Minutes - Council - 12/05/2005 - Truth in Taxation

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that to 2005 where the City received approximately 39 cents, showing an increase of approximately one cent on every dollar for the City portion of the tax dollar. She also explained the breakdown between City, County, and School District percentages. She explained how property taxes are calculated. Ms. Lund referred citizens to the Tribune article dated December 4, 2005. She noted that the newspaper stated the average value of the housing market is $230,000. She compared taxation in the Anoka versus the Elk River School District based on the value of $200,000. She noted that in 2005, taxes on a $200,000 home for the Anoka School District were $1,954 and would increase to $1,968. She noted that Elk River School District's taxes were higher because they have a different tax capacity rate. Taxes in the Elk River School District based on a $200,000 home in 2005 were $2,181. Based on the proposed tax capacity rate for 2006, taxes in Elk River School District will be 2,279. Kevin Hartman, Ramsey resident, approached the City Council with a question. Mayor Gamec asked him which school district he resided in. Mr. Hartman stated that he lives in the Anoka School District. Mr. Hartman asked for further clarification about Limited Market Value. Ms. Lund explained Limited Market Value calculation again. Mr. Hartman asked for clarification about whether the 15% Limited Market Value was State mandated. Mr. Hartman asked if the valuation could be less than a 15% increase. He asked if one property might be different, for example 10% versus 15%. Ms. Lund stated that it could be less, but that is based on the County Assessor's market valuation. She explained that each valuation is different depending on what the property was assessed at in previous years, adding that no two homes are exactly alike. Mayor Gamec stated that on the same value house, one property's taxes increased by $300.00 the other went up by $40. He clarified that the sale price of the home brings up the market value of an entire area. He stated there may appear to be some inequities based on the sales market but it evens out over the years. Mr. Hartman stated he has followed his property tax increase since Governor Ventura changed things. Ms. Lund read Minnesota Statute 273.1 I, "For assessment year 2008, the amount of the increase shall not exceed the greater of 15% of the value in the preceding assessment or 50% of the difference between the current assessment and the preceding assessment." Mr. Hartman asked where the assessor gets his information. He stated that had he tried to sell his home last year as opposed to selling it this year, he may not have sold it for the same amount of money because of the market situation. Mayor Gamec stated that the Assessor looks at the market of the area, but the assessment is based on sales of the area. He stated the problem the City sees at the Local Board of Review in April when people come in to protest their valuation, is there may only be four or five sales a year. He stated the Assessor takes the higher value. Mr. Hartman asked if the Assessor looked at most recent sales. City Council Truth in Taxation/December 5, 2005 Page 3 of 13