CCP 08-09-1993 - Laserfiche WebLink

Home Browse Search

. Page 2 Valuation Memo INVFSI'IGATION (FINDINGS CON 'T 4. It is apparent that l:usinesses have become very aggressive in challenging real property valuations as determined by the Ramsey County Assessor. See the enclosed table which highlights representative valuation chan;es for taxes payable in 1993 am 1994. 5. In addition to reduced valuations affecting the City's next year net tax capacity base, successful petitioners are also entitled to repayment of tax overpayments in the petition year. 'Ihrough the date of this memo, estilnated abatement refund amounts have not been made available from Ramsey County . However, it can be stated that the City's 1993 October tax settlement will be less that the 1993 May tax settlement because of these pending abatements. 1994 BUCGEr IMPAcr l. The 1993 certified levy was $1,590,000. 'Ihis levy was applied against an adjusted total tax capacity of $10,552,328. Assuming that personal property, tax . increment, am fiscal disparity factors remain constant, prelilninary 1994 adjusted total tax capacity could be estimated at $9,979,000. '!his estilnate represents a 5.43% reduction in tax capacity compared to 1993. 2. The reduction in tax capacity results from two sources: a) . '!he legislatively driven reduction in property class rates (eg.: Commercial property had a 4.70% class rate in 1993 vs. a 4.60% class rate in 1994-a 2.13% reduction). In theory, this reduction is offset by higher 1994 HACA aid (a $18,395 increase per Department of Revenue intornation) . b) . '!he reduction in net EMV results in corresponding reduced net tax capacity. This reduction can be offset by reduced City Tax rates or by having individual property tax bill increases exceed the levy (spending) in=ease. c) . It should also be noted that reduced commerical property valuation causes residential property owners to shoulder an increasingly greater proportionate share of the overall property tax burden . .