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Property Values (Tax Burden) <br />City's Market Value and Tax Capacity <br />Due to the current economic conditions, the taxable market value for the City is projected to <br />increase by $103.5 million or 8.0% to $1.39 billion. From this, the Tax Capacity is calculated (for <br />residential properties it equates to 1% of Taxable Market Value, and varies by property type for <br />all others). The City's Tax Capacity for calculating taxes was projected to increase by 6.4% to <br />$15.1 million. This decreased the City's tax rate from 25.555% to 25.176%. <br />Median Valued Home <br />Due to current economic conditions, the Taxable Market Value of the median valued home <br />within the City is projected to increase 7.4% from $346,900 to $372,400. The overall City Tax <br />burden increase on the median valued home is projected to be approximately 6.6% or $57.06. <br />Property Tax Levies <br />The total levy being proposed is $4,135,340. This represents a $196,920 or 5.0% increase over <br />the 2019 levy of $3,938,420. <br />Anoka County sets the Fiscal Disparities levy for the entire Seven County Metropolitan Area. <br />This was established by the legislature in the 1970's as a means to more evenly distribute the <br />property tax benefit derived by commercial properties. Cities are either a "net" gainer or a <br />"net" contributor. Arden Hills is a "net" gainer and will collect $333,462 in 2020 as opposed to <br />$311,064 in 2019, which is an increase of 7.2%. <br />City Tax Rate <br />There are two types of tax rates that are calculated for the City. One is a net tax capacity based <br />rate, and the other is a market value based rate. Both rates use the market value as the <br />starting point for determining the rate. <br />Net Tax Capacity Based Rate <br />The Net Tax Capacity based rate is calculated by taking the levy and dividing it by the Net Tax <br />Capacity. Net Tax Capacity calculation is regulated by the State Legislature, which has created <br />twenty-eight (28) classifications of property and a "class rate percentage" for each <br />classification. The Net Tax Capacity is determined by multiplying the market value of each <br />property by the appropriate class rate percentage. The sum total of all parcel tax capacities less <br />adjustments for the City's Fiscal Disparity contribution, those parcels that have been certified in <br />a Tax Increment Financing (TIF) development district, and the MVE represent the New Tax <br />Capacity for the city. Currently, the General Fund Levy is Net Tax Capacity based. <br />13 <br />