How Property Taxes Increase
How Taxes Increase
Taxes increase faster than the rate of inflation.
Blue Earth County increases it's levy
The County increases their portion of property taxes and increases the rate by 6% for 2023
This means for a home valued at $268,000 would see an increase of about $110 per year.
Check out the article by Tim Krohn here
Mankato Public Schools increases their Levy
Mankato Area Public School District (ISD77)
increases their levy for the 2023-24 school year by 5.18%
This means that even though the school district is reeling from numerous problems and waste, they still approve an increase in funding for themselves.
The City of Mankato increases it's levy
The City of Mankato has increased their levy by 8%
8% may not seem to be that much, but since the levy is based upon home values, with the increase in home values, the amount goes up proportionally, just the city levy would be about 26% or about $226 per homeowner in just city tax levy.
Inflation increases home values
- Inflation raises home values and as those values are used to determine the tax amount.
- This matters because as the percentage for the actual percentage levy might be 5.18%, 6%, or 8% but the amount would be much much higher as inflation has increased the value of the house. For example the 8% city levy actually equates to a 26% increase in taxes.
- Stop and think about this for a moment; if the value of your home goes up along with inflation, this tax base is used to determine the taxes, then taxes are already keeping pace with inflation, any increase in the levy is increasing the taxes beyond the amount necessary to account for inflation.