About Your 2014 Proposed Property Tax Notice
In November, every Minneapolis property owner is mailed a notice detailing their proposed property taxes for 2014. Here you will find additional information to answer questions you may have based on your own property tax notices.
Reading Your Proposed 2014 Property Tax Notice
Even though you receive one property tax “bill,” you pay property taxes to several taxing authorities. While there are several jurisdictions listed on your statement, the three largest portions taxing authorities are Hennepin County (28 percent), Minneapolis Public Schools (26 percent), and the City of Minneapolis (43 percent).
Understanding Your 2014 City Property Taxes
Why is my overall property tax bill changing at a different rate than the City’s levy change?
Currently, the proposed property tax levy will decrease by 1 percent over 2013. However, not everyone’s property tax bill will go down by 1 percent. There are several factors that could have an impact on your property tax bill:
- Individual property value - If your property’s value increased or decreased, it will affect the amount of property taxes you owe. Rising property values increase the taxable amount of your property and decreasing property values lower the taxable amount of your property.
- Value of other properties in the City – If the total value of other property in the City rises faster than the value of your property, more of the burden of the 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 bear more of the burden 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 segregates most of the value of properties within TIF districts from the City’s property tax base. When the city increases or decreases the number and value of properties within TIF districts, this affects the property tax burden payable by all property taxpayers within the City.
- Tax rate – The values of properties across the city are increasing, and the amount the City is levying is decreasing. 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 taxable values on certain homes. The program is not a credit, but rather a means of reducing the amount of the value on certain homes that is subject to property taxes. 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 a freeze in its levy from 2013 and Hennepin County’s proposed increase is 0.98 percent.
The Minneapolis City Council is considering the Mayor’s budget proposal and will vote to adopt a final 2014 budget on Dec. 11. 2013. Before that vote, there will be two public hearings for the public to comment on the 2014 budget proposal:
- 6:05 p.m., Tuesday, Nov. 19, 2013, Room 317, City Hall
- 6:05 p.m., Wednesday, Dec. 11, 2013, Room 317, City Hall
Last updated Nov. 13, 2013