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20 | P a g e <br />Understanding Little Canada’s Local Economy <br />Commercial, industrial, and higher-density residential districts generate substantially greater tax <br />revenue per acre than lower-density residential districts. Single-family residential (R-1) produces <br />an average of $14,406 per acre, ranking below each of those categories. <br /> <br />Single-Family Residential Lot Size and Fiscal Performance <br />As the largest user of buildable land and the single largest contributor to the city’s tax base, it is <br />useful to examine how property tax revenue is generated within the R-1 district. Not all single- <br />family parcels perform equally from a fiscal perspective. <br />For purposes of analysis, single-family lots were grouped into five roughly equal-sized <br />categories based on lot size. <br />Figure 22 – Lot Size of Single-Family Homes and Property Tax Implications <br />SF Lot Sizes Number of Parcels <br />Average Tax Per <br />Acre <br />Total Tax <br />Produced <br />Average Tax Paid <br />Per Parcel <br />Lots under 0.25 <br />Acres 377 $20,766 $1,936,914 $5,138 <br />0.25 - 0.31 Acres 357 $18,294 $1,941,335 $5,438 <br />0.32 - 0.42 Acres 313 $15,222 $1,852,186 $5,918 <br />0.43 - 0.60 Acres 357 $11,404 $2,145,725 $6,010 <br />Lots over 0.6 <br />Acres5 347 $7,271 $2,280,219 $6,571 <br />Source – Little Canada GIS Data, Courtesy of Bolton and Menk & Ramsey County Open GIS <br />Smaller single-family lots generate substantially more tax revenue per acre than larger lots. <br />Parcels under 0.25 acres average $20,766 per acre, while parcels over 0.6 acres average $7,271 <br />per acre. At the same time, larger lots tend to pay higher total tax per parcel, reflecting larger <br />improvements and overall property values. <br />A future iteration of this report will examine shoreland properties in greater detail. Parcels with <br />direct lake access appear to carry significantly higher assessed values than non-riparian <br />properties. These lots are typically 0.5 acres or larger, though some smaller outliers exist. <br />The relationship between lot size and tax productivity per acre is a useful illustration of how land <br />allocation influences overall fiscal performance within the same zoning category. <br /> <br />Multifamily Tax Classification and Fiscal Performance <br />Multifamily properties in Little Canada fall into two primary tax classifications. Class 4A applies <br />to market-rate apartment properties, while Class 4D applies to qualifying low-income rental <br /> <br />5 The nine residential parcels exceeding three acres were excluded from this analysis to prevent large -lot outliers <br />from materially skewing the per-acre tax calculations.