2004-04-28 WS & CC Meeting - Laserfiche WebLink

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MINNESOTA VALUATIONS: PROPERTY TAX CLASSIFICATIONS Market Value According to Minnesota Statutes, Chapter 273, all real property subject to taxatioo is to be appraised at maximum 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 Stody to llCC<lmplisb equalization of property valuation in the State of Minnesota and to determine the probable selling price of a property. The study is a tbree-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 ]ocaI 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 $]00 net tax capacity. A list of taxes due is then prepared by the county auditor and tomed 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 connty. Real estate tax statements are to be mailed out no later than January 3] and personal property tax statements no later than February ]5. 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 redistribute property tax revenues to the local taxing districts in proportion to their tax capacity ratios. Delinquent property taxes are penalized at various rates depending on the type of property and the length of delinquency. Tax Credits Prior to ]990, taxes on homestead residential and agricultural property were reduced by a direct subsidy to the taxpayer. Beginning in ]990, the homestead credit has been eliminated. The state subsidy is now llCC<lmplished through lower class rates to homesteaded classifications of property and increased state aids paid directly to local taxing districts. This new system is intended to have generally the same impact as the former homestead credit 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 obligations, 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 appropriate 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 llCC<lunt created for the payment of one or more issues of obligations. -18-