6. SR 12-05-1994 - Laserfiche WebLink

Home Browse Search

Special report: 1994 property tax data e GARY CARLSON he payable 1994 property tax data for all cities has been expanded to provide additional information related to the property tax system and local tax base. The data for all cities is again provided in a single, expanded table and the information has been standardized for all cities. The League of Minnesota Cities would like to thank the Property Tax Division of the Minnesota Department of Revenue for their assistance in collecting this information and preparing this report. e Format The property tax data is divided into five broad categories of information-tax base data, average tax capacity tax rate data, average market value tax rate data, city aid and levy data and tax base composi- tion data. This information has been collected from various sources but is largely based on data collected and compiled by the Department of Revenue in the Abstract of Assessment of Real and Personal Property and the Abstract of Tax Usts. The information provided in the table is described in the column descrip- tion that follows. Statewide overview of 1994 property tax data Sluggish growth in real estate market values was one of the most significant highlights for property taxes in 1994. Much of this problem can be attributed to actual declines in the market values for apartments and commercial and industrial properties (see bar chart). These declines were coupled with growing residential homestead values, and as a result, many communities experienced significant shifting of the property tax burdens to their homeowners. For example, in St. Paul, residential homesteads increased from 59.1 percent to 61.3 percent of the total market value. In contrast, apartments decreased from 15.1 percent to 14.4 percent and commercial/ industrial property decreased from 20.0 percent to 18.9 percent of the total market value. City property taxes, including fiscal disparities distribution levies, increased by a modest 3.7 percent over the 1993 levels. Two other major city revenue sources, local govemment aid (LGA) and homestead and agricultural credit aid (HACA), increased by 2.5 percent and 3.4 percent respectively. Overall, city revenues from these three primary sources increased by only 3.3 percent froml993 to 1994. Change in Total City Market Values Taxes Payable 1993 to 1994 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% -4.0% e ~.O% Res Homestead Farm Other Comm/lnd Apartments Cities continue to comprise only approximately 20 percent of the average local property tax bill. For a $72,000 home, this translates to an average annual city tax bill of $190, up from $184 in 1993. For this amount, the homeowner receives services ranging from police and fire protection to snow plowing and commu- nity parks. On average, the property tax bill for other local units of govemment are paid to the county (29 percent of the total bill), school district (48 percent of the total bill) and other local taxing authorities (three percent of the total). The total tax bill for this $72,000 home was $941 in 1994, up from $915 in 1993. Statewide highlights The 1993 city population estimates reflect a 1.3 percent increase over the 1992 estimates. Tax base highlights Total tax capacity was down by ,8 percent from the 1993 level. Tax increment financing(TIF) captured tax capacity was down by 6.5 percent from the 1993 level, reflecting state imposed property class rate reductions, the decline in commercial and industrial property market values, and the decertification ofTIF districts. Fiscal disparities contribution tax capacity for cities in the seven-county metro area declined by 4.2 percent from 1993, also reflecting state imposed property class rate reductions and the decline in commercial and industrial property values. Taxable tax capacity grew by .3 percent, which partially reflects increases in residential homestead property values. Tax rate highlights The average tax burden imposed by Minnesota cities remained stable at approximately 20 percent of the average total property tax bill (see pie chart), Although the 1994 school district share of the average tax bill declined to 47.9 percent from 48.3 percent in 1993, school district market value referen- dum levies increased by 124 percent to more than $17.6 million for taxes payable in 1994. The average tax burden imposed by counties and special taxing authorities increased slightly frolll1993to 1994. Aid and levy highlights Local govemment aid increased by 2.5 percent over the 1993 certified level.