Agenda - Council Work Session - 05/13/2014

Home

(2) reductions or enlargements of the geographic area of the TIF District; (3) changes due to stipulation agreements or abatements; or (4) changes in property classification rates. (AS MODIFIED JANUARY 25, 2011) The County Auditor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July 1 and December 31, inclusive, this value is based on the current assessment year. The Estimated Market Value of all property within the TIF District as of January 2, 2010, for taxes payable in 2011, is $85,278,600. Upon establishment of the TIF District, and subsequent reclassification of property, it is estimated that the original net tax capacity of the TIF District will be approximately $1,391,239. At the time this document was created a significant portion of the land within the TIF District was owned by the HRA and tax - exempt and is not included in the amounts above. Pursuant to Minnesota Statutes, Section 469.177, Subdivision 1(c) if improvements are made to tax exempt property after certification of the District and before the parcel becomes taxable, the assessor shall, at the request of the City, separately assess the estimated market value of the improvements. If the property becomes taxable, the County Auditor shall add to original net tax capacity, the net tax capacity of the parcel, excluding the separately assessed improvements. The City intends to request the assessor separately assess the market value of any improvements to the currently tax - exempt property. Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1 ) changes in the tax- exempt status of property; (2) reductions or enlargements of the geographic area of the TIF District; (3) changes due to stipulation agreements or abatements; or (4) changes in property classification rates. Section 0 Original Tax Capacity Rate The County Auditor shall also certify the original tax capacity rate of the TIF District. This rate shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for the same taxes payable year as the original net tax capacity. In future years, the amount of tax increment generated by the TIF District will be calculated using the lesser of (a) the sum of the current local tax rates at that time or (b) the original tax capacity rate of the TIF District. At the time this document was prepared, the sum of the local tax rates that apply to property in the TIF District, for taxes levied in 2010 and payable in 2011, was not yet available. When this total becomes available, the County Auditor shall certify this amount as the original tax capacity rate of the TIF District. For purposes of estimating the tax increment generated by the TIF District, the sum of the local tax rates for taxes levied in 2009 and payable in 2010 is 99.566% as shown below. City of Ramsey Modification to the Tax Increment Financing Plan for Tax Increment Financing District No. 14 10