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<br />-7- <br />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 4.5 percent for 2021, and increased 0.1 percent for <br />2022. <br /> <br />The following graph shows the City’s change in tax capacities over the past 10 years: <br />$– <br /> $2,000,000 <br /> $4,000,000 <br /> $6,000,000 <br /> $8,000,000 <br /> $10,000,000 <br /> $12,000,000 <br /> $14,000,000 <br /> $16,000,000 <br /> $18,000,000 <br /> $20,000,000 <br />2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 <br />Local Tax Capacity <br /> The following table presents the average tax rates applied to city residents for each of the last three levy <br />years: <br />2020 2021 2022 <br />Average tax rate <br />City 25.4 25.1 26.5 <br />County 52.3 47.7 48.1 <br />School 25.0 23.9 23.4 <br />Special taxing 8.2 7.8 10.0 <br />Total 110.9 104.5 108.0 <br />Rates Expressed as a Percentage of Net Tax Capacity <br />City of Arden Hills <br /> <br />The overall increase in the average tax rate was spread across most of the taxing authorities as presented <br />in the table above, with a slight decrease in the school portion. <br />