Many St. Paul homeowners will be pleasantly surprised to see their tax rates will go down in 2013. The Pioneer Press reports that after a few years of tax increases throughout the city, homeowners from St. Paul neighborhoods like Como and Hamline-Midway will have a bit of extra cushion in their pocketbooks after tax season.
What is the reason for the change? St. Paul Finance Director Todd Hurley explains, “Property taxes are essentially going down because of a property tax shift. A median value home in St. Paul (is) going to experience a decrease in property taxes, largely because of a shift to higher-end homes and businesses, and in particular apartments, which are experiencing an increase in value. The increase in apartment value is new in the last couple of years."
The tax credit shift, called the homestead market value exclusion, excludes up to $30,400 from the market value of a home before taxes are calculated; this reduction is excluded on homes valued at more than $413,800. As a result, St. Paul homeowners with modest properties are likely to see a property tax rate reduction while those with higher-end homes (and those who own in-demand St. Paul apartment rental properties) will see their rates rise.
St. Paul homeowners received their property tax estimates earlier in November, but these estimates should not be considered bills.
If you’re looking at St. Paul real estate or want more information about tax-friendly St. Paul neighborhoods contact an Edina Realty St. Paul REALTOR® today.