A Brief Summary of Red Wing Taxes Since 2002

Property Tax Levy

Previous Successes 

The City’s recent property tax levies are reflective of the Council’s ambitious, purposeful, and deliberate approach to investing in the community’s future prosperity and infrastructure renewal and replacement projects. The Council recognizes that unique changes in the City’s tax base afford a fleeting opportunity to make strategic and often long-lived investments in the community’s future without placing the property tax burden for such squarely on residential, commercial, industrial and agricultural properties. 

Evidence of the Council having successfully invested, and continuing to invest, in the community’s future prosperity without placing an undue property tax burden on the vast majority of property tax payers can be found in a brief history of the City’s tax rates. While the dollar amount of property taxes has certainly increased in recent years to fund investments in the community’s future prosperity the local property tax rate remains approximately the same as it was in 2002. This provides a strong indication that the property tax burden bore by residential properties is similar in 2018 as it was in 2002. Additional evidence of success can be found in the City’s long-term tax rates which from 2002 – 2014 had increased at an annualized inflation adjusted rate of less than zero. That is, inflation adjusted property tax levies between 2002 and 2014 were less than the rate of inflation. More recently, as a direct result of significant investments in the community, the City’s tax rate has increased by an aggregate annualized inflation adjusted rate of 1.88%. 

The question of policy importance is “where has that 1.88% aggregate annualized increase in property tax burdens fallen?”   The Council’s policy priority of making significant investments in the community’s future prosperity while not shifting property tax burdens to residential properties has been successful. On an inflation adjusted basis from 2002 – 2018 that residential property taxes have actually decreased by $742,223. That decrease has been 0.95% on an annual basis. That is, on average, every year since 2002 through 2018 the property taxes levied on residential properties have been less than inflation. This is an accomplishment which the Council should take considerable pride in and want to perpetuate.