By Laurie Blake laurie.blake@startribune.com
Dakota County has been held up as a shining example of frugality by Minnesota Revenue Commissioner Myron Frans.
The county is one of seven in the state that will collect less in property taxes in 2014 than it did in 2013. On Dec. 17, Dakota is set to adopt a $128.5 million 2014 levy — down $646,000 from the 2013 levy — without cutting services.
Frans is flying around the state making stops in selected cities and counties to thank them for making the intended use of extra money Gov. Mark Dayton and legislators provided for next year. He's handing out hammers to officials to symbolize their effort to "nail down property taxes," Frans said.
Cities will receive $80 million more in local government aid, for a total of $508 million in 2014. Counties will receive $40 million more in county program aid, for a total of $206 million in 2014. Eliminating the state sales tax on goods purchased by cities and counties will save local governments $129 million.
Statewide, 93 of the 853 cities reduced their preliminary levies, 223 held them flat and 537 increased their levy. Of the 87 counties, seven reduced their levies, 13 held them flat and 67 increased them.
Frans said he knows that many governments applied the extra money to their wish lists of delayed capital improvements.
"I get the wish list idea, but there is also a wish list for people who pay property taxes, and that is for them to go down," Frans said. In the past 10 years, property taxes have gone up while local government aid has been reduced. By providing local governments more state aid, "We want to see property taxes go down,'' Frans said. "Property taxes are the most regressive tax."