Caledonia Argus

Budgets main factor in tax increases

Posted: 12/3/02

by Jane Palen
Managing editor

Houston County Assessor Tom Dybing told county commissioners at their meeting on November 26 that his office received many calls once taxpayers received their property tax statements two weeks ago. There are several factors that caused increases in this yearís taxes, he explained.

Budgets are the main reason for the increase in taxes, said Dybing. Assessments alone do not determine the amount a person will pay in taxes. For example, if all assessments were cut in half and the local governmentís budget stayed the same, it would not affect taxes. The same would be true if taxes doubled. When it does make a difference, he said, is when one property in an area is improved and assessed at a higher rate than the surrounding properties. Dybing and county auditor Pete Johnson attested to the complexity of Minnesotaís property tax system.

Dybing noted that the Caledonia School District has a health and safety levy included this year, which is imposed on all parcels, including farmland. The school district has said that it will not impose the health and safety levy if its December 17 referendum passes. The operating levy is levied only on a house, garage and one acre in an agricultural district. This would result in a decrease for farm dwellers, and for city residents, taxes would increase slightly, about $17-$18, for the first year of the levy, said Dybing.

Also affecting the amount of taxes for rural residents is the loss of local government aid at the township level. Some townships adjusted for the loss of aid last year, but for those that did not, the change is reflected in this yearís taxes.

Despite complaints about taxes, commissioners were in agreement that taxpayers are getting a lot for their money.

ìThey have to get over the perception that they arenít getting anything for their money,î Dybing commented. One reason taxes seem so high is that most people are accustomed to paying bills such as cable tv or cell phone bills on a monthly basis. Because taxes are paid twice a year, it seems like a large hit all at once.

ìAre we over-taxed or is it we have so many things to pay for monthly?î he asked.

Commissioner Dave Corcoran observed that ìI never met anybody that wants less. People want more.î

Commissioner Kevin Kelleher said that people donít always connect property taxes with the services those taxes provide, such as roads. Having a good infrastructure, which is what taxes help provide, is essential in competing in the area of economic development, he added. He commented that when he was campaigning, he met one taxpayer who said that taxes were a bargain because of all those services taxes provide, such as national defense and education.

With the state facing a deficit estimated to be more than $3 billion, local taxpayers can expect to pick up more of the cost of programs now supported by the state. commissioners noted.

The countyís Truth in Taxation hearing is Thursday, December 5 at 7 p.m. at the courthouse.

County wonít commit to sending prisoners to Winona

In other business, the Chairman Kelleher read from a story printed in the Winona Daily News in which the Winona County Sheriff was quoted as saying that Houston County had committed to sending at least one prisoner to Winona County at a rate of $60 per day. The story was in reference to costs of a new jail facility the county is considering.

ìThis board did not make that commitment,î remarked Kelleher. ìWe are not going to commit when we have a jail study going on.î

The board moved to contact the Winona County Board and clarify its position.

In other news, the board set Tuesday, December 17 as the date for employee recognition.

The board will not meet December 10.

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