Posted at: 11/10/2009 8:52 PM | KSAX.com
By: Becky Nahm
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Scott Co. Businesses Suprised by Property Tax Hike

Prior Lake businesses received a financial shock in the mail. When they opened their property tax statements, they discovered their taxes had doubled.

The owner of O'Malley's Bar on Main Street couldn't believe it.

Paul Yeo said, "I feel like I've been thrown under a bus on this one."

He held a "Tea Party" to protest the increase Tuesday night.

In 2008, the assessed value of O'Malleys was about $263,000.

In 2009, the value was nearly $475,000.

The difference in value caused his property taxes to increase from about $7,300 to more than $14,000.

Yeo said, "We thought it was a mistake. How could they double your taxes in one year?"

It wasn't a mistake. And, the city said if Yeo doesn't pay by Monday, he will lose his  liquor license.

Most of the other downtown Prior Lake commercial properties saw similar property tax increases in 2009.

Scott County officials said it's all part of a reassessment of commercial property.

Cynthia Geis is in charge of taxpayer services in Scott County.

She said before 2008, commercial properties in the county were undervalued.

Geis said, "In Prior Lake in general we reassessed 100 percent of the properties and we did that so that we could equalize all the commercial and industrial property values across that entire city."

Scott County began this reassessment before the economy nose-dived. Officials admit the timing for these new payments isn't great.

The county is conducting similar reassessments in all of its cities. So, businesses in Belle Plaine, Jordan and Shakopee could also see property tax increases.