Tax Realty Consultant

Tax Update for Minnetonka

Every month the city of Minnetonka puts out a newsletter about the city, it’s services,  new information and programs it offers.  I know it is very common for all of us in our busy lives to look at the front and quickly skim the inside.  Our lives are so busy that unless it jumps out at us it is hard to give everything the attention we want.  In reading November’s newsletter I was amazed and happy to see their plan for 2008 and how it will affect homeowners and property values in the Minnetonka area.

The city council recently started budgeting for the 2008 fiscal year and it’s goal is to keep taxes at 3% for basic services and additional 1.7% for new services.  What this translates into is; the average Minnetonka homeowner (roughly 7 out of 10) will see a property tax decrease in 2008.  This is great news in a time when property taxes are continually going up due to the lack of state funding for cities.  I was happy to see what is making this possible is not a cut in services but an increase in the commercial tax base and the decertification of some TIF districts in the city.  As with everyone it is always great to save money and still get the same services! This plan also has some benefits for the real estate market as well.

In real estate, generally speaking, the higher the property taxes the less affordable a neighborhood and the smaller the potential market of buyers.  With the cities committment to fiscal responsibility but also understanding the need for strong city services.  Potential buyers will see and feel an increase in affordability, and at this point in the market this is a great direction to move.  If you have questions of would like to be involved in the city’s budget planning they are holding a public hearing on Monday December 3rd at 6:30pm.  It will be held at the City Council Chambers, 14600 Minnetonka Boulevard.

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