In 2001, there was a massive overhaul of the property tax system designed to affect both the distribution of the property tax burden among classes of property and the reliance of each type of jurisdiction on property taxes. The major effects of the 2001 reform were reduced reliance on property tax revenues to fund schools and transit services, with slightly greater reliance for services provided by cities, towns, and special taxing jurisdictions (other than metro transit). Another element of the reform made the state a direct recipient of property tax revenues for the first time since 1960s.
In 2003, another set of changes occurred that affected the relative shares of property tax collections. The local government aid program was overhauled, altering the distribution of aid and reducing the overall level of aid, thereby increasing cities' reliance on property taxes. The effect on property taxes was somewhat muted in 2004 due to the strict levy limits enacted for that year. By 2005 the full effects of the changes made in 2003 can be seen.
The first graph below shows each type of jurisdiction's percentage share of the total property tax burden over the relevant time frame. The second shows the absolute amount of property taxes collected by each type of jurisdiction. A table containing the data underlying the graphs follows.
Note: "Special taxing districts" include all government jurisdictions other than counties, cities, towns, and school districts with authority to levy property taxes; they include watershed districts, housing and redevelopment authorities, regional rail authorities, and the Metropolitan Council and other regional government entities.
Note: "Special taxing districts" include all government jurisdictions other than counties, cities, towns, and school districts with authority to levy property taxes; they include watershed districts, housing and redevelopment authorities, regional rail authorities, and the Metropolitan Council and other regional government entities.
| Payable Year | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Taxes | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 |
| County | 1,455 | 1,557 | 1,515 | 1,615 | 1,709 | 1,830 | 1,961 | 2,114 | 2,267 | 2,403 | 2,478 | 2,505 |
| City | 847 | 916 | 981 | 1,052 | 1,142 | 1,245 | 1,355 | 1,476 | 1,604 | 1,675 | 1,741 | 1,775 |
| Town | 96 | 103 | 118 | 130 | 138 | 147 | 158 | 169 | 180 | 190 | 194 | 201 |
| School District | 1,790 | 1,920 | 986 | 1,181 | 1,277 | 1,363 | 1,600 | 1,764 | 1,908 | 2,057 | 2,123 | 2,164 |
| Special District | 178 | 197 | 158 | 179 | 183 | 203 | 223 | 252 | 278 | 280 | 295 | 303 |
| State | 0 | 0 | 585 | 592 | 625 | 626 | 656 | 691 | 732 | 774 | 777 | 797 |
| Tax Increment | 314 | 342 | 248 | 267 | 271 | 263 | 272 | 297 | 319 | 334 | 269 | 277 |
| Total | 4,679 | 5,035 | 4,591 | 5,016 | 5,344 | 5,677 | 6,224 | 6,792 | 7,287 | 7,713 | 7,877 | 8,020 |