Homeowners could see their property taxes rise, while the commercial and agricultural sectors could see a decline after the Dakota County Board of Commissioners passed a proposed property tax at its September 21 meeting.
The tax levy is the amount required from property tax to balance the county budget.
When the county sets its budget for the year, a way to balance the budget may include changes to the levy.
Budgets and fees increase depending on the needs and will of the municipality as well as changes in federal and state aid and mandates.
The proposal will have to be reviewed by the county government departments before the Committee of Commissioners can vote on the change to the levy on December 17th.
The county proposed freezing the levy for 2022, leaving the maximum property tax levy at $ 144,613,647.
The maximum amount is the maximum amount that the property tax can be set at. He can go down from the specified number, but not higher.
With a zero percent change in the maximum tax, the average home could increase its property tax by more than half a percentage or increase its bill by an estimated $ 3.37.
The reason for the increase is that the residential property market is growing faster than the market value.
In the case of residential properties, the share of the tax base is larger, which leads to a possible increase in property taxes if the proposal for the maximum tax is accepted.
Commercial and industrial properties could see property taxes cut in 2022 as the market value of these properties has fallen, according to the Budget Office.
A midsize commercial property is estimated to have a 5.35% reduction in property taxes or a reduction of $ 147 on its bill, according to the presentation by the Dakota County Budget Office.
It is estimated that the agricultural sector will also see a drop in property taxes in 2022, with a drop of over 4%, or 40 cents less.