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Tax capacity is considered the actual base available for taxation. It is calculated by applying the state's <br />property classification system to each property's market value. Each property classification, such as <br />commercial or residential, has a different calculation and uses different rates. Consequently, a city's total <br />tax capacity will change at a different rate than its total market value, as tax capacity is affected by the <br />proportion of its tax base that is in each property classification from year-to-year, as well as legislative <br />changes to tax rates. The City's tax capacity increased 24.3 percent and 12.8 percent for taxes payable in <br />2023 and 2024, respectively. <br />The following graph shows the City's change in tax capacities over the past 10 years: <br />$60,000,000 <br />$50,000,000 <br />$40,000,000 <br />$30,000,000 <br />$20,000,000 <br />$10, 000,000 <br />$— <br />Tax Capacity Value <br />2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 <br />The following table presents the average tax rates applied to city residents for each of the last three levy <br />years: <br />tates Expressed as a Percentage of Net Tax Capacit <br />City of Ramsey <br />2022 2023 2024 <br />Average tax rate <br />City 42.2 40.4 41.4 <br />County 29.6 24.5 25.6 <br />School 16.3 13.7 13.6 <br />Special taxing 4.1 3.5 3.5 <br />Total 92.2 82.1 84.1 <br />The school tax rate for Independent School District No. 11, Anoka -Hennepin, was used for the above table. <br />The average tax rate was higher than the prior year with increases spread across the city and county taxing <br />authorities presented in the table above. Increases in property valuations contributed to the change in the <br />average tax rate. <br />-5- <br />