I appreciate Ms. Heller's figures - but not her statement.
The city does not control market values. Neither does the county. The market
rates are controlled by the marketplace. If market values appreciate as they
have so significantly over the last several years, it raises the asset value
of the owners. If taxes are more matched to values, they can rise or fall
with the marketplace whereas tax rates are usually forever.
The levy rates are controlled by cities, counties and school districts, not
market values, and the state mandates that market values for assessment
purposes rise to meet the real sales values as soon as possible.
Property taxes remain one of the great injustices levied against citizens,
as I see it. We base the education of our children, the delivery of public
services and the stability of our communities on the volatile values of
houses, not on property owners' ability to pay into the kitty for all of
those essential services.
I can understand pro-rated assessments for public works services based on
the size of properties, not as a substitute for for other revenue, but as a
fair distribution of the pain based on how much of those services you
require.
It's insane that we charge exactly the same taxes to people living next door
to each other, regardless of their incomes and ability to pay. I see no
justification in such regressive taxation.
Andy Driscoll
Saint Paul
--------
I (cannot) submit the whole system of my opinions to the creed of any party
of men (and women) whatever in religion, in philosophy, in politics, or in
anything else where I was capable of thinking for myself. Such an addiction
is the last degradation of a free and moral agent.
--- Thomas Jefferson (updated)
> From: Victoria Heller <[EMAIL PROTECTED]>
> Date: Sun, 8 Dec 2002 22:09:45 -0600
> To: Mpls Forum <[EMAIL PROTECTED]>
> Subject: [Mpls] Property Tax Calculation and falling Tax Capacity (This is
> important to understand)
>
> The calculation of Mpls property tax bills is as follows:
>
> Assessed Market Value TIMES the "Classification Rate" EQUALS "Tax Capacity"
> "Tax Capacity" TIMES the "Extension Rate" EQUALS "The Tax"
>
> Here is the Mpls "Tax Capacity" (TC) and "Market Value" (MV) 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 trying to keep tax
> collections level by increasing market values - which is the only variable
> the City controls. 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.
>
> 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.
>
>
> Vicky Heller
> Cedar-Riverside and North Oaks
>
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>
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