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Anoka County City of Lino Lakes
<br />How your tax amount changes from year to year is influenced more by statutory changes to the tax
<br />structure, and revenues needed by your local taxing authorities (including school districts). If we were
<br />to reduce all values by 50%, the resulting tax amounts would not be decreased by 50%; the tax rates
<br />would be increased to generate the same amount of tax revenue. The following example illustrates that
<br />basic concept.
<br />
<br /> 2015 Assessment 2016 Assessment
<br /> Tax Payable 2016 Tax Payable 2017
<br /> Property EMV Property EMV
<br />Overall
<br />Change In
<br />EMV
<br /> A $375,000 A $187,500 -$187,500
<br /> B $120,000 B $60,000 -$60,000
<br /> C $150,000 C $75,000 -$75,000
<br /> D $400,000 D $200,000 -$200,000
<br /> E $250,000 E $125,000 -$125,000
<br /> Total Tax Base $1,295,000 Total Tax Base $647,500 -$647,500
<br />
<br /> 2016 Tax Rate Calculation 2017 Tax Rate Calculation
<br />
<br /> Revenue Needed $10,000 Revenue Needed $10,000
<br />
<br />Divided by Total Tax
<br />Base $1,295,000
<br />Divided by Total Tax
<br />Base $647,500
<br />
<br />
<br /> Equals Tax Rate 0.0077 Equals Tax Rate 0.0154
<br />
<br /> Resulting 2016 Tax Calculations Resulting 2017 Tax Calculations
<br /> Property Tax Amount Property Tax Amount
<br />Overall
<br />Change In
<br />Tax Amount
<br /> A $2,896 A $2,896 $0
<br /> B $927 B $927 $0
<br /> C $1,158 C $1,158 $0
<br /> D $3,089 D $3,089 $0
<br /> E $1,931 E $1,931 $0
<br /> Total Tax Generated $10,000 Total Tax Generated $10,000 $0
<br />
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<br />
<br />Adhering to the same timeframes and working within the parameters of the law ensures that everyone
<br />is being treated fairly. If assessors were to choose to work outside of those timeframes, the end result
<br />would be inequity between taxing jurisdictions. Here is an example of the impact at the local level:
<br />The assessment sales period for Anoka County is October 1, 2014 through September
<br />30, 2015, except for Lino Lakes, where the assessor decided to use January 1, 2015
<br />to December 31, 2015. Given the upward trend in market that began late in 2015, the
<br />2015 Lino Lakes assessments could conceivably be measurably higher than the rest
<br />of the county assessments. That in turn would not change the amount of county
<br />revenue generated by real estate tax. However, it would result in a shift in the tax
<br />burden, with Lino Lakes property owners paying more than their fair share than the rest
<br />of the County.
<br />In conclusion, while it may seem arbitrary to have a set period to measure an assessment, it does create
<br />an environment whereby the assessments are uniform, fair, and equitable.
<br />
<br />INDIVIDUAL TAX
<br />AMOUNTS REMAIN
<br />UNCHANGED
<br />
<br />A REDUCED TOTAL TAX
<br />BASE REQUIRES A HIGHER
<br />TAX RATE TO GENERATE
<br />THE SAME REVENUE
<br />
<br />DECLINING
<br />VALUES REDUCE
<br />THE TOTAL TAX
<br />BASE
<br />
<br />6
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