Rising property taxes dominate hearing

About 20 Carlton County residents came to the Truth in Taxation hearing on Tuesday to voice fears of losing their homes under heavy increases in local property taxes. An Eagle Lake summer resident testified she had a 23 percent increase for taxes payable for fiscal year 2023 although she and her husband lived there only 47 percent of the time.

Jim Jankowski lives on a small farm in rural Esko where he had milked cows in the past. The farm has been in his family for more than 100 years. The 80-year-old took the podium.

“I have worked hard in my life, but have a very limited retirement income,” Jankowski said. “My farm property taxes have now risen from $1,100 per year to a proposed $1,900 per year. I guess they will drive us out of our place.”

Assessor Kyle Holmes and auditor and treasurer Kevin DeVriendt spoke to many of the attendees before and after the hearing.

DeVriendt’s staff distributed handouts which explained the proposed 6.9 percent levy increase, pressures on the budget, a comparison of levy monies needed in each county department, and how each taxing authority affects the overall tax bill.

Some taxing authorities have the same levy as the last fiscal year such as the townships of Automba, Lakeview, and Split Rock and the city of Wright. The city of Moose Lake has proposed a 20.3-percent increase.

The Carlton school district dropped its levy request 8.5 percent while the Cromwell district has called for a 17.3 percent increase in levy needs.

Of note in other local levies, the Cloquet Area Fire District levy for ambulance services has risen 117 percent, while the Northwest Carlton County Ambulance District has asked for a 9.6-percent increase.

DeVriendt noted that high prices have been asked for existing homes and land for sale and local residents have been selling at that price. The fallout from that results in neighboring homes and property being revalued higher and can result in a larger tax bill.

Robert Wait of Scanlon addressed the county board, saying he and his wife wondered if they should sell their home and go live with the kids. He said he bought the Scanlon home in 1985 for $17,000 and the taxes were $500. Today the property taxes are $3,100, and next year will be $3,400 for the year.

Holmes said that during a study about four years ago of those Carlton County property owners requesting a property tax refund from the state, only 46 percent of those homeowners requested a refund.

He related that his assessors association is lobbying the State Legislature to just automatically refund that amount to individual households. Holmes said the Department of Revenue has all the information and could do it if it was so directed.

“In this era of huge billion-dollar surpluses in the Minnesota coffers this would be time for the Legislature to fund many of the unfunded state mandates that are required for county government to provide with no or little state money being given,” DeVriendt said. “This is a serious burden on the county property tax payer and is not fair. This has gone on for decades and affects some counties more than others.”

DeVriendt noted that he had received more than 20 phone calls a day after the projected property tax bill for 2023 was mailed out. One phone call came to his office in which a taxpayer lamented that the letter came in just before the Thanksgiving holiday.

The phone caller asked why the letter of a property tax increase would come in just to spoil the holiday festivities.

DeVriendt said it was not sent at that time on purpose. His staff had just gotten done with the reporting requirements for a general election. He said they worked as fast as they could to get the notices for the property tax levy out to meet the state statute deadline.

All county commissioners were present for the hearing. Chair Gary Peterson said they will look again at the budget of each department and see if cuts could be made to reduce the 6.9-percent increase. A final decision for the 2023 levy and budget will be made at the 4 p.m. Dec. 27 board meeting held at the Transportation Building meeting room at 1630 County Road 61.