A class 4c(12) non-commercial seasonal residential recreational property (cabin), is real and personal property devoted to non-commercial, temporary, and seasonal residential occupancy for recreation purposes. Class 4c(12) property has a class rate of 1.00% of taxable market value up to $500,000 and 1.25% for the remaining value.
Class 4c(12) property is subject to the state general property tax levy. The first $76,000 of market value has a reduced class rate of 0.40% for state general tax.
City: A local unit of government typically consisting of a council and mayor that provides governmental service in areas developed for residential, commercial, industrial, and governmental purposes. There are currently 853 cities in the state.
Town: A local unit of government consisting of a board of supervisors that provides governmental service in areas developed for agricultural, open space, and rural residential purposes. There are currently 1,781 townships in the state.
City/town levies include all levies spread at the city or town level and disparity reduction aid, which directly reduces property tax rates for town levies. The data includes city/town net tax capacity levies, city/town referendum market value levies, the city or town portion of fiscal disparities distribution levies, and disparity reduction aid to towns.
Classification rates, or class rates, are the percent of taxable market value (TMV) used to determine the tax base (net tax capacity) of properties. The property’s taxable market value is multiplied by the class rates to determine the property’s net tax capacity.
TMV x Class Rate = Net Tax Capacity
The variation in property taxes is the result of Minnesota’s classified property tax system. In a classified system, each class of property is assigned one or more class rates. Some property classifications have more than one class rate depending on the taxable market value. For example, residential homesteads have two class rates for two tiers of market value:
The first $500,000 of market value has a class rate of 1.00%.
Any market value over $500,000 has a class rate of 1.25%.
A class 3a commercial property includes properties such as office buildings, retail stores, malls, hotels, banks, restaurants, and service outlets. Class 3a commercial property has a class rate of 1.50% for the first $150,000 of market value and 2.00% for the remaining market value. Commercial property over $100,000 is subject to the state general tax.
In the case of contiguous parcels of property owned by the same person or entity, only one first-tier class rate applies to the contiguous parcels. If the contiguous parcels contain separate businesses operated by the owner in separate structures, then the separate businesses may qualify for separate first tiers.
The contamination value is based on the difference in value between what a property is worth with contamination and what it would be worth without the contamination. A contamination tax is charged against this value with different tax rates depending on whether the current owner is a “responsible party” and an approved clean-up plan is in place. The contamination tax appears on the tax statement and is collected like a property tax.
A local unit of government consisting of a County Board of Commissioners that provides governmental services including assessment of property, recordkeeping, construction and maintenance of roads, and planning and zoning. There are 87 counties in Minnesota.
County levies include all levies spread at the county level and disparity reduction aid, which directly reduces property tax rates for county levies. The data includes county net tax capacity levies, county referendum market value levies, the county portion of fiscal disparities distribution levies, and disparity reduction aid to the county.
County Program Aid (CPA) is a general-purpose aid that helps counties and taxpayers reduce their dependence on property taxes to fund county services. Prior to 2005, CPA consisted of the following aids: Homestead and Agricultural Credit Aid, Family Preservation Aid, County Criminal Justice Aid, and Attached Machinery Aid. Between 2005 and 2017, CPA had a County Transition Aid component, which had the purpose of making up for a disparity in aid to certain counties when the 2003 Minnesota Legislature changed the CPA calculation. Currently, CPA has two components, County Need Aid and County Tax Base Equalization Aid. The County Need Aid portion is distributed proportionally between counties based on three demographic factors: the total population of people 65 years old and over, the number of households receiving food stamps, and the total number of Part 1 crimes in the county. The County Tax Base Equalization Aid is distributed based on each county’s population and certified adjusted net tax capacity. The Department of Revenue certifies CPA for counties based on current statutes, including any changes enacted during the most recent legislative session, by Aug. 1 each year. The aid amounts listed are the actual amounts paid.
The law provides a variety of property tax credits which reduce the amount of property taxes that would otherwise be due upon a property.
These are credits shown on property tax statements. The combination of all applicable property tax credits must not exceed the gross tax amount. The credits available and the order in which they are applied to a property's tax liability are:
Power Line Credit
Agricultural Preserves Credit
Enterprise Zone Credit
Disparity Reduction Credit
County Conservation Credit
School Bond Credit
Agricultural Homestead Market Value Credit
Taconite Homestead Credit
Supplemental Taconite Homestead Credit
Bovine Tuberculosis Credit
The data includes all credits except the Enterprise Zone Credit.