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Home My WebLink About2014 12-07 Ramsey County home values rising, and so are the tax bills PIONEER PRESS Ramsey County home values rising,and so are the tax bills c.7mmma9��D Updated'12/07/2014 07:55:30 PM CST TwinCities.com Ramsey County home values rising,and so are the tax bills Ramsey County officials have no plans to increase the county tax levy in 2015.Nevertheless,in Maplewood,many homeowners will pay$300 or$400 more in property taxes next year than they did in 2014. That's largely because median home values there are poised to increase by 19 percent,virtually overnight. With home values rebounding toward pre-recession levels,taxpayers in Arden Hills and the East Side of St.Paul are in for similar sticker shock.Meanwhile,the owner of a median-value home in North Oaks— assessed at$496,000 in 2014 and$527,500 in 2015--may save$80. The reasons are varied,but owners of modest properties who have enjoyed some tax relief in recent years can count on relatively hefty bills,largely because their property values have suddenly increased dramatically. Other factors include city and school district tax levies,which are increasing to varying degrees in St.Paul and several suburbs such as Roseville,Maplewood and Arden Hills.In addition,the state's Homestead Market Value Exclusion program offers a type of discount for owner-occupied homes,and that exclusion gets smaller and smaller as home values increase. The maximum exclusion is$30,400 for a home with a market value of$76,000.The exclusion gradually phases out as values increase,until it reaches zero for homes valued at$413,800. "In general,changes in assessed values and declining homestead benefit were the largest drivers" behind property tax increases,said Ramsey County Assessor Stephen Baker. He acknowledged that the story is"mixed"depending upon the school district. On the flip side,tax increases finally have slowed for higher-end properties,and many homeowners and business owners in fancier digs actually may see at least mild savings for the first time in years. The exception will be commercial buildings that were reappraised in 2013 and experienced a large increase in their assessed values. "Ramsey County lost about 25 percent of its market value during the Great Recession,"said County Finance Director Lee Mehrkens."We must expand the property base to spread the tax burden further to avoid much of these increases to homeowners." TAX SHIFT For the first time since the recession,modest,everyday residential properties are gaining value faster than commercial properties,higher-end homes and apartment buildings.That trend has caused a major tax shift. For years after the recession of 2007 to 2009,structures that held their value relatively well or even gained value represented a growing share of each city's tax base.As a result,apartment buildings, commercial properties and homes in higher-end neighborhoods such as Highland Park and Macalaster- Groveland in St.Paul have been carrying more and more of each city's tax burden. http://www.twincities.com/News/Ramsey%20County/ci_27078994/Ramsey... 12/8/2014 Property tax gains Meanwhile, homes in St. Paul's Frogtown and Dayton's Estimated taxes on modest homes are increasing with the Bluff neighborhoods and certain suburban areas with rebound in property values. The following lists Ramsey County's relatively modest property values enjoyed some tax highest tax gaining cities, with some variation by school district. Higher-end properties may see savings. relief during that post-recession period. Their values Change in total tax Median home value from 2014 declined far more rashly than property values in North City 2014 2015 Percent Dollars Oaks, Highland Park or Mac-Groveland, so homes in Maplewood $157,000 $187,300 14.218.2 $3554421 lower-income areas were more likely to get a tax break. Roseville 195,000 216,500 7.7-9.1 229-259 Arden Hills 264,700 295,100 7.4-9.1 286-331 That's no longer the case. Falcon Heights 224,900 251,500 8.9 263 St. Anthony 221,850 247,400 8.6 377 Ed Entner, 72, of Roseville has lived with his wife in the st. Paul 130,500 145,000 7.2 136 same 1 ,300-square-foot, two-bedroom rambler since Shoreview 224,500 247,500 5-6.4 170-208 White Bear Twp. 202,400 227,200 5.5 159 1970. The retired Montgomery Ward store manager North St. Paul 137,200 148,900 51 102 and logistics coordinator saved $20 on his taxes this Source:Ramsey County PIONEER PRESS year compared with 2013. Next year, he'll pay an extra $900. Entner, who says he is livid about the sudden tax increase, attributes most of it to his home value, which was appraised by . ' Ramsey County at $191 ,300 in 2014. For ' - ' value is 239 100 an 2015, his home a ue $ , ;\ increase of roughly 25 percent. , ,I i In other words, after years of decline, his i *11, -, home value is roughly back to where it had � � _� been before 2009. a . w . , _ 11 .,,o_ri__414,e4. ir►v ',,- k,,,,... .7,.., . _z.: Largely as a result, his estimated property 1' k taxes are going from $2,636 in 2014 to - $3,532 in 2015, an increase of nearly $900, or 34 percent. Ed E; a:<s abct ;?crease in the apprar.; , home in Roseville, which increased about$50,000 this year. (Pioneer are "I pay more in taxes than I do for health care for my wife and I," Entner said. "My social security (benefits) went up 1 .7 percent. My taxes went up 34 percent. How many years in a row can I do that? ... I didn't plan for a 34 percent tax increase. Ed Entner of Roseville says his taxes (Ramsey County, city, etc.) went up 35 percent overnight. II In New Brighton, Jim Jenson's one-bedroom townhouse was valued at $258,000 this year, which he considered too low. Next year, according to the Ramsey County assessor's office, his property will be valued at $338,000, an increase of $80,000. In his mind, that's too high. The good news is that, at least on paper, his home value is finally back above its 2009 value of $319,000. But largely as a result, his property taxes will go up from nearly $4,000 this year to $5,080 in 2015, according to county estimates. "We've never had a tax bill this high," Jenson said. He called his property valuation "a subjective assessment on behalf of the county assessors, and sometimes they're just wildly off. This was just a shocking increase." http://www.twincities.com/News/Ramsey%20County/ci_27078994/Ramsey... 12/8/2014 The same tax shift will-be felt 1n parts of St.Paul's East Side,such as Dayton's Bluff,Highwood,Battle Creek and the Greater East Side,where median-value home values are growing by 15 percent to 25 percent,and taxes are likely to increase by at least$170 to$400. To challenge the county assessor's valuation for taxes payable in 2015,a homeowner would have had to have filed an appeal with the Ramsey County Board of Appeal and Equalization by May 2 of this year,or file a case with small claims or district court by April of this year. Nevertheless,Baker,the county assessor,said at rough estimate,some 28,500 property owners in Ramsey County who are shouldering tax increases of 12 percent or more will be eligible for a special refund of$1,000 under the state's property tax refund program. On top of that,some homeowners with an annual household income lower than$107,150 can apply for a homestead credit refund of up to$2,657,depending on the severity of the tax situation. SCHOOL DISTRICTS Several cities in the Roseville Area Schools District 623 attendance area are experiencing significant increases in their 2015 property taxes.On top of home valuations,some of that is because of an 8.6 percent increase in the school district levy. District business manager Shari Thompson said the reason for the increase in the school levy is an adjustment based on underestimating enrollment in the past. That money already has been spent providing services to students,she said,so it's partly a matter of catch-up.School board members point out that the district tax rate is lower than in the other districts within Ramsey County. "In Roseville,we work very hard to provide what each student needs to be successful while not overburdening our taxpayers,"said board member Kitty Gogins. The district includes all or parts of Roseville,Shoreview,Arden Hills,Falcon Heights,Lauderdale,Little Canada and Maplewood.Rising home values in those cities have had an impact on 2015 property taxes, as well. In Roseville,the increase in home values is 11 percent.The estimated property tax increase for homeowners living in ISD 623 is 9.1 percent,or about$259.For the part of Roseville that sits in the Mounds View school district,the increase is 7.7 percent,or$229. The North St.Paul-Maplewood-Oakdale school board is set to vote later this month on a 4.79 percent levy increase to fund the update of early-childhood education facilities,catching up with building maintenance,increases in debt service payments and continuing education,said Randy Anderson,the district's business manager. Anderson said that even if the district and the cities and county it includes had all kept their levies flat, "that's going to trigger a$360-per-year increase regardless,due to the assessed value going up"by more than$30,000 for the median Maplewood home,he said. The increased school levy,along with city tax increases,will bring the property tax bill for the median- value home up about another$40. CITY LEVIES Some cities and regional authorities also are increasing their tax levies,which will be voted on this month. Maplewood has proposed a 2.5 percent tax levy increase.St.Paul's proposed tax levy increase is 2.4 percent.The Metropolitan Council's proposed tax levy is poised to go up 0.5 percent. http://www.twincities.com/News/Ramsey%20County/ci_27078994/Ramsey... 12/8/2014 In Maplewood, median-value homes are increasing in value by 19 percent, growing from $157,000 in 2014 to$187,300 in 2015, according to the Ramsey County assessor's office. Tax bills on median-value homes in Maplewood will go up between 14 percent and 18 percent, or$355 to $421, depending upon the school district. The city spans three school districts. Maplewood Mayor Nora Slawik said the city already has heard from some residents upset about big jumps in their property taxes. People with fixed incomes are particularly concerned. "The good news is that valuations are going up so people's homes are worth more, but along with that comes higher taxes. ... This is quite a jump for some people," she said. Former Maplewood City Council member John Nephew is among the likely small pool of home sellers immediately profiting from the market shift. On paper, his home's value climbed about$40,000, from $125,000 to $162,000. The timing of the upswing coincided with his family's plans to sell the house and move to Duluth. They ended up getting slightly less than $200,000 for it, Nephew said. "We had a few years, particularly with foreclosures and distressed sellers and short sales, that drove (home) prices down. ... I think some of what is happening now is that the real estate market is recovering and the assessments are starting to catch up with that," he said. The family's relocation means they also will avoid the whopping 32 percent jump they would have seen in property taxes. In St. Paul, a median home valued at $130,500 in 2014 likely would be valued at $145,000 in 2015, an increase of 11 percent. Overall property taxes will go up 7.2 percent for that homeowner, or$136, which is largely attributable to the increase in property value. Of that, about $15 stems from a proposed 2.4 percent increase in the city tax levy. The St. Paul school district levy also is increasing 1 percent.