North Loop Neighborhood
Re: North Loop Neighborhood
The first part of your question is difficult. Rybak is proposing a reduction in the amount of the property tax levy next year, but the effect on any individual taxpayer will depend on whether their property has increased or decreased in value more or less rapidly than the rest of the property in the city. Also, commercial and industrial properties are taxed at a higher rate than residential properties, so changes to their value can have an outsized impact on the overall property tax pool. In addition, the city is just one of the many jurisdictions that are collecting part of the property tax people pay (other major ones are the County and the School Board).
The second part is easier. Your landlord pays their property taxes out of the rent you pay. You may qualify for a tax rebate, depending on your income and how much rent you paid.
The second part is easier. Your landlord pays their property taxes out of the rent you pay. You may qualify for a tax rebate, depending on your income and how much rent you paid.
Re: North Loop Neighborhood
Second part, thank you that makes sense. Now why is it the value of the property increases or decreases, like why is it based on that? Like its gonna be if the property increased in value the tax stays the same an then the lower valued properties get lower tax, or is it flipped?
- FISHMANPET
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Re: North Loop Neighborhood
Let's say a city has exactly two properties, both worth $100k. The city needs $10k to fund itself for the year. The total value of property is $200k, so the tax rate is 5%. Each person pays $5k. Now let's say next year the city still needs $10k, but both properties are now worth $200k each, so $400k total value. Now the tax rate is 2.5%, but each owner is still paying $5k. Conversely if both properties are worth $50k each, and the city still needs $10k, the tax rate becomes 10%, but the owners are still paying $5k each.
Now let's say instead one property is worth $75k and the other is worth $175k. And in this situation the city needs $15k now. The total value is now $250k, so this is now a 6% tax rate, because the total value is still $200k. The first homeowner only pays $4,500 and the second owner now pays $10,500. So even though the rate went up, one home owner still ended up paying less because his value was less than before, but the other got hit with the double whammy of higher percentage tax and higher value of land.
Now obviously this gets a lot more complicated as different types of land are taxed differently, but it comes down to a few basic things. 1) The city needs to raise X amount of money. 2) The city is worth Y dollars. It charges a percent of the total value Y to achieve the revenue X to fund itself.
Now let's say instead one property is worth $75k and the other is worth $175k. And in this situation the city needs $15k now. The total value is now $250k, so this is now a 6% tax rate, because the total value is still $200k. The first homeowner only pays $4,500 and the second owner now pays $10,500. So even though the rate went up, one home owner still ended up paying less because his value was less than before, but the other got hit with the double whammy of higher percentage tax and higher value of land.
Now obviously this gets a lot more complicated as different types of land are taxed differently, but it comes down to a few basic things. 1) The city needs to raise X amount of money. 2) The city is worth Y dollars. It charges a percent of the total value Y to achieve the revenue X to fund itself.
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- Capella Tower
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Re: North Loop Neighborhood
Don't mean to sound rude, but this site actually explains it quite well (and I don't feel like re-typing is all): http://www.minneapolismn.gov/assessor/propertytaxes/
Re: North Loop Neighborhood
To grossly oversimplify:
As the city does their budget process, they decide how much money they need to get from property taxes to run the city. This is the levy. Let's say that the levy is $1,000.
Then, they total up the value of all the property in the city. Let's say that only you and I live in the city, and my house is worth $100,000 and yours is worth $400,000.
Then, they divide the levy by the total property value to get the mill rate. In our hypothetical case, this is $1,000 / $500,000 = 0.002.
Then, the mill rate is applied to our individual properties. You would owe 0.002 x $400,000 = $800 in property taxes. I would owe $200.
Next year, let's say the levy stays the same at $1,000, but my house has increased in value to $250,000, and your house has increased to $500,000. The mill rate would be 0.0013. Your property taxes would actually decrease to $667, even though your house is worth $100,000, because my house increased in value proportionally more (and my property taxes spiked to $333).
If you imagine that in the following year, the levy stays the same and our values decreased back to their original value, that your property tax would increase even though your property value decreased. This happened to a lot of people during the recession.
Again, there are a lot of other things at play (homestead credits, different mill rates for commercial and industrial property, etc.), but that's at least the basic idea of things.
EDIT: What they said.
As the city does their budget process, they decide how much money they need to get from property taxes to run the city. This is the levy. Let's say that the levy is $1,000.
Then, they total up the value of all the property in the city. Let's say that only you and I live in the city, and my house is worth $100,000 and yours is worth $400,000.
Then, they divide the levy by the total property value to get the mill rate. In our hypothetical case, this is $1,000 / $500,000 = 0.002.
Then, the mill rate is applied to our individual properties. You would owe 0.002 x $400,000 = $800 in property taxes. I would owe $200.
Next year, let's say the levy stays the same at $1,000, but my house has increased in value to $250,000, and your house has increased to $500,000. The mill rate would be 0.0013. Your property taxes would actually decrease to $667, even though your house is worth $100,000, because my house increased in value proportionally more (and my property taxes spiked to $333).
If you imagine that in the following year, the levy stays the same and our values decreased back to their original value, that your property tax would increase even though your property value decreased. This happened to a lot of people during the recession.
Again, there are a lot of other things at play (homestead credits, different mill rates for commercial and industrial property, etc.), but that's at least the basic idea of things.
EDIT: What they said.
Re: North Loop Neighborhood
I think I got it now, thank you.
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Re: North Loop Neighborhood
Take the "Downtown Minneapolis School" survey. It is intended for residents of N.L., Downtown East & West, and Elliot Park, but you are allowed to choose "other" and indicate what neighborhood you live in.
http://www.surveymonkey.com/s/CVC5HSQ
http://www.surveymonkey.com/s/CVC5HSQ
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Re: North Loop Neighborhood
Transit plans, negotiated by Hennepin County, were publicly announced today. Sounds really exciting! Target Field Station...
http://m.startribune.com/news/?id=223399161&c=y
http://m.startribune.com/news/?id=223399161&c=y
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Re: North Loop Neighborhood
This post was going to go in "The Cameron" thread, but it really just pertains to the 8th Avenue connection, so it probably belongs here. Head on over to that thread if you need more background info.
I went to the Planning Commission meeting and plead the case of making the 8th Ave connection. Mr. Schiff thanked me for coming and raising the issue, but that the Planning Commission has no control over Public Works capital improvement budget. I was aware of that, and simply asked for a stronger "condition" to be added to the Conditional Use Permit. I also stated that I didn't like how the planner used "IF the 8th Avenue connection is..." in the staff report. I said "8th Avenue needs to be when, not if."
This area is currently in Ward 5. I wonder how hard the North Loop neighborhood has lobbied their councilmember to get this project added to the Capital Improvement Budget... I wonder if Don Samuels is even aware of it...
Perhaps we will have better luck with a new councilmember, and actual residents living on 5th St that would appreciate the connection. My worry is that rising land values in the North Loop will make this connection cost-prohibitive. The longer the city waits, the harder it gets to make this happen. The eminent domain proceedings to acquire the ROW for the street should have commenced immediately after the North Loop small area plan was approved in 2010.
I went to the Planning Commission meeting and plead the case of making the 8th Ave connection. Mr. Schiff thanked me for coming and raising the issue, but that the Planning Commission has no control over Public Works capital improvement budget. I was aware of that, and simply asked for a stronger "condition" to be added to the Conditional Use Permit. I also stated that I didn't like how the planner used "IF the 8th Avenue connection is..." in the staff report. I said "8th Avenue needs to be when, not if."
This area is currently in Ward 5. I wonder how hard the North Loop neighborhood has lobbied their councilmember to get this project added to the Capital Improvement Budget... I wonder if Don Samuels is even aware of it...
Perhaps we will have better luck with a new councilmember, and actual residents living on 5th St that would appreciate the connection. My worry is that rising land values in the North Loop will make this connection cost-prohibitive. The longer the city waits, the harder it gets to make this happen. The eminent domain proceedings to acquire the ROW for the street should have commenced immediately after the North Loop small area plan was approved in 2010.
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Re: North Loop Neighborhood
Way to take initiative!
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Re: North Loop Neighborhood
This is interesting: http://www.startribune.com/business/231978111.html
Young entrepreneur wants to convert 4th floor of Commercial Building (that's its name) to a one-of-a-kind 3,600 square foot condo. The Jackson's Hole bar and offices for the After Midnight Group fill up the 1st-3rd floors.
Young entrepreneur wants to convert 4th floor of Commercial Building (that's its name) to a one-of-a-kind 3,600 square foot condo. The Jackson's Hole bar and offices for the After Midnight Group fill up the 1st-3rd floors.
Re: North Loop Neighborhood
3600 is huge! I just bought a 1500 sq ft condo and I thought that was big until my neighbors told me someone tried to buy mine and the one underneath to connect them. Who needs that much space? And can you imagine the taxes on as place like that?
Re: North Loop Neighborhood
Seems like a great strategy actually. Market rate for a nice 3400 sqft loft around there would be a million plus, and instead of getting one lousy unit he bought the entire building for less than 2M with good paying tenants to boot.
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Re: North Loop Neighborhood
He got that building for a steal. Now, if he'd strip the brick and rebuild the 5th floor for a penthouse...
http://collections.mnhs.org/cms/web5/me ... &width=640
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Re: North Loop Neighborhood
Dunn Bros. is moving from the corner of Washington & 3rd to the retail space in Dock Street Flats. They will offer an expanded menu, as well as beer and wine.
Re: North Loop Neighborhood
Also, a woman's clothing store will occupy the other portion of the retail space there.
Re: North Loop Neighborhood
You mean the one on Washington is closing, right?Dunn Bros. is moving from the corner of 3rd & 3rd to the retail space in Dock Street Flats. They will offer an expanded menu, as well as beer and wine.
Towns!
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Re: North Loop Neighborhood
Er, yeah. Washington & 3rd. Oops.
Unrelated: I found this presentation on 2020 Partners website about improving the pedestrian experience along 2nd Ave N, near Target Field. I think this would be a great idea if the City could find some outside funding sources (MNDOT, Twins).
http://the2020partners.com/wordpress/wp ... 4/VJAA.pdf
Unrelated: I found this presentation on 2020 Partners website about improving the pedestrian experience along 2nd Ave N, near Target Field. I think this would be a great idea if the City could find some outside funding sources (MNDOT, Twins).
http://the2020partners.com/wordpress/wp ... 4/VJAA.pdf
- mister.shoes
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Re: North Loop Neighborhood
That's a really great idea. I like how it would all come together. They should get it done before the All Star GameUnrelated: I found this presentation on 2020 Partners website about improving the pedestrian experience along 2nd Ave N, near Target Field. I think this would be a great idea if the City could find some outside funding sources (MNDOT, Twins).
http://the2020partners.com/wordpress/wp ... 4/VJAA.pdf
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Re: North Loop Neighborhood
They landscaped all the medians this past summer, sans trees.
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