In January of this year, a seasonal property owner from Naperville, Illinois sent out a letter to all the other seasonal property owners asking them to contribute money to support the school.
We applaud his effort. Unfortunately, in his letter he falsely claimed that seasonal property was removed from having to pay school taxes in 2001.
Thisis absolutely false.
In over 250 taxing districts statewide, including the area around Lutsen, seasonal property makes up more than half the tax capacity. In addition, on each dollar of value, seasonal properties pays more
to local community schools than Homestead properties.
The St. Louis County web site shows that in 2010:
* A seasonal property on Lake Vermilion valued at $357,200
will pay $1,914 in property taxes.
* A homestead property in Grand Marais valued at $371,100
will pay $1,130.00.
Cabin owners also pay $40 million yearly in state business property tax statewide, an inexplicable surtax on folks who spend an average of $5,000 a year in Minnesota’s small communities, revenue that is surely much appreciated.
Tax assessments are based on comparable sales.
Today, without recent sales to reflect declining values, many tax valuations are based on bubble numbers – people are being taxed on value that no longer exists. And when they complain to the assessor, they are told, “If you don’t like it, sell.” They can’t in this market.
To set the record straight, most cabin owners are retired folks of modest means. They are being heavily taxed to support local schools, and in fact pay the majority of the taxes even though they use far less of the service.
Jeff Forester
Executive Director
MN Seasonal Recreation Property Owners Coalition
Minneapolis
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