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This time of year the numbers being discussed in council chambers, school board meetings and special agencies have a bearing on property taxes but are only suggestions.  The special funding needs of government units begin at a maximum level;  by December the FINAL tax needs are  adopted. The early tax statements that are mailed out to Chisago County property owners in fall are estimates.

The Chisago County Board last week started adopting budgets and levy revenue needs for departments,  like the county Lake Improvement District, the HRA/EDA,  etc. which operate relatively independently and are directed and governed by their own boards and commissions.  The HRA/EDA Board of Directors has recommended a large hike in what it seeks as revenue for 2027, from about $700,000, which is the  agency’s normal support from Chisago County,  to $1 million for 2027.

The County Board voted 4-1 to grant early acceptance to the request.  

The vote came with surprisingly little debate.

The one no vote was from Commissioner Ben Montzka, who commented that he is always hearing taxes are too high here.  He feels that if the corporate activity the HRA/EDA is meant to promote isn’t happening, it is because of the taxes.  Commissioner Montzka added, “I could be wrong but that’s what I think.”

HRA/EDA members are looking to utilize additional levy dollars to beef up efforts to attract commercial and industrial development.  It has long been the theory that the net result is to better-balance the tax burden.

Montzka’s concern that the hoped for activity is stalled is substantiated by the statistics.  According to the MN Dept of Revenue Chisago County received 15 percent of its value percent in the form of commercial taxes.  The county collected $69 million in 2010 in total property taxation and $10.9 million was tied to commercial and industrial.

Fast forward to 2015 and there indeed was a noticeable bump in commercial properties’ contributions to property tax revenue, rising to $11.3 million.  

However, this didn’t enhance the goal of better balance, because county receipts from property tax overall were up from $69 million to $76  million.

The percentage of incoming property tax related to commercial actually dropped a bit to 14.9 percent.

The trajectory continued as shown in Department of Revenue research, when last year the percentage of commercial property tax as a piece of the overall became 9.3 percent as calculated from a total of $116,776, 571.  The year before,  2024,  the state calculated the commercial percentage at 8.8 percent of the county’s total.

The numbers are not being argued, agreed County Administrator Chase Burnham, contacted after the vote.  Local efforts are not generating the relief for homeowners’ versus business property tax contributions due to influences out of the county’s control.  Burnham observed that residential is simply out-pacing commercial values.  And, still, people want to live here, housing development is thriving and the number of startups is remarkable.

County officials hope the property tax valuation system ought to level off sometime soon.  Chisago County can’t be faulted because it’s been using every tool in the toolbox.  Prepared cities might have the capacity to do projects with available commercial land and municipal zoning will be important in the very near future, Burnham concluded. 

Statistics were not presented at the Board meeting to illustrate the impact an extra $300,000 for the HRA/EDA budget might have on specific sample parcels.  Under state law the HRA/EDA levy can not exceed .0185 percent of the county taxable market value and the proposed request stays below that.

Commissioner Dan Dahlberg said he’d need to see these specific parcel impacts before voting on a final HRA/EDA budget.   

The County Board has not adopted a preliminary 2027 levy. 

Commissioner Rick Greene commented that the HRA/EDA basically has been showing income due to  loans being paid-off.  

The City of North Branch alone carved out about $200,000 yearly to reimburse the county for HRA/EDA financial support 20 years ago to acquire business park land.  The loan close-out  2026 payment came from proceeds of the city’s sale of acreage to Louisiana Pacific. 

Commissioner Marlys Dunne supported the requested hike in HRA/EDA budget saying “...now is a great time” to invest in county economic development plans.

Commissioner Jim Swenson, who is not running for re-election to the Board,  looking at the HRA/EDA Director, declared he is “happy” the agency is recommending this.

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