Impact of Market Value Exclusion on C/I Property Tax Burdens in the Metro Area
January 19, 2012 at 2:04 pm 1 comment
The average change in C/I property taxes payable is 1.71% or $1,842 for the hypothetical $3,000,000 C/I property. Increases range from a low of $930 to a high of $4,900. On a percentage basis, increases range from 0.88% to 4.51%.
These numbers are based on the following assumptions:
- No levy increases over payable 2011.
- No changes to distribution of tax burden due to market-based valuation changes across property types.
Gary Carlson, director of intergovernmental relations for the League of Minnesota Cities, said the effects of the switch to the market value exclusion system will vary from city to city. But in general, he said, communities with many lower-value homes and small commercial-industrial bases will see the biggest tax shifts to commercial properties.
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1.
North of Boston Real Estate | January 22, 2012 at 12:11 am
Hey Naioppulse,
Along the same lines,, The(ACV)Actual Cash Value Policy DOES NOT insure the property itself but the VALUE of the property.
Keep up the posts!