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<br />-. <br /> <br />. <br /> <br />. <br /> <br />The impact of the tax rate changes made by the Legislature can be found on the <br />following page. The Legislature's intent is to shift some of the tax burden from <br />commercial/industrial properties, which have been taxed at a rate much higher <br />than other properties. Some of the shift was to residential properties although <br />that increased tax was offset by the educational homestead credit. The <br />relationship of tax capacity to market value in the various classes of property has <br />changed significantly in the past three years. For instance, in 1999, although <br />the market value of apartments increased, the tax capacity for apartments <br />decreased substantially. Seasonal recreation, commercial, and industrial <br />properties showed market value increases and tax capacity decreases. In <br />addition to a recent reduction in public utility class rate, there has been <br />considerable discussion regarding exempting certain public utility distribution <br />and generation personal property from taxation. Public utility tax capacity <br />decreased almost 14 percent in 1999. This class will decrease substantially if <br />the proposed legislation is approved. <br /> <br />The final page in this section shows the change in use of funds generated by the <br />tax levy. In 1989 the General Fund received 66 percent of the tax dollars <br />generated and debt accounted for 22 percent. For taxes payable in 1999, the <br />debt levy has decreased to nine percent while the General Fund levy has <br />increased to 83 percent. As was discussed earlier, some of this increase is due <br />to the shift of General Fund state aids to the school. Also, the city has very little <br />tax supported debt, equipment certificate and fire equipment mainly. <br /> <br />4 <br />