St. Paul / Property tax up, but many will pay less
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posted by Bob at Thursday, September 11, 2008
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Thursday, September 11, 2008
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15 Comments:
Falling home values shift burden to commercial property
By Dave Orrick
dorrick@pioneerpress.com
Article Last Updated: 09/10/2008 10:15:53 PM CDT
Politicians. They say they need to spend more on programs and then they promise they'll give you tax relief but never do, right?
Except this year, in St. Paul, it appears they will.
On Wednesday, St. Paul City Council members unanimously approved a series of maximum property tax levies that raise the government's take by 9.2 percent but likely will result in lower property tax bills.
How's that possible?
Thank the tanking residential real estate market.
For example, a median-value single-family home this year — $191,000 — will, on average, be taxed at a value of $183,000, according to figures from Ramsey County's Department of Property Records and Revenues. This year, such a home would have paid $2,023 in local property taxes. Next year: $1,983. Those figures assume St. Paul Public Schools' taxes will be flat; whether that will happen is unclear.
If the estimates hold true, homeowners can thank commercial property owners, whose land hasn't fallen in value like residential parcels, for shouldering more of the tax burden. County estimates show, for example, that a Dairy Queen on Rice Street will pay $79 more next year, and Macy's will pay $7,050 more.
The maximum proposed levies approved by council members amount to $83,858,740, roughly $7.7 million more than this year. Those levies include funding for the city, library system, Housing and Redevelopment Authority and Port Authority.
The figures are in line with Mayor Chris Coleman's proposed budget, which includes new spending for the police and fire departments, partially paid for by numerous fee increases.
But lest one think the politicians all were in agreement, Council Member Dan Bostrom on Wednesday proposed adding another $800,000 in funds raised through taxes to boost funding for city programs that deal with vacant buildings. Forget that tax bills might go down, Bostrom said: The decline in property values is a bad thing, and the increasing prominence of vacant buildings is exacerbating the problem.
"I'm not sure a person can afford to live in one of these neighborhoods because their home values are falling like a brick, and with a lot of seniors, that's their only major asset," he said. "Many of our neighborhoods are really on the bubble."
Council Member Lee Helgen agreed, but the five other council members said raising the levy any more risked increasing taxes on a citizenry already struggling in a downer economy.
Bostrom's suggestion was voted down, but his point was made. Council Member Melvin Carter III said he thought more should be spent on monitoring vacant buildings. "The question becomes ... where do we take those resources from?" Carter said.
Carter predicted an abundance of "sleeves-rolled-up-moments over the next month."
Truth-in-taxation notices of estimated taxes will be mailed to property owners in mid-November.
A joint truth-in-taxation public hearing for the county, city and St. Paul Public Schools will be Dec. 11.
For those of you who are hungry for more on the Fair Housing Lawsuits, I will continue the topic tomorrow after I attend the Federal Court Hearing on the issue.
Bob when and where is the hearing?
More crap from the hate a business DFL crowd. And we are suppose to believe school tax levys will remain flat, yeah sure!
NOTICE
Court hearing on city lawsuits
Friday 9-12-08
2 P.M. 300 S 4th St….courtroom 12W
Minneapolis, Mn.
Come and see what the real story is about these lawsuits. Hear the evidence for yourself. You’ll be surprised.
The IRS has imposed a tax on sex; Kissing - 10%
Hug - 20%
Groping - 30%
Foreplay - 50%
Fucking - 90%
Oh don't worry Chuck, masturbating is still tax free!
Taxes will go up about 1450% in the next year.
Due to the laesuits from everyone that live in st.paul. Because of the code enforement program.
Don't lower spending as a city official.Just raise taxes on business.What a great why to grow an economy.
Jim
Hey Bob,
Where did the posting for Thune's foulmouthed email go?
so what happened in the federal hearing? Any predictions?
Who cares get to bed
From what I heard, the hearing went very badly for the plaintiffs.
I was hoping the city would lose and be forced to pay through the nose, but from what I hear this won't be the suit to do it.
Court may not be the answer. We might need to start trying to organize people to throw the current government out of office. That takes time, money and persistence. It is going to take a real political opposition in this city.
I'm about evenly split between working on that and giving up and moving.
Hopefully the grounds for appeal to 8th Circuit are in place
ie: Dormant Commerce Clause
The IRS tax looks familiar
DON"T YOU JUST LOVE MINNESOTA?
Minnesota No. 49 for personal income growth
Another negative check in the financial column, this time closer to home: Minnesota's personal income barely rose in the second quarter with nearly all of the oomph coming from the spring's tax rebate checks.
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