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Tax capacity is considered the actual base available for taxation. It is calculated by applying the state's <br />property classification system to each property's market value. Each property classification, such as <br />commercial or residential, has a different calculation and uses different rates. Consequently, a city's total <br />tax capacity will change at a different rate than its total market value, as tax capacity is affected by the <br />proportion of its tax base that is in each property classification from year-to-year, as well as legislative <br />changes to tax rates. The City's tax capacity increased 5.3 percent for 2022 and increased 10.6 percent for <br />2023. <br />The following graph shows the City's change in tax capacities over the past 10 years: <br />Total Taxable Tax Capacity <br />$25,000,000 <br />$20,000,000 <br />$15,000,000 <br />$10,000,000 <br />$5,000,000 <br />I I I I I I I I I I I I I I I I <br />MM1 <br />J 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 <br />The following table presents the average tax rates applied to city residents for each of the last three levy <br />years: <br />Rates expressed as a percentage of net tax capacity <br />City of <br />Mounds View <br />2021 2022 2023 <br />Average tax rate <br />City 35.6 35.2 33.9 <br />County <br />47.7 <br />48.1 <br />44.9 <br />School <br />23.9 <br />23.4 <br />18.4 <br />Special taxing <br />7.8 <br />9.9 <br />8.7 <br />Total <br />115.0 <br />116.6 <br />105.9 <br />The average tax rate was less than the prior year with decreases spread across each of the taxing <br />authorities presented in the above table. Increases in property valuations contributed to the change in the <br />average tax rate. <br />Irbil <br />