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<br /> <br />Gem Lake News Page 5 of 6 <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />Final 2014 Budget Approved for Gem Lake <br />(continued from page 2) <br />When it comes to revenues by category, it breaks <br />down as follows: 77.63 % comes from property <br />taxes; 8.58% comes from licenses and permits; <br />3.38% comes from intergovernmental sources; 0.79 <br />comes from charges for services; 0.86% comes from <br />fines and forfeitures; and, 8.65% comes from <br />miscellaneous sources. <br /> <br />As a result of aggressive cost savings and tight <br />budgeting, at least some Gem Lake residents , if not <br />most, may see their property tax bill decrease a bit. <br />Determining the impact of the city's budget on your <br />budget is, for most folks, the only thing that really <br />matters. <br /> <br />So What? How Does This Affect Me? <br />While some would argue that calculating your tax bill <br />this year requires a degree in finance, it can be <br />done. Read on for all the information on how <br />Ramsey County determines market values. <br /> <br />The median residential value of a home in the county <br />is now $200,800, which is a decrease of 11.97% <br />over last year, when the median value was <br />$228,100. In 2012 the median value $247,000. This <br />was a decrease of 7.7% from 2011. <br /> <br />Property class rates are established by the State of <br />Minnesota. Class rates applied to market value <br />establishes what is called tax capacity. Each city's <br />tax levy is divided by the tax capacity value to <br />determine the tax rate. Are you lost yet? If you <br />aren't, you will be. <br /> <br />Your relevant tax capacity is now calculated by <br />reducing the estimated market value of your home <br />by the "homestead market value exclusion." The <br />result, which is called your taxable market value, is <br />then multiplied by the property class rate to arrive at <br />the "taxable tax capacity. The taxable tax capacity is <br />then multiplied by the tax rate to arrive a the net <br />property tax. Okay, we aren't even close to the <br />answer yet. Then you have to calculate your tax <br />capacity. You do so by multiplying the first $76,000 <br />of estimated market value by 40%. Then you multiply <br />any estimated market value above $76,000 by 9%. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />Then you deduct the result of Step 2 from Step <br />1. This is your property's Homestead Market <br />Value Exclusion. (Cleverly known as your <br />HMVE) Now you deduct your property's HMVE <br />from its estimated market value. This is your <br />taxable market value. Take all that data and <br />multiply the taxable market value by the <br />property class rate for you type of property. <br />The result is your taxable tax capacity. Clear? <br /> <br />To calculate the city portion of your property <br />taxes you would take the taxable market value <br />of your home. Then you would multiply the first <br />$500,000 of taxable market value by 1%. If <br />necessary multiply any taxable market value <br />above $500,000 by 1.25%. Add the two <br />together for your property's city taxable tax <br />capacity. Multiply the tax capacity by 27.430%, <br />which is Gem Lake's established tax rate for <br />2014. This equals the city portion of your <br />property tax bill. <br /> <br />Or, you could just wait for your statement to <br />arrive in March.... <br /> <br />