Minnesota Tax Payers Cope with Recession, High Tax Rates
November 18th, 2011
Jurisdiction estimates for pay 2011 taxes have just issued, and the news is not good. Due to widespread cuts in both commercial/industrial and residential valuations, the effective tax rates at which properties are assessed have skyrocketed. Taxpayers are surprised to learn that while their assessed values have dropped , their taxes may have actually increased.
The bad news on tax rates could not come at a worse time for owners. The "jobless recovery" pundits identify does little to fill vacancies in properties. Also, the Minnesota Tax Court, coping with both near-record case filings by property owners, has already had to close for one week this year due to state budget cuts. This compounds the problem for taxpayers, whose overvalued properties need attention.
It is critical to try to resolve cases at the first opportunity. Owners should keep their property tax team informed of leasing and occupancy issues, so no time is lost when matters are finally scheduled.