Lonsdale tax rate to increase less than 4% in 2022

By: 
Andrea Nelson, andrea@montgomerymnnews.com

Lonsdale residents will see a less than 3.1 percent increase in the city’s tax rate in 2022 compared to no change in 2021.

This comes as the mayor and city council unanimously approved the preliminary budget and property tax levy on September 30.

According to Lonsdale City Administrator Joel Erickson, the tax rate has remained the same the last two years, but needed to increase by 3.09 percent in the coming year. Overall, though, he said that the city’s tax rate has seen a 21.05 percent decrease since 2016.

Erickson said that the tax rate increase is based on increases to property values over the past year and a property’s market value homestead exclusion, which provides a tax reduction to homesteads valued below $413,800 and shifts the tax burden to other property types.

“In addition to increased value, the lesser valued homes will see their Market Value Homestead Exclusion reduced at a larger percentage than more expensive homes that already receive less MVHE,” he said.

The preliminary tax levy has been set at $2,445,000. This is compared to $2,241,250 in 2021.

The new tax rate is set at 58.078 and will impact residents on their taxes anywhere from $84.68 to $263.65 depending on the value of their property.

In addition to finalizing the preliminary tax levy, the city council also approved the budget for 2022.

Compared to the adopted 2021 budget, the council has adjusted the 2022 budget down by over $630,0000, bringing the proposed budget to $10,737,755.

One cost-savings measure that the council has proposed is to switch to even-year elections.

Mayor Tim Rud said that the previous thought process was that holding city elections and school elections in the odd year allowed greater focus on these races, rather than on presidential and state elections.

Now, however, the school districts have...

To see more on this story pick up the October 7, 2021 print edition of the Montgomery Messenge. 

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