By now property owners have received their proposed property tax statements for 2012. I am sure no one is happy about the increases. Once again, a major portion of the increase comes from the North Shore Hospital and their ability to levy whatever amount in taxes under “Special Taxing District” they care to with no limits and no apparent oversight or accountability to the state, county, or property owners.
The hospital is also not covered under the Truth in Taxation Law so they don’t have to hold public hearings on their tax levy or be included in county notices of hearings.
In the November 19 News-Herald, an article on state property taxes said that the proposed 2012 tax levy for the hospital was 50% higher than 2011 (2011 levy was approximately 65% higher than 2010).
Yet in the November 26 edition of the News-Herald there is an article titled Hospital finances looking good…. which talks about profits and excess revenues to date (instead of a projected $574,567 in losses) and money sitting in the hospital’s bank accounts, and it goes on to say the hospital has $4.6 million in capital reserves.
I don’t believe it is right for the hospital to on one hand brag to the public about profits, excess revenues, money in bank accounts, and millions of dollars in reserve and with the other hand reach into the pockets of the property owners by significantly increasing their tax levy each year. Last year they projected $574,567 in losses by October this year and I assume, in part, based their 2011 tax levy on this loss. Now they don’t have that loss but say they have a profit.
If that is the case, where did the money from the tax levy go? It certainly is not legitimate to claim a profit based on tax levy funds that have not been spent. Something isn’t right. Either I am missing something, which is entirely possible, or this is looking more and more like one big shell game.
Up until a few years ago, state law capped the hospital tax levy at 3%. Then the state legislature removed this cap. Based on the hospital’s significant tax levy increases over the last several years, it is time legislators revisit this decision. No organization should be allowed to levy a tax with no oversight or limit and not even be accountable to property owners through Truth in Taxation laws. If you agree, let your legislators know.
Over the years, I have paid property taxes in six states including eight different counties, both rural and urban, and I have never seen anything that even remotely resembles what goes on here.
Jim Peterson
Lutsen
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