5.1 Public Hearing TIF Plan 2-2 - Laserfiche WebLink

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CITY OF PEQUOT LAKES —TIF DISTRICT NO. 2 -2 estimated at $185. However, as it is expected that the request for certification will be after July 1, 2024, the Original Net Tax Capacity will actually be based on estimated market value that exists on January 2, 2024, for taxes payable 2025. Figures used are for illustration purposes only. Each year the County Auditor will certify the amount that the Original Net Tax Capacity has increased or decreased as a result of: 1. changes in the tax - exempt status of property. 2. reductions or enlargements of the geographic area of the TIF District. 3. changes due to stipulation agreements or abatements; or 4. changes in classification rates. Section 14 Original Local Tax Rate The County Auditor shall also certify the Original Local Tax Rate of the TIF District. This rate shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for the same taxes payable year as the Original Net Tax Capacity. In future years, the amount of tax increment generated by the TIF District will be calculated using the lesser of (a) the sum of the current local tax rates at that time or (b) the Original Local Tax Rate of the TIF District. As noted in Section 13, the Authority intends to file the TIF District for certification after July 1, 2024, but before June 30, 2025; therefore, the Original Local Tax Rate will be the rate that applies for taxes payable in 2025, which is unknown at this time. The tax rates associated with taxes payable 2023 are included for estimation purposes only: Taxing Jurisdication 'City of Pequot Lakes Crow Wing County School District # 186* Other 2023 Local Tax Rate 50.089% 24.067% 7.971% 1.205% Total 83.332% * Minnesota Statutes, Section 469.177 Subd. 1a was amended in 2013 to redefine what portion of the local school district tax capacity rate will be used in calculating tax increments. Specifically, this amendment now excludes that portion of the school rate attributable to the general education levy under Section 126C.13. The rate shown does factor in this change. It is included for estimation purposes only. The projected original local tax rate does not include the State of Minnesota properly tax rate on commercial, industrial, and seasonal recreation property of 33.003 %, which is not captured as tax increment. Section 15 Projected Retained Captured Net Tax Capacity and Tax Increment Each year the County Auditor will determine the current net tax capacity of all property in the TIF District. To the extent that this total exceeds the Original Net Tax Capacity, the difference shall be known as the Captured Net Tax Capacity of the TIF District. It is the Authority's intention to retain 100% of the Captured Net Tax Capacity of the TIF District. Exhibit 3 estimates the total amount of retained net captured tax capacity, gross tax increments, adjustments, and the net tax increment revenues which will be available annually and cumulatively over the life of the TIF District. Section 16 Statutory Duration of the TIF District Economic development districts may remain in existence for eight years from the date of receipt of the first tax increment. This produces nine (9) annual collections of tax increments, with the first year of increment expected to be 2026 and the final year to be 2034. Modifications of this plan (see Section 28) may not extend these