Resolution 97-43 - Laserfiche WebLink

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2.02 The subject area is 235 acres in size, and has a population of 21. SECTION THREE REAL ESTATE TAXATION 3-01 JQyLnJCitv TM Rate Differential. It is recognized that there is a significant difference between the City's tax capacity rate and the Town's tax capacity rate, and that a phase-in of the City tax rate would prevent a hardship to annexing properties. 3.02 Tax Rate Adi=ent for Annexed PariZCJ_$_ Pursuant to Minn. Stat. 414.035, for parcels annexed by this orderly annexation agreement, the initial urban tax rate in the year of annexation will be forty percent (40%) of the urban rate, with the percentage being increased 10 percent (107e) each year for six (6) years to the full urban rate, 3.03 Tax Paymetitio TgalL During the term of this Agreement, taxes received by the City based upon the tax capacity generated from any area annexed in the year of annexation will be paid over to the Town and thereafter the amount to be paid to the Town will be reduced by twenty percent (201%;) each year until the amount reaches zero (0), when taxes based upon the full tax capacity will remain with the City. For the purpose of this section, any increase in tax capacity over the tax capacity generated in the year of annexation will remain with the City, 3.04 Y= of Aangzatian, If the annexation becomes effective on or before August I of any year, the City may levy on the annexed area beginning with that year. if the annexation becomes effective after August I of any year, the Town may continue to levy on the annexed area for that year, and the City may not levy in the annexed area until the following year. 4.01 This Agreement may be modified at any time by written agreement approved by both the City and the Town. SECTTON FIVE GENERAL FROWSIONS 5.01 If any provision of this agreement is declared invalid, for any reason, by a court of competent jurisdiction, the validity of the remaining terms and provisions shall not be 53599 -2-