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<br />-. <br /> <br />PROPERTY TAX AND PROPERTY VALUATION INFORMATION <br /> <br />The following pages provide data on the City's market value, tax capacity, tax <br />levy, tax rate, and other tax related information. Because the state legislature <br />has made many changes in property tax law in the past several years, it is rather <br />difficult to make accurate comparisons from one year to the next. Changes in <br />class rates have shifted the tax burden while the new educational homestead <br />credit has offset some of that shift to homesteaded residential properties. <br /> <br />. <br /> <br />The first page of the property tax data shows levy and aids, property values, and <br />tax rates for years payable 1991 to 1999. For taxes payable in 1999, the City's <br />net levy increased 11.63 percent. The majority, over 82 percent of the levy, <br />goes to the General Fund. The General Fund, library, dam loan, surface water <br />management development, and infrastructure levies all fall within the City's levy <br />limit which is determined by the Department of Revenue. The City's market <br />value increased 10.48 percent in 1999; however, the final net tax capacity <br />decreased very slightly. The preliminary tax capacity provided by the County on <br />September 4, 1998, and used for budget projections showed an increase in our <br />taxable tax capacity of $66,136. As a result of the decrease in tax capacity and <br />an increase in the levy, the City's tax rate increased from 26.255 in 1998 to <br />29.324 in 1999. But, even with the increase in the tax rate, some taxpayers, <br />unless their property value has increased, will see a decrease in their property <br />taxes (excluding the school's market value levy) due to the increase in the <br />educational homestead credit for residential properties, and the reduction in <br />class rates for commercial properties. The school's market value rate levy <br />doubled from 1998 to 1999. This referendum approved levy is applied to the <br />market value of properties, not the tax capacity. <br /> <br />The Property Values by Class Information provides values by class of property. <br />For taxes payable in 1999, over 63 percent of the market value was in <br />residential property. However, that same residential property made up only 45 <br />percent of the tax capacity and 43 percent of the taxes paid. On the other hand, <br />commercial property accounted for just over 16 percent of the market value, but <br />30 percent of the tax capacity and almost 32 percent of the net tax. <br /> <br />. <br /> <br />Because of the structure of the tax system, it is always to a City's benefit to <br />increase commercial and industrial property values. For taxes payable in 1999, <br />the market value on commercial and industrial property increased $11,365,500 <br />or 8.8 percent. However, as a percentage of the City's total market value, <br />commercial and industrial decreased slightly to 19.68 from 19.94 percent in <br />1998; but that is still an increase from 1992 when commercial and industrial <br />property accounted for 17.98 percent of the total market value. Residential <br />market values have increased the fastest with an increase of $50,037,560 in <br />1999, or 12.4 percent. Residential properties account for 5.46 percent more of <br />the total than in 1992. Several classifications decreased over the same seven <br />year time period including public utility, apartment, and agricultural properties. <br /> <br />3 <br />