| 2012 City Budget |
|
The formal public hearing on the proposed 2012 budget, also known as the Truth in Taxation hearing, was held on December 5, 2011.
Property owners were sent a Truth in Taxation notice in November which identified the projected parcel specific tax cost for the next year. This includes all of the various taxing jurisdictions including Hennepin County, the School District, and the City.
The City represents approximately 27% of the total property tax bill for a typical residential property in Maple Grove. This pays for services such as police and fire protection, street maintenance, snow plowing, park maintenance, recreation programming, code enforcement, and building inspections.
The 2012 general fund budget totals $34,063,800 a 2.01% increase from 2011. The 2012 property tax levy decreased by 0.04%. The net City portion of the property tax for the average valued home for 2012 is $940 as compared to $933 in 2011. This is an increase of $7 ($0.59 per month) or 0.77%.
For more information, please review the 2012 proposed budget.
|
|
The New Homestead Market Value Exclusion Program
|
|
The 2011 legislature eliminated the Market Value Homestead Credit (MVHC) program for 2012 and replaced it with a homestead market value exclusion program. Under the new program, the homestead market value exclusion is 40% of the home's value and reaches its maximum for a $76,000 home and phases out when a home's value reaches approximately $414,000. Since the homestead market value exclusion is calculated at the front end (when tax rates are set), there is no reimbursement to local governments, creating a savings of $260 million for the state budget. The new market value exclusion program will mean our city's tax capacity will be reduced and the city's tax rate will rise. Although the new market value exclusion program is computed in a mathematically similar manner to the repealed MVHC, the new program will shift taxes among properties within our community, especially to commercial, industrial, apartment, and other properties that will not receive the benefit of the homestead market value exclusion.
For more information about the homestead market value exclusion program and a Minnesota Department of Revenue sample home calculation of taxes due before and after the exclusion, please review the Market Value Exclusion 101 letter  from the League of Minnesota Cities.
|
|
|
Printer Friendly Version
|