08-22-2001 Council Agenda - Laserfiche WebLink

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*The tax is applied to the net tax capacity value. *For cabins, the tax will apply to 40% of the first $76,000 in value, and 100% of the remaining value. Classification Rates *Dramatic reductions in class rates for nearly all classes of property. The impact on residential property is illustrated later in this report. (See attached sheet) What this means to our jurisdiction and individual taxpayers will not be known until later this fall as the new data has not yet been compiled by the appropriate agencies. Limited Market Value *This provision of the tax law that limited the annual increase in market value will be phased out over the next six years. Levy Limitations *Levy limits return for two years commencing in 2002. Although the levy limit formula allows us to levy for the loss in state aids, additional increases in the levy are limited to specific growth and inflation adjustments. Other city officials have told me these allowances are inadequate to meet existing needs. We will not know our final levy limitation until the end of August due to the lateness of the legislative session. Truth -in- Taxation Process *Since the net effect of all these changes will result in a lot of confusion, the parcel specific TNT notice is changing for 2002 only. 2001 tax amounts will show a total amount only versus specific jurisdictions. The 2002 listing will show each jurisdiction's tax amount. By doing it this way, the State hopes to show that total taxes are going down without attempting to place blame on any jurisdiction for dramatic changes in their share of the total tax bill. *We also are exempted from the hearing process this year. My recommendation will be to hold the hearing, but avoid the published notice to achieve the associated savings. Certification of Preliminary Levy *We need to certify our preliminary levy by September 15°i. Budget Workshop *I am recommending we hold our first budget workshop on September 12th at 6:00 p.m. Conclusions The State has indicated that property taxes for residential homeowners will decrease between 10 and 25 percent depending on the value of the home. Higher Page 100