The City of Bloomington is considering raising property taxes by as much as 9.44%. This potential increase comes at a time when the city is also building a $100 million complex with a special sales tax that took effect in 2024.
Last month, Bloomington announced that the city may be increasing next year’s property tax levy by as much as 9.44%. In total, the city would collect over $83 million in property taxes should the 9.44% increase ultimately be approved.
Currently, the 9.44% figure is preliminary. This means the city’s property tax levy may be increased by that amount, but cannot exceed it. The city council, which has the authority to lower the preliminary figure, will approve the final tax levy amount in December.
According to Bloomington Mayor Tim Busse, the city was staring down an expected 17.92% increase to the city property tax levy, but a series of budget cuts brought the number down to the 9.44% figure.
Alpha News previously reported that Hennepin County is considering a 7.79% property tax levy increase. Of course, increases to city and county property taxes stack on top of each other which can result in overall property tax bills growing by a significant amount.
Property taxpayers will get a notice next month that states the specific amount they would pay under the proposed levies.
All of this comes as construction is set to begin on a highly-touted $100 million complex at the intersection of Penn Avenue South and West 98th Street.
In 2023, Bloomington voters approved a referendum that allows the city to levy a special 0.5% sales tax over 20 years for the construction of a $100 million facility. That facility will replace an existing community center and a public health building.
Known as the Community Health and Wellness Center (CHWC), the pending complex will be more than three times larger than the two buildings being replaced. According to city plans, the CHWC will have fitness studios, an indoor playground, a walking tack, a gymnasium, a pool, public program spaces, and office space for city departments.
The special sales tax that funds the complex took effect on April 1, 2024. According to an analysis from the University of Minnesota, approximately one-third of the $101.8 million generated from the sales tax will come from residents of the city. Groceries, medication, clothing, baby products, cars, and vehicles are exempt from the sales tax.
Next week, the city council will receive an update on the ongoing project, but construction is slated to begin next month. According to city plans, the CHWC is supposed to be finished sometime in 2027.
Luke Sprinkel
Luke Sprinkel previously worked as a Legislative Assistant at the Minnesota House of Representatives. He grew up as a Missionary Kid (MK) living in England, Thailand, Tanzania, and the Middle East. Luke graduated from Regent University in 2018.
