Who pays?

Star Tribune Sat, 19 Apr 2008 11:24:31 GMT
Property tax burdens are shifting away from homes

For the first time in a dozen years, Minneapolis homeowners next year will pay a smaller share of the city's property taxes. Businesses will pay some of the taxes that homeowners otherwise would. For the first time in 12 years, Minneapolis homeowners will shoulder a smaller share of the city's property tax burden next year. St. Paul is following suit. There are signs that other parts of the state may be following in a foreclosure-induced dampening of home values. This doesn't mean taxes for homeowners will drop. But it does mean that businesses will pay some of the taxes that homeowners otherwise would. "That's a nice shift," said Minneapolis Assessor Patrick Todd. The trend had been in the other direction in Minneapolis and statewide. In the mid-1990s, residential property taxpayers in Minneapolis represented just one-third of the city's tax capacity. Residential property now makes up almost 57 percent of city tax capacity for taxes paid this year. It will ease back to 54.5 percent for taxes paid next year, according to the city assessor's 2008 report.

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