With all new buildings being built and all the increases in value for property, why don property taxes go down?
The answer to this question involves a number of factors to be considered. The cost to operate local units of government continues to increase the same as other costs. Local units of government are required to provide certain services that continue to go up in cost and the budgets go up to reflect the increased costs. This is passed on to the taxpayers. Aids for local units of government, such as homestead credit supplied by the State of Minnesota, have been reduced over the years so the government units increase levies to make up for the loss of revenue. Classification rate reductions for some classes of property can cause the share another class of property has to pay to go up. As you can see, a number of factors affect the tax each individual pays. These examples cover only some of the reasons.
