Minnesota lands in bottom half of state property tax ranking

On Behalf of | Apr 9, 2021 | Commercial Property Tax Appeals

Not long ago, Minnesota was ranked #2 by U.S. News in their ranking of best states in 2021. We ranked high on infrastructure, opportunity, natural environment and economy, though to be fair, the publication did not rank winter weather when it assessed states.

Minnesota didn’t fare as well in a separate ranking by the Tax Foundation. The think tank’s property tax component of its 2021 State Business Tax Climate Index puts us at #31, up one spot from last year.

The top state in the nation is New Mexico, followed by Indiana, Idaho, Delaware and Nevada.

Why commercial property taxes matter

The Tax Foundation says that commercial property taxes matter to entrepreneurs because businesses own a lot of real property and because commercial property tax rates are often higher than rates on residential property.

“Across the nation, property taxes impose one of the most substantial state and local tax burdens most businesses face,” the foundation says.

States can attract businesses with attractive real property tax rates and by avoiding “harmful taxes on tangible personal property, intangible property, wealth, and asset transfers.”

The bottom of the pile

The tax policy research group hails the aforementioned states at the top of its index and calls out those at the bottom of its rankings as well: Connecticut, Vermont, Illinois, New Hampshire, New Jersey, New York and Washington D.C.

Here’s how Minnesota’s neighbors ranked: Wisconsin at #17; Iowa is #38; South Dakota is #20; and North Dakota is at #12.

Every Minnesota business facing an inflated tax bill due to an inaccurate property tax assessment can fight for fairness with the help of an attorney experienced in commercial property tax appeals.