Twin Cities homeowners rue higher taxes. Lower downtown values are only part of the problem.

Property taxes are rising in Minneapolis and St. Paul as homeowners confront the dual challenges of the COVID-19 pandemic and declining downtown office values. The shift in tax responsibility from commercial properties to residential homeowners has sparked concern, as residents fear increased financial strain. Benjamin Bedard, manager of assessment services for Minneapolis, emphasized that while real estate markets naturally fluctuate, the speed of recent changes may feel overwhelming. Analysts like Jon Commers project that it could take years to fully understand the new property tax base composition.

Residential properties, which include single-family homes and apartments, have historically made up a significant portion of the tax base. The shortage of housing following the 2008 financial crisis has contributed to rising property values over the past decade. Experts warn that the recent shifts in assessments could lead to a heavier financial burden for homeowners. As the situation evolves, residents and officials alike are keeping a close eye on how these changes will impact the local economy and housing market.