You’ve decided to cut your expenses and sell your non-residential home in Woodbury. However, you may also be worried about the effects Woodbury’s relatively low property taxes might have on the market value of your home. This question, while sound, begs a follow-up: is it even worth selling?
In today’s article, we’ll discuss the Woodbury, MN property tax rates and how they’re determined. In addition, we’ll also explore whether property tax rates have any effect on the property’s market value and whether or not you should sell your house in Woodbury.
Woodbury MN Property Tax Rate
Under Minnesota Property Tax Law, the value and classification of your property are used to determine your taxes. This is the responsibility of the County Assessor’s Office, which determines your home’s estimated market value, further adjusted for any exemptions, to determine your property’s taxable market value.
Furthermore, your property will be classified based on its primary use as either a homestead or a non-homestead property. Each classification is taxed differently, determined by Minnesota law. However, while Minnesota prescribes classification taxes, property taxes are administered on a county level.
Considering that Woodbury falls under the jurisdiction of Washington County, Minnesota, its tax rates are determined by the Washington County Assessor’s Office. These taxes are then redistributed to the city, and other government jurisdictions, to be used for public services. The payment of one-half of the tax is due by May 15, and the balance by October 15.
Unlike many counties that levy county-wide taxes, Washington county doesn’t. Instead, the Minnesota sales tax of 6.875% applies countywide, including the city of Woodbury. However, Woodbury collects an additional 0.5% in local taxes, increasing the tax burden to 7.375%.
Washington County uses a complex formula to determine the property tax owed on individual properties; it’s impossible to condense that formula into a simple tax rate. However, we can provide you with a rough estimate based on the statistical median of all properties in Washington County.
The annual property tax averages at 0.96% of the estimated market value of your property. Considering that Minnesota’s median property value is $264,800, the annual property tax would amount to $2,542.08.
For example, let’s say that the Washington County Assessor’s Office classified your personal property as a residential homestead, with a market value of $250,000. That means that you, as a taxpayer, would have to pay $2,400 in taxes.
It’s worth pointing out that the 0.96% tax rate varies depending on multiple factors, and the exact property tax rate you’re supposed to pay is determined by the tax assessor on a property-to-property basis, depending on the type of property. For a more precise calculation, please refer to an online property tax calculator.
According to the Minnesota Department of Revenue, Woodbury residents should receive two documents about their property taxes each year: the Truth in Taxation notice and Property Tax Statements.
The former is sent to all property owners before the local government finalizes its budget for the upcoming year and explains how property taxes are determined. The document also includes the value and classification of your property, as well as a proposed tax bill for the upcoming year.
Property Tax Statements elaborate how much property tax you owe for the current year, as well as an itemized list of local property taxes.
Property tax exemptions, which are used to reduce your property tax bill, are determined and administered by the county level while adhering to the Minnesota Department of Revenue regulations.
To qualify for a property tax exemption, a homeowner must be a qualifying person, or the property has to be used for public purposes. Homeowners can apply for a homestead tax exemption, while religious establishments, institutions of purely public charity, public hospitals, and schools are automatically exempt from taxation.
Other homeowner tax exemptions include tax exemptions for retirees aged 65 or more, exemptions for people with disabilities, and veterans with disabilities. Additionally, Minnesota prescribes an income-based exemption if you’re a low-income earner, though this particular tax exemption only applies in certain municipalities.
Tax Rates By County
Woodbury and other cities within Washington County have one of the highest median property taxes in the nation, ranking as 259th (of 3,143) county for median property taxes.
That isn’t as much as Carver County, which collects the highest property tax in Minnesota, averaging at 1.04% of median home value in annual property taxes, but it’s significantly higher than Koochiching County, which has the lowest property tax in Minnesota, collecting 0.64% of median home value per annum.
Considering that Minnesota has 87 counties, we’ll list the Washington County adjacent county’s tax rates for comparison. Washington county is adjacent to the following counties:
- Chisago County — North — 1.25% property tax rate
- Polk County — Northeast — 0.99% property tax rate
- St. Croix County, Wisconsin — East — 1.49% property tax rate
- Pierce County, Wisconsin — Southeast — 1.89% property tax rate
- Dakota County — Southwest — 1.10% property tax rate
- Ramsey Country — West — 1.27% property tax rate
- Anoka County — Northwest — 1.11% property tax rate
Based on this information, it’s evident that Washington County, and by extent Woodbury, have the lowest property tax rate in that part of Minnesota and lower rates than two adjacent counties belonging to the neighboring state, Wisconsin.
Property Tax Comparisons for Cities in Washington County, Minnesota
Woodbury is the largest city in Washington County, superseding even the county seat, Stillwater. The town itself is located some eight miles east of Saint Paul, along Interstate 94.
Washington County has 33 cities, including its county seat Stillwater, and its largest city, Woodbury. Woodbury is surrounded by 12 cities, each within 11 miles of Woodbury, MN. Here are their tax rates:
- Maplewood, Ramsey County — 1.32% property tax rate
- St. Paul, Ramsey County — 1.35% property tax rate
- Little Canada, Ramsey County — 1.14% property tax rate
- Roseville, Ramsey County — 1.24% property tax rate
- White Bear Lake, Ramsey County — 1.18% property tax rate
- Vadnais Heights, Ramsey County — 1.18% property tax rate
- Inver Grove Heights, Dakota County — 1.08% property tax rate
- Mendota Heights, Dakota County — 1.00% property tax rate
- Oakdale, Washington County — avg. 0.96% property tax rate
- Cottage Grove, Washington County — avg. 0.96% property tax rate
- Mahtomedi, Washington County — avg. 0.96% property tax rate
- Hudson, Wisconsin — 1.16% property tax rate
Based on the information procured from the official websites of respective counties and states mentioned above, it’s evident that Woodbury has the lowest property tax rate. However, its tax rate is equal to other surrounding cities within Washington county.
According to the official Woodbury, MN website, property taxes are determined on a county level by the Washington County Assessor’s Office. The office is also responsible for establishing the market value of your property, accounting for market value exclusion, as well as determining the classification of your property.
All taxes are paid to the Washington County Auditor and redistributed to the city and other jurisdictions, such as school districts, to be used for delivering public services.
Should You Sell Your Home in Woodbury, MN
If you’re basing your sales decision on the property tax rates alone, the answer is: yes!
Property tax rates affect house market values in a rather peculiar way. Let’s say we’re looking at two houses on the market, one located in Woodbury and the other in Maplewood, Ramsey County. Both homes have been appraised at $250,000.
Based on the tax rates for each respective city, Woodbury homeowners would have to pay $2,400 in property taxes, and Maplewood residents would have to pay $3,300 in property taxes for the same-value home.
According to the Standard Capitalization Theory, published by Wallace E. Oates in the Journal of Political Economy, the price of the house is determined by the total value of the home minus the net present costs of owning a house. To maintain the balance in Oates’ equation, each time property taxes go down, the home’s value must go up.
When the property tax rate decreases, so do the cost of living, and the home buyers are immediately willing to pay a higher asking price for the house. Considering that Woodbury has property tax rates that are well below the national average, the time for the sale is now.
Tax rates in Woodbury, MN, are more than friendly towards local residents, though there is some talk about a proposed tax increase in 2022. Higher taxes mean lower market value, so hurry up and contact Mill City Home Buyers, cash home buyers Minneapolis residents turn to when selling homes.
Besides operating in Minneapolis, we buy houses Woodbury homeowners are selling, so contact us if you’re https://www.millcityhomebuyers.com/blog/benefits-accepting-cash-offer-mn/ — we might make one in less than 24 hours.