Historic House may be foreclosed...
Are taxes high in Cannon Falls?

“I just want someone to care.” Sentimentally, Diana Farr looked around the historic house she owned at 300 Mill Street in Cannon Falls.

The sign on the lawn explains that it is the Van Campen House. It was built in the late 1800’s by Henry Van Campen, the son of pioneer Benjamin H. Van Campen who had a distinguished house across the street. The elder Van Campen’s site is presently a parking lot because the original structure was moved to the Midwest Importers property southwest of the city.

“I walk through here quietly and feel the people who built it,” Diana Farr explained, “and the joy that was here.” Today Farr is apparently losing the house to foreclosure.
The taxes on her building in Cannon Falls, she believes, is the reason she hasn’t sold it. Since the property has gone from residential/commercial to all commercial, (it has two tenants with single room offices), the taxes have just about doubled to over $13,000.
If reclassified as just residential, the taxes on a $398,200 property, approximately the valuation of her property, would be about $5,430 according to Goodhue County Assessor Peggy Trebil. A property is classified as to its use on January 2 of the year. The 2008 levy rate was 131.675. In 2009 this rate dropped to 124.741.
The tax on commercial property is 1.5 % on the first $150,000 and 2% on anything over this.
The total tax on commercial property in the city combines that of the city, county, state, school, hospital and HRA. There is no state levy on residential property but there is on seasonal recreation property like a cabin, etc. which is already taxed at the non-homestead rate.

County 3050.27, City 4609.61, State 3285.35, School 1331.28 and 603.05 = 1934.33, Hospital 246.10, SEMHRA 53.41, TOTAL: $13,179.07 with Special assessments 565.53 and Delinquent 90.07 and 185.33.

One of the highest taxed commercial properties in Cannon Falls apparently is the recently purchased First National Bank - now Merchants Bank. They pay $38,168 for their building and two parking lots. Another commercial building paying $14,096 is First Farmers and Merchants.

Taxes have been a topic of concern in Cannon Falls for several years. A study by the Praxis Strategy Group hired by the city showed that Cannon Falls has the highest taxes compared to Red Wing, Northfield, Hastings, New Prague sand Stillwater.

For example, Cannon Falls has the highest residential homestead taxes on a $185,000 home. But this is only $12 above a similar one in New Prague and less than $70 higher than one in Red Wing.

Aaron Reeves, Cannon Falls city administrator, explained how the city tries to keep their portion of the taxes as low as possible while trying to provide the services the residents need and want.
Besides the levy, the city applies for funding from grants, etc. They also make sure that developers, for example, pay for the services they use up front.
The main emphasis to getting lower taxes, Reeves explained, is to encourage commercial/industrial growth.

And as one city official who wished to be unidentified said encouragingly, “This is as bad as it should get.”

The tax rates are set by state legislators to be carried out by the county assessors.
Local legislators are: Rep. Pat Garofalo District 36B, Rep.Tim Kelly District 28B, Sen. Steve Murphy District 28 and Sen. Pat Pariseau District 36.