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Property Values (Tax Burden) City's Market Value and Tax Capacity Due to the current economic conditions, the taxable market value for the City is projected to increase by $198.1 million or 13.7% to $1.64 billion. From this, the Tax Capacity is calculated (for residential properties it equates to 1% of Taxable Market Value, and varies by property type for all others). The City's Tax Capacity for calculating taxes was projected to increase by 16.6% to $17.9 million. This plus the change in the levy is decreasing the City's tax rate from 26.543% to 24.516%. Median Valued Home Due to current economic conditions, the Taxable Market Value of the median valued home within the City is projected to increase 15.33% from $384,600 to $443,550. The overall City Tax burden increase on the median valued home is projected to be approximately 7.2% or $73.45. Property Tax Levies The total levy being proposed is $4,785,770. This represents a $313,090 or 7.00% increase over the 2022 levy of $4,472,680. Anoka County sets the Fiscal Disparities levy for the entire Seven County Metropolitan Area. This was established by the legislature in the 1970's as a means to more evenly distribute the property tax benefit derived by commercial properties. Cities are either a "net" gainer or a "net" contributor. Arden Hills is a "net" gainer and will collect $384,516 in 2023 as opposed to $385,578 in 2022, which is a decrease of 0.3%. City Tax Rate There are two types of tax rates that are calculated for the City. One is a net tax capacity based rate, and the other is a market value based rate. Both rates use the market value as the starting point for determining the rate. Net Tax Capacity Based Rate The Net Tax Capacity based rate is calculated by taking the levy and dividing it by the Net Tax Capacity. Net Tax Capacity calculation is regulated by the State Legislature, which has created classifications of property and a "class rate percentage" for each classification. The Net Tax Capacity is determined by multiplying the market value of each property by the appropriate class rate percentage. The sum total of all parcel tax capacities less adjustments for the City's Fiscal Disparity contribution, those parcels that have been certified in a Tax Increment Financing (TIF) development district, and the MVE represent the New Tax Capacity for the city. Currently, the General Fund Levy is Net Tax Capacity based.