The calculation of Mpls property tax bills:

Assessed Market Value TIMES the "Classification Rate" EQUALS "Tax Capacity"
"Tax Capacity" TIMES the "Extension Rate" EQUALS "The Tax"


The following tables shows the "Tax Capacity" and "Market Value" by year:

1992 - $298,127,000 TC, $13,228,213,000 MV
1993 - $279,553,000 TC, $12,762,454,000 MV
1994 - $284,049,000 TC, $12,694,475,000 MV
1995 - $282,816,000 TC, $12,833,264,000 MV
1996 - $302,651,000 TC, $13,450,363,000 MV
1997 - $278,387,000 TC, $14,215,582,000 MV
1998 - $267,870,000 TC, $15,284,334,000 MV
1999 - $281,161,000 TC, $16,980,768,000 MV
2000 - $308,979,000 TC, $19,383,387,000 MV

2001 - $237,591,000 TC, $23,162,298,000 MV  *****


Comments from Vicky:

In 2001 the total market value increased by $4 billion, but the tax capacity
dropped by $71 million.  This is because Minneapolis is desperately trying
to keep tax collections level by increasing market values - which is the
only variable the City can fiddle with.  The classification rates and
extension rates are determined by the Legislature.

Even worse:  The legal DEBT LIMIT of the City is 3 1/3% of MARKET VALUE.
The consequence of this is more and more debt, even though our ability to
collect taxes is dropping.  I wonder if Standard and Poors knows about "Tax
Capacity?"

In my opinion, this is a scandal equal to the current Wall Street Headlines.

Vicky Heller,
Cedar-Riverside Property Owner and Taxpayer
North Oaks (Home)


PS - I learned all of the arithmetic that I ever needed at the Eugene Field
Elementary School in South Minneapolis (circa 1957)


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