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Nyle Zikmund From: Brian A <bvamundsen@yahoo.com> Sent: Wednesday, April 28, 2021 12:41 PM To: Mark Beer Cc: Nyle Zikmund; Brian Beeman Subject: Re: A couple of follow-up questions to the taxation and a request for packet information. Caution: This email originated outside our organization; please use caution. Mark, Thanks for the education on formulas. I think this information is some of what Rebecca was saying, at the March meeting, is important as education to the public on any suggested charter language change. I'm aware of the classification differences. What is the fiscal disparity amount assigned to Mounds View? And what is the tax capacity rate for 2021? Cheers, Brian Amundsen, 763-786-5699 ----------------------------------------------------------------------------------------------- On Wed, 28 Apr 2021 13:36:33 +0000 Mark Beer <mark. beer@moundsviewmn.org> wrote: > Morning Brian, I started with 2020 and 2021 as they are the most > current data and I have the actual tax capacity rates. I can be > precise on the 8% levy increase so the $49.73 is the actual amount of > an 8% levy increase on the median valued home for 2021. It gets more > difficult going into the future as the increases will not be linear. > Tax capacity rates are impacted by the increase in value for 3 classes > of property (residential, commercial/industrial, apartments). > The value of the 3 property types doesn't increase at the same rate > so there is shifting between the 3 types in the amount of taxes they > would pay thus an 8% increase does not translate to a linear increase > for each property type. There are different class rates in > determining Tax Capacity Value so that also impacts the calculation. > They are also impacted by the Fiscal Disparities program as there is > shifting that can occur within that tax base. Bottom line an 8% > increase is not always an 8% increase but again it is not realistic to > assume the Council is going to raise taxes 8% a year for 10 years. > The formulas below might be helpful in understanding the challenges > in projecting future taxes. Ramsey County has tax calculators on > their web site for the various property types which can be helpful in > understanding the process. > Tax Capacity rate = (Proposed Levy - (fiscal disparities distribution > * PY tax capacity rate))/tax capacity (City total)