Property Tax Burden (Voss) Report Nick Greene | Property Tax - PowerPoint PPT Presentation

Property Tax Burden (Voss) Report Nick Greene | Property Tax Research Director 1

About the Voss data For every Minnesota non-farm Homestead: = MN Dept. of Revenue 2

Determinants of Property Taxes Total local levies and each parcel’s share of tax base. These are affected by: • Level of public services • Intergovernmental aid and other non-property tax resources • Tax base composition and property tax classification system • Property tax refunds (PTR), credits, exclusions MN Dept. of Revenue 3

2017 Homestead Market Values 300,000 Greater MN Metro 250,000 Count of Homesteads 200,000 150,000 100,000 50,000 0 $50 or less $50-$100 $100-$150 $150-$200 $200-$250 $250-$300 $300-$350 $350-$400 $400-$450 Over $450 Estimated Market Value of Homestead (in thousands) MN Dept. of Revenue 4

2017 Net Tax 250,000 Greater MN Metro Count of Homesteads 200,000 150,000 100,000 50,000 0 $500 or less $500-$1,000 $1,000-$1,500 $1,500-$2,000 $2,000-$2,500 $2,500-$3,000 $3,000-$3,500 $3,500-$4,000 $4,000-$4,500 More than $4,500 Net Property Tax MN Dept. of Revenue 5

2017 Property Tax Burden by Region Median Burden after PTR ≤ 2.00% ≤ 2.35% ≤ 2.70% ≤ 3.00% MN Dept. of Revenue 6

2017 Tax Burden by Region Median Burden Region before PTR after PTR Greater Minnesota 2.4% 2.1% Metro 3.1% 2.6% Statewide 2.8% 2.4% MN Dept. of Revenue 7

2017 Tax Burden by Income Median Burden Income range before PTR after PTR $10,000 - $30,000 6.5% 3.2% $30,000 - $45,000 4.3% 2.8% $45,000 - $65,000 3.4% 2.5% $65,000 - $90,000 2.8% 2.4% $90,000 - $125,000 2.5% 2.4% $125,000 or more 2.0% 2.0% Overall 2.8% 2.4% MN Dept. of Revenue 8

2017 Burden Greater than 5% of Income Percent of Homesteads where Burden after PTR is greater than 5% of income ≤ 5.0% ≤ 7.0% ≤ 9.0% ≤ 17.2% MN Dept. of Revenue 9

2017 Property Tax Burden by School District Median Burden after PTR ≤ 2.00% ≤ 2.50% ≤ 3.00% ≤ 3.35% MN Dept. of Revenue 10

AMSD Member Districts 2017 Burden Greater than 5% of Income Before PTR After PTR Percent of Homesteads ≤ 10.0% ≤ 15.0% ≤ 20.0% ≤ 25.0% ≤ 30.0% ≤ 36.4% MN Dept. of Revenue 11

History Median Property Tax Burden after PTR Property Taxes Payable 2007-2017 3.20% 3.00% 2.80% 2.60% 2.40% 2.20% 2.00% 2007 2009 2011 2013 2015 2017 Greater Minnesota Metro Statewide MN Dept. of Revenue 12

Looking past 2017 • Increasing residential homestead values in recent years • Agricultural property values stabilizing MN Dept. of Revenue 13

History – more information https://www.revenue.state.mn.us/property-tax-burden-voss-report 14

Questions? nick.greene@state.mn.us 15