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Iwo <br />YEAR & <br />STATUTE <br />REFERENCE <br />CITY OF LINO LAKES. MINNESOTA <br />STATE LEGISLATIVE ACTION <br />Appendix A <br />Page 11 of 12 <br />INITIAL YEAR <br />ESTIMATED <br />IMPACT <br />1988 <br />MS 273.13 <br />#4 Taxes spread to property owners based on tax <br />capacity valuations. Taxes levied divided by tax capacity <br />valuations equal tax capacity rates. This is a change from the <br />prior system in which taxes were spread to property owners <br />based on assessed valuations. Taxes levied divided by <br />assessed valuations equaled mill rates. <br />Re- measurement of <br />valuations were <br />designed to have no <br />impact on aids or <br />relative valuations. <br />1988 <br />MS 273.1398 <br />Subd. 2 <br />#3 Cities to receive Transition Aid in lieu of homestead <br />credits. Transition aid to be calculated on each unique <br />taxing jurisdiction (UTJ) and then allocated to the local units <br />of government within the UTJ based on the proportion of <br />local governments gross tax levy to total taxes within the <br />UTJ as follows for 1990: <br />Gross taxes of UTJ less [46% X 2.17% X 1989 tax capacity <br />rate X 1988 aggregate assessment sales ratio] X UTJ net tax <br />capacity X 103 <br />The above UTJ amount to be allocated to local governments <br />based on percent of local governments levy to total UTJ <br />levies. Transition Aid to be frozen at 1990 levels. <br />Considering growth and inflation, this freeze is a reduction <br />of State funding. Transition Aid was the replacement of the <br />Homestead Credit Program. This Transition Aid was <br />subsequently re- termed as Homestead Credit and <br />Agricultural Aid (HACA) - see #7. <br />The freeze nature of <br />the legislation will <br />result in gradual <br />decrease of HACA <br />in 1991 and future <br />years. Actual <br />comparisons not <br />available because <br />Homestead Credit no <br />longer calculated on <br />the prior method. <br />1988 <br />MS 273.1398 <br />Subd. 3 <br />#2 Targeted Cities (primarily non -metro cities) to receive <br />disparity reduction aid. The 1989 disparity reduction <br />aid to be based on 1988 gross taxes and gross tax capacity <br />rates. Disparity reduction aid will be frozen at 1989 levels. <br />Metropolitan suburban cities to receive one -half of one <br />percent of this aid ($300,000 of $54.3 million). <br />1989 increase in <br />Aids to Cities State- <br />wide $54 3 million, <br />City of Lino Lakes <br />no increase in aids. <br />Prepared by Tautges, Redpath & Co., Ltd. <br />April 30, 1992 <br />