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VALUATIONS
<br />OVERVIEW
<br />All non-exempt property is subject to taxation by local taxing districts. Exempt real property includes Indian lands, public property, and
<br />educational, religious and charitable institutions. Most personal property is exempt from taxation (except investor -owned utility mains,
<br />generating plants, etc.).
<br />The valuation of property in Minnesota consists of two elements. (1) The estimated market value is set by city or county assessors. Not less
<br />than 20% of all real properties are to be appraised by local assessors each year. (2) The tax capacity (taxable) value of property is determined
<br />by class rates set by the State Legislature. The tax capacity rate varies according to the classification of the property. Tax capacity represents
<br />a percent of estimated market value.
<br />The property tax rate for a local taxing jurisdiction is determined by dividing the total tax capacity or market value of property within the
<br />jurisdiction into the dollars to be raised from the levy. State law determines whether a levy is spread on tax capacity or market value. Major
<br />classifications and the percentages by which tax capacity is determined are:
<br />Type of Property
<br />Residential homestead'
<br />Agricultural homestead'
<br />Agricultural non -homestead
<br />2004/05
<br />First $500,000 - 1.00%
<br />Over $500,000 - 1.25%
<br />First $500,000 HGA - 1.00%
<br />Over $500,000 HGA - 1.25%
<br />First $600,000 - 0.55%'
<br />Over $600,000 - 1.00% z
<br />Land - 1.00% z
<br />Seasonal recreational residentiaJ2 First $500,000 - 1.00%"
<br />Over $500,000 - 125% a
<br />Residential non -homestead:
<br />Industri al/Commerci al/Utility'
<br />1 unit - 1 st $500,000 - 1.00%
<br />Over $500,000 - 1.25%
<br />2-3 units - 1.25%
<br />4 or more - 1.25%
<br />Small Citys - 1.25%
<br />First $150,000 - 1.50%
<br />Over $150,000 - 2.00%
<br />2005/06
<br />First $500,000 - 1.00%
<br />Over $500,000 - 1.25%
<br />First $500,000 HGA - 1.00%
<br />Over $500,000 HGA - 1.25%
<br />First $600,000 - 0.55% z
<br />Over $600,000 - 1.00% 2
<br />Land - 1.00% z
<br />First $500,000 - 1.00% °
<br />Over $500,000 - 1.25% "
<br />1 unit - I st $500,000 - 1.00%
<br />Over $500,000 - 1.25%
<br />2-3 units - 1.25%
<br />4 or more - 1.25%
<br />Small City' - 125%
<br />First $150,000 - 1.50%
<br />Over $150,000 - 2.00%
<br />2006/07
<br />First $500,000 - 1.00%
<br />Over $500,000 - 1.25%
<br />First $500,000 HGA - 1.00%
<br />Over $500,000 HGA - 1.25%
<br />First $690,000 - 0.55% z
<br />Over $690,000 - 1.00% z
<br />Land - 1.00% z
<br />First $500,000 - 1.00% °
<br />Over $500,000 - 1.25% a
<br />1 unit - 1 st $500,000 - 1.00%
<br />Over $500,000 - 1.25%
<br />2-3 units - 1.25%
<br />4 or more - 1.25%
<br />Small City'- 1.25%
<br />First $150,000 - 1.50%
<br />Over $150,000 - 2.00%
<br />A residential property qualifies as "homestead" if it is occupied by the owner or a relative of the owner on the assessment date.
<br />2 For seasonal recreational residential property, the class rate percentages for the new statewide general tax beginning with taxes payable
<br />in 2002 are: First $76,000 - 0.4%, next $424,000 - I.0%, and over $500,000 - 1.25%.
<br />3 The estimated market value of utility property is determined by the Minnesota Department of Revenue.
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