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<br /> <br />LEAGUE OF <br />MINNESOTA <br />CITIES <br /> <br />CONNECTING & INNOVATING <br /> <br />SINCE 1913 <br /> <br />Property Tax Statement 101 <br /> <br />This guide is inteNded to help explain the basics of the property tax system to residential taxpayers <br />by "walking through" each section of the property tax statement. Minuesota homeowners receive <br />the tax statement for their property in March. Property taxes are derived from the property <br />assessment, the local government levies and any voter approved referenda. Credits, refunds and <br />other forms of relief complicate the system. See the "Property Taxation 101" document for a more <br />detailed description of the property tax system and a glossary Gfterms. <br /> <br />The Layout <br />The property tax statement is briefbut <br />contains a lot of information. The <br />property tax statement not only <br />communicates the amount due in the <br />current year but provides comparison <br />with the previous year's valuation, <br />property classification, reductions from <br />state aid and credits and total tax <br />amounts. <br /> <br />Layout of the statement may vary <br />slightly from county to county but the <br />content will generally be the same. The <br />front page lists identifying information <br />about the county auditor, the subject <br />property and the taxpayers. The rest of <br />the front page, which shows the taxes <br />due, will be discussed in more detail in <br />the following sections. <br /> <br />The back page of the statement contains <br />information about refund programs <br />available to eligible homeowners. See <br />the "Property Tax Relief 101" document <br />for a summary of state-paid refund <br />programs. A summary table of late <br />payment penalties also appears on the <br />back page. The back page may also <br />contain other tax related notices. <br /> <br />145 UNIVERSITY AVE. WEST <br />ST. PAUL, MN 55103-2044 <br /> <br />Tax Values & Classification <br />This section contains information on the <br />market value and classification of the <br />property . <br /> <br />The estimated market value is <br />determined by an assessor and represents <br />an estimate of how much the property <br />would be worth on the open market if <br />sold. The taxable market value is the <br />estimated market value minus any <br />excluded property improvements or <br />other exclusions. The taxable market <br />value accounts for the limited m(ilrket <br />value provision, a limitation on th€ <br />amount a property's value can increase <br />in any year. The increase is capped at 15 <br />percent of the previous limited market <br />value or 25 percent of the difference <br />between the current year estimated <br />market value and the previous year <br />limited market value. Enacted in 1993, <br />this provision is currently being phased <br />out and will end by 2010. <br /> <br />Every parcel is classified based on use <br />and assigned a classification rate. <br />Income-producing properties generally <br />have higher class rates. These rates are <br />set by the legislature and are not tax <br />rates but a weighting system. In other <br /> <br />PHONE: (651) 281-1200 FAX: (651) 281-1299 <br />TOLL FREE: (800) 925-1122 WEB: WWWLMC.OR.G <br />