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C. Anticipated impact on city property taxes <br /> Formula for calculating city property taxes: <br /> market value X class rate tax capacity <br /> taxable tax capacity X city tax rate city property tax <br /> Two property tax trends will impact the city' 1995 property tax revenue and <br /> the single family homeowner's property taxes. <br /> Estimated decline of 4% in the city's total net taxable tax capacity for <br /> pay 1995 <br /> The city's tax rate must increase to generate the same amount of city <br /> property tax revenue. <br /> city's net taxable tax capacity X city tax rate levy <br /> estimated 1995 1994 <br /> taxable tax tax rate tax levy <br /> capacity <br /> 1994 ($2,754,674) X (15.329 422,264 <br /> est. '95 ($2,624,914) X (15.329 402,373 <br /> Difference 19,891 <br /> Reduced fiscal disparity property tax revenue by 17,525 or 17 <br /> Reduced property values and class rates on commercial and industrial <br /> properties shift the taxes to single family properties. (Ramsey County <br /> will also be experiencing this.) <br /> Estimated impact on single family homeowner from proposed budget and <br /> related levy. <br /> It is estimated that the proposed 1995 3% budget increase and resulting <br /> 2.5% levy increase would increase city property taxes by 7% on a single <br /> family property. This would be a 16 a year increase for a $110,000 <br /> homeowner. Market value increases combined with an increased levy will <br /> cause greater percentage increases in property taxes. For example, it is <br /> estimated that a 2 1 /2% market value increase would a city property tax <br /> increase of 11 <br /> 6 <br />