Council approves 2019 tax levy
The City Council adopted a property tax levy of $61,756,432, an increase of 5.75 percent, in December. This means the monthly cost of tax-supported services for the owner of a $256,900 median-valued home is $80.99 for 2019, an increase from the 2018 amount of $78.26.
The increase in monthly cost from 2018 is driven in part by health insurance costs, mandated PERA contributions for police and fire employees and MNLARS impact on Motor Vehicle licensing—all factors outside the City’s control. From 2017 to 2018, the median-valued home increased from $246,400 to 256,900, a growth of 4.3 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 its 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 2017 home sales reflected the increase in value and are the basis for the 2018 assessment for taxes payable in 2019.
Since 1999, 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.