50-State Property Tax Comparison Study: Payable 2011

This unique study compares property tax burdens on residential homestead, apartment, commercial/retail and industrial/manufacturing parcels in the largest city in each state, a rural area in each state, and the nation's 50 largest cities.  Published March 2012.

Key Minnesota-related findings:

  • Urban homestead rankings rose in 2011 with Minneapolis homeowners -- for the first time in this study's history -- paying more than the national average for every home value studied (from 4.5% higher for a $150,000 home to 19.6% higher for a $1 million home).
  • Rural homestead rankings (Glencoe) were unchanged or declined slightly by tax burdens relative to the national rural average increased for all home values studied.  Despite this increase, Minnesota rural homestead rankings are the lowest in the Upper Midwest.
  • Urban commercial rankings and relative tax burdens rose significantly in 2011.  For $1 million and $25 million commercial parcels, Minneapolis' effective property tax rates now rank among the top five in the nation, their highest level since 2000.  Rural commercial property tax rankings also rose significantly.  Commercial property taxes are 27% to 63% above the study average in Minneapolis and 28% to 65% above the national average in Glencoe.
  • Industrial property tax rankings for Minneapolis rose between 2010 and 2011, although the magnitude of the increase varies depending on value and personal property assumptions.  Both urban and rural industrial tax burdens increased relative to national averages.  Industrial property taxes are 10% or more above the national average in Glencoe.
  • Minnesota's regional business property tax competitiveness remains strong in relation to Iowa, but tax burdens are higher compared to all other Upper Midwestern states.  Minnesota is at the greatest disadvantage with North Dakota -- urban commercial and industrial tax burdens are 76% - 130% higher in Minneapolis than in Fargo on properties of equal value.
  • Minnesota's business subsidization of local homeowner property taxes is 17th highest in the nation.  A $1 million commercial property in Minneapolis paid 99.1% more in local property taxes on its share of property value than a homeowner in the median-valued home.  When the statewide property tax is included in the analysis, commercial property paid 162.2% higher taxes on its market value.
  • Complete elimination of the statewide levy in 2011 would have dropped Minnesota's urban ranking for $1 million commercial and industrial properties 11 spots (from 5th to 16th for commercial properties and from 11th to 22nd for industrial properties).