, the Minnesota Department of Revenue releases a list of the preliminary maximum property tax levies that have been reported by local governments and have been passed by local school referenda. Local governments are required to set their preliminary levies by September 15 to provide citizens an opportunity to learn of and comment on proposed tax levels at Truth-in-Taxation hearings.
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After input from citizens, local governments can set final levies lower but not higher than preliminary levies. Local governments must set final levies by December 27, 2013, for the 2014 property tax levies.
The overall property tax picture for 2014 will not be known until February. The department will release final property tax levy information in February. Revised estimates based on final levies for the Homestead Credit Refund and the Renters’ Property Tax Refund will be available after the February forecast (both programs were increased for 2014).
Cities – The 2014 preliminary property tax levies for cities will total approximately $1.967 billion compared with $1.927 billion in 2013, a 2.1% increase.
Counties – The 2014 preliminary property tax levies for counties will total approximately $2.745 billion compared with $2.704 billion in 2013, a 1.5% increase.
Townships – The 2014 preliminary property tax levies for townships will total approximately $234 million compared with $229 million in 2013, a 2.1% increase.
Schools – The 2014 preliminary property tax levies for schools will total approximately $2.377 billion compared with $2.317 billion in 2013, a 2.6% increase. School levies were set to decline by $59 million. Voters approved $119 million in new and renewed referenda, for a net increase of $60 million in 2014.
Special Taxing Districts – The 2014 preliminary property tax levies for special taxing districts will total approximately $328 million compared with $321 million in 2013, a 2.3% increase.
These preliminary amounts are used by counties to compute parcel-specific property tax estimates for 2014, which are mailed to property owners in November in the form of Truth-in-Taxation notices. Truth-in-Taxation notices also list Truth-in-Taxation meeting times and locations for residents. These meetings typically address how much jurisdictions are taxing their residents and how they are proposing to spend tax dollars. These meetings are required for cities with populations over 500, counties, school districts, regional library authorities, and metropolitan taxing districts.
Information not included on Truth-in-Taxation notices is the result of levy referenda for operations or capital projects by 76 of Minnesota’s school districts, many to renew existing levies that are scheduled to expire. The results of these referenda are included in the data summarized here. Statewide, 68 of the 76 referenda at least partially passed.
The preliminary property tax levy information for local governments and schools is available on the Department of Revenue Property Tax Reports and Data website.
Click here to view a statement from Revenue Commissioner Myron Frans.
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Contact: Ryan Brown
Ryan.brown (at) state.mn (dot) us
