Problems Due to Property Tax Increases in St. Paul

Not only are fluctuations in housing prices affecting real estate agents working in the market, but these changes are also impacting the residents of St. Paul, Minnesota, who may notice the effect on their property tax bills.

However, tax increases vary depending on the type of property owned. Only single-family homeowners are currently seeing a rise in taxes, while commercial, industrial, and apartment properties have experienced a slight decrease over the past year.

Statements from the chairwoman of the Ramsey County board have clarified that the property tax increase is tied to the property’s location and school districts. This is why the tax burden is shifting more towards residential properties rather than industrial and commercial ones.

In her recent talk, she also stated that the property tax increase has not yet stopped, and more hikes are expected in the city and its suburbs due to new proposals put forth by the mayor of St. Paul. With these proposals, the mayor intends to raise property taxes as well as increase city taxes and fees for recycling, garbage, sanitary sewer, stormwater sewer, and water services. All these increases will undoubtedly hit residents’ wallets hard.

As explained, the value of the property tax varies depending on the location and type of property, which is why average values in different parts of the city are rising at different rates. To determine the tax amount, the county conducts property inspections approximately every five years through its appraisers.

Given this variety of increases and the different factors driving prices higher, an average homeowner in St. Paul can expect, in addition to property tax, a 5% increase and roughly $109 in city fees. However, the total value of these charges may change before budget adjustments are finalized in December.

Tax collectors in St. Paul anticipate higher tax increases in Highland Park, where home values are rising by more than 5%. Meanwhile, condo owners in the downtown area, due to a 0.8% decrease in home prices, might see some savings on their tax bills.

Due to the high amounts homeowners are seeing on their tax bills, more citizens are contesting their market prices in county courts in an attempt to find financial relief. Although the state allows homeowners to exclude up to $38,000 of the property’s value for homes exceeding $517,200, this is often not enough.

Available Foreclosures:

Highland Park: 5 homes available.

St. Paul: 3  homes available.

By Elias DaSilva | October 4, 2024.