Taxation summary | Pineandlakes.com - Pineandlakes Echo Journal

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Taxation summary

Posted: August 13, 2013 - 6:44pm

History

The 2002 Pequot Lakes-Sibley Township merger resulted in a city levy tax ratio of $2 in the urban (city) district to $1 in the rural (township) district. The thought at the time was that urban district residents would benefit more from city services and, thus, should pay a higher city tax.

Questions eventually arose over the tax disparity.

Taxation summary

• Pequot Lakes has a total taxable valuation of $238,931,400.

• The rural tax district accounts for $150,459,900 (63 percent) of that valuation.

• The urban tax district accounts for $88,471,500 (37 percent) of that valuation.

• The city receives $1,486,432 in property taxes.

• The rural tax district accounts for $592,268 (40 percent) of that tax revenue.

• The urban tax district accounts for $894,164 (60 percent) of that tax revenue.

Potential impact on taxes

with three-year phase-in:

• $200,000 rural residential home, $296 increase for homestead property, $328 increase for non-homestead property.

• $300,000 rural residential home, $475 increase for homestead property, $492 increase for non-homestead property.

• $400,000 rural residential home, $654 increase for homestead property, $656 increase for non-homestead property.

• $500,000 rural residential home, $820 increase for both homestead and non-homestead properties.

The taxable market value in the rural district is larger than that in the urban district. Therefore, property owners in the rural district will see a smaller increase in taxes than the decrease the urban district property owners will see.

• $200,000 urban home, $390 tax decrease.

• $300,000 urban home, $624 tax decrease.

• $400,000 urban home, $860 tax decrease.

• $500,000 urban home, $1,077 tax decrease.

Tax increases and decreases are estimates and will ultimately depend on the city tax levy.

(Source: Springsted Inc. The company’s final report is available on the city’s website at www.pequotlakes-mn.gov.)

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