It’s no real wonder that rural economies are sluggish and good paying outstate jobs can be difficult to find in Minnesota. Businesses in lower-population areas of the state are overburdened with taxes.
The Minnesota Taxpayer’s Association conducted a 50-state study comparing state to state property taxes and found that Minnesota’s rural commercial property is taxed at the third highest levels in the nation. A typical $25 million commercial property pays nearly $1 million in property taxes, compared with a national average of just over $500,000.
Smaller properties, in the $100,000 and $1 million ranges fare slightly better, ranking 9th and 4th highest taxed nationally. Any way you slice it, Minnesota’s rural commercial property owners are in the top ten most taxed, a dubious distinction.
Excessive business taxes, especially in rural areas result in layoffs, hiring freezes, and businesses closing. Next time you see a sign that reads “Happy to pay for a better Minnesota,” keep in mind that it’s also possible to overpay for a worse Minnesota.
Read more: Rural Minnesota Businesses See Rise in Property Taxes - Finance and Commerce