Council approves 2020 tax levy
The City Council adopted a property tax levy of $64,689,863, an increase of 4.75%, in December. The increase in the tax levy from 2019 is driven in part by increased spending for roads, buildings and parks and a reinvestment in infrastructure built largely in the ’50s. Due to construction labor shortages and increases in construction materials, construction costs continue to outpace inflation. Another budget challenge has been the Hennepin County court moving from Edina to downtown Minneapolis in February 2019. This has had a significant impact on the City’s Legal department staff and resources.
From 2018 to 2019, the median-valued home increased from $256,900 to $283,900, a growth of 10.5%. This increase in valuation means that the monthly cost of tax-supported services for the owner of a $283,900 median-valued home is $89.62 for 2020, an increase from the 2019 monthly cost of $81.02.
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 2020 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. Study of home sales occurring between October 2017 and September 2018 reflected the increase in value and are the basis for the January 2019 assessment for taxes payable in 2020.
Since 1999, the City’s annual base property tax levy increase has averaged 3.88% on existing properties. The Bloomington levy impact is lower than 8 of 11 peer communities for median-value homes. For more information, contact Lori Economy-Scholler at 952-563-8791 or leconomy@BloomingtonMN.gov.