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Property Tam Impact <br /> Made Understandable <br /> City,county, and school officials are increasingly concerned about legislative changes.in the property tax <br /> system. For many years local governments have relied upon property tax-to fund a significant portion of <br /> the services they provide for their constituents. Recent changes in the tax and aid programs provided to local <br /> governments,are placing greater tax burdens on metro area homeowners. Ultimately,these taxpayers must <br /> decide whether this trend is acceptable or not. City,county, and school officials are concerned that if this <br /> trend continues many taxpayers will be unable to pay these higher taxes. <br /> The following are common questions about the tax dilemma and responses to clarify the situation. <br /> QThe Legislature has made a number of changes Q Let me get this straight. Even though we will <br /> over the past two years to the state's property tax be paying more property taxes,we will not necessar- <br /> system. I also understand the Legislature has also ily receive proportionally more in services by our <br /> changed the formula for aid to schools and cities. city and school district? <br /> What impact will these changes have on the average <br /> household? <br /> . <br /> AUnfortunately, No, not if you live in the metro area. <br /> the combined effect of all the <br /> changes made by the Legislature will increase prop- AVERAGE TAX ON THE AVERAGE <br /> VALUE HOUSE <br /> erty taxes for most homeowners in the metropolitan Metro Area <br /> area. $1100 Property Tax <br /> I I I I I <br /> $1000 <br /> I I I I <br /> S90o <br /> If the state does not spend our local property I I I <br /> tax dollars then how can these changes end up $800{- <br /> costing us more money? <br /> t7oo , <br /> I I I I I <br /> ALocal governments get most of their money =600 <br /> from property taxes and state aid. State aid is a 1 I I I 1 <br /> tsoo <br /> partial return of money generated through state sales I I I I I Non Metro Area <br /> and income tax. Sales taxes were initially approved $4001 Property Tax <br /> to reduce local property taxes. Most cities and I <br /> schools in the metro area are receiving less, or at t300 <br /> best,only slightly more aids than they have received <br /> i2oo <br /> in past years. Therefore, in order to maintain the I I I I I <br /> • same level of services and education, they must $100 <br /> raise property taxes to make up for the loss in state o I <br /> aid. <br /> 1985 1986 1987 1988 1889 <br /> s •st. <br /> FISCAL YEAR <br />