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University of Minnesota Moment

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November 22, 2006

The Net Tax Rate

Truth in taxation season is approaching - the time of year when local units of government send out notices and hold hearings about proposed property taxes for the following year. That means it’s time to pay attention to a measurement called net tax rate. Ryan Pesch, a community economics educator with the U of M Extension Service, says the net tax rate is a ratio of annual property taxes to total property value across all taxing jurisdictions - school districts, counties and townships - which helps put property taxes in perspective.

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