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Property Tax 101

Understanding Your Property Tax Notice

The Proposed Property Tax Notice, also known as the Truth in Taxation (TNT) Notice, is mailed in mid-November each year. The notice estimates the property tax you will pay in the following year if the taxing jurisdictions approve their levies as proposed. SampleNotice.pdfDownload a Sample Notice.

The following items appear on your proposed property tax notice: 
 
Taxable Market Value: This is the property value used to calculate your property taxes. It may be less than the estimated market value, the value you received on your value notice in March.

Property Classification: The Minnesota legislature has established different property tax classifications based on the use or type of property. It also has established specific benefits that apply to particular uses. The most common are:

  • Residential Homestead
  • Relative Homestead
  • Disabled Homestead
  • Agricultural
  • Commercial, Industrial
  • Public Utility
  • Seasonal Recreational


State General Tax: A statewide property tax levied by the State of Minnesota on commercial, industrial and seasonal properties. These taxes are paid to the State of Minnesota and go to the State General Fund. A portion is used to fund school related expenditures.

School Voter Approved Levies: Includes all levies and debt obligations approved by the voters in that school district.

Note: If a referendum was passed at the November general election, the increase will not be reflected on the Proposed Property Tax Notice.

Other School Levies: Includes school levies for community services and debt obligations that are not voter approved.

Metropolitan Special Taxing Districts: Taxes collected by the Metropolitan Council, Metropolitan Transit District and the Mosquito Control District.

Other Special Taxing Districts: Includes the Community Development Agency (CDA), Housing and Redevelopment Authorities (HRA), and watershed districts. Not all areas have each of these districts.

Tax Increment Financing (TIF):  A municipal development program enabling a city to use the additional property taxes that a development project generates to finance land acquisition, demolition and other costs necessary for that development to occur. Usually the issuance of a bond is necessary to finance these up-front costs. Bonds are repaid by the extra taxes that are generated by the new development and construction. The taxes captured to repay the bonds go to the TIF district instead of going to all the taxing districts that normally levy a tax on the property. Properties with the same market value, class and area will pay the same tax even if one is in a tax increment district and the other is not. To learn more about tax increment financing read the House Research Report.

Fiscal Disparity: A commercial-industrial tax-base sharing program created in 1971 in the seven-county metropolitan area to promote better regional planning and improve equity in the distribution of fiscal resources. Forty percent of the growth in commercial and industrial property is "shared" with all taxing jurisdictions in the seven-county metropolitan area. A percentage of the value of each commercial/industrial parcel is taxed at a uniform metropolitan tax rate. The remainder is taxed at the local tax rate. To learn more about this tax-base sharing program read Minnesota’s Fiscal Disparities Programs Report.

Last updated: 11/15/2013 3:14 AM