6.8. SR 10-25-1993 - Laserfiche WebLink

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rei -\j ( )j fill TO: PAT KLAERS, CITY ADMINISTRATOR MAYOR & CITY COUNCIL LORI JOHNSON, FINANCE DIRECTOR~~ FROM: DATE: OCTOBER 19, 1993 SUBJECT: TAX RATE COMPARISONS Both the Star Tribune and the St. Paul Pioneer Press recently had articles regarding property taxes in the Twin Cities metro area and non-metro area cities with populations above 10,000. Taxes on a $90,000 home for the City of Elk River were listed at $940.00. There was some discussion at the staff level regarding taxes on a home with a $90,000 market value which would be higher than the $940.00 amount listed in the article. tit As you read through the articles you will notice that there is some discussion regarding sales price and market value. In speaking with Lynn Reed at the Minnesota Taxpayers Association, he indicated that the tax amounts used for their comparisons are based on a home with a sellinq price of $90,000. . In Elk River, a home with a selling price of $90,000 would have a market value of $81,630 based on the County sales ratio of 90.7 percent. Sales ratios in the survey vary from 98 percent to 82 percent. The market value of a $90,000 home ranged from $88,000 to a low of $74,900 in the data prepared by the Taxpayers Association. Mr. Reed explained that the Taxpayers Association likes to take the viewpoint of a buyer which is why the information is presented in this manner. This allows a homebuyer who is planning to buy a $90,000 home to compare the tax by City. A home with a $90,000 selling price in the City of Elk River would pay taxes of $940.00 which ranks third lowest among the 27 non-metro cities with a population exceeding 10,000. Elk River would rank 95th or second lowest among the metro area cities if it were included in that comparison. e P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425