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House Research Department Date: September 7,2001 Run: totsav05 Property Tax changes due to changes in aids and credits under the Omnibus Tax Bill ( 2001 Special Session, Chapter 5) The attached run shows the net change in property taxes in each city due to the combined effects of: the state education levy takeover; the new state property tax; the new state credits; the net effect of city aid changes; and the effect of the transit relief in both the metropolitan area and out-state region. A negative number indicates a decrease in property taxes while a positive number indicates an increase in property taxes paid by taxpayers in that city. Caveats: The run does not show the effects of any shifts in tax between properties due to the class rate changes nor does it reflect any increases in property tax refunds to low-income taxpayers under the expansion of that program. Because some of the changes affect only certain types of taxpayers while others affect all taxpayers in the jurisdiction, the table does not show the impact on an individual taxpayer (see column 7 below). Columns in the table: Column 1: Column 2: Column 3: Column 4: Column 5: Column 6: Column 7: Column 8: City population for 2000 from the U.S. Census. Net decrease in school property taxes due to the takeovers of the general education levy and $415 per pupil of school referendum levy including the reduction in the area wide fiscal disparity levy. New state tax paid only by businesses and seasonal-recreational property. New homestead and agricultural credits which lower taxes only for homes and farms. The net effect on property taxes due to the elimination of city HACA and the increased funding of city LGA, assuming that cities levy back all lost aid (and reduce property taxes for any net increase in aid). The decrease in property taxes from the state takeover of the transit levy in the metropolitan area and the transit aid in the out-state region including the reduction in the area wide fiscal disparity levy. The reduction in taxes due to the decreased increment in Tax Increment Finance (TIF) districts resulting from the class rate changes. The total decrease (or increase) in property taxes paid by taxpayers in the city due to the combination of the changes in columns 2 through 7.