ST. PAUL, MINN. (AP) _ State officials are predicting an average 3.5 percent increase in local property taxes next year as cities, counties and school districts set their levies.
The Minnesota Department of Revenue released the figure on Thursday.
The estimate is based on maximum levy amounts proposed by local governments ahead of yearly truth-in-taxation hearings that start next week.
The increase is about half the average increase of recent years.
If all local governments levied the maximum, property taxes would rise $272 million statewide.
But local governments have lost $410 million in anticipated state aid through two rounds of cuts made by Governor Tim Pawlenty since December.
Revenue Commissioner Ward Einess says 2008 cap on property tax increases and the recession have slowed the growth of property taxes.

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