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evaluations from the year prior to the assessment year, so values and capacity for the tax year lag roughly
<br />1.5 - 2 years behind the actual market or construction activity.
<br />The total tax capacity for Lake Elmo increased by $1.3 million, or 3.7%, to $ 37,752,743. In comparison,
<br />the past three years have averaged over 18% increases, and the 10-year average is 11.5%.
<br />The slowed increase is due largely to the slowdown of housing prices. The increase to existing market
<br />value (market value less new improvements) is now under $50 million, whereas the 10-year average is
<br />closer to $120 million. In addition, new improvements have slowed to a rate closer to the average of 2019
<br />– 2022, at just over $100 million.
<br />The chart below shows Estimated Market Value changes in the past 10 years. The green bar is the market
<br />value from each prior year, the blue bar shows the market value increase to that prior year existing value,
<br />and the red bar shows the market value of new improvements. EMV will follow similar trends as tax
<br />capacity, but they are different measures.
<br />Again, the local tax rate is the ratio of the city’s local levy (total levy – fiscal disparity distribution) to tax
<br />capacity. This rate is then applied to the tax capacity of individual properties to determine the local tax due.
<br />Lake Elmo’s final local tax rate for 2024 was 24.63%. The estimated local tax rate for the above levy is
<br />26.63%, an increase of 2%.
<br /> -
<br /> 5,000,000
<br /> 10,000,000
<br /> 15,000,000
<br /> 20,000,000
<br /> 25,000,000
<br /> 30,000,000
<br /> 35,000,000
<br /> 40,000,000
<br />2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
<br />Tax Capacity
<br /> -
<br /> 500,000,000
<br /> 1,000,000,000
<br /> 1,500,000,000
<br /> 2,000,000,000
<br /> 2,500,000,000
<br /> 3,000,000,000
<br /> 3,500,000,000
<br /> 4,000,000,000
<br />2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
<br />Estimated Market Values
<br />Existing MV (PY)Existing MV Increase New Improvements
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