As required by the State Legislature, Hennepin County and the City of Minneapolis, property owners are mailed three annual notices or statements containing information about their property value and tax bill:
Also called Notice of Valuation and Classification, this notice is mailed to property owners during the first quarter of each year. The notice provides a reasonably accurate estimate of what you can expect to pay next year in property taxes. It is a yearly notice of the valuation and classification of your property. The notice does not include any anticipated or approved special assessment payments for services such as street improvements.
The Valuation Notice provides the owner with the assessment information used to determine the amount of property taxes the owner is currently paying.
The importance of this notice is that it contains the information that will be used to determine next year’s taxes. Please review the details on this notice and decide if you agree or disagree with the information included in the notice.
We suggest you review the classification and valuation information. If you agree with the information listed, you do not need to take any further action. If you disagree with the information listed, the appeal process is explained in the statement itself, or read more information about the appeal process.
PROPERTY CLASSIFICATION is based on the use of your property or in some cases, its highest and best use. A change in the classification of your property can have a significant impact on the amount of real estate property taxes you will pay.
For more information about special homestead programs visit the MN Department of Revenue.
ESTIMATED MARKET VALUE is the Assessor's estimate of what a property would sell for in the current real estate market. A change in the market value of your property can have a significant impact on the amount of real estate property taxes you will pay.
LIMITED MARKET VALUE It is a mathematical calculation based on the estimated market value. "For assessment year 2007, the amount of the increase shall not exceed the greatest of 15% of the value in the preceding year, or 25% of the difference between the current assessment and the preceding assessment."
VALUE of NEW IMPROVEMENT is the amount of value added to the property's estimated market value due to additions, remodeling and other changes to the property. The Assessor’s estimate of the amount of value added to you property is based on the improvements you have completed and can have a significant impact on the amount of real estate property taxes you will pay.
TAXABLE MARKET VALUE is the net valuation that will be used for the calculation of your tax next year. It's the final value after all reductions.
Again, if you disagree with the information listed, the appeal process is explained in the statement itself, or read more information about the appeal process.
Often referred to as the Truth-in-Taxation Statement, this statement is sent after November 10th and before November 25th each year. These notices are property specific, meaning that it lists a specific estimate about your property rather than general notices about budgets as a whole. It is based on the information that exists about the budgets, your market value and other factors at the time of distribution.
The statement lists:
- Each of the local units of government that your tax dollars support
- The current amount you are paying to each local unit of government
- What next year’s property taxes will be if the local jurisdictions approve the property tax amounts they are now considering
- The date, time and location of the public meeting where the proposed budgets and proposed property taxes will be discussed (Note: Elected officials have the ability to change the budget based on feedback from those in attendance.)
- The contact for the local government units in case you have comments or questions concerning the proposed property tax amounts
This information and these meetings provide the property owners opportunities to comment on the anticipated budget.
The Property Tax Statement is your actual tax bill. It is mailed by the end of March, to the owner of record, as listed on the Tax Roll, as of January 1st. Tax payments are due on May 15 and October 15. Failure to receive a property tax statement does not exempt the taxpayer from timely payment of the taxes due. Address changes should be sent to both the Minneapolis Assessors Office and Hennepin County Taxpayers Services.
Each parcel of commercial, industrial and utility property qualifies for the "Preferred" class rate. Except in the case of contiguous parcels of commercial, industrial and utility property owned by the same person or entity, only the value equal to the first-tier value of the contiguous parcels qualifies for the reduced class rate, unless those contiguous parcels owned by the same person or entity each contain a separate business and provided the business is housed in a separate structure. For the purposes of this subdivision, the first tier means the first $150,000 of market value (known as the "Preferred" class rate).
For the purposes of this paragraph, parcels are considered to be contiguous even if a road, street, waterway, or other similar intervening type of property separates them from each other. Property owners who have contiguous parcels of property that constitute separate businesses that may qualify for the first-tier class rate shall notify the assessor by July 1, for treatment beginning in the following taxes payable year.
The Valuation Notice, Truth in Taxation notice and Tax Statement for a commercial parcel will read "COM-PREFERRED" to denote that the property is receiving the "Preferred" class rate. For contiguous commercial parcels that do not otherwise qualify for the first-tier rate, the notice and tax statements will read "COM-NON PREFERRED."
Last updated May. 1, 2012