Limited Market Value Report

Limited Market Value Report 2005 Assessment Year Tax Research Division March 1, 2006 This report is available on the web at http://www.taxes.state.mn.us/taxes/legal_policy/index.shtml

March 1, 2006 To The Members of the Legislature of the State of Minnesota: I am pleased to transmit to you the Limited Market Value Report for taxes payable 2006, undertaken by the Department of Revenue in response to Laws of Minnesota for 1993, Chapter 375, Article 5, Section 42 regarding the market value exclusion under Minnesota Statutes, Section 273.11, Subdivision 1a. The report provides summary and municipal tables on the market value limitation exclusion for farm, residential and seasonal recreational residential property. The market value exclusion for this limitation for taxes payable 2006 sums to $32,495,299,823 at the statewide level, or 7.9 percent of the total taxable market value of the limited classes of property. Minnesota Statutes, Section 3.197, specifies that a report to the Legislature must include the cost of its preparation. The approximate cost of preparing this report was $3,300. Sincerely, Daniel A. Salomone Commissioner 600 North Robert Street Minnesota Relay 711 (TTY) St. Paul, MN 55146 An equal opportunity employer

Executive Summary This report presents information on the effects of Minnesota s Limited Market Value law. The law, enacted in 1993, currently excludes from taxation annual increases in the market value of favored properties that exceed 15% of the prior year s taxable market value, or 25% of the difference between the current estimated market value and the prior year s value. The law defines favored properties as farms, residential homesteads and non-homesteads, seasonal recreational residential property (cabins), and timberland. Under current law, this limitation will end after taxes payable in 2009. Payable 2010 taxes will be based on full estimated market valuations without this limitation. Over the past 30 years, governors and legislatures have been very concerned about rising property taxes, particularly on residential homesteads. Enactment of the Limited Market Value law in 1993 was one of many attempts to slow the growth in property taxes, particularly for the favored classes, since the late 1960s. Absent other mitigating policies, preferential valuations redistribute local property tax bases, shifting taxes across and within classes of property. It decreases taxes on some properties, while increasing taxes on others. This is the 13 th annual report on the impacts of the limitation. It is prepared each year at the request of the legislature (Law of Minnesota, 1993, Chapter 375, Article 5, Section 42). Key Findings Statewide Impacts Taxes Payable in 2006 Minnesota s Limited Market Value law has excluded nearly $32.5 billion in property valuation, statewide. This represents 7.9% of total pre-limit taxable market value of the limited classes of property (farm, residential, and seasonal recreational residential (noncommercial properties). The percentage of value excluded for payable 2006 (7.9%) is less than the percent excluded in the previous four years, but considerably higher than the annual percentage excluded in the years 1994 though 2001. The biggest annual percentage exclusion occurred in payable years 2003 and 2004 (10.8%). As shown in the table and graph on the next page. i

($ Billions) $40 $35 $30 $25 $20 $15 $10 $5 $0 Payable Year Total Market Value Limitation Total Exclusion Amount (Dollars) Percent of Value Excluded 1994 $669,050,104 0.5% 1995 1,047,762,545 0.8 1996 1,615,639,650 1.1 1997 2,045,660,418 1.4 1998 2,529,034,086 1.6 1999 3,389,506,961 1.9 2000 5,621,821,611 2.8 2001 10,573,691,372 4.7 2002 20,961,007,763 8.1 2003 30,879,740,466 10.8 2004 34,862,284,559 10.8 2005 33,067,516,329 9.1 2006 32,495,299,823 7.9 $2.0 $2.5 $3.4 Market Value Limitation, Pay 1997-2006 $5.6 $10.6 $21.0 $30.9 $34.9 $33.1 $32.5 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Taxes Payable Year Compared to other properties, statewide, the value of seasonal recreational residential property (cabins) was reduced the most, by 22.73% for payable 2006. The value of farm property was reduced by 16.32% (including a 31.64% reduction for timberland), homestead residential values were cut by 4.54%, and non-homestead residential values were reduced by 11.87% (Table 2). Major limited properties shared the total $32.5 billion exclusion in the following proportions: 40.9% for residential homesteads, 33.6% for farms, 14.7% for seasonal recreational residential, and 10.8% for residential non-homestead (Table 3). In percentage terms, changes in the taxable share of market value for each property class are relatively small. Farm homesteads share fell from 9.86% to 8.94%, Farm nonhomestead and timberland fell from 3.61% to 3.12%, seasonal recreational residential (cabins) fell from 4.23% to 3.50%, residential homesteads rose from 58.92% to 60.18%, and residential non-homesteads fell from 5.94% to 5.60% (Table 4). ii

Metro Area Impacts The total metro valuation exclusion is $13.7 billion. This represents 6.09% of total prelimit taxable market value (Table 2). By class, the excluded value and percent reduction in value were as follows: farms $1.73 billion (31.67%); seasonal recreational residential $81.8 million (23.07%); residential non-homestead $2.43 billion (12.42%); residential homestead $9.48 billion (4.74%) (Table 2). Major limited properties shared the total $13.7 billion exclusion in the following proportions: 69.1% for residential homesteads, 12.6% for farms, 0.6% for seasonal recreational residential, and 17.7% for residential non-homestead (Table 3). Greater Minnesota Impacts The total value exclusion in Greater Minnesota was $18.8 billion, 10.16% of pre-limit values (Table 2). By class, the excluded value and percent reduction were as follows: farms $9.2 billion (14.96%); seasonal recreational residential $4.7 billion (22.72%); residential nonhomestead $1.1 billion (10.79%); residential homestead $3.8 billion (4.11%) (Table 2). Major limited properties shared the total $18.8 billion exclusion in the following proportions: 20.3% for residential homesteads, 49.0% for farms, 25.0% for seasonal recreational residential, and 5.7% for residential non-homestead (Table 3). Limited Market Value Shifts Taxes Across Property Classes Statewide, the Limited Market Value law increased net taxes for residential homestead properties by $17.1 million (0.57%) relative to the tax that would have been paid without the limitation. Taxes on all other classes of property subject to the limitation decreased as follows: Farms -$43.6 million (-10.9%); cabins -$15.1 million (-8.4%); residential non-homestead -$21.4 million (-6.09%) (Table 6). Payable 2006 is the first year in which residential homestead properties as a group statewide have experienced a net increase in property taxes because of the Limited Market Value law. Non-limited properties (apartments, commercial and industrial properties, resorts, public utilities, mineral, railroad and personal property) paid $78 million more in taxes because of limited market value (+3.3%) (Table 6). iii

Limited Market Value Shifts Taxes Within Property Classes Homesteads In 2006, the Limited Market Value law increased property taxes on 78% of the state s 1.4 million residential homesteads (1.1 million parcels), by $106 million (an average of $96 per parcel). For the other 22% of residential homesteads (314,000), the law decreased property taxes by $86 million (an average of $273 per parcel). 16% of the parcels with tax increases resulting from the limitation actually had some valuation withheld. This seemingly counter-intuitive result occurs because the limitation on these residential homestead properties was overwhelmed by proportionately larger limitations on other properties. The net tax increase of $20 million on residential homesteads as a group results from shifts off of other limited classes of property. Seasonal Recreational Property (Cabins) In 2006, the Limited Market Value law decreased property taxes on 70% of the state s seasonal recreational residential properties (140,000 parcels) by $23 million (an average of $167 per parcel). For the other 30% of parcels (59,000), the limitation law increased property taxes by $6 million (average of $103 per parcel). The net tax reduction of $17 million for cabins as a group resulted in shifts onto other classes of limited and nonlimited properties. Greatest Degree of Limitation Reductions Occurred in Sparsely Populated Areas and Lake Areas of the State The greatest degree of limitation occurred in north east and north central Minnesota (Table 7 and Appendix Tables A-1 and A-2). iv

Table of Contents Introduction...1 How Does the Limit Actually Work?...2 Statewide and Regional Limitation Amounts by Property Class...4 Statewide Changes in Distribution of Market Values Across Property Classes...4 Changes from Pay 2005 to 2006...7 Statewide and Regional Changes in Distribution of Net Tax Amounts Across Property Classes..7 Parcel Level Analysis: Change in Net Tax Within Property Classes...12 Pay 2006 Limitation Reductions at the City and Township Level...14 Appendix Total Market Value Limitation and Percentage Reductions by City and Township.19 Top 140 Cities and Townships Map...163 List of Figures and Tables Figures 1 Limited Market Value Determination Examples...3 2 Limited Market Value Impact on Homesteads...13 3 Limited Market Value Impact on Seasonal Recreational Property...13 Tables 1 History of Limited Market Value Law...1 2 Market Value Limitation by Property Type Statewide and Regional Totals...5 3 Market Value Limitation Shares by Region...6 4 Change in Statewide Distribution of Real and Personal Market Values...7 5 Change in Market Value Limitation by Property Type...8 6 Change in Distribution of Real and Personal Net Taxes...9 7 Total Market Value Limitation and Reduction Percentage by City and Township...15 Appendix Tables A-1 Total Market Value Limitation and Reduction by City and Township Farm Homestead, Farm Non-Homestead, and Seasonal Recreation Property...20 A-2 Total Market Value Limitation and Reduction by City and Township Homestead, Farm Non-Homestead, and Seasonal Recreation Property...21 v

Introduction This report presents information on the effects of Minnesota s Limited Market Value law. The law, enacted in 1993, currently excludes from taxation any annual increase in the market value of favored properties that exceeds 15% of the prior year s taxable market value, or 25% of the difference between the current estimated market value and the prior year s value. The law defines favored properties as farms, residential homesteads and non-homesteads, seasonal recreational residential property (cabins), and timberland. Under current law, this limitation will end after taxes payable in 2009. Payable 2010 taxes will be based on full estimated market valuations without this limitation. Over the past 30 years, governors and legislatures have been very concerned about rising property taxes, particularly on residential homesteads. Enactment of the Limited Market Value law in 1993 was one of many attempts to slow the growth in property taxes, particularly for the favored classes, since the late 1960s. Absent other mitigating policies, preferential valuations redistribute local property tax bases, shifting taxes across and within classes of property. It decreases taxes on some properties, while increasing taxes on others. Table 1 below shows the history of the Limited Market Value law from its enactment in 1993 through the 2005 legislative changes. Table 1 History of Limited Market Value Law Year Enacted Limit Difference Factor Effective Assessment Year 1993 Established program/sunset 10% 33.33% 1993 1998 after 6 years 1994 Sunset one year earlier 10% 33.33% Ends in 1997 1997 Extended program and 10% 25% 1998 2001 increased number eligible 1999 Increased number eligible 8.5% 18% 1999 2001 2001 Extended program, but 10% 15% 2002 established phaseout schedule 12% 20% 2003 15% 25% 2004 15% 33% 2005 15% 50% 2006 Repealed after Assessment Year 2006 2005 Delayed phaseout by 2 years 15% 25% 2005 15% 25% 2006 15% 33% 2007 15% 50% 2008 Repealed after Assessment Year 2008 1

In response to the mandate in Laws of Minnesota for 1993, Chapter 375, Article 5, Section 42, this is the thirteenth annual report on the total value excluded from taxation by the limitation law for each property type in each city or township. For taxes payable in 2006, Appendix A includes the mandated table of excluded value by property type for each city or township. Cities or townships with the largest percentage reductions under the limit are shown in rank order in Table 7. The report also summarizes the effects of the limit at the statewide and regional levels, showing how limited market value changes taxable market value for different property tax classes. For residential homesteads and seasonal recreational property (non-commercial), the parcel level analysis in the report identifies the number of parcels that pay less tax and the number that pay more because of limited market value. The sources of information for the summary are the 2005 fall mini-abstract of assessment and the 2005 final abstract of assessment (which report taxable market values after the limitation reduction and other property value exclusions). Each county assessor submitted these abstracts to the Department of Revenue. The limitation amounts by type of property were obtained from data listed on the mini-abstract. How Does the Limit Actually Work? The limitation provision in Section 273.11, Subd. 1a limits the annual increase in the market value of eligible properties that is subject to taxation to increases of no more than 15 percent of the prior year s value or 25% of the difference between the current estimated market value and the prior year s value, whichever is greater. The prior year value used in this calculation is the prior year s market value, after limitation, after any reductions for green acres (273.111) and open space (273.112), and excluding any new improvements made during the year. (This value is before any exclusions for platted lands, this old house or this old business.) As Figure 1 shows, the maximum market value is first determined by increasing the previous year s taxable market value by 15 percent or by taking 25% of the increase in value. The limited market value then is the greater of the two maximum market values. 2

Figure 1 Limited Market Value Determination Examples Estimated Market Value Comparison Examples A B C 1) 2005 Taxes Payable Market Value $ 100,000 $ 100,000 $ 100,000 2) 2006 Taxes Payable Estimated Market Value * $ 105,000 $ 130,000 $ 200,000 3) Market Value Increase (2-1) $ 5,000 $ 30,000 $ 100,000 Percentage Increase 5.0% 30.0% 100.0% Maximum Market Value Determination 4) 115% of 2005 Taxes Payable Market Value (1 x 115%) $ 115,000 $ 115,000 $ 115,000 5) 2005 Taxes Payable Market Value Plus 25% of Estimated Market Value Increase [(1 + (3 x 25%)] $ 101,250 $ 107,500 $ 125,000 6) 2006 Taxes Payable Maximum Market Value (Greater of 4 or 5) $ 115,000 $ 115,000 $ 125,000 Limited Market Value Determination 7) 2006 Taxes Payable Limited Market Value (Lesser of 2 or 6) $ 105,000 $ 115,000 $ 125,000 Percentage Increase 5.0% 15.0% 25.0% Example A: Limitation does not apply. Example B: 15 percent limitation applies. Example C: 25 percent limitation applies. * Excluding the value of new improvements for pay 2006. 3

The limit applies to farm, residential and seasonal recreational residential (non-commercial) properties for assessment years 1993 to 2008 (taxes payable 1994 to 2009). Timberland is included in farm non-homestead. All rental housing with three or fewer units is included as residential non-homestead property. New ownership of a previously limited parcel does not change the market value limitation. New improvements, whether to land or structures, are excluded from the limit calculation in the year in which the new improvements become taxable, but thereafter become part of the estimated market value used in determining the market value limitation in subsequent years. Limitation does not continue to apply when a property class changes from a favored class to a non-favored class. 1 Also note that the exclusions in law for platted vacant land, green acres and this old house take precedence over the Limited Market Value law and are calculated without taking into account the limitation reduction. 2 Statewide and Regional Limitation Amounts by Property Class The total limitation reduction statewide for taxes payable 2006 is $32,495,299,823. As Table 2 shows, the reduction remains significant. In percentage terms, the value of seasonal recreational residential property was reduced the most (22.73 percent statewide). The taxable value of residential homestead property was reduced the least (4.54 percent statewide). Regionally, the limit reduced the market value of favored classes more in Greater Minnesota (10.16 percent) than in the metro area (6.09 percent). In dollar terms, most of the limitation (57.8 percent) occurs in Greater Minnesota (down by $18.8 billion), where the limit affects farm homestead property more than other property classes. Market values in the metro region were reduced by $13.7 billion (42.2 percent of the statewide reduction). The reduction for residential homestead property statewide was $13.3 billion, with $9.5 billion of this reduction in the metro region. Table 3 provides a percentage distribution of the total limitation by region and property type. homestead reductions account for 69.1 percent of the total reductions in the metro area, but only 20.3 percent in Greater Minnesota. Statewide Changes in Distribution of Market Values Across Property Classes As Table 4 shows, the value limitation reduced the share of taxable market value for most eligible property classes, but in percentage terms the changes are relatively small. The limit reduced the shares of total market value most for farm homestead property, from 9.86 percent to 8.94 percent of total market value. The shares for farm, seasonal recreational, and residential non-homestead property declined. In contrast, limited market value increased the shares for residential homestead, apartment, commercial, industrial, and public utility property. 1 Memo from Michael P. Wandmacher to all county assessors, June 23, 1993, pp. 3-4. 2 Minnesota Department of Revenue, Supplement to the Instructions for Limits on Increases to Estimated Market Value, 1994. 4

Table 2 Market Value Limitation by Property Type Statewide and Regional Totals Taxable Market Taxable Market Value before Value after Total Percent Limitation Limitation Limitation Reduction Statewide Farm Homestead $ 48,963,799,982 $ 41,524,897,260 $ 7,438,902,722 15.19% Farm Non-Homestead 16,159,645,726 13,244,001,520 2,915,644,206 18.04% Timberland 1,797,289,200 1,228,597,500 568,691,700 31.64% Total Farm $ 66,920,734,908 $ 55,997,496,280 $ 10,923,238,628 16.32% Seasonal Recreational $ 21,008,570,840 $ 16,233,215,340 $ 4,775,355,500 22.73% Homestead $ 292,705,668,114 $ 279,412,835,324 $ 13,292,832,790 4.54% Non-Homestead 29,510,969,325 26,007,096,420 3,503,872,905 11.87% Total $ 322,216,637,439 $ 305,419,931,744 $ 16,796,705,695 5.21% Total $ 410,145,943,187 $ 377,650,643,364 $ 32,495,299,823 7.92% Metro Area Farm Homestead $ 3,697,275,575 $ 2,702,823,730 $ 994,451,845 26.90% Farm Non-Homestead 1,753,759,050 1,021,344,500 732,414,550 41.76% Timberland 3,473,700 2,666,500 807,200 23.24% Total Farm $ 5,454,508,325 $ 3,726,834,730 $ 1,727,673,595 31.67% Seasonal Recreational $ 354,541,880 $ 272,735,180 $ 81,806,700 23.07% Homestead $ 199,961,355,778 $ 190,480,810,269 $ 9,480,545,509 4.74% Non-Homestead 19,598,938,671 17,165,001,780 2,433,936,891 12.42% Total $ 219,560,294,449 $ 207,645,812,049 $ 11,914,482,400 5.43% Total $ 225,369,344,654 $ 211,645,381,959 $ 13,723,962,695 6.09% Greater Minnesota Farm Homestead $ 45,266,524,407 $ 38,822,073,530 $ 6,444,450,877 14.24% Farm Non-Homestead 14,405,886,676 12,222,657,020 2,183,229,656 15.16% Timberland 1,793,815,500 1,225,931,000 567,884,500 31.66% Total Farm $ 61,466,226,583 $ 52,270,661,550 $ 9,195,565,033 14.96% Seasonal Recreational $ 20,654,028,960 $ 15,960,480,160 $ 4,693,548,800 22.72% Homestead $ 92,744,312,336 $ 88,932,025,055 $ 3,812,287,281 4.11% Non-Homestead 9,912,030,654 8,842,094,640 1,069,936,014 10.79% Total $ 102,656,342,990 $ 97,774,119,695 $ 4,882,223,295 4.76% Total $ 184,776,598,533 $ 166,005,261,405 $ 18,771,337,128 10.16% 5

Table 3 Market Value Limitation Shares by Region Total Share of Share of Property Type Limitation Region State Statewide Farm Homestead $ 7,438,902,722 22.9% Farm Non-homestead 2,915,644,206 9.0% Timberland 568,691,700 1.8% Total Farm $ 10,923,238,628 33.6% Seasonal Recreational $ 4,775,355,500 14.7% Homestead $ 13,292,832,790 40.9% Non-homestead 3,503,872,905 10.8% Total $ 16,796,705,695 51.7% Total $ 32,495,299,823 100.0% Metro Area Farm Homestead $ 994,451,845 7.2% 3.1% Farm Non-homestead 732,414,550 5.3% 2.3% Timberland 807,200 0.0% 0.0% Total Farm $ 1,727,673,595 12.6% 5.3% Seasonal Recreational $ 81,806,700 0.6% 0.3% Homestead $ 9,480,545,509 69.1% 29.2% Non-homestead 2,433,936,891 17.7% 7.5% Total $ 11,914,482,400 86.8% 36.7% Total $ 13,723,962,695 100.0% 42.2% Greater Minnesota Farm Homestead $ 6,444,450,877 34.3% 19.8% Farm Non-homestead 2,183,229,656 11.6% 6.7% Timberland 567,884,500 3.0% 1.7% Total Farm $ 9,195,565,033 49.0% 28.3% Seasonal Recreational $ 4,693,548,800 25.0% 14.4% Homestead $ 3,812,287,281 20.3% 11.7% Non-homestead 1,069,936,014 5.7% 3.3% Total $ 4,882,223,295 26.0% 15.0% Total $ 18,771,337,128 100.0% 57.8% 6

Table 4 Change in Statewide Distribution of Real and Personal Market Values (in thousands) Caused by the Limited Market Value Law Taxable Taxable Market Value Market Value Before Percent After Percent Change in Limitation Of Total Limitation Of Total Percent Farm Homestead $ 48,963,800 9.86% $ 41,524,897 8.94% 8.84% Farm Non-homestead and Timberland 17,956,935 3.61% 14,472,600 3.12% 3.08% Seasonal Recreational 21,008,571 4.23% 16,233,215 3.50% 3.45% Homestead 292,705,668 58.92% 279,412,835 60.18% 59.59% Non-homestead 29,510,969 5.94% 26,009,096 5.60% 5.54% Apartment 19,755,508 3.98% 19,755,508 4.25% 4.21% Seasonal Commercial 1,114,063 0.22% 1,114,063 0.24% 0.24% Commercial/Industrial 57,138,605 11.50% 57,138,605 12.31% 12.19% Public Utility 3,347,764 0.67% 3,347,764 0.72% 0.71% Mineral 2,323 0.00% 2,323 0.00% 0.00% Railroad 497,872 0.10% 497,872 0.11% 0.11% Personal 4,807,666 0.97% 4,807,666 1.04% 1.03% Total Real and Personal $ 496,809,744 100.00% $ 464,316,444 100.00% 99.00% Changes from Pay 2005 to 2006 Table 5 shows that the Limited Market Value law has excluded nearly $35 billion in property values statewide. The total exclusion decreased statewide from $33.1 billion for taxes payable 2005 to $32.5 billion for payable 2006, a drop of $0.6 billion or 1.7 percent. Table 5 also shows that the total limitation increased by 14.8 percent in Greater Minnesota while falling by 17.9 percent in the metro region. In dollar terms, the exclusion increased by $2.4 billion in Greater Minnesota and decreased by $3.0 billion in the metro area. Statewide and Regional Changes in Distribution of Net Tax Amounts Across Property Classes Table 6 shows how limited market value changes the statewide distribution of net tax payable in 2006 across property classes. The non-limitation simulation holds the state levy constant, allows market value credits to change, and allows TIF levies to decrease due to lower tax rates on commercial property. In percentage terms, timberland property taxes fell the most, with a 21.4 percent decrease statewide. In 2006, for the first time, residential homesteads statewide have a higher net tax under LMV than without. In terms of net tax dollar amounts the tax burden shift is most evident in the statewide reduction in the farm homestead property tax burden by $25.6 million, and the increase in the commercial/industrial property tax burden by $51.1 million. In Greater Minnesota, the largest reduction in net tax in dollar terms ($20.0 million) is for farm homestead property. 7

Table 5 Change in Market Value Limitation by Property Type Statewide and Regional Totals Taxes Payable 2005 and 2006 Statewide Pay 2005 Pay 2006 Change in Percent Property Type Total Limitation Total Limitation Total Limitation Change Farm Homestead $ 5,805,106,277 $ 7,438,902,722 $ 1,633,796,445 28.1% Farm Non-homestead 2,565,326,979 3,484,335,906 919,008,927 35.8% Total Farm $ 8,370,433,256 $ 10,923,238,628 $ 2,552,805,372 30.5% Seasonal Recreational $ 4,264,781,975 $ 4,775,355,500 $ 510,573,525 12.0% Homestead $ 17,078,660,468 $ 13,292,832,790 $ (3,785,827,678) -22.2% Non-homestead 3,353,640,630 3,503,872,905 150,232,275 4.5% Total $ 20,432,301,098 $ 16,796,705,695 $ (3,635,595,403) -17.8% Total $ 33,067,516,329 $ 32,495,299,823 $ (572,216,506) -1.7% Metro Area Farm Homestead $ 954,776,419 $ 994,451,845 $ 39,675,426 4.2% Farm Non-homestead 639,352,081 733,221,750 93,869,669 14.7% Total Farm $ 1,594,128,500 $ 1,727,673,595 $ 133,545,095 8.4% Seasonal Recreational $ 87,762,300 $ 81,806,700 $ (5,955,600) -6.8% Homestead $ 12,682,309,248 $ 9,480,545,509 $ (3,201,763,739) -25.2% Non-homestead 2,356,987,952 2,433,936,891 76,948,939 3.3% Total $ 15,039,297,200 $ 11,914,482,400 $ (3,124,814,800) -20.8% Total $ 16,721,188,000 $ 13,723,962,695 $ (2,997,225,305) -17.9% Greater Minnesota Farm Homestead $ 4,850,329,858 $ 6,444,450,877 $ 1,594,121,019 32.9% Farm Non-homestead 1,925,974,898 2,751,114,156 825,139,258 42.8% Total Farm $ 6,776,304,756 $ 9,195,565,033 $ 2,419,260,277 35.7% Seasonal Recreational $ 4,177,019,675 $ 4,693,548,800 $ 516,529,125 12.4% Homestead $ 4,396,351,220 $ 3,812,287,281 $ (584,063,939) -13.3% Non-homestead 996,652,678 1,069,936,014 73,283,336 7.4% Total $ 5,393,003,898 $ 4,882,223,295 $ (510,780,603) -9.5% Total $ 16,346,328,329 $ 18,771,337,128 $ 2,425,008,799 14.8% 8

Table 6 Change in Distribution of Real and Personal Net Taxes Caused by the Limited Market Value Law Net Tax Net Tax Before Percent After Percent Change in Percent Statewide Limitation Of Total Limitation Of Total Net Tax Change (000's) (000's) (000's) Farm Homestead $ 263,332 4.19% $ 237,749 3.77% $ (25,583) -9.72% Farm Non-homestead 136,321 2.17% 118,352 1.88% (17,969) -13.18% Total Farm $ 399,653 6.35% $ 356,101 5.65% $ (43,552) -10.90% Timberland $ 14,513 0.23% $ 11,404 0.18% $ (3,109) -21.42% Seasonal Recreational $ 178,924 2.84% $ 163,851 2.60% $ (15,073) -8.42% Homestead $ 3,006,256 47.79% $ 3,023,320 48.06% $ 17,064 0.57% Non-homestead $ 351,158 5.58% $ 329,764 5.24% $ (21,394) -6.09% Apartment $ 271,099 4.31% $ 287,362 4.56% $ 16,263 6.00% Commercial/Industrial < 150,000 $ 229,009 3.64% $ 237,006 3.76% $ 7,997 3.49% Commercial/Industrial > 150,000 1,582,078 25.15% 1,625,209 25.79% 43,131 2.73% Total Commercial.Industrial $ 1,811,087 28.79% $ 1,862,215 29.55% $ 51,128 2.82% Seasonal Commercial $ 9,512 0.15% $ 10,531 0.17% $ 1,019 10.71% Public Utility $ 90,094 1.43% $ 93,653 1.49% $ 3,559 3.95% Mineral $ 100 0.00% $ 105 0.00% $ 5 5.00% Railroad $ 15,773 0.25% $ 16,440 0.26% $ 667 4.23% Personal $ 142,424 2.26% $ 147,760 2.34% $ 5,336 3.75% Total Real and Personal $ 6,290,593 100% $ 6,302,506 100% $ 11,913 0.19% 9

Table 6 (Continued) Change in Distribution of Real and Personal Net Taxes Caused by the Limited Market Value Law Net Tax Net Tax Before Percent After Percent Change in Percent Metro Area Limitation Of Total Limitation Of Total Net Tax Change (000's) (000's) (000's) Farm Homestead $ 22,796 0.56% $ 17,151 0.42% $ (5,645) -24.76% Farm Non-homestead 14,902 0.37% 9,129 0.22% (5,773) -38.74% Total Farm $ 37,698 0.93% $ 26,280 0.65% $ (11,418) -30.29% Timberland $ 26 0.00% $ 22 0.00% $ (4) -15.38% Seasonal Recreational $ 3,496 0.09% $ 2,987 0.07% $ (509) -14.56% Homestead $ 2,131,550 52.51% $ 2,118,252 52.08% $ (13,298) -0.62% Non-homestead $ 235,229 5.80% $ 218,185 5.36% $ (17,044) -7.25% Apartment $ 213,342 5.26% $ 226,881 5.58% $ 13,539 6.35% Commercial/Industrial < 150,000 $ 96,259 2.37% $ 98,977 2.43% $ 2,718 2.82% Commercial/Industrial > 150,000 1,240,148 30.55% 1,271,620 31.26% 31,472 2.54% Total Commercial/Industrial $ 1,336,407 32.92% $ 1,370,597 33.70% $ 34,190 2.56% Seasonal Commercial $ 1,211 0.03% $ 1,261 0.03% $ 50 4.13% Public Utility $ 23,623 0.58% $ 24,313 0.60% $ 690 2.92% Mineral - 0.00% - 0.00% - 0.00% Railroad $ 6,025 0.15% $ 6,244 0.15% $ 219 3.63% Personal $ 70,440 1.74% $ 72,605 1.78% $ 2,165 3.07% Total Real and Personal $ 4,059,047 100% $ 4,067,627 100% $ 8,580 0.21% 10

Table 6 (Continued) Change in Distribution of Real and Personal Net Taxes Caused by the Limited Market Value Law Net Tax Net Tax Before Percent After Percent Change in Percent Greater Minnesota Limitation Of Total Limitation Of Total Net Tax Change (000's) (000's) (000's) Farm Homestead $ 240,536 10.78% $ 220,598 9.87% $ (19,938) -8.29% Farm Non-homestead 121,419 5.44% 109,223 4.89% (12,196) -10.04% Total Farm $ 361,955 16.22% $ 329,821 14.76% $ (32,134) -8.88% Timberland $ 14,487 0.65% $ 11,382 0.51% $ (3,105) -21.43% Seasonal Recreational $ 175,428 7.86% $ 160,864 7.20% $ (14,564) -8.30% Homestead $ 874,706 39.20% $ 905,068 40.50% $ 30,362 3.47% Non-homestead $ 115,929 5.20% $ 111,579 4.99% $ (4,350) -3.75% Apartment $ 57,757 2.59% $ 60,481 2.71% $ 2,724 4.72% Commercial/Industrial < 150,000 $ 132,750 5.95% $ 138,029 6.18% $ 5,279 3.98% Commercial/Industrial > 150,000 341,930 15.32% 353,589 15.82% 11,659 3.41% Total Commercial.Industrial $ 474,680 21.27% $ 491,618 22.00% $ 16,938 3.57% Seasonal Commercial $ 8,301 0.37% $ 9,270 0.41% $ 969 11.67% Public Utility $ 66,471 2.98% $ 69,340 3.10% $ 2,869 4.32% Mineral $ 100 0.00% $ 105 0.00% $ 5 5.00% Railroad $ 9,748 0.44% $ 10,196 0.46% $ 448 4.60% Personal $ 71,984 3.23% $ 75,155 3.36% $ 3,171 4.41% Total Real and Personal $ 2,231,546 100.0% $ 2,234,879 100% $ 3,333 0.15% 11

Parcel Level Analysis: Change in Net Tax Within Property Classes The reductions in valuations shown in this report have the effect of increasing local property tax rates and consequently shifting property taxes from properties with faster growing valuations to those growing more slowly. To estimate the parcel-level tax effects of the current limitation for taxes payable in 2006, parcel limited market value and limitation amounts for residential homesteads and non-commercial seasonal recreational residential property were taken from the market value sales ratio file created from county submissions. Local tax rates were computed with and without the limitation to identify the change in parcel level property tax due to the limitation.* In 2006, the Limited Market Value law increased property taxes on 78% of the state s 1.4 million residential homesteads (1.1 million parcels), by $106 million (an average of $96 per parcel). For the other 22% of residential homesteads (314,000), the law decreased property taxes by $86 million (an average of $273 per parcel). 16% of the parcels with tax increases resulting from the limitation actually had some valuation withheld. This seemingly counter-intuitive result occurs because the limitation on these residential homestead properties was overwhelmed by proportionately larger limitations on other properties. The net tax increase of $20 million on residential homesteads as a group results from shifts off of other limited classes of property. Figure 2 shows the distribution of counts of residential homestead parcels by net change in tax. In 2006, the Limited Market Value decreased property taxes on 70% of the state s 199,000 seasonal recreational properties (140,000 parcels) by $23 million (an average of $167 per parcel). For the other 30% of parcels (59,000), the limitation law increased taxes by $6 million (an average of $103 per parcel). The net tax reduction of $17 million for cabins as a group resulted in shifts onto other classes of limited and non-limited properties. Figure 3 shows the distribution of counts of seasonal recreational homesteads by net change in tax. * For taxes payable 2006, 99.8% of residential homestead market value on the parcel file was captured compared to assessment abstracts. 100.2% of non-commercial seasonal recreational residential improved and unimproved parcel taxable market value was captured compared to assessment abstracts. Data inconsistency prevents a farm parcel analysis. Tax rates from the net tax analysis model runs were applied to market value before and after limitation using Truth-in-Taxation levies available in January. 12

Count of Homesteads in Thousands 450 400 350 300 250 200 150 100 50 Figure-2 Limited Market Value Impacts on Homesteads (Payable 2006) 314,000 homeowners pay, on 1,099,000 homeowners pay, average, $273 less tax. on average, $96 more tax. Total Tax Decrease Total Tax Increase $86 Million $106 Million 0-5,000-3,000-2,000-1,000-500 -300-200 -100-50 0 50 100 200 300 500 1,000 2,000 3,000 5,000 Estimated Homeowner Tax Change in Dollars 60 Figure-3 Limited Market Value Impacts on Seasonal Recreational Property (Payable 2006) Count of Homesteads in Thousands 50 40 30 20 10 140,000 seasonal recreational residential properties pay, on average, $167 less tax. Total Tax Decrease $23 Million 59,000 seasonal recreational residential properties pay, on average, $103 more tax. Total Tax Increase $6 Million 0-5,000-3,000-2,000-1,000-500 -300-200 -10-5 0 50 100 200 300 500 1,000 2,000 3,000 Estimated Seasonal Recreational Tax Change in Dollars* *Includes state tax. State tax rate adjusted to hold state tax amount constant. 5,000 13

Pay 2006 Limitation Reductions at the City and Township Level The greatest degree of market value limitation at the city and township level occurred in sparsely populated and lake areas of the state. Table 7 ranks cities and townships by the percentage of market value limitation for favored classes. As the table shows, the greatest degree of limitation occurred in northern and north central Minnesota, although a few Wright County municipalities also rank highly. Appendix Tables A-1 and A-2 provide a detailed breakdown in county order of the limitation reductions for each favored class in each city and township in the state. Total includes timberland limitation. A map showing the location of the top 140 rankings from Table 7 appears at the end of the report. Table 7 Total Market Value Limitation and Reduction Percentage by City and Township With Greater Percent Reduction in Value Total Percent County Name Limitation Reduction ITASCA Unorg 62-27 1,309,200 43.93% AITKIN Unorg 51-22 102,000 43.44% POLK Lengby 817,900 42.09% AITKIN Unorg 51-25 469,600 41.81% CASS Unorg 145-28 3,758,600 41.60% WRIGHT Middleville Township 66,472,000 41.36% ITASCA Unorg 61-24 3,743,300 41.07% AITKIN Unorg 50-25 2,585,500 40.50% ITASCA Unorg 145-27 26,600 39.82% ITASCA Nore Township 4,515,300 38.55% WRIGHT Woodland Township 75,711,400 37.67% OLMSTED Kalmar Township 79,677,700 37.40% PINE Park Township 4,306,500 37.27% ITASCA Unorg 61-23 3,594,500 36.68% CHISAGO Shafer Township 58,420,700 36.67% ITASCA Unorg 54-27 4,065,800 36.03% AITKIN Libby Township 7,038,900 35.50% CASS Unorg 146-27 778,600 35.48% WRIGHT Victor Township 60,850,400 35.29% WRIGHT Buffalo Township 100,209,100 35.01% 14

Table 7 (Continued) Total Market Value Limitation and Reduction Percentage by City and Township With Greater Percent Reduction in Value Total Percent County Name Limitation Reduction HOUSTON Jefferson Township 9,011,000 34.92% ST. LOUIS Unorg 13-NE 6,649,300 34.80% ITASCA Alvwood Township 2,152,200 34.53% LAKE Beaver Bay 8,873,300 34.32% ITASCA Unorg 59-22 5,793,800 34.29% CASS Ottail Peninsula Township 16,524,400 34.28% HUBBARD Lake Hattie Township 7,895,600 34.27% AITKIN Unorg 52-22 633,000 34.26% AITKIN Aitkin Co Unorg 2,085,600 34.22% PINE Danforth Township 8,626,000 34.15% PINE New Dosey Township 10,840,000 33.96% ITASCA Unorg 62-26 2,528,800 33.92% POLK Trail 243,800 33.19% CHISAGO Amador Township 39,307,600 33.11% CASS Unorg 142-29 3,697,500 32.85% ST. LOUIS Eagles Nest Township 32,558,900 32.85% COOK Unorg Rge 6e 572,400 32.70% ITASCA Unorg 58-23 11,808,500 32.54% OLMSTED New Haven Township 63,693,600 32.34% ITASCA Unorg 146-29 193,000 32.17% ITASCA Wawina Township 2,324,800 32.02% ITASCA Moose Park Township 3,021,800 31.96% ITASCA Grattan Township 1,617,800 31.79% CASS Wilkinson Township 11,574,300 31.64% WRIGHT Albion Township 55,884,400 31.62% ITASCA Unorg 61-25 1,945,000 31.59% ST. LOUIS Breitung Township 45,312,100 31.50% CASS Unorg 143-30 5,815,100 31.35% BELTRAMI Unorg Winner 13,700 31.21% AITKIN Milward Township 3,585,800 31.17% MILLE LACS Bradbury Township 8,941,900 31.12% AITKIN Unorg 50-26 1,873,200 31.02% ISANTI Maple Ridge Township 31,461,300 30.98% MORRISON Mt Morris Township 6,118,300 30.80% WRIGHT Franklin Township 146,600,200 30.76% LAKE Fall Lake Township 77,308,000 30.67% AITKIN Turner Township 16,126,500 30.55% PINE Bruno Township 8,188,000 30.45% ITASCA Itasca County Unorg 127,100 30.44% ISANTI Stanchfield Township 39,512,000 30.39% 15

Table 7 (Continued) Total Market Value Limitation and Reduction Percentage by City and Township With Greater Percent Reduction in Value Total Percent County Name Limitation Reduction CARLTON Beseman Township 4,468,400 30.27% AITKIN Cornish Township 4,078,200 30.17% WRIGHT Marysville Township 73,512,300 30.13% CASS Thunder Lake Township 53,077,900 29.95% AITKIN Seavey Township 3,721,300 29.93% CROW WING Little Pine Township 5,707,500 29.92% ITASCA Unorg 146-27 1,678,400 29.83% AITKIN Unorg 48-27 2,468,400 29.64% WRIGHT French Lake Township 58,411,500 29.52% ITASCA Pomroy Township 1,479,100 29.42% ITASCA Unorg 60-24 9,096,900 29.40% CARLTON Lakeview Township 7,118,200 29.37% ITASCA Unorg 62-25 8,717,400 29.19% ST. LOUIS Crane Lake Township 16,263,400 29.15% CARLTON Unorg Clear Creek 7,054,200 29.11% PINE Birch Creek Township 9,604,200 29.04% CARLTON Split Rock Township 6,043,500 29.01% ITASCA Liberty Township 2,866,200 29.01% CROW WING Fairfield Township 24,161,100 28.92% ISANTI Dalbo Township 25,112,400 28.89% ST. LOUIS Unorg 11-Orr-leiding 13,765,100 28.85% AITKIN Rice River Township 6,551,300 28.78% ITASCA Bearville Township 13,095,200 28.75% LAKE OF THE WOODS Unorg 158-30 716,600 28.73% POPE Lake Johanna Township 8,016,500 28.73% CARLTON Automba Township 5,012,200 28.64% MORRISON Pulaski Township 20,159,600 28.63% BELTRAMI Shotley Township 4,062,400 28.61% MORRISON Leigh Township 8,338,300 28.53% ST. LOUIS Unorg 10-Lake Verm 48,530,900 28.47% ITASCA Kinghurst Township 4,448,800 28.46% AITKIN Haugen Township 9,562,700 28.35% ITASCA Unorg 147-27 113,800 28.33% CARLTON Unorg Red Clover 6,477,800 28.31% AITKIN Beaver Township 4,116,000 28.30% AITKIN White Pine Township 1,534,900 28.22% AITKIN Morrison Township 6,237,000 28.20% OTTER TAIL Dead Lake Township 30,630,500 28.20% WINONA Wiscoy Township 17,808,200 28.15% CARLTON Unorg Progress 919,200 28.10% 16

Table 7 (Continued) Total Market Value Limitation and Reduction Percentage by City and Township With Greater Percent Reduction in Value Total Percent County Name Limitation Reduction PINE Fleming Township 5,922,400 28.06% LAKE OF THE WOODS Keil Township 434,500 27.88% CASS Smokey Hollow Township 4,865,300 27.86% AITKIN Spalding Township 6,442,100 27.81% AITKIN Lakeside Township 32,418,200 27.80% CASS Unorg 145-29 910,300 27.78% COOK Unorg Rge 3e 27,899,400 27.75% ST. LOUIS Leiding Township 18,188,400 27.69% CASS Ponto Lake Township 54,311,600 27.65% CROW WING 2nd Assessment Unorg 4,909,700 27.64% CASS Wabedo Township 64,645,300 27.61% WINONA Whitewater Township 9,243,500 27.59% WRIGHT Rockford Township 120,530,900 27.58% BECKER Savannah Township 10,476,600 27.56% WADENA Huntersville Township 5,456,900 27.54% CROW WING Ross Lake Township 23,959,700 27.53% PINE Kerrick Township 10,519,900 27.53% MORRISON Hillman Township 6,840,800 27.50% WRIGHT Monticello Township 109,352,100 27.49% HOUSTON Brownsville Township 13,065,000 27.48% PINE Bremen Township 10,978,700 27.41% AITKIN Salo Township 3,106,200 27.40% CASS Hiram Township 58,667,000 27.39% HUBBARD Clay Township 10,927,500 27.35% MORRISON Platte Township 11,123,100 27.34% ITASCA Unorg 59-23 4,583,500 27.32% LAKE Stony River Township 14,160,200 27.32% ITASCA Spang Township 9,729,800 27.17% LAKE OF THE WOODS Rulien Township 116,800 27.17% ST. LOUIS Beatty Township 63,562,100 27.16% ISANTI Oxford Township 29,298,100 27.15% AITKIN Pliny Township 4,009,400 27.04% ITASCA Wirt Township 3,379,000 27.04% POLK Gully Township 2,540,800 26.96% CROW WING Perry Lake Township 11,646,400 26.95% PINE Arna Township 6,840,400 26.85% WINONA Hart Township 17,174,200 26.85% ST. LOUIS Unorg 04-Whiteface 12,159,300 26.84% ITASCA Unorg 60-23 3,582,800 26.82% ST. LOUIS Bassett Township 3,477,100 26.80% 17

APPENDIX TABLES Total Market Value Limitation and Reduction By City and Township Details by Property Type Note: The market value limitation for the five property classes included in Tables A-1 and A-2 may sum to less than the total limitation shown in Table A-2. The difference is the limitation for timberland. 19

Table A-1 Total Market Value Limitation and Reduction by City and Township Farm Homestead, Farm Non-Homestead, and Seasonal Recreational Property Seasonal Farm Farm Non- Homestead Percent Homestead Percent Recreational Percent AITKIN Aitkin Township 886,300 7.35% 415,800 13.22% 3,336,200 16.74% Ball Bluff Township 2,100,600 25.69% 382,800 34.25% 2,598,900 25.06% Balsam Township 114,600 11.94% 79,200 14.86% 438,400 22.74% Beaver Township 370,900 22.70% 99,700 28.53% 1,057,700 27.00% Clark Township 2,250,700 24.49% 680,000 32.49% 754,100 33.79% Cornish Township 416,500 24.83% 211,200 27.77% 2,700,400 34.97% Farm Island Township 2,353,600 23.41% 616,700 27.75% 30,502,700 24.25% Fleming Township 2,557,300 29.90% 1,193,600 43.04% 10,715,800 19.38% Glen Township 3,530,200 25.88% 260,100 33.69% 16,768,400 27.59% Haugen Township 1,650,100 26.59% 197,900 35.47% 3,877,900 29.24% Hazelton Township 1,098,000 20.60% 564,200 27.80% 23,993,800 23.51% Hill Lake Township 1,695,800 25.27% 122,400 40.07% 4,019,800 28.68% Idun Township 1,665,300 21.23% 552,100 34.79% 1,488,100 19.89% Jevne Township 1,705,400 26.03% 161,600 29.44% 4,240,700 24.63% Kimberly Township 2,295,800 22.96% 513,800 32.15% 2,459,000 24.51% Lakeside Township 3,471,400 36.15% 526,300 37.33% 15,533,700 28.12% Lee Township 863,800 22.84% 192,400 30.21% 362,700 28.08% Libby Township 588,000 30.45% 741,400 42.84% 2,162,100 32.57% Logan Township 2,658,100 24.77% 857,200 33.51% 1,436,000 25.54% Macville Township 899,600 24.58% 257,100 30.84% 886,600 27.69% Malmo Township 2,298,600 29.73% 951,900 46.15% 7,284,200 24.44% Mcgregor Township 858,600 29.38% 508,700 31.76% 227,500 25.57% Morrison Township 2,623,900 29.63% 1,090,500 32.16% 844,400 31.37% Nordland Township 3,427,000 20.56% 764,100 35.45% 21,335,400 28.37% Pliny Township 1,344,300 24.24% 668,900 28.47% 692,800 30.24% Rice River Township 1,400,800 21.99% 168,400 25.33% 1,479,800 33.00% Salo Township 989,100 23.84% 449,800 31.85% 704,900 32.10% Seavey Township 816,000 25.30% 170,100 29.71% 826,700 31.05% Shamrock Township 111,900 9.71% 3,200 3.46% 60,406,100 23.03% Spalding Township 1,816,600 26.45% 504,000 29.73% 1,241,000 28.93% Spencer Township 2,435,900 20.04% 1,970,900 31.84% 638,300 27.67% Turner Township 141,200 29.47% 0 0.00% 11,108,000 30.58% Verdon Township 765,700 25.55% 125,300 29.23% 604,600 24.85% Wagner Township 2,670,200 22.27% 913,000 29.37% 7,188,300 24.07% Waukenabo Township 794,300 14.13% 57,300 33.47% 5,429,100 14.40% Wealthwood Township 975,800 24.01% 971,200 37.99% 6,685,600 27.42% White Pine Township 838,600 25.78% 127,400 37.93% 246,900 35.43% Williams Township 1,025,200 19.28% 418,200 34.87% 1,640,500 28.41% Workman Township 1,858,600 30.06% 437,200 31.39% 4,501,200 21.25% Milward Township 587,100 26.57% 347,300 31.16% 1,058,000 28.86% Unorg 45-24 191,200 27.98% 21,000 38.89% 251,400 29.54% Unorg 47-24 558,000 25.70% 26,600 41.05% 496,100 18.59% Unorg 48-27 633,700 39.08% 559,100 38.18% 698,400 29.15% Unorg 49-27 99,100 25.81% 69,400 31.45% 2,316,500 25.06% Unorg 50-25 473,700 36.19% 679,400 44.37% 354,200 38.54% Unorg 50-26 616,800 25.24% 317,100 39.81% 308,500 41.01% 20

Table A-2 Total Market Value Limitation and Reduction Percentage by City and Township Homestead, Non-Homestead, and Total Property Homestead Percent Non-Homestead Percent Total Percent AITKIN Aitkin Township 3,197,900 7.08% 142,300 7.47% 8,119,800 9.78% Ball Bluff Township 1,879,100 17.79% 49,600 9.53% 7,830,900 23.71% Balsam Township 75,300 7.91% 13,700 9.04% 1,056,800 19.27% Beaver Township 406,600 17.49% 0 0.00% 4,116,000 28.30% Clark Township 437,300 12.60% 97,500 19.07% 4,894,700 25.55% Cornish Township 258,900 15.83% 19,000 13.33% 4,078,200 30.17% Farm Island Township 17,328,800 17.09% 423,600 11.85% 52,866,300 21.35% Fleming Township 3,177,900 15.27% 96,400 15.61% 19,102,400 20.95% Glen Township 9,026,600 24.72% 261,600 19.59% 31,284,500 26.75% Haugen Township 2,134,600 22.70% 27,300 8.38% 9,562,700 28.35% Hazelton Township 11,968,000 16.82% 242,100 10.47% 39,256,800 21.01% Hill Lake Township 4,413,500 22.13% 176,600 21.60% 12,432,900 26.64% Idun Township 660,900 10.39% 69,500 8.53% 5,775,600 21.13% Jevne Township 1,444,600 9.71% 186,700 16.53% 9,737,400 21.61% Kimberly Township 936,700 15.24% 3,400 0.97% 7,158,300 23.47% Lakeside Township 11,286,500 24.47% 235,200 25.38% 32,418,200 27.80% Lee Township 141,100 15.40% 6,000 7.89% 2,176,200 25.72% Libby Township 357,700 12.85% 104,100 55.25% 7,038,900 35.50% Logan Township 425,300 10.19% 21,400 7.37% 6,101,200 24.37% Macville Township 717,800 18.22% 82,800 18.40% 3,992,800 26.59% Malmo Township 4,003,700 19.57% 114,200 11.70% 15,864,500 24.85% Mcgregor Township 380,000 15.65% 22,200 5.07% 2,468,700 26.46% Morrison Township 612,500 14.10% 32,200 8.90% 6,237,000 28.20% Nordland Township 12,501,800 16.92% 542,600 18.03% 40,294,600 22.94% Pliny Township 536,600 20.47% 28,400 29.61% 4,009,400 27.04% Rice River Township 434,800 14.54% 1,400 0.67% 6,551,300 28.78% Salo Township 146,400 11.49% 31,700 7.11% 3,106,200 27.40% Seavey Township 683,400 25.14% 28,100 20.04% 3,721,300 29.93% Shamrock Township 18,767,400 17.03% 662,600 16.94% 80,267,600 21.19% Spalding Township 379,000 12.11% 140,000 8.93% 6,442,100 27.81% Spencer Township 934,700 5.04% 309,100 18.82% 7,137,100 16.56% Turner Township 4,243,700 29.41% 15,000 14.07% 16,126,500 30.55% Verdon Township 209,500 16.78% 4,300 2.02% 2,469,300 26.36% Wagner Township 3,000,400 17.08% 84,900 14.86% 15,758,100 23.18% Waukenabo Township 1,903,300 9.73% 26,400 5.97% 9,287,000 13.76% Wealthwood Township 4,746,000 19.33% 198,000 18.69% 13,969,300 24.20% White Pine Township 77,700 14.58% 61,900 32.91% 1,534,900 28.22% Williams Township 516,900 13.12% 55,900 11.57% 5,099,300 24.66% Workman Township 1,883,000 16.35% 242,800 25.08% 11,122,100 23.68% Milward Township 345,300 29.41% 23,600 6.87% 3,585,800 31.17% Unorg 45-24 138,700 10.90% 6,800 5.41% 806,900 23.60% Unorg 47-24 179,400 8.63% 10,600 9.31% 1,364,400 18.64% Unorg 48-27 216,900 11.69% 75,400 28.20% 2,468,400 29.64% Unorg 49-27 280,800 8.79% 0 0.00% 3,187,800 22.41% Unorg 50-25 61,800 15.65% 9,000 11.51% 2,585,500 40.50% Unorg 50-26 131,200 14.49% 0 0.00% 1,873,200 31.02% 21

Table A-1 (Continued) Total Market Value Limitation and Reduction by City and Township Farm Homestead, Farm Non-Homestead, and Seasonal Recreational Property Seasonal Farm Farm Non- Homestead Percent Homestead Percent Recreational Percent AITKIN (Continued) Unorg 50-27 60,600 15.70% 53,200 49.26% 55,800 17.03% Unorg 51-22 0 0.00% 0 0.00% 0 0.00% Unorg 51-25 165,100 38.40% 0 0.00% 112,400 42.13% Unorg 51-27 435,900 21.37% 122,200 30.37% 528,100 27.52% Unorg 52-22 389,600 31.80% 0 0.00% 142,800 37.13% Unorg 52-24 274,200 25.39% 75,900 41.77% 72,800 25.26% Unorg 52-25 106,600 28.17% 28,600 31.64% 226,600 27.47% Aitkin Co Unorg 410,700 27.41% 67,100 40.42% 423,800 31.09% Aitkin 0 0.00% 0 0.00% 17,400 9.86% Hill City 0 0.00% 0 0.00% 1,196,000 14.04% McGrath 0 0.00% 0 0.00% 10,800 19.93% McGregor 4,000 40.74% 12,200 18.77% 7,400 10.19% Palisade 22,900 5.57% 0 0.00% 97,500 30.80% Tamarack 387,700 34.48% 94,500 50.27% 3,600 2.20% TOTAL 65,781,200 21,399,200 270,796,400 ANOKA Burns Township 2,579,855 5.20% 2,409,200 22.73% 0 0.00% Columbus Township 1,075,000 6.53% 6,786,100 48.80% 484,100 16.83% Linwood Township 1,393,600 9.60% 866,000 30.61% 3,733,000 21.18% Anoka 0 0.00% 0 0.00% 0 0.00% Bethel 4,100 1.60% 0 0.00% 0 0.00% Andover 5,390,950 18.29% 1,625,250 27.16% 0 0.00% Centerville 10,900 3.47% 142,200 44.82% 0 0.00% Columbia Heights 0 0.00% 0 0.00% 0 0.00% Circle Pines 0 0.00% 0 0.00% 0 0.00% Fridley 0 0.00% 0 0.00% 0 0.00% Lexington 0 0.00% 0 0.00% 0 0.00% Coon Rapids 192,500 13.97% 14,700 5.58% 57,600 11.33% Ramsey 968,200 8.28% 1,137,400 30.07% 0 0.00% Lino Lakes 1,438,300 7.17% 2,840,300 19.66% 271,400 34.97% East Bethel 735,600 3.80% 1,058,300 17.70% 1,333,800 14.63% Hilltop 0 0.00% 0 0.00% 0 0.00% St Francis 752,200 6.01% 1,853,000 19.45% 217,700 26.12% Ham Lake 2,035,400 7.51% 1,218,900 16.13% 561,900 13.76% Oak Grove 2,114,800 8.99% 2,684,400 22.98% 686,100 16.97% Blaine 2,038,800 20.71% 3,322,500 34.77% 0 0.00% Spring Lake Park 0 0.00% 0 0.00% 0 0.00% TOTAL 20,730,205 25,958,250 7,345,600 BECKER Atlanta Township 1,892,160 9.51% 917,740 11.05% 0 0.00% 22

Table A-2 (Continued) Total Market Value Limitation and Reduction Percentage by City and Township Homestead, Non-Homestead, and Total Property Homestead Percent Non-Homestead Percent Total Percent AITKIN (Continued) Unorg 50-27 0 0.00% 10,900 11.07% 225,900 21.62% Unorg 51-22 0 0.00% 0 0.00% 102,000 43.44% Unorg 51-25 0 0.00% 0 0.00% 469,600 41.81% Unorg 51-27 105,900 9.48% 0 0.00% 1,522,600 23.90% Unorg 52-22 19,600 40.25% 0 0.00% 633,000 34.26% Unorg 52-24 1,000 0.73% 0 0.00% 639,600 26.70% Unorg 52-25 383,100 16.68% 0 0.00% 1,791,600 26.49% Aitkin Co Unorg 62,800 22.54% 600 4.35% 2,085,600 34.22% Aitkin 1,991,700 3.96% 726,300 7.62% 2,770,800 4.61% Hill City 2,164,800 16.60% 364,300 15.37% 3,725,100 15.56% McGrath 77,800 8.93% 57,100 11.17% 145,700 9.65% McGregor 510,900 8.46% 89,400 7.91% 627,700 8.56% Palisade 521,000 15.05% 96,900 15.55% 738,800 15.34% Tamarack 40,900 5.48% 39,900 10.94% 594,400 22.53% TOTAL 133,469,500 6,371,300 552,411,300 ANOKA Burns Township 10,341,050 3.02% 2,695,650 11.34% 18,025,755 4.23% Columbus Township 8,871,000 2.61% 4,095,800 20.02% 21,359,000 5.43% Linwood Township 10,676,400 2.95% 2,767,600 12.69% 19,438,500 4.64% Anoka 10,523,900 1.32% 3,396,500 5.81% 13,920,400 1.63% Bethel 1,840,800 7.49% 549,400 15.50% 2,394,300 8.44% Andover 23,648,500 1.03% 8,376,100 6.85% 39,040,800 1.60% Centerville 3,479,400 1.25% 1,904,800 10.85% 5,537,300 1.87% Columbia Heights 37,913,150 3.80% 9,410,850 10.53% 47,324,000 4.35% Circle Pines 4,758,800 1.38% 489,500 3.04% 5,248,300 1.46% Fridley 49,683,950 3.37% 10,826,450 12.34% 60,510,400 3.87% Lexington 4,321,400 5.34% 1,769,800 12.62% 6,091,200 6.41% Coon Rapids 34,592,700 0.96% 10,997,800 5.55% 45,855,300 1.20% Ramsey 14,664,900 0.97% 8,917,300 7.36% 25,687,800 1.56% Lino Lakes 15,380,000 1.04% 8,498,100 10.13% 28,428,100 1.78% East Bethel 21,091,550 2.66% 5,215,250 9.35% 29,468,900 3.34% Hilltop 412,200 12.44% 112,900 14.25% 525,100 12.79% St Francis 7,137,800 1.93% 2,915,500 8.25% 12,876,200 3.01% Ham Lake 13,873,400 1.13% 4,584,800 5.98% 22,274,400 1.66% Oak Grove 8,987,200 1.49% 2,438,700 5.02% 16,911,200 2.45% Blaine 38,542,200 1.13% 32,325,000 12.30% 76,228,500 2.07% Spring Lake Park 5,889,300 1.64% 876,800 4.77% 6,766,100 1.80% TOTAL 326,629,600 123,164,600 503,911,555 BECKER Atlanta Township 26,000 1.97% 5,700 4.65% 2,841,600 9.58% 23