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Confused about property taxes? You are not the only one who is

By Chuck Hunt - Editor | Nov 24, 2024

So, you may have noticed that lately when I write up the stories about the Blue Earth City Council meetings, I have included the phrase “standing room only” to describe the number of folks who are attending the meeting.

Lately, the number of folks has been on the increase and they have packed the audience area of the council chambers. Some have a specific reason to be there, to address something on the agenda, or to say something during the public comment portion of the meeting. But, quite a few of the people there are just there to observe.

I think that is a good thing. It shows an interest by the public in what their local government officials are doing. Here at the Register, we try to give our readers a report of what their city councils and school boards are doing at their meetings. But, I admit, we don’t report on everything the council or boards do or say. We have to condense a two- or three-hour meeting into a readable-sized story.

So it is always good to see quite a few members of the general public at the meetings. And it is not just happening in Blue Earth, Wells and Winnebago and other Faribault County towns have folks at their meetings as well.

One good thing about the city of Blue Earth’s move into a new City Hall in January is that the size of the area for the public will increase from around 15 people to around 45 people. I probably won’t have to use the term “standing room only” any more. But then, you never know.

One hot topic this time of year is always property taxes and this year is no different. I have had numerous folks make comments to me about property taxes. I have tried to explain the whole property tax deal, but truth be told, it is very complicated and extremely confusing.

The big reason it is confusing is due to the Truth in Taxation. It is meant to give the public more information, but actually it just confuses everyone even more.

Let me try to explain that.

The Register has had stories starting in September about government entities setting “proposed” budgets and tax levies for the next year. Key word there is “proposed.” Our headlines and stories always emphasize that word “proposed” and add that the actual budget and levy will be set in December.

So our stories told about Winnebago setting a 17.98 percent tax levy hike, the county setting a 9.238 percent increase, Wells going with 11.57 percent increase and Blue Earth going with a whopping 24.56 percent hike. The school boards are different, as USC only proposed a tiny .02 percent hike and BEA just says it will do the max allowed.

Any way readers look at it, they figure their taxes are going up. Sometimes way up. But governments can actually lower the amount of their budgets and thus their levies by the time they set the actual number.

Then there is the Proposed Taxes for 2025 Notice that the county must send out to all property owners. I got mine in the mail this past week. You probably did too. The shocker on mine was that my proposed taxes were actually lower – by just a few bucks – than my taxes from last year.

But, that is not all. My proposed taxes for 2025 looked way lower, but only because the proposed tax notice did not list the special assessments that I have to pay because of the 10th and Nicollet Street and Utility project from a couple of years ago. That was $526 in 2023 and $454 in 2024 but is not listed on my proposed notice.

Complicated? You bet. Confusing? Absolutely.

My proposed taxes notice shows my county tax only going up $12, city taxes going down $4 and school taxes also going down by about $14.

And all of that happening despite my property taxable valuation increasing by a few thousand dollars.

So go figure. And if you want to get more complicated, let me add this tidbit. My lot in Blue Earth is actually two parcels. There is the main one, that I just listed the tax increases or decreases, but there is also a tiny strip of land that is on my lot somewhere.

For years I paid $10 or $12 property tax on this little strip of property. After the special assessments the tax went up. But this year, the proposed tax jumped to $67.51, a 145 percent hike from this year. That seems to follow along with all the proposed tax levy hikes that the Register has reported on.

So my little strip of land did see the big increase, but my main lot did not. I am not sure why.

Not that I am complaining mind you.

The people who have been asking me about the property taxes on their homes and businesses are just as confused. I do remind them that the time and place for them to ask questions about these taxes is at the Truth in Taxation public meetings that every governmental body has to hold.

For Blue Earth, that is Dec. 6 at 6 p.m., for Faribault County it is Dec. 17 at 6 p.m. and for the BEA School District it is Dec. 9 at 6 p.m. (By law, they can’t hold the meeting before 6 p.m.)

How do you know when the one in your city or school district is going to be held? Check that Proposed Taxes for 2025 Notice that you got in the mail last week.

Remember, if you are confused, you are not alone.

The other thing to remember is that word “proposed.” Your actual taxes you are going to have to pay in 2025 will probably not be the same as the ones listed on the “proposed” notice. I always find it interesting to compare my actual tax statement that will come in early 2025 with this “proposed” one that I got last week.

Now, I promise to write about something much more interesting next week than doing an attempt at explaining property taxes. What little I know is from attending public meetings for more than 50 years and hearing a lot of explanation from local governments about why taxes need to go up.

The main thing I have learned is, that in the end, you just have to write the check.