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Local News

Olmsted County tax rate tops state average

11/6/2009 7:45:09 AM

Comments (9)

By Jeffrey Pieters

Post-Bulletin, Rochester MN

Nine out of 10 southeastern Minnesota counties have property tax rates below the state average, says a report released Thursday by the Minnesota Taxpayers Association.

Tax weights

2009 effective tax rates for southeast Minnesota counties, ordered from lowest to highest:

Fillmore 0.72

Mower 0.88

Wabasha 0.93

Dodge 0.94

Houston 0.95

Freeborn 1.00

Winona 1.05

Goodhue 1.16

Steele 1.18

State avg. 1.19

Olmsted 1.33

Source: Minnesota Taxpayers Association

The exception? Olmsted County, whose rate is 0.14 percent higher than the average.

"It's because we are a regional center," said County Administrator Richard Devlin. "We attract people from all over to Olmsted."

The study, published annually in advance of local governments setting their budgets for the next year, compiles the combined effects of county, city and school property tax collection.

"Property taxes may be hated, but people need to be able to feel they're paying the right amount of property tax," said Mark Haveman, executive director of the Taxpayers Association. "We hope to give taxpayers information to ask reasonable questions about local government."

The Taxpayers Association will release a companion report, a guide to understanding property taxes, on its Web site today, Haveman said. The Web address is www.mntax.org.

Value vs. tax burden

The tax rate report examines the property tax burden shouldered by various property classes, including residential, farm and business properties.

Commercial-industrial properties, which represent about 13 percent of the property values in the state, pay nearly 32 percent of the property taxes. That disparity has shrunk slightly four years in a row, the report says.

Meanwhile, residential property taxes have been rising in proportion to residential property values. In 2009, residential property comprised 54 percent of the value in the state and paid 46.4 percent of the taxes.

The statewide property tax rate rose for the second straight year in 2009 -- the first year-upon-year rise since 1992-93. Tax rates are low by historical standards. The 2009 statewide average, 1.19 percent, is the seventh-lowest rate of the last 30 years.

Mower County's approach

Mower County has the second lowest tax rate in the region at 0.88 percent.

"We don't provide a lot of the services a lot of the biggest counties, such as Olmsted, provide," said County Coordinator Craig Oscarson.

"We've always been a relatively thrifty county," Oscarson said. "Our board attitude has always been not to do much above the minimum."

The board has taken an approach in recent years to be willing to spend more on proven preventative programs that can save money over the long run, Oscarson said.

Devlin said he is pleased Olmsted County has its tax rate, 1.33 percent, near the state average.

"For a metropolitan area like us and the types of activities we get into, we think that's pretty good," he said.

The county with the highest 2009 tax rate was Hennepin County, at 1.58 percent.

Other Twin Cities metropolitan area counties' 2009 tax rates included Anoka (1.30 percent), Carver (1.16 percent), Dakota (1.27 percent), Ramsey (1.51 percent), Scott (1.25 percent) and Washington (1.13 percent).

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There are 9 comments - Display All Comments

quasi-erg
o
Rochester, MN

Posted on 11/6/2009 at 8:42:04 AM

If Olmsted is such a regional center that attracts visitors, can’t we suck them dry with taxes?

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prohibiti
on_harms
Oronoco, MN

Posted on 11/6/2009 at 8:46:01 AM

Devlin said It’s because we are a regional center,” said County Administrator Richard Devlin. “We attract people from all over to Olmsted.”

What the heck does that have to do with higher taxes and lower services?

We keep giving them more and more and get less and less in return.

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Monica
Minneapoils, MN

Posted on 11/6/2009 at 8:52:31 AM

Wow, maybe you’ll edge out Hennepin some day.

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Roch55904
rochester, mn

Posted on 11/6/2009 at 9:32:34 AM

this is a republican conservative district and we love big government and taxes. Nobody compains and everytime we have a tax levy it gets approved. Get use to it.

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AverageJo
e
Anywhere, US

Posted on 11/6/2009 at 10:49:50 AM

Nice timing! Just AFTER elections. Obviously, some voters in Olmsted County demonstrated Tuesday they don’t need a study to know enough is enough.

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Bird
Rochester, MN

Posted on 11/6/2009 at 1:31:24 PM

Prohibitionon_harms says “What the heck does that (attracting people) have to do with higher taxes...” Let me see if I can explain. If more people from outside Olmsted County come to town, that’s a) more police / security related issues, b) more people flushing in the hotels / demand on sewers, c) more traffic related infrastructure, ... = more spending. Yes, we could just close up shop and keep the “foreigners” out, but that’s bad for business.

Now I’m not a lover of high taxes, but being a “destination” isn’t a bad thing, even if it means a bit higher taxes. Let’s face it, if I say I live in a $150K house, the difference between the state average rate is about $200. ($150K x 1.33% = $1995. $150K x 1.19% = $1785.) I guarantee that if we weren’t a “destination” county, I wouldn’t have my job. So I come out ahead in this scenario.

After all, just look at the list. Hennepin Co (Minneapolis) is probably the #1 destination county in Minnesota and its highest. Ramsey (St. Paul) is #2 on both counts. Olmsted - #3. This shouldn’t be a surprise.

However, if you don’t like Olmsted’s rates and ability to attract business, there’s always the surrounding counties for you.

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Getalife
Rochester, MN

Posted on 11/6/2009 at 2:37:26 PM

Maybe Mayo should start paying its share of the taxes seeing as they are responsible for the so called meca center.

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Skink
Rochester, MN

Posted on 11/6/2009 at 3:06:15 PM

Olmsted taxpayers - enjoy the Taj MaGovernment Center, replete with its chandeliers and terrazzo marble floors and staircases.

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