Agenda - Council - 04/11/2017 - Laserfiche WebLink

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REAL ESTATE TAX ANALYSIS Real estate taxes are a key determinant of value in Minnesota, because properties are taxed at rates that are higher than rates for comparable properties in neighboring states. Commercial properties are taxed at about 2%to 5%of the assessor's estimated market value of the property each year. Taxes are paid one year in arrears in Minnesota, which means that the taxes payable in 2016 relate to the January 2, 2015 assessor's estimated market values. The effective tax rate is comprised of the class rate adjusted by the rates for local taxing authorities such as: • The city • Library system • The county • School district • Watershed district Total real estate taxes payable each year may be a combination of: • Base taxes (based on the type of property and its AEMV) • Special assessments (property specific payments for public works) • County/city service charges (annual fees charged to fund certain programs) Subject Taxes and Assessor's Estimate of Market Value The various taxes are summarized in the following tables: REAL ESTATE TAXES Payable in 2016 Effective Tax Special Service Total Real Taxes PID# Base Tax Rate Assessments Charges Estate Taxes per SF of NRA 34-32-25-14-0027 $38,490.07 3.90% $3,488.93 $0.00 $41,979.00 Total $38,490.07 3.90% $3,488.93 $0.00 $41,979.00 $4.28 Effective Tax Rate=Base Tax/AEMV ASSESSOR'S (as of January 2,2015) Improvements PID# Land Value per SF of Land Value per SF of NRA Total Value per SF of NRA 34-32-25-14-0027 $986,000 $109.58 Total $986,000 $109.58 PROPOSED (as of January 2,2016) Improvements PID# Land Value per SF of Land Value per SF of NRA Total Value per SF of NRA 34-32-25-14-0027 $450,700 $6.26 $562,200 $62.48 $1,012,900 $112.57 Total $450,700 $6.26 $562,200 $62.48 $1,012,900 $112.57 33 1 Page