New Ulm property tax declines

By GUY PRIEL

Journal Staff Writer

NEW ULM -- Although the average value of homesteads throughout Minnesota increased slightly between 1999 and 2000, New Ulm taxpayers will find a decrease in property taxes payable in 2001.

That decrease in taxes hasn't helped pull New Ulm out of the top ten list of 33 non-metro communities with a population of more than 8,500.

The reduction in taxes is partly a result of legislative changes during the 2000 session. Property taxes are a combination of taxes levied by the city, county, school district, and other smaller taxing entities.

All property owners will receive a Truth-in-Taxation statement in the mail within the next few weeks. The statements outline the proposed changes in rates and how they affect property taxes if approved.

The statements will also list when public hearings will be conducted for the various entities involved. Statements only reflect proposed changes and are sometimes adjusted to reflect public input.

Estimated tax rates were released Friday in a survey from the 34th annual survey from the Citizens League of Minnesota.

In determining estimated tax rates, officials used an estimate of $85,000 for a home in non-metro areas. Estimates were only released for 33 non-metro communities with a population more than 8,500.

In New Ulm, the estimated tax on an $85,000 home for taxes payable in 2001 will be $1,103, a decrease of approximately 4.7 percent over 2000.

Of that amount, $431 goes to Brown County; $4312 goes to the city; $228 goes to District 88; and $12 goes toward special taxing districts.

In all but one category, that of school taxes, New Ulm ranked in the top 12 out of 33 non-metro communities with a population of more than 8,500. In city taxes, New Ulm ranked second; and in the special section New Ulm ranked eighth. In the school portion, New Ulm ranked 23rd.

The average home value in New Ulm is $78,975, or about $950 worth of taxes, a decrease of 4.5 percent over taxes payable in 2000.

In using the $85,000 home value, New Ulm ranks seventh highest of the 33 non-metro communities, behind Duluth and ahead of Moorhead. Based on the average determined value of a local home, New Ulm ranked 17th highest of the 33, behind St. Peter and ahead of Willmar.

In comparison, based on an average home value of $85,000, Fairmont ranked 25th with a tax of $924; Mankato ranked 19th with a tax of $959; Marshall ranked 17th with a tax of $987; North Mankato ranked 20th with a tax of $944; St. Peter ranked 21st with a tax of $942; Waseca ranked fourth with a tax of $1,125; and Willmar ranked 12th with a tax of $1,066.

Waseca ranked the highest in the region, coming in at fourth highest property tax rate, with a decrease of 6.7 percent over taxes payable in 2000. Fairmont ranked lowest at 25th, with a decrease over 1999 taxes of 5.1 percent.

Statewide, the city with the highest property taxes is Bemidji with an estimated tax of $1,288. The lowest of the 33 non-metro cities is Austin, with an estimated tax of $808.

The highest taxes in the metropolitan area is Chanhassen with an estimated tax of $2,332 on a home assessed at $130,000, an increase of 9 percent 1999.