Several St. Louis County homeowners see rise in property taxes
DULUTH, MN - If you’re in St. Louis County, you may have received your home’s estimated market valuation this spring.
Many homes seem to be worth more than ever before, and that could mean much higher taxes.
Justin Rubin is a long-time Duluth homeowner. About 14 years ago, he moved into a place with a perfect view.
“My wife really wanted a place with a view of the lake,” he said.
Recently, Rubin’s property value increased.
“I would say a good 60 percent higher than what it was just a few years ago,” he said.
His property taxes have also gone up.
Officials with St Louis County said many factors are contributing to a rise in property values.
“The market has been quite crazy there’s lots of sales in the market,” said Mary Garness, the Public Records and Property Valuation Director for St. Louis County.
She said construction costs and lower interest rates have contributed.
Homes are valued based on what they could be selling for.
“So, really, sales tell us what the price of property would sell for in the open market,” said Garness.
But there are ways to decrease your home’s valuation, which could reduce your property taxes.
“When you purchase a home if you’re living there as your primary residence, you have the ability to qualify for a homestead exclusion,” said realtor Danielle Rhodes. “Which gives you a discount on your property taxes”
She said there’s also a secondary homestead option that could save homeowners $1000 a year, a reminder that it’s important for homeowners to always do their research.
“Talk to someone,” Rhodes said. “Probably a real estate agent is the easiest way to go to make sure that your house value matches what it would really sell for.”
Justin Rubin is saving money with the homestead exclusion -- and a side hustle.
“I’m trying to offset a little bit through eBay,” he said.
Both the realtor and county official we spoke with say a higher property value does not automatically mean higher property taxes.
For more information about the homestead classification click here.
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