From: "Victoria Heller" > In 2001 the total market value increased by $4 billion, but the tax capacity > dropped by $71 million. This is because Minneapolis is trying > to keep tax collections level by increasing market values - which is the > only variable the City controls.
This is incorrect. Estimated market values must be within 95% of actual market sales or the City loses local government aides. The City cannot legally do this. >The classification rates and > extension rates are determined by the Legislature. > The "classification" rates have been reduced in recent years - which is why > the tax capacity is falling even though the market values are increasing. This is correct. They have been reduced most dramatically for all classes except the lower and middle classes. The lowest homesteaded rate has not changed while all other classes have seen substantial decreases. > 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. True, except the City is not near the legal debt limit. Also, the largest single debt that the City has, the Convention Center, is being paid off, which also improves this situation. Also, I would suspect that in the near future, requests for new tax increment would be much less than in the past due to the economy. Carol Becker Longfellow _______________________________________ 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
