[Mpls] Property taxes explained across the river

David Brauer mplslist at tcq.net
Sat Jul 9 07:05:52 CDT 2005


Steve forwarded St. Paul's interesting post (hopefully with Bob Spaulding's
permission, right Bob and Steve?), and I want to further "Minneapolis-size
it."

Bob writes:

> Over the last 12 years, Minneapolis and
> St. Paul have chosen very different paths. Minneapolis shows the
> results of a high-tax, high-service city, and a lower tax city. St.
> Paul's total tax levy isn't $5,000 - it's $63,983,263. But that
> pales in comparison to our neighbors across the river in the
> Minneapolis, because their levy is $190,374,830 <snip>
> 
> That's right. Minneapolis' population is 1.3 times larger than ours,
> the average homeowner pays about 1.6 times more in property taxes
> (excluding all our new fees), but they bring in 3 times as much
> revenue. What up? Well, their downtown area, in particular, is far
> healthier than St. Paul's downtown. They have added properties and
> grown their downtown tax base, while ours has shrunk, and been TIFed.

A few questions, for Bob and the forum:

1. I don't argue that Minneapolis's Downtown is way healthier than St.
Paul's. (For all the justified criticism of Minneapolis's TIF policy, we
NEVER built an office building with entirely public money, as Norm's St.
Paul did with Lawson Commons.) 

However, can Minneapolis REALLY be considered a "high-service" city compared
to St. Paul? I don't know St. Paul municipal services that well; however, a
Minneapolitan could look at our reduced library hours and endless school
turmoil and wonder, is the level of service really that different - or
indeed, are Minneapolis's even superior?

Anyone have an effective way to compare the two area's services?

2. The point about the average Minneapolis homeowner paying 1.6 times more
in property taxes is intriguing. I'm wondering A) how that's derived, and
the bigger B) If true, how much of the higher payment is because the average
Minneapolis home is worth more than in St. Paul (if, indeed, the value is
higher)?

A side note: I'm not 100 percent sure our Downtown tax base has grown in the
last few years. Certainly, it has over the past dozen years Bob cites. I'm
wondering over what period St. Paul's has shrunk?

Second side note: Bob notes the Coleman/Kelly fee-ification of St. Paul
taxes. (It seems to be a GOP, or quasi-GOP, thing.) I wonder if there's a
way to compare Minneapolis and St. Paul "local tax payment" rates, rolling
in the fees for both cities?

Enough questions for now!

David Brauer
Kingfield



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