Agenda - Council - 06/25/2024 - Laserfiche WebLink

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Tax capacity is considered the actual base available for taxation. It is calculated by applying the state's property classification system to each property's market value. Each property classification, such as commercial or residential, has a different calculation and uses different rates. Consequently, a city's total tax capacity will change at a different rate than its total market value, as tax capacity is affected by the proportion of its tax base that is in each property classification from year-to-year, as well as legislative changes to tax rates. The City's tax capacity increased 11.0 percent for 2022 and increased 24.3 percent for 2023. The following graph shows the City's change in tax capacities over the past 10 years: $50,000,000 $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15, 000,000 $10,000,000 $5,000,000 $— Tax Capacity Value 1 I I 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 The following table presents the average tax rates applied to city residents for each of the last three levy years: Rates Expressed as a Percentage of Net Tax Capacity City of Ramsey 2021 2022 2023 Average tax rate City 39.3 42.2 40.4 County 31.6 29.6 24.5 School 16.2 16.3 13.7 Special taxing 4.2 4.1 3.5 Total 91.3 92.2 82.1 The school tax rate for Independent School District No. 11, Anoka -Hennepin, was used for the above table. The average tax rate was less than the prior year with decreases spread across each of the taxing authorities presented in the table above. Increases in property valuations contributed to the change in the average tax rate. -5-