9.1. SR 09-06-2011 - Laserfiche WebLink

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$35,000 $30,000 $25,000 c .° $20,000 3 x $15,000 W $10,000 $5,000 $- .,~ ~ ~ r r ~ ~ ~ „~ ~ ~ p A ~~ ~O ~tfl ~6` ~ t~-~ ~O ~d~ OO OO ~Op X00 X00 X00 X00 X00 X00 X00 JOO O O O O O O O O O Market Value • The state will no longer pay a share of the tax on homesteads, but homesteads have less value subject to taxation. • The removal of the state spending on credits means property taxpayers, as a whole, will pay more if levies remain the same. • The reduction in the tax base for homesteads means non-homesteads will pay a higher share of the levy, and a large share of homesteads could pay more given that exclusion amounts and other factors vary. • Local governments will receive the full amount that they levy from their taxpayers. How do credits and exclusions affect tax calculations? The prior law credit was deducted from a gross tax while the exclusion will reduce the taxable value. Changing taxable value means outcomes won't be identical. Old Law: New Law: The Credit The Exclusion Estimated Market Value $116,000 $116,000 Exclusions $0 $26,800 Taxable Market Value $116,000 $89,200 Class Rate 1% 1% Net Tax Capacity $1,160 $892 Tax Rate* 105.810% 110.920% Gross Tax $1,227 $989 Credit $Z6$ $0 Net Tax $959 $989 *The tax rate change used here reflects estimated average statewide rates for 2011 under either approach, assuming no changes in levies. Levy decisions and local tax base dynamics will affect the change in rates.