Sen. Lucero meeting with Wright County Farm Bureau last week to discuss agriculture issues impacting farmers in our area.

Sen. Lucero with Trinity and her mother Kilo. Trinity is an impressive young lady who shadowed me Thursday last week at the Capitol before leaving for Army boot camp next month pursuing her aspiration of becoming a combat medic.

Dear friends and neighbors,

 

The month of March is known as “in like a lamb, out like a lion.” As we are in the last week of March, I know I’m not alone praying March does NOT live up to it’s reputation! As the temperature is warming outside, the pace inside the Capitol is picking up due to being less than three weeks before the deadline all bills must pass through committees.

 

While the topic of property taxes can get lengthy and complex beyond what is possible in an email update, I wanted to touch on the topic from a high-level overview.

 

Several dozen property categories exist in MN. I’ve included just a handful of the different types below. Different property types are taxed at different rates. The important factor to know is the tax rate is higher on commercial and industrial properties (e.g., business parks, strip malls, office buildings, gas stations, childcare buildings, etc.) than on residential properties.

• Residential homestead
• Residential non-homestead
• Seasonal/recreational
• Commercial/Industrial
• Agricultural

 

Tax value is established on January 2 each year to be used to calculate tax in the following year. Example:

• Property value established January 2, 2024 will be used to calculate tax liability for property taxes paid in 2025
• Property value established January 2, 2025 will be used to calculate tax liability for property taxes paid in 2026
• Property value established January 2, 2026 will be used to calculate tax liability for property taxes paid in 2027

 

Property owners receive a letter in March informing them of the their property’s tax value determined two months earlier on January 2 by the tax assessor. If a property owner disagrees with the tax assessed value, the letter contains instructions to attend their Local Board of Appeal and Equalization meeting or their County Board of Appeal and Equalization meeting to dispute the value. The letter contains the date/time of the meetings. The important thing to remember is the tax value established in the current year is used calculate tax liability in the next year.

 

Also in March, property owners receive a letter for their property taxes due by May 15 and October 15 of the current year. Example:

• The letter each property owner will receive in March 2025 for taxes due May 15, 2025 and October 15, 2025 will be based on the property taxable value established January 2, 2024

 

Property owners receive a letter in November informing them of their proposed tax liability for taxes due in the next year. The letter also contains instructions to attend the Truth in Taxation meeting. Example:

• Letter received November 2024 uses the property value established January 2, 2024 to propose taxes paid in 2025
• Letter received November 2025 uses the property value established January 2, 2025 to propose taxes paid in 2026

 

The proposed property taxes will be from multiple units of government:

• Local city or township
• School district
• County
• State

 

The above can be overwhelming if this is the first time reading about the process, but the above is just the tip of the iceberg. I will use the remainder of this email to briefly touch on how societal factors are directly resulting in higher property taxes.

 

As I mentioned above, property tax liability is a function of property value and tax rate based on property category type. Generally speaking, the value of residential properties is established by comparing to the recent sales of similar residential properties in the neighborhood. The value of commercial property such as strip malls and office buildings, however, is determined very differently. Generally speaking, commercial properties are owned by investors and are leasing to tenants. Rates of return based on rents and vacancies greatly influence the value of the property. Higher the vacancies equals lower rates of return which in turn reduce the value of the commercial property and thus reduce that property’s tax liability.

 

The law of supply/demand and the cost of new construction are raising the values of residential properties. Government mandates are directly responsible for making new construction more expensive in Minnesota than in surrounding states. Because of the incredible demand for housing, because less existing homeowners are selling due to their golden handcuffs of being locked into fantastic mortgage rates of ~3%, and because the cost of new construction is so incredibly expensive due to government over-regulation, the value of all residential property is increasing. Property value is a key component influencing higher property taxes. The societal factors include mandates Democrats have passed over the years driving up the cost of new construction and remodeling. Moreover, Democrat soft-on-crime policies allowing rioters and criminals to create safety/security concerns in downtown areas, driving people away, creating vacancies in commercial properties, are reducing commercial property values.

Background: With the last day of the 2025 legislative session scheduled for May 19, the time for creating and passing a budget becomes shorter. Gov. Walz's proposed budget includes dangerous cuts to long-term care, disability-care, and special education. Gov. Walz’s proposal also shovels hundreds of millions of dollars into projects and programs that do not serve the best interest of Minnesotans. For instance, millions in taxpayer dollars funding the healthcare, college, and housing of illegal foreign nationals, taxpayer funded lunches for those who CAN afford it, hundreds of millions in confirmed fraud, and much, much more.

 

Why it Matters: With Minnesota facing a $6 billion deficit, we must look at each program and determine whether or not it truly serves the best interests of the People of Minnesota. Gov. Walz’s proposed budget will harm Minnesotans. We must continue funding programs such as special education and disability care, while making cuts to programs that do not support Minnesotans.

 

Next Steps: I’m among Senate Republicans working to create a fair and balanced budget to benefit all Minnesotans. Among the wasteful and unnecessary spending proposed thus far, includes 1) the NLX Passenger rail which costs about $200 million; 2) tax credits to illegal foreign nationals without a social security card, which will cost Minnesota about $158 million; 3) taxpayer funding of healthcare for illegal foreign nationals to the tune of $220 million. I’m focused on being a good steward of the money Minnesotans have entrusted us and ensuring tax dollars are spent responsibly.

Following arrest and charging last week of former Sen. Eichorn, Senate Republicans decisively announced they will make a motion on Thursday morning of last week to expel then Sen. Justin Eichorn (R-Grand Rapids) from the Senate. Eichorn was arrested Monday night last week and is facing federal charges for solicitation of a minor for sex. "There is no question that these charges merit expulsion,” Senate Republican Leader Mark Johnson said. "We owe it to the public to hold our members to the highest standards, and this violation of the public trust is so severe we must act. It is my hope that this quick resolution gives Senator Eichorn time to focus on his family." Prior to being able to vote on this expulsion, Eichorn resigned from his office. "This is the right thing to do for his family and the Senate,” Sen. Johnson said. “We are ready to move on and do the important work that needs to be done at the Capitol.” I agree with Sen. Johnson's statement. We need to move on and continue the work we were elected to do without the cloud of an arrest hanging over the Senate.   

Sen. Lucero with Traci Larson, CEO and President of Guardian Angels and Susan Farr, a developer with Ebenezer discussing senior living and long-term care.

Sen. Lucero visiting with young people from the Elk River Boys and Girls Club as they shared their stories how programs helped them.

Sen. Lucero visiting with members of the Wright County Economic Development Partnership.

While Gov. Walz, Democrats, and the Department of Education push divisive, biology-denying curriculum in public schools, homeschooling continues to grow.

The silence is deafening! 

And when Gov. Walz does engage, he does little more than promote lies.

Each and every day I’m continuously humbled at the opportunity to represent and fight for the values and priorities of our great community!

 

Please contact me to share any issues, concerns, or feedback you have to assist me best represent you. The best way to reach me is by email at [email protected] or by phone at 651-296-5655.

Sincerely,

 

Eric Lucero

State Senator

District 30

Rockford Township, Hanover, Saint Michael, Albertville, Otsego, Elk River, Nowthen, Western Oak Grove

Capitol Address

95 University Avenue W.
Minnesota Senate Bldg. 2413
St. Paul, MN 55155

651-296-5655

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