Council approves 2018 tax levy
The City Council adopted a property tax levy of $58,393,517, an increase of 4.5 percent. This means the monthly cost of tax-supported services for the owner of a $246,400 median- valued home is $78.26 for 2018, an increase from the 2016 amount of $74.64 and the 2017 amount of $71.17. The increase in monthly cost from 2017 is the result of a one-time increase in the tax base when Mall of America came out of tax increment financing. From 2017 to 2018, the median-valued home increased from $225,900 to 246,400, a growth of 9.1 percent.
In Minnesota, local governments set a total property tax dollar amount instead of a tax rate as is done in some other states. Following state law, this is prorated to each property based on the property’s value. With this property tax levy, the City’s share of 2018 total residential property taxes is 30 cents out of every tax dollar paid. The remaining amount goes to the county, school district and other taxing districts. Prorated 2016 home sales reflected the increase in value and are the basis for the 2017 assessment for taxes payable in 2018.
Since 1998, the City’s annual base property tax levy increase has averaged 3.84 percent on existing properties. The Bloomington levy impact is lower than 10 of 11 peer communities for median-value homes in Hennepin County.
For more information, contact Lori Economy-Scholler at 952-563-8791 or leconomy@BloomingtonMN.gov.