About Your 2016 Proposed Property Tax Notice
In mid-November, every Minneapolis property owner is mailed a notice detailing their proposed property taxes for 2016. Below is additional information to answer questions you may have based on your own property tax notices.
Reading Your Proposed 2016 Property Tax Notice
Even though you receive one property tax “bill,” you pay property taxes to several taxing authorities. The three largest taxing authorities shown on your statement are: Hennepin County (28 percent), Minneapolis Public Schools (27 percent), and the City of Minneapolis (42 percent).
Understanding Your 2016 City Property Taxes
Why is my overall property tax bill changing at a different rate than the City’s levy change?
Currently, the overall proposed City property tax levy will increase by 3.4 percent over 2015. However, not everyone’s property tax bill will increase by the same rate. There are several factors that impact your property tax bill:
- Individual property value - If your property’s value increased or decreased, it may affect the amount of property taxes you owe. Rising property values increase the proportion of your property’s value that is subject to tax and decreasing property values lower the taxable amount of your property.
- Value of other properties in the City – Property taxes are spread over all the valuation in the City. If the total value of other property in the City rises faster than the value of your property, a larger portion of the overall property tax levy will be on those properties and your taxes will go down. If the total value of other property in the City rises more slowly than the value of your property, your property will be responsible for a larger share of the property tax levy, and your taxes will go up.
- Value of properties within Tax Increment Financing (TIF) districts – TIF is a development tool which separates most of the value of properties within TIF districts from the rest of the City’s property tax base. When the city increases or decreases the number and value of properties within TIF districts, this affects the amount of property value that supports the property tax levy.
- Tax rate – The values of properties across the city are increasing at a rate greater than the increase in the amount the City is levying. Because of this, most properties will see a reduction in the City's portion of their property tax bill.
- Homestead Market Value Exclusion – The Homestead Market Value Exclusion program reduces the amount of property value subject to taxation on homes valued at less than $413,000. You’ll notice the difference between “market value” and “taxable value” on your proposed property tax notice that is attributable to this program.
Other jurisdictions’ tax increases – The Minneapolis Public Schools and Hennepin County portions of your property tax bill may also change this year. The school district proposed an increase in its levy from 2015 by 4.0 percent and Hennepin County’s proposed increase is 4.7 percent. The preliminary property tax levy information for local governments and schools is available on the Department of Revenue Property Tax Reports and Data website.
The Minneapolis City Council is considering the Mayor’s budget proposal and will vote to adopt a final 2016 budget on Dec. 9, 2015. Before that vote, there will be two public hearings for the public to comment on the 2015 budget proposal:
- 6:05 p.m., Wednesday, Nov. 18, 2015, Room 317, City Hall
- 6:05 p.m., Wednesday, Dec. 9, 2015, Room 317, City Hall
Last updated Dec 10, 2015