Shakopee City Hall

Shakopee City Hall

The Shakopee City Council approved the 2023 preliminary tax levy at its Sept. 6 meeting.

The tax levy for 2023 is $23,892,000 — a $1,406,000 increase, or 6.25%, from last year’s levy.

According to the city’s levy memo, new construction will cover much of the levy increase. Shakopee’s taxable market value increased by $1.2 billion, or 19.4%, to $7.2 billion. New construction accounted for more than 10% of this increase.

“We have one of the lowest preliminary tax levies in the county,” Mayor Bill Mars said at the meeting.

For a median value home increasing in value by 21.7%, from $284,700 to $346,500, a property owner can expect to see an increase of $91 annually in property taxes. Those not seeing a change in value should expect a tax decrease of $101.

The city’s finance director, Nate Reinhardt, presented this information to the city council during the meeting.

Toward the end of the presentation, Reinhardt noted some highlights from the upcoming budget. The list included recognizing an approximately 11% decrease in the city’s tax rate at 28.42%, anticipated property tax decreases for commercial and industrial properties, and investment in public safety and in the city’s parks and trails system.

The city council also approved a 2023 preliminary EDA special benefit levy of $500,000, which represented no change from last year’s. If approved in December, property owners of a median value home should expect to pay $23 in annual property taxes related to the levy, a $1 increase from last year.

The final levy will be brought to the city council to review at the Dec. 6 council meeting. The levy amount can decrease by then, but it is not allowed to exceed the preliminary number.