Letter to the Editor SPOTLIGHT: Minneapolis needs a reset
This LTE was originally published in the Star Tribune on October 20, 2024 in response to the article "Minneapolis to look at new taxes as downtown values plummet".
Property is valued both on the building and on the value of the location and proximity to community or “land value.” Today, our tax system focuses on the building. So, for example, empty lots pay very little in taxes. While the downtown office building values have decreased, the value of the land downtown is as high as ever. The strong transit connections, proximity to the lakes and the riverfront and other community resources haven’t moved or changed. The problem is we’ve changed what we need to use the land for as we shift to working from home. Homes and retail rather than business offices or parking are needed downtown. A land value tax would shift focus to value the proximity to community resources, encouraging empty lots or vacant buildings to become homes. It wouldn’t be a new tax; it’s just a shift in how we assess property values.
The state Legislature needs to pass a land value tax authorization so Minneapolis can solve its downtown tax crisis. A land value tax report in 2021 showed clear benefits to passing last year’s HF 1342. And HF 1342 made it to the conference committee in 2023-2024. It is time to shift this tax burden to the people speculating on property so they pay their fair share now, repurpose and rebuild — or sell the land to someone who will.
Brit Anbacht, Minneapolis