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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 three 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 taxable market value is the estimated market value
<br />adjusted by all legislative exclusions. (3) The tax capacity (taxable) value of property is determined by class rates set by the State Legislature.
<br />The tax capacity rate varies according to the classification of the property. Tax capacity represents a percent of taxable 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 />Seasonal recreational residential
<br />Residential non -homestead:
<br />Industrial/Commercial/Utilitys
<br />2015/16
<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 $2,140,000 - 0.50% z
<br />Over $2,140,000 - 1.00% a
<br />Land - 1.00% 2
<br />First $500,600 - 1.009i6 3
<br />0%cr $500,000 - 1.25%s
<br />1 unit - Ist $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 />Affordable Rental:
<br />First $106,000 - .75%
<br />Over $106,000 - .25%
<br />First $150,000 - 1.50%
<br />Over $150,000 - 2.00%
<br />2016/17 2017/18
<br />First $500,000 - 1.00% First $500,000 - 1.00%
<br />Over $500,000 - 1.25% 0 Over $500,000 - 1.25%
<br />First $500,0001IGA - 1.00% First $500,000 HGA - 1.00%
<br />Over $500,000 IIGA - 1.259 Over $500,000 HGA - 1.25%
<br />First $2,050,000 - 0.50% 2 First $1,940,000 - 0.50% 2
<br />'Over $2,050,00,j.00%2 Over $1,940,000 - 1.00%2
<br />Land - 1.00% Land - 1.00% z
<br />First S500.000.- 1.00%'
<br />Over $500',000 - 1.25%3
<br />1 unit - 1 st $500,000 - I.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 />Affordable Rental:
<br />First $115,000 - .75%
<br />Over $115,000 - .25%
<br />First $150,000 - 1.50%
<br />Over $150,000 - 2.00%
<br />First $500,000 - LOW
<br />Over $500,000 - 1.25%'
<br />1 unit- 1st $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 />Affordable Rental:
<br />First $121,000 - .75%
<br />Over $121,000 - .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
<br />assessment date.
<br />2 Applies to land and buildings. Exempt from referendum market value tax.
<br />3 Exempt from referendum market value tax.
<br />4 Cities of 5,000 population or less and located entirely outside the seven -county metropolitan area and the adjacent
<br />nine -county area and whose boundaries are 15 miles or more from the boundaries of a Minnesota city with a
<br />population of over 5,000.
<br />5 The estimated market value of utility property is determined by the Minnesota Department of Revenue.
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