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2006 TAX INFORMATION BLUE SHEETS: Explain the basics of how taxes are calculated YELLOW SHEET: Shows the steps to calculate a homestead, seasonal, or commercial tax for taxes payable in 2005 and 2006. GREEN SHEET: Lists the taxing districts with market value increases mandated by the State Board of Equalization. Districts with values adjusted by the Assessor to meet actual market increases are not included. Those adjustments are shown on the Board of Review notification sent to taxpayers early in the year. PINK SHEET: Enclosed only if Supplemental Homestead Credit applies in taxing district— must have property located in School District 1 (Aitkin)or 182 (Crosby- Ironton)and property must be homestead. Additional Information: 1. ACTUAL RATES USED FOR FINAL TAXES NEXT MARCH MAY BE HIGHER THAN ESTIMATES: Taxpayers are eligible for homestead for taxes payable in 2006, if they have ownership and establish residence by December 1 and file an application with the County Assessor by December 15,2005. If there are a significant number of approved applications and the tax base decreases(because homestead properties contribute to the tax base in lower totals for the same amount of market value)and your final levy stays the same,the tax rate will increase for the actual tax statements mailed in 2006. 2. SUPPLEMENTAL HOMESTEAD CREDIT AREAS(PREVIOUSLY TACONITE CREDIT): Only homestead property located in School District 182 (Crosby-Ironton)and School District 1 (Aitkin) is eligible for Supplemental Homestead credit.The maximum credit allowed remained the same as it was for Taconite Credit, $315.10 or$289.80, depending on whether a Township or City is a high or low percentage taconite district.This credit will be paid to the County Auditor by the Department of Revenue on July 26 and December 26 each year and distribution will occur shortly after receipt. Distribution is no longer paid with the July 5 and December 2 settlements. 3. LIMITATIONS ON MARKET VALUE INCREASES: Applies to Residential, Farm Homestead, and Seasonal Recreational Residential property only. With a valuation adjustment due to either a review by the Assessor or by state mandated increase,the market value for tax purposes may be increased the greater of: a. 15% of previous year taxable market value, or b.25%of difference between estimated market value and previous year taxable market value. Note: New construction value goes in at full value, no limitation. 4. QUESTIONS ON MARKET VALUE: Issues concerning market value are to be discussed at the Board of Review held earlier in the year or with the County Assessor directly and not at Truth in Taxation hearings. Taxpayers needing more information regarding market value changes should contact the County Assessor in the Courthouse. See the green sheet to identify the townships/cities which had taxpayers who did not receive prior notification of market value increases due to state mandated increases occurring after the Boards of Review. 5. TAX CAPACITY CLASS RATE PERCENTAGE CHANGES: In payable 2006, the following changes occurred: Commercial Seasonal homestead, Class 1c, properties are re-structured to a three-tier rate and references to an 800 x 500 foot"box"with areas outside the box classified as Class 4c have been eliminated. Only the value of Class 1c property in the third tier(over $2,200,000 taxable market value)is subject to state general tax. Class 4d low income rental housing was re-in-stated. Crow Wing County Auditor