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Step 1 - Calculate the Net Tax Can >itv The net tax capacity represents the amount used in the calculation of a property's taxes. The 1998 net tax capacity for residential homes is calculated by taking 1% of the first $75,000 market value, plus 1.85% of all market value over $75,000. <br />Estimated Market Value = $200,000 <br />75,000 <br />X .01 plus <br />125,000 <br />X .0185 = $3,062.50 <br />= $750 = $2,312.50 <br />The net tax capacity for a $200,000 home is $3,062.50. <br />Step 2 - Determine the City's Tax Capacity Rates <br />The tax capacity rate is a percentage based on the total assessed <br />market value of all property in the city, and the total tax levy. It <br />is the rate which is used to calculate the taxes on individual <br />properties. The tax capacity rate for 1997 and the estimated tax <br />capacity rate for 1998 is 14.246%, and 14.690% respectively.Step 3 - Calculate the Net Property Tax (City Portion Onlvl The net property tax (City Portion) is calculated by multiplying a property's net tax capacity by the City's tax capacity rate. 1 he <br />following example shows the calculation for a residential home <br />valued at $700,000. <br />1997 1998 <br />Net Tax Capacity <br />Tax Capacity Rate <br />3,280 <br />X .14246 <br />= $467.43 <br />3,063 <br />X .14690 <br />= $449.88 <br />In this example, a property whose assessed market value <br />remained at $200,000 would see a decrease of $17.55 in their <br />estimated 1998 property taxes paid to the City. The net tax <br />capacity decreased due to a change in the property class tax rate. <br />4 <br />1