Why this is important
The price of government is a measure of the Dakota County economy’s ability to generate property tax revenue necessary to fund county programs and services. In other words, the price of government is the tax cost that residents pay for all County government services as a percentage of total personal income generated by residents of Dakota County.
What the data show
This chart shows county levy and non-county levy as percentages of total personal income of all county residents.1 The proportion of the property tax revenue that is allocated directly to Dakota County is known as county levy. The rest of the property tax that is collected by the county, and is then distributed to fund school districts, cities/townships, and special taxing districts, is called non-county levy.
Non-county levy as a percentage of county income increased between 2005 and 2010, peaked in 2010 (2.28%) and has been decreasing over the last five years.
County levy (as a percentage of total personal income within the County) remained stable between 2005 and 2008, peaked in 2009 (0.73%) and has been decreasing since then. The reason for this decline is that the total county levy increased at a slower rate (1%) compared to the increase in county total personal income across the County (30%) over the same period. This decline means that the property tax cost of Dakota County’s programs and services has been decreasing in relation to growth in the economy.
It is estimated that in 2015, Dakota County (.57%) will have the lowest rate of county levy as a percent of total personal income among the seven metro counties, which range from 0.57% to 1.03%.
*The Dakota County Regional Rail Authority levy is included as a special taxing district. Taxing districts (Metropolitan Council, Mosquito Control, Transit Districts and Watershed levy) that span across multiple counties are excluded from the non-county levy figure.
1 This means income that is received by, or on behalf of, all persons who live in the local area. It is calculated as the sum of wage and salary disbursements, supplements to wages and salaries, proprietors' income with inventory valuation adjustment (IVA) and capital consumption adjustment (CCAdj), rental income of persons with CCAdj, personal dividend income, personal interest income, and personal current transfer receipts, less contributions for government social insurance (http://www.bea.gov/glossary/glossary.cfm?key_word=Local_PI&letter=L#Local_PI )