In St. Paul, owners of modest, median-value homes and properties in low-income neighborhoods should brace for a tough tax year in 2020 — and grab tax form M1PR while they’re at it.

If a homeowner’s property tax increase exceeds 12 percent from year to year, they are entitled to as much as $1,000 in refunds from the state of Minnesota, but they have to apply for it.

That’s in addition to the traditional homestead credit, regardless of income.

Yet another state tax refund applies for households earning less than $115,020, with variation according to certain income-based thresholds.

LOW- TO MID-INCOME AREAS WILL SEE JUMP IN TAXES

Filling out form M1PR will be especially important next year for St. Paul residents of low-income areas like the North End, Frogtown and Dayton’s Bluff, and even middle-income communities such as Hamline-Midway.

That’s because property values in low- and moderate-income neighborhoods are still playing catch-up from the recession and housing crisis of 2008.

They are now finally rising by double digits, and it’s these homes that will see the largest increases in their city, county and school district property taxes.

Homeowners in pricier neighborhoods are likely to see smaller changes next year, mainly because values already rebounded and are not currently increasing so dramatically.

Across Ramsey County, market values are rising about 7 percent, on average, but the increase will be in the double digits for 35 percent of homes, as well as 32 percent of apartments and 26 percent of commercial/industrial property, according to the Ramsey County assessor’s office.

The 2020 tax levies will be finalized in December and are still subject to revision.

Public hearings are scheduled for 6:30 p.m. Nov. 25 at the Maplewood Library, 3025 Southlawn Drive, for Ramsey County; 6 p.m. Dec. 3 at the District Office, 360 Colborne St., for the St. Paul school district; 6 p.m. Dec. 4 at the St. Paul City Council chambers, 15 W. Kellogg Blvd., for the city; and 6 p.m. Dec. 11 at the Metropolitan Council chambers, 390 N. Robert St. in St. Paul, for the Met Council.

ST. PAUL PROPERTY TAXES: STILL UP IN THE AIR

In St. Paul, where voters defeated a measure against organized trash collection, it’s unclear where the final levy stands. The 2020 tax projections that homeowners received in the mail in recent days may in fact be off by hundreds of dollars.

Take the example of a homeowner in the 1400 block of Charles Avenue whose St. Paul property tax might appear to be going up $355. Removing trash costs from taxes could shave that sum by $185, though other costs could yet be added.

“This year was particularly confusing,” said city council President Amy Brendmoen.

Here’s why:

In August, St. Paul Mayor Melvin Carter said the city property tax levy — the sum total of all taxes collected in the city — would go up from $156 million to $164 million in 2020, an increase of $8 million, or 4.85 percent, over 2019.

The mayor’s office warned, however, that a “No” vote on the ballot question would force the administration to move another $27 million in trash fees onto property taxes, for a total city levy increase of 22 percent.

Those costs, which would have been borne by property owners citywide, are reflected in the proposed 2020 property tax statements mailed out this month.

However, on Nov. 5, voters defeated the ballot question, so there’s no need for the city to shift the $27 million onto taxes.

$3 MILLION SUPPLEMENTAL PUBLIC SAFETY BUDGET

Complicating matters, other reductions and additions could impact the final figures.

In response to an uptick in citywide homicides and street shootings, the mayor on Wednesday asked the city council to back a $3 million supplemental public safety budget. Half of that would be funded by an added $1.5 million from the tax levy.

If approved, the city levy would go up to 5.85 percent.

Not every council member appears convinced. But Brendmoen and most other members have expressed some relief that the mayor’s new funding initiative would eliminate the need for a previously proposed $5 “Rec Check” fee for student after-school activities at recreation centers, on top of promoting youth job programs and other outreach.

“I think it’s a fair proposal,” said council member Chris Tolbert on Wednesday. “I like the fact that it’s data-driven. We have to do something to get ahead of the tragic violence that we’ve seen this summer.”

AN EXAMPLE OF THE JUMP IN PROPERTY VALUES

To illustrate the increase in property values, take a look at an actual property tax estimate for a Hamline-Midway home in the 1400 block of Charles Avenue, near Allianz Field.

Ramsey County assessed the estimated market value of this single-family property at $194,200 in 2019 and $223,400 for 2020.

That’s a sizable increase of nearly $30,000, or 15 percent. Throughout the city, market values are rising about 7 percent, on average, with wide variation.

These numbers play a leading role in how property taxes are calculated.

The time to dispute property assessments is March, when the county publishes home values. It’s a bit too late now. For 2020, this homeowner would have to go to tax court to seek changes.

TOTAL PROPERTY TAX: 16 PERCENT INCREASE

Prior to the trash referendum, the total property tax for this homeowner was projected to be as much as $3,644 in 2020, up 23 percent from $2,970 in the present year.

This includes tax levies imposed by the city, county, school district, Met Council and special taxing jurisdictions. Without $185 in city trash costs, the total increase could be closer to 16 percent.

HOMESTEAD EXCLUSIONS

In Minnesota, primary residences bearing a value of less than $414,000 qualify for a homestead market value exclusion that gets smaller as the home value rises.

In the case of the property owner on Charles Avenue, the 2019 exclusion was $19,800. The 2020 exclusion is $17,100.

Reducing the taxable value of the Charles Avenue property by $17,100 leaves us with a taxable market value of $206,000, which is what will be used by the county to calculate property taxes.

Additional exclusions are available to disabled veterans, as well as legally blind and permanently or totally disabled homeowners.

Homestead applications are due Dec. 16. More information about tax exclusions is available online at RamseyCounty.us/property.

RAMSEY COUNTY: 17 PERCENT

For this property, the total property tax levied by Ramsey County and the county’s Regional Railroad Authority in 2020 will be $1,068, an increase of $156, or 17 percent over the present year.

ST. PAUL: 19 PERCENT?

The homeowner on Charles Avenue is still missing some key information to be able to determine what the city portion of their tax bill will be. They paid $877 in 2019, and was projected to pay $1,231 in 2020 if $27 million in costs for trash collection were added to the city levy.

That’s a difference to him of $355, or 41 percent.

Without $185 in trash costs added in, they were projected to pay $170 in new city property taxes in 2020, for a 19 percent increase next year.

Those numbers could yet go up a bit, depending in part on how the city council responds to the mayor’s supplemental budget request.

ST. PAUL SCHOOL DISTRICT: 12 PERCENT

The homeowner will pay St. Paul Public Schools an extra $180 for the regular levy next year, but annual costs related to a separate taxpayer-approved levy referendum will drop $50, for a net change of $130, or 12 percent. Total school district property tax: $1,183.

MET COUNCIL: 13 PERCENT

A smaller but noticeable line item is devoted to the Met Council, the metro’s regional planning agency, which will receive $49.49 from this homeowner in 2020 — an increase of $5.50, or 13 percent, over the present year.

OTHER SPECIAL DISTRICTS: 30 PERCENT

This homeowner will pay $112 next year for special taxing districts, up $26, or 30 percent, from 2019.

The Capitol Region Watershed levy increased 17 percent this year.

The St. Paul Housing and Redevelopment Authority levy went up 8.7 percent.

The St. Paul Port Authority levy went up 12 percent.

STREET, SEWER, GARBAGE, RECYCLING

There are a few other fees that are likely to appear on this homeowner’s property tax statement.

It looks like they neglected to pay for street sweeping, alley sweeping and street lighting when the street maintenance bill came due, so the charge was moved to their property taxes, for a total bill of $50. That’s a 7 percent increase over the present year’s bill, including a couple of dollars in interest for late payment.

Their storm sewer bill went up 4 percent, for a total bill of $102, after interest for late payment.

The recycling fee remains unchanged from this year ($58.20) and an annual administrative and outreach fee for organized trash collection also remains flat ($24.60).

WATER, TRASH HAULERS

While these costs won’t appear on his property taxes, it’s worth noting that St. Paul Regional Water Services is increasing water rates by 6 cents a billing unit, or $4.08 per year for the typical single-family user.

In addition, the state’s safe water drinking fee is rising from $6.36 per year to $9.72. The right-of-way recovery fee is not changing.

Beginning Jan. 1, residential trash collection charges for one- to four-unit properties will drop by $1 per month, or $12 for the year, for a total cost of $19.20 to $33.15 per month depending upon cart size.