Mark Snyder wrote: > Also, does anyone have any idea how valuation plays into this equation? I > our property values continue to increase, more revenue would come in without > requiring rate increases, correct? >
Mark Anderson replies: No that is not how property tax works. Unlike other taxes, the property tax rate is not a fixed rate on the value of the base (property value in the case of property tax). Instead each jurisdiction determines its budget for the coming year, and that amount is the exact amount that is charged for property tax. The tax rate is the budget divided by tax capacity. The tax capacity is a formulated value that is calculated based on all the property in that jurisdiction, taking into account both values and type of property (industrial, residential, apartments, etc.). Therefore if everyone's property value in one jurisdiction went up at the same rate, and the budget didn't change, no one's tax would change. That's why I find it a bit disingenuous for some city people to be blaming our large increases in tax on the increase in values. My house's value has increased much in the last few years, but so has the rest of the city, so I don't see why my taxes are going up every year by double digits. Mark Anderson Bancroft _______________________________________ Minneapolis Issues Forum - A City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:[EMAIL PROTECTED] Subscribe, Unsubscribe, Digest, and more: http://e-democracy.org/mpls
