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Tim Pugmire
St. Paul, Minn.

Minn. property taxes to rise an average of 3.5%

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State officials say property tax rates will increase an average of 3.5 percent when proposed local levies are adopted later this year.

The Minnesota Department of Revenue released information Thursday showing just over half of all cities in the state have proposed a tax levy increase of less than 5 percent. That includes 227 cities that proposed no change or a levy decrease.

This is the second year of a three-year cap on property taxes for cities over 2,500 people. The cap is the lesser of inflation or 3.9 percent. Revenue Commissioner Ward Einess said the cap is making a difference.

"Any city or county can exceed the property tax cap if they take the issue to their voters," Einess said. "So if they have some real compelling spending need they need to meet, and they can't do it within the cap, they can take it to the voters, take it to a referendum and they can exceed the cap."

Einess said cities can also adopt special levies for debt, public safety and other costs that are not subject to the cap.