2.0. HRSR 03-10-1998 - Laserfiche WebLink

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r , area, tax capacity or individuaUbusiness organizations in the proposed district. • The service charge applies solely to non-residential property. 411 State Law limits the application of a service charge to only property that is classified for property taxation and used for commercial, industrial, or public utility purposes, or is vacant land zoned or designated on a land use plan for commercial or industrial use. Other types of property may be part of the service district, but may not be subject to the service charge. A potential special service district has not been developed. Tax Increment Financing District No. 1-22 offers some insights on the fiscal capacity of a ser- vice district. The tax capacity of the parcels located within TIF District No. 1- 22 totals $1,293,033. Assuming that this amount represented the tax capacity of a service district, then each 1% of tax rate would raise $12,930 in annual revenue. The actual taxable value of a service district would change as non- residential properties are deleted and parcels outside of the TIF District are added. General Property Taxes General property taxes can be used to finance many of the services, improve- ments, facilities and development activities needed to implement the Plan. Taxes may be levied through the General Fund, to pay debt service on G.O. Improvement or G.O. Tax Increment Bonds, and as a levy for an Economic 411Development Authority or Housing and Redevelopment Authority. Iw V4 ' i I� I'-..... C�rio f.tCast'' 5a aD E � Akgel- A.i-�F�p; _11 A1 1 a dwgii� a / _ r y%A1Dr t,_ ._ -11 If3r4P-It* W .11=4-�tr211111 Use of a property taxes to accomplish elements of the revitalization plan might be seen as a way of making improvements that directly benefit the entire community. The appeal of the property tax is its ability to generate revenues. A tax rate of just 0.5% will produce almost $80,000 in annual revenue. Property taxes could play an important role in implementing the plan. The use of property taxes must be approached carefully: • The property tax is the primary source of revenue for financing city ser- vices. The use of property taxes on the Downtown Plan must be weighed against other competing funding needs. • In 1997, the State Legislature established levy limits for fiscal years 1998 and 1999. Levy limits will cap the levy for general government purposes. A levy for debt service can be made outside of the levy limit restrictions. • The property tax system is in a state of change. In 1997, the State4111 A New Bridge "a"-- 11 RevitalizingMontkello's Downtown and Riverfront Page 4:18