Agenda Packets - 1993/09/07 - Laserfiche WebLink

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STAFF REPORT PAGE TWO SEPTEMBER 7, 1993 One comment that has been voiced recently is that businesses are getting hit the hardest with property tax increases. That is only partly true. Naturally, if the value of a parcel of property is more, it is going to pay more in taxes as value is a determinant of the total amount paid. Businesses are valued more, significantly more and therefore pay more. However, businesses are enjoying an on-going and significant "tax break" given to them by the Legislature. Since 1990, the tax rate for commercial/industrial property has declined each year and will continue to decline for the next 3 years. What this means, in terms of taxes, is that if everything remained constant - Ramsey County, the City of Mounds View, District 621 and the other taxing jurisdictions did not increase their tax rate and Ramsey County did not increase the property value, the taxes for all business property would not remain constant (as would residential property) , business taxes would decrease. Residential property in the City of Mounds View pay over 2/3 of all property taxes paid. While one small business may pay more property taxes than a residential home, it is due primarily to the value given by Ramsey County. There has also been discussions regarding "credits" given to properties which have built retention/detention ponds. What is important to note here is that the ordinance establishing the utility is not the action where the rates or any credits are established - that is done in subsequent action, by resolution. While some properties may have built ponds to help control run-off and lessen the water flow burden on the storm sewer system, the run-off, which is collected in the ponds, does enter the system - just at a slower rate. Except, in times of severe rainfalls. Water will then enter the system at an accelerated rate and may cause overflows, back-ups and other system interruptions.