The Assessing Services Department mails a Value Notice to each property owner around the middle of March every year. The assessment on Jan. 2 forms the basis for the following year’s tax. For example, a value notice sent in March 2017 will be the basis for your 2018 property taxes. See a copy of the Notice of Valuation.
The market value of property, defined by Minnesota Statute 272.03, subd 8., provides the basis for the amount of property taxes you pay each year. This market value is based off of open market sales data over a year-long period. It also takes time to notify property owners of the value of property, so the market value that is established in one year is used to formulate the property taxes for the next year.
Sign up for electronic tax statements and value notices
You can also receive your property tax notices and statements through email. With electronic statements, you don’t have to worry about losing paper copies. They can be stored easily on any computer. Sign up for electronic tax statements and value notices.
Understanding your notice
Each Notice of Valuation includes the following:
Estimated Market Value: This value is what the assessor estimates your property would likely sell for on the open market. State law requires assessors to value property at 100 percent of market value. See Determining Market Value for an expanded definition.
Value of New Improvements: This is the assessor's estimate of the value of the new improvements you have made to your property in the last year. New improvements are not eligible for limited market value.
Green Acres: Only applies to agricultural property that is facing increasing value due to development pressures not related to the agricultural value of the land. The assessor arrives at this lower value by looking at what comparable agricultural land is selling for in areas where there is not development pressure. The taxes on the higher value are deferred until the property is sold or no longer qualifies for the program. See Green Acres for an expanded definition.
Plat Deferment: For land that has been recently platted (divided into individual lots) but not yet improved with a structure, the increased market value due to platting is phased in over time. If construction begins, or if the lot is sold before expiration of the phase-in period, the lot will be assessed at full market value in the next assessment.
Homestead Market Value Exclusion: Applies to residential homesteads and to the house, garage, and one acre of land for agricultural homesteads. The exclusion is a maximum of $30,400 at $76,000 of market value, and then decreases by nine percent for value over $76,000. The exclusion phases out for properties valued at $413,800 or more.
Taxable Market Value: This is the value that your property taxes are actually based on, after all the reductions, limitations and deferrals. Your taxable value, along with the class rate and the budgets of your local government, will determine how much you will pay in taxes. The taxes you will pay in May will be determined from the previous year's taxable market value. Remember: your property is assessed in one year and taxed in the next year.