+33% taxable market value

[mellowtigger]

I got home from work today, picked up the mail at my front door, and opened up the Minneapolis Assessor's Office letter.  This coming year, they will increase the estimated value of my property by 19.7%.  Minus my homestead exemption, that's an increase of 33% of "taxable market value" from the previous year.

Such a rapid increase sounds like robbery.  It sounds illegal.  Near as I can tell from this document (page 11), however, it sounds like Minnesota has the worst laws in the USA on this issue, and maybe they increased the cost by the maximum allowed by law.

Does anyone know a tax lawyer?  I want to contest this valuation, if it's reasonable to do so.

I also went looking online for help, only to discover instead WHY this is happening.  Because the original light rail plan failed, the new proposals all surround my area.  Look at those green and orange segments.  They surround my Jordan neighborhood.  I will live about 4 blocks from a light rail path, no matter which choice wins.  No wonder I've been flooded with offers to buy my house.  No wonder the city is trying to jack up the price of living here.

If I don't get priced out due to property taxes, I just hit the jackpot.  This house was never meant as a financial investment.  It was always a "live here in peace until I die" choice for me.  I intend to make bayberry candles for Christmas one of these years, from bayberry seedlings that I planted in my back yard years ago.  I do not want to move.  This is my home.

A nearby light rail station (not part of planning yet) would be immensely useful, since I already intend to ditch my car soon and live with public transit.  Light rail is a very nice public transit option.  Gentrification is still frustrating, though.  I might be too poor to endure the inevitable demographic shift.  I may end up leaving with all of the other poor people, because the taxes eventually make it too unaffordable.

Comments

[foeclan]

Looks like it's possible to contest it.

Here's an article about it:
https://www.mprnews.org/story/2018/04/11/property-tax-assessment-faq

Here's the forms:
https://www.hennepinattorney.org/get-help/property-tax-petition/property-tax-petitions

I think you can take a deduction if your property taxes increased more than a certain percent.
https://www.house.leg.state.mn.us/hrd/pubs/ss/sstrgt.pdf

[danieldwilliam]

I've not been exactly priced out of my neighbourhood but I certainly couldn't afford to move here now.

Domestic property taxes are relatively low in the UK so the fact that that flat has increased in price hasn't increased them much but whenever a neighbourflat comes on the market and I look at the listing I think to myself "Couldn't afford that if I were just moving in."

Which does make me worry a bit for the neighbourhood. I worry a bit that actual people will be priced out in favour of Air BnB and student rentals.

We have plans for a light rail extension not far from the flat which will be nice but I think it will be about 10 years before it gets built.

[bitterlawngnome]

Quick, mortgage your kidneys and buy the neighbours' house on spec.

[mrdreamjeans]

Playing devil's advocate: even with your property taxes escalating, your home is more affordable than renting. In the building going up across the street from me in NE Minneapolis, the price for a 2/2 apartment (1007 sq ft) is $3495/month. The rent does not include any utilities and a garage parking space is an additional $175/month. My 62+ building is the best deal around and I'm figuring I'll be priced out within two years. All of the market rate multi dwelling housing is in this price range.

[barak]

If it helps you feel any better, you're not alone in getting their property taxes jacked up suddenly by HCMC this year. They did it to me too (I've forgotten how much but it was a surprise.) Nearly everyone I know who lives in HC has mentioned it. The funniest theory I've heard is they gotta pay for all the security for the George Floyd trials.