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Anoka County
<br />City of Lino Lakes
<br />How your tax amount changes from year to year is influenced more by legislative changes to
<br />the tax laws and revenues needed by your local taxing authorities (including school districts).
<br />With all other factors remaining the same, if we were to reduce all values by 50 %, this would
<br />not reduce the taxes by 50 %. Instead, the tax rates would be increased to generate the
<br />same tax revenue. The following example illustrates that basic concept.
<br />249 Assessment
<br />fax Payable 24810
<br />Property
<br />A
<br />B
<br />c
<br />D
<br />E
<br />RVN
<br />$375,000
<br />$120,000
<br />$150,000
<br />$400,000
<br />$250,000
<br />Total Tax Base $1,295,000
<br />2010 Tax Rat
<br />Revenue Needed
<br />Divided by Total Tax
<br />Equals Tax Rate
<br />20141 Assess
<br />Tax Payable
<br />Property
<br />A
<br />B
<br />c
<br />D
<br />E
<br />Total Tax Base
<br />n
<br />EMV
<br />$187,500
<br />$60,000
<br />$75,000
<br />$200,000
<br />$125,000
<br />$647,500
<br />ion 2011 Tax Rate Calculation
<br />$10,000
<br />$1,295,000
<br />0.0077
<br />Resulting 2010 Tax Calcu n
<br />Property
<br />A
<br />B
<br />c
<br />D
<br />E
<br />2010 Tax
<br />Amount
<br />$2,896
<br />$927
<br />$1,158
<br />$3,089
<br />$1,931
<br />Revenue Needed ..,-
<br />LJlvided by Total Tax
<br />Equals Tax Rate
<br />$10,000
<br />$647,500
<br />0.0154
<br />sulting:2011 Tax Caicuiat
<br />Property
<br />A
<br />B
<br />C
<br />D
<br />E
<br />2011 Tax
<br />Amount
<br />$2,896
<br />$927
<br />$1,158
<br />$3,089
<br />$1,931
<br />Total Tax Generated $10,000 Total Tax Generated $10,000
<br />Overall Change
<br />In EMV
<br />- $187,500,
<br />- $60,000
<br />- $75,000
<br />- $200,000
<br />- - $125,000
<br />- $647,500
<br />Overall Change
<br />In Tax Amount
<br />$0
<br />$0
<br />$0
<br />$0
<br />$0
<br />$0
<br />The values are
<br />reduced which
<br />decreases the overall
<br />tax base.
<br />When the Tax
<br />Base decreases,
<br />the Tax Rate is
<br />adjusted upward to
<br />produce the same
<br />amount of
<br />revenue
<br />The Tax Amounts
<br />Remain the Same
<br />Adhering to the same timeframes and working within the parameters of the law will ensure
<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.
<br />Here is an example of the impact at the local level:
<br />The assessment sales period for Anoka County is October 1, 2009 through September 30, 2010,
<br />except for Blaine, where the assessor decided to use January 1, 2010 to December 31, 2010.
<br />Given the volatility in today's market, the Blaine 2011 assessments could be measurably lower
<br />than the rest of the county assessment. That lower tax base would not reduce the amount of
<br />county or school district revenues generated by real estate taxes; it would result in a shift in the tax
<br />burden from Blaine properties to all of the other properties in the county and any common school
<br />districts. While Blaine property owners would enjoy a lower tax bill, the rest of the county
<br />property owners would be unfairly paying a disproportionately higher tax amount to make
<br />up the difference.
<br />So in conclusion, while it may seem arbitrary to have a set period to measure an
<br />assessment, it does create an environment whereby the assessments are uniform, fair, and
<br />equitable.
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