‘They’re taxing him out’: Minnesota man is suing after his modest 1-bedroom home build spiked his property value 300%

‘They’re taxing him out’: Minnesota man is suing after his modest 1-bedroom home build spiked his property value 300%

Emma Caplan-Fisher

Thu, September 10, 2026 at 2:00 PM GMT+3 4 min read

Steve Reinke helped his son Scott build a modest one-bedroom home in Isanti County, Minnesota, in 2015. The goal was affordability: The total cost of land and materials came to just over $130,000. Eleven years later, the county has assessed the property at just over $484,000 for 2027.

Reinke says the property tax bill has become nearly as large as the mortgage payment, and the county hasn't explained why the valuation jumped so dramatically.

Must Read

• Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 — 6 ways to build wealth like a landlord without actually being one

• Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake. Here's what it is and 3 simple steps to fix it ASAP

• The tax breaks in Trump's 'big beautiful bill' expire after 2028. Here are 4 moves to make before the window closes

"We built it to keep the costs down because it was all he could afford. Now it's getting to the point where they're taxing him out of it," Reinke told KSTP.

The property is a one-bedroom home with a small living room, small kitchen and large garage on more than 18 acres — 80% of which is wetland that can't be developed. Recent independent appraisals valued it as low as $270,000.

The family has filed a lawsuit and a court hearing is set for May 7 in St. Paul.

"We're going to go there with all of our information and all of the quotes that show what the cost is, and we're hoping to get it lowered back down to where it should be — down to 380, right in there," Reinke said.

Moneywise received the following statement from Elisha Long, County Assessor at Isanti County:

"Due to the pending litigation, I am unable to discuss specific details regarding the property in question."

Since the property was improved, the increase in its market value has been consistent with changes in property values throughout Isanti County and reflects typical market trends over the past 12 years.

A widespread problem

Reinke's frustration is shared by homeowners across the country grappling with assessments that bear little resemblance to what their properties would actually sell for.

According to a Lincoln Institute of Land Policy study, there are dramatic disparities in effective tax rates — with assessment limits and inconsistent appraisal practices shifting tax burdens in ways that often hit individual homeowners hardest.

The study found that the average effective tax rate on a median-valued homestead was 1.213% across 53 major U.S. cities in 2025 — but rates vary based on property tax reliance, local government spending levels, property values and how different property types are classified for taxation.

When assessments outpace actual market values, homeowners end up paying taxes on paper wealth that don't reflect what a buyer would pay.

Read More: Vanguard reveals what's coming for U.S. stocks — and it could be bad news for this group of investors

How Minnesota's appeal process works

Minnesota property owners like Reinke who believe their assessment is inaccurate have a way to challenge it, but the window is narrow.

According to the Minnesota Department of Revenue, homeowners can appeal their assessed value or classification if they disagree with the county's figures. The process typically begins with contacting the assessor directly, possibly appearing before the Local (or County) Board of Appeal and Equalization and ultimately filing a petition with the Minnesota Tax Court before April 30 of the year taxes are payable.

Each state will have its own process, which may be similar to Minnesota's. There, most appeals take 12 to 18 months to resolve, and the vast majority settle before reaching trial, Fredrikson & Byron's tax appeals guide notes.

Why an appeal could be worth it

The effort to appeal can be worthwhile, since between 30% and 60% of taxable U.S. property is over-assessed, according to the National Taxpayers Union Foundation (NTUF).

CNBC, citing Realtor.com estimates, says more than 40% of U.S. homeowners could save at least $100 annually by appealing their assessment, with median annual savings around $539.

"You're banking on several years of savings," Pete Sepp, the NTUF's president, told CNBC, noting that many jurisdictions only reassess on multi-year cycles, meaning a successful appeal can lock in savings for years at a time.

Whatever the outcome in St. Paul next May, Reinke's case puts a human face on a process that can feel arbitrary to the people caught inside it, underscoring why challenging an assessment, while time-consuming, can be worth the effort.

What To Read Next

• Millionaires under 43 hold only 32% of their wealth in stocks. Here's where their money is actually going

• A single line on your car insurance policy could be inflating your premium by up to 30% — here's what to change

• Here's the average income of Americans by age in 2026. Are you keeping up or falling behind?

• Here are 4 simple ways to grow your cash in 2026 without touching the stock market

Join 250,000+ readers and get Moneywise's best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.

This article originally appeared on Moneywise.com under the title: 'They're taxing him out': Minnesota man is suing after his modest 1-bedroom home build spiked his property value 300%

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.