7. c) DRAFT 2021 Budget Proposal Tax Rate Impact SupplementDRAFT 9-2-2020 Staff Proposal Tax Rate Supplement Presentation
Definitions of Terms:
Total City Levy = Is the total cash budgeted to be levied on the City
Fiscal Disparities= This is Metropolitan Minnesota program in which the City offsets its tax levy total by an area-wide application of 40%
commercial and industrial tax base growth. This figure is calculated by Washington County.
Total Tax Capacity= the total taxable value of the city that the levy is applied to.
Local Tax Rate=The percentage used to calculate individual property taxes. All taxing jurisdictions have a rate including the County,
local shoreland districts, school districts, the Washington Conservation District, and other local government authorities.
What changes have occurred in the City of Scandia's Total Tax Capacity (or the total value of Scandia's Tax Base)?
2018 3.3%
2019 7.3%
2020 7.9%
2021 Estimated 7.3%
2018 $206,919
2019 $492,565
2020 $573,791
2021 Estimated $572,973
What is the result of increased value of the community?
How does this proposed tax rate compare to other communities?
(Preliminary rates for these comparable communities will be provided as soon as preliminary levies are filed.)
The individual City tax rate that directly impact individual property owner taxes are derived from the
following equation:
Total Tax Capacity =The City's Local Tax Rate
Tax Rate and Net Tax Capacity Explanation
Percent Change in Tax Capacity or City-wide
Taxable Value
Total Amount of New Value Per Year
Total City Levy - Fiscal Disparities
(Total City-wide Taxable Value)
Tax rates are dependent on what a community includes in its levy and its overall assessed value. This means an increased levy does not always translate into the
same increase in tax rate.
$6,023,919
$6,230,838
$6,723,403
$7,297,194
$7,870,167
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
Payable 2017 Payable 2018 Payable 2019 Payable 2020 ext pay 2021
Total Change in Next Tax Capacity or
Total City-wide Taxable Value
35.06%
36.02%
32.25%32.40%
33.95%
32.98%
31.47%31.64%
30.79%
31.64%
Scandia Bayport Afton
Tax Rate Comparison
2018 2019 2020 2021 Est
DRAFT PROPOSAL 1 of 2 NOT ACTED ON BY THE CITY COUNCIL
DRAFT 9-2-2020 Staff Proposal Tax Rate Supplement Presentation
Final Tax Capacities for 2021 are not available. However, it is still possible to estimate the dollar for dollar impacts on individual tax statements. The following is a breakdown of tax bill impacts:
Class Rate State Taxing Classification Payment PY Diff Payment PY Diff Payment PY Diff Payment PY Diff Payment PY Diff Payment PY Diff Payment PY Diff
1.00%Class 1a Homestead Under $500k $3.16 $0.02 $316.38 $1.72 $790.94 $4.30 $1,231.37 $6.70 $1,265.50 $6.88 $1,581.88 $8.60
1.25%Class 1a Homestead Over $500k $3,559.23 $19.36
0.50%Class 2a Agricultural Land first $1.5Mil $1.58 $0.01 $158.19 $0.86 $395.47 $2.15 $615.69 $3.35 $632.75 $3.44 $790.94 $4.30 $1,581.88 $8.60
0.65%Class 2c Managed Forest Land $2.06 $0.01 $205.64 $1.12 $514.11 $2.80 $800.39 $4.35 $822.58 $4.47 $1,028.22 $5.59 $2,056.45 $11.18
1.50%Class 3a Commercial-Industrial, Utility first $150k $4.75 $0.03 $474.56 $2.58
2.00%Class 3a Commercial-Industrial, Utility over $150k $6.33 $0.03 $1,581.88 $8.60 $2,462.74 $13.39 $2,531.01 $13.76 $3,163.76 $17.20 $6,327.52 $34.41
* Average property value for the City of Scandia Corrected estimate (9/2/2020)
How do I make since of this table?
What does this table not include?
Tax statements can be a little complicated. The above table lays out any base taxes prior to the application of tax credits, taxes authorized by referendums, the state's general property tax rate, and rates of other local government
jurisdictions. So its important to remember that the County, schools, and other agencies tax in addition to what the city taxes.
$1000 of Value $100,000 of Value $250,000 of Value $389,211 of Value*$400,000 of Value
Estimated Impacts on Tax Bills
$500,000 of Value $1,000,000 of Value
2021 Estimated Tax Rate Impacts
The table above shows what a property tax rate would look like based on the value points noted at the top of the table in the bold boxes. Rates very based on state taxing classifications. The most common classification is Class 1a for
residential properties. This means if you had a residential property that was valued at $100,000, for example, that value is multiplied by the classification rate of 1% before it is multiplied by the local tax rate. The result is a payment of
DRAFT PROPOSAL 2 of 2 NOT ACTED ON BY THE CITY COUNCIL