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$150,000 HOMESTEAD MARKET VALUE EXCLUSION CALCULATION STEP 1 Calculate the excluded amount for market value exclusion. a. Maximum exclusion: $76,000 x40 % = $30,400 b. Value over $76,000: $150,000 - 76,000 = $74,000 c. Benefit reduction amount: $74,000 x 9% = $6,660 d. Final exclusion amount: $30,400 - 6,660 = $23,740 STEP 2 Reduce the excluded amount from the taxable market value. a.$150,000- 23,740= $126,260 $126,260 is your new taxable market value, now let's calculate your net tax capacity STEP 3 Take your market value and multiply by 1 %. a. $126,260 x 1% = $1,262.60 $1,262.60 is your net tax capacity THE TAX CALCULATIONS ON THE NEXT PAGE REPRESENTS EXAMPLES OF RESTATED 2011 MARKET VALUE EXCLUSIONS. THESE SIMULATIONS WERE RELEASED FROM THE HOUSE RESEARCH DEPT. (ASSUMPTIONS WERE MADE BY THE STATE THAT LEVIES WOULD BE ADJUSTED FOR PREVIOUS MARKET VALUE CREDIT CUTS.) SUMMARY OLD LAW VS NEW LAW $ MV CREDIT MV EXCLUSION Estimated Market Value $ 150,000 $ 150,000 Less: MV Exclusion $ 2,027.60 23,740 Taxable Market Value $ 150,000 $ 126,260 Class Rate Less: MV Credit 1% 1% Net Tax Capacity $ 1,500.00 $ 1,262.60 STEP 4 Take your net tax capacity and multiply it by combined tax rate CROSBY & IRONTON (AVERAGE) Gross Tax (NTC x 151 %) $ 2,265.00 $ 2,196.92 (NTC x 174 %) Less: MV Credit 237.40 Net Tax $ 2,027.60 $ 2,196.92 DEERWOOD, GARRISON, PEOUOT LAKES (AVERAGE) $ 1,725.00 $ 1,489.87 (NTC x 118 %) Gross Tax (NTC x 115 %) Less: MV Credit 237.40 Net Tax $ 1,487.60 $ 1,489.87 BRAINERD Gross Tax (NTC x 100 %) $ 1,500.00 $ 1,363.61 (NTC x 108 %) Less: MV Credit 237.40 Net Tax $ 1,262.60 $ 1,363.61 BAXTER Gross Tax (NTC x 100 %) $ 1,500.00 $ 1,287.85 (NTC x 102 %) Less: MV Credit 237.40 Net Tax $ 1,262.60 $ 1,287.85 ALL OTHERS (AVERAGE) Gross Tax (NTC x 63 %) $ 945.00 $ 833.32 (NTC x 66 %) Less: MV Credit 237.40 Net Tax $ 707.60 $ 833.32 4 "**N '-1