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Anoka County City of Lino Lakes 1
<br />How your tax amount changes from year to year is influenced more by statutory changes to
<br />the tax structure and revenues needed by your local taxing authorities (including school
<br />districts). If we were to reduce all values by 50 %, the resulting tax would not be decrease by
<br />50 %; the tax rates would be increased to generate the same amount of tax revenue. The
<br />following example illustrates that basic concept.
<br />)Assessment 2011 Assessment
<br />Tax Payable 2011 Tax Payable 2012
<br />Overall Change The values are I
<br />Property EMV Property EMV In EMV reduced which
<br />A $375,000 A $187,500 - $187,500 decreases the
<br />B 5120,000 B $60,000 - $60,000 overall tax base.
<br />C $150,000 C S75,000 - $75,000
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<br />D S400,000 D $200,000 - $200,000
<br />E S250,000 E $125,000 - $125,000
<br />Total Tax Base 51,295,000 Total Tax Base $647,500 - $647,500
<br />When the Tax
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<br />Base decreases,
<br />the Tax Rate is
<br />Revenue Needed $10,000 Revenue Needed $10,000 adjusted upward to
<br />Divided by Total Tax Base $1.295,000 Divided by Total Tax Babe $647,500 produce the same
<br />Equals Tax Rate 0.0077 Equals Tax Rate 0.0154 amount of
<br />revenue.
<br />2010 Tax 2011 Tax Overall Change
<br />Property Amount Roperty Amount In Tax Amount
<br />A $2,896 A $2,896 $0
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<br />B $927 B $927 $0
<br />C $1,158 C $1,158 $0 The Tax Amounts
<br />D $3,089 D $3,089 $0 Remain the Same
<br />E $1,931 E $1,931 $0
<br />ITotal Tax Generated $10,000 Total Tax Generated $10,000 $0
<br />Adhering to the same timeframes and working within the parameters of the law will ensure I
<br />that everyone is being treated fairly. If assessors were to choose to work outside of those
<br />timeframes the end result would be inequity between taxing jurisdictions. Here is an example
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<br />of the impact at the local level:
<br />The assessment sales period for Anoka County is October 1, 2010 through
<br />September 30, 2011, except for Lino Lakes, where the assessor decided to use
<br />January 1, 2011 to December 31, 2011. Given the volatility in today's market, the
<br />Lino Lakes 2012 assessments could be measurably lower than the rest of the county
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<br />assessment. That in turn would not reduce the amount of county revenue generated
<br />by real estate tax, it would result in a shift in that tax burden from Lino Lakes
<br />properties to all of the other properties in the county. While Lino Lakes property
<br />owners would enjoy a lower tax bill, the rest of the county property owners would be
<br />unfairly paying a disproportionately higher tax amount to make up the difference.
<br />So in conclusion, while it may seem arbitrary to have a set period to measure an
<br />Iassessment, it does create an environment whereby the assessments are uniform, fair, and
<br />equitable.
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