Dan Linehan
MANKATO — When Brian Duehring opened the latest property valuation notice for his Mankato Culver’s restaurant last spring, he was a bit surprised to see a 26 percent value increase.
He appealed, and the hike was lowered to about 15 percent.
Then, a few weeks ago, he opened a notification of a 14.6 percent tax increase.
“I’m not debating paying taxes,” he said, but the big increases he and others have seen has prompted some questions.
Duehring, along with a few others, testified at the Dec. 6 Blue Earth County Truth-in-Taxation meeting that this seems to be a year of unusually large increases.
While taxes on a typical Mankato home rose by only 2 percent or so, business owners are dealing with the biggest tax increases in years, mostly fueled by value increases.
The jump is because of a onetime adjustment of commercial values, Blue Earth County Assessor Julie Roisen said. Countywide, there was a 17.8 percent increase, meaning the business share of the property-tax burden has risen.
The assessor couldn’t say how much commercial taxes have increased on the whole.
And while those changes were evident in April, its impact on property taxes was only recently revealed.
Triple-digit increase
Owen Dundas, co-owner of Mr. Monogram on Front Street, will see an increase of about 105 percent on his property taxes next year, and that’s after he contested his value and had it lowered by $15,000.
Still, he did some restoration work and knew the 2007 value of $55,700 was low.
So, while he doesn’t like seeing bills like that, he’s not doom-and-gloom.
“Other guys got hit the way I did. What’s fair for one person is fair for the others.”
Another large increase, as one could probably guess, was seen at River Hills Mall.
The value of the mall rose from $27.4 million to $38.2 million, and its tax burden rose from just under $800,000 to about $1.09 million, an increase of more than a third.
Mike Kolling, vice president of tax services for mall owner General Growth, said it was “kind of borderline” whether or not the company would contest the value increase. After all, the mall has seen new construction.
Roisen, the assessor, said she wasn’t sure whether or not she’d hear from the mall, but said with a laugh she was relieved she hasn’t.
Why?
The cause for the valuation increases stems from a 2002 order from the Minnesota Department of Revenue that Blue Earth County should change its assessment policies.
In past years, the county has looked at residential and agricultural assessments, and now commercial values have been changed.
Next year, industrial properties can look forward to some big valuation — and tax — increases.
Still, valuation increases are only part of the property-tax picture.
Budgetary decisions by governments also play a role, and some at the county Truth-in-Taxation meeting blamed the county, which plans on a 9.9 percent levy increase. The county, though, receives less than a third of business’ property taxes.
“You gotta learn how to say no once in awhile,” Wayne Comstock said.
Duehring spoke about the “very stiff burden” that taxes are placing on business owners.
And business owner Marlow Nelson had a proposal that county officials are probably used to hearing, but not used to granting.
“I will sell it tonight if you give me the offer,” he said. “I’ll take it.”
