The Hutchinson City Council has proposed a 5.8% increase in the property tax levy for 2025, a reduction from the preliminary 7.9% increase announced earlier this year. This adjustment comes after the council and city staff identified nearly $184,000 in budget cuts since September, leading to a lower tax bill for residents when they receive their statements in March or April.

During the Truth in Taxation hearing held on December 3, 2024, city officials explained that property values in Hutchinson have risen approximately 7.5% over the past year, contributing to the overall tax landscape. The market values for taxes payable in 2025 were determined based on property sales from October 2022 to September 2023, with new notices of market values expected to be sent to property owners in early 2025.

Hutchinson's property tax rate remains competitive, with the city holding the second-lowest tax rate among the nine cities in McLeod County. The proposed tax rate of 54.32% places Hutchinson in the middle range compared to 19 other regional centers in Minnesota, where the average tax rate is 53.81%. Statewide, the average tax rate is significantly higher at 62.59%.

City officials emphasized the complexity of Minnesota's property tax system, noting that various factors influence tax rates, including local levies, property classifications, and market values. They encouraged residents with concerns about their property valuations to engage with the county assessor's office during the open book meeting scheduled for May or June.

As the council moves forward with the budget discussions, the adjustments made reflect a commitment to balancing the city's financial needs while minimizing the impact on taxpayers. The final budget and tax levies will be adopted later this month, with the council aiming to provide clarity and support to the community regarding property taxes and local services.