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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
<br />that basic concept.
<br />2013 Assessment 2014Assessment
<br />Tax Payable 2014 Tax Payable 2015
<br />Property EMV
<br />A $375,000
<br />B $120,000
<br />C $150,000
<br />D $400,000
<br />E $250,000
<br />Total Tax Base $1,295,000
<br />2013 Tax Rate Calculation
<br />Revenue Needed
<br />Divided by Total Tax Base
<br />Equals Tax Rate
<br />Property
<br />A
<br />B
<br />C
<br />D
<br />E
<br />EMV
<br />$187,500
<br />$60,000
<br />$75,000
<br />$200,000
<br />$125,000
<br />Total Tax Base $647,500
<br />2014 Tax Rate Calculation
<br />$10,000
<br />$1,295,000
<br />0.0077
<br />Revenue Needed $10,000
<br />Divided by Total Tax Base $647,500
<br />Equals Tax Rate 0.0154
<br />Resulting 2013 Tax Calculations Resulting 2014 Tax Calculations
<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 />DECLINING VALUES
<br />REDUCE THE
<br />TOTAL TAX BASE
<br />A REDUCED TOTAL TAX
<br />BASE REQUIRES A HIGHER
<br />TAX RATE TO GENERATE
<br />THE SAME REVENUE
<br />Overall Change
<br />Property Tax Amount Property Tax Amount In 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 />INDIVIDUAL
<br />TAX AMOUNTS
<br />REMAIN
<br />UNCHANGED
<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, 2012 through
<br />September 30, 2013, except for Lino Lakes, where the assessor decided to use
<br />January 1, 2013 to December 31, 2013. Given the upward trend in market that
<br />began late in 2013, the 2014 Lino Lakes assessments could conceivably be
<br />measurably higher than the rest of the county assessments. That in turn would not
<br />change the amount of county revenue generated by real estate tax. However, it
<br />would result in a shift in the tax burden, with Lino Lakes property owners paying more
<br />than their fair share than the rest of the County.
<br />So in conclusion, while it may seem arbitrary to have a set period to measure an assessment, it does
<br />create an environment whereby the assessments are uniform, fair, and equitable.
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