2002-09-25 CC Packet - Laserfiche WebLink

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r MINNESOTA VALUATIONS; PROPERTY TAX CLASSIFICATIONS Market Value According to Minnesota Statutes, Chapter 273, all real property subject to taxation is to be appraised at maxi- mum intervals of four years. All real property becoming taxable in any year is listed at its estimated market value on January 2 of that year. The estimated market value is the County Assessor's appraisal of the worth of the property. Indicated Market Value The Minnesota Department of Revenue conducts the Real Estate Sales Assessment Ratio Study to accomplish equalization of property valuation in the State of Minnesota and to determine the probable selling price of a property. The study is a three-year average of sale prices as related to the latest assessor's estimated market value. The indicated market value is determined by dividing the estimated market value by the Sales Assessment Ratio for the city as determined by the Department of Revenue. Tax Cycle Minnesota local government ad valorem property taxes are extended and collected by the various counties within the state. The process begins in the fall of every year with the certification, to the county auditor, of all local taxing districts' property tax levies. Local tax rates are calculated by dividing each taxing district's levy by its net tax capacity. One percentage point oflocal tax rate represents one dollar of tax per $100 net tax capacity. A list of taxes due is then prepared by the county auditor and turned over to the county treasurer on or before the first Monday in January. The county treasurer is responsible for collecting all property taxes within the county. Real estate tax statements are to be mailed out no later than January 31 and personal property tax statements no later than February 15. The due dates for payment of real property taxes are one-half on or before May 15 and one-half on or before October 15. Personal property taxes become due one-half on or before February 28 and one-half on or before June 30. Following each settlement (March 5, June 5, and November 5 of each year), the county treasurer must redistrib- ute property tax revenues to the local taxing districts in proportion to their tax capacity ratios. Delinquent prop- erty taxes are penalized at various rates depending on the type of property and the length of delinquency. Tax Credits Prior to 1990, taxes on homestead residential and agricultural property were reduced by a direct subsidy to the taxpayer. Beginning in 1990, the homestead credit has been eliminated. The state subsidy is now accomplished through lower class rates to homesteaded classifications of property and increased state aids paid directly to lo- cal taxing districts. This new system is intended to have generally the same impact as the former homestead cred it system. Tax Levies for General Obligation Bonds (Minnesota Statutes, Section 475.61) The governing body of any municipality issuing general obligations shall, prior to delivery of the obligations, levy by resolution a direct general ad valorem tax upon all taxable property in the municipality to be spread upon the tax rolls for each year of the term of the obligations. The tax levies for all years shall be specified and such that if collected in full they, together with estimated collections of special assessments and other revenues pledged for the payment of said obi igations, will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the obligations. Such resolution shall irrevocably appro- priate the taxes so levied and any special assessments or other revenues so pledged to the municipality's debt service fund or a special debt service fund or account created for the payment of one or more issues of obligations. I I - 19-