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City of Lake Elmo, Minnesota
<br />Management Report, Page 6
<br />Legislature will have the opportunity to change and/or repeal this action during its 1991 and 1992
<br />sessions.
<br />The 1989 and 1990 legislation shifts a significantly greater share of the burden of funding City
<br />government from State aids to property taxes. Property taxes are spread to property owners based
<br />on their relative proportion of value compared to all values within the City. A larger tax capacity
<br />value base reduces the individual tax burden on each property owner. An example of this concept
<br />is as follows for a $100,000 home:
<br />City A City B
<br />Tax Capacity Values
<br />$4,500,000
<br />$6,000,000
<br />Fiscal Disparity:
<br />Contribution
<br />(200,000)
<br />(600,000)
<br />Distribution
<br />400,000
<br />400,000
<br />Net tax capacity values
<br />$4,700,000
<br />$5,8001000
<br />District wide levies:
<br />City
<br />$1,000,000
<br />$1,000,000
<br />County
<br />1,500,000
<br />1,500,000
<br />School District
<br />2,500,000
<br />2,500,000
<br />Other districts
<br />200,000
<br />200,000
<br />Totals
<br />$5,200,000
<br />$5,200,000
<br />District wide tax capacity rates:
<br />City
<br />21.28%
<br />17.24%
<br />County
<br />31.91
<br />25.86
<br />School District
<br />53.19
<br />43.10
<br />Other districts
<br />4.26
<br />3.45
<br />Totals
<br />110.64%
<br />89.66%
<br />Tax on home valued at$100,000
<br />$1,460
<br />$1,193
<br />Tax on home valued at $150,000
<br />$3,120
<br />$2,528
<br />Tax on home valued at $200,000
<br />$4,780
<br />$3,873
<br />The preceding schedule indicates that two cities with individual property tax levies will burden
<br />their individual property owners quite differently.
<br />The City of Lake Elmo has a net tax capacity value of $4,503,200 as of January 1, 1990.
<br />Based on the State Department of Revenue, the number of households is 2,037. This computes to
<br />a per household tax capacity value of $2,211. Tax capacity values per household of many
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