Washington County Board Hears from Residents Upset with 2011 Taxes

The Washington County Board of Commissioners held its 2010 Truth in Taxation hearing Thursday night, where several residents said they were upset with their proposed taxes for next year.

State aid to Washington County has dropped nearly $7.3 million in the past three years, shifting more of the tax burden to residents, said Deputy Administrator Molly O'Rourke. The proposed 2011 budget is $182.6 million and the net county tax levy is not expected to increase.

County Property Records and Taxpayer Services Director Kevin Corbid said information on the 2011 taxes was mailed out in November, "and we've been getting phone calls ever since."

A property owner whose home saw an 8 percent reduction during the past year—the county average—will see a decrease in county property taxes. The owner of a $240,000 home is expected to pay $679 in county taxes in 2011, down from $700 in 2010.

Still, residents who are not among that group expressed their displeasure with the system Thursday night.

Lauren Malmgren, a St. Mary's Point resident, said the county's property assessments are out of line, and questioned why his taxes are going up when the value of his home is going down. People have enough trouble managing in the poor economy without seeing tax increases, he said.

"We're getting taxed out of our houses," Malmgren said.

People tend to think that there is a specific formula linking the tax rate and a home's value, Corbid said, but that's not the case.

"It can be confusing because a lower value can lead to a higher tax," he said.

Dan Smith, who owns commercial property in downtown Stillwater, told the board that the area is suffering because of the tax burden. He will likely see a $2,000 bump in taxes on his property, to $23,000 in 2011.

"These property taxes are a literal killer," he said.

Current economic conditions have put an additional burden on the county's social services, O'Rourke said, though Washington County has the second-lowest tax rate in the state and is third lowest in per-capita spending. The county is lowest in the seven-county metro area in per-capita spending.

Another issue for the county is state-mandated obligations, Administrator Jim Schug said. Washington County shouldn't be forced to provide certain levels of funding for services that could be more efficiently implemented on a case-by-case basis, he said.

The board is expected to approve its 2011 budget and levy on Tuesday.