Here's a small but important "what happened to my tax
bill?" item to keep in mind.  

Last year's tax bill included a plan to gradually
phase out the limited-market-value mechanism between
2001-2006.  This mechanism was meant to help
homeowners make the transition into higher tax bills
caused by property value increases.  As one might
imagine, the cap was especially important to people
who live in hot property markets, e.g., lake homes and
certain urban neighborhoods.  While the removal of
this cap is itself being proportionally phased in, by
2007 homeowners will be required to pay taxes on their
new property value immediately.

The old plan relied on state funds to compensate local
jurisdictions for the "cap gap"--the difference
between the taxes homeowners should have paid and the
amount they actually paid.  Someone still had to pay
the bills at the end of the day, and it wasn't always
clear who was paying them.  

Still, it's going to be a rude awakening for lots of
people once the 2001 tax plan comes into its own.  I
doubt this plan will provide tax transparency, and I
know it will not lead to more equitable taxation in
Minneapolis and elsewhere, regardless of how it is
defined.

Dana Bacon
Page neighborhood

--- Dean Carlson <[EMAIL PROTECTED]> wrote:
> Where's my tax cut?  I guess it got caught up in the
> school and library referendum and the fact that the
> assessed value on my house went up $10,500.

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