Non-tillable real estate where grass or other vegetation is eaten by grazing animals and is set aside for use by domestic grazing animals as part of a farm or ranch. This usually requires fencing to restrict animal movement. Pasture land may include stands of trees if used for grazing by domestic animals.
Personal property is movable without causing damage to itself or the real estate. Personal property may include tools, equipment, goods, money, effects, stocks, and shares. Anything that is not real property (i.e. land, buildings, improvements) is personal property.
In Minnesota, personal property is generally exempt. However, personal property subject to taxation may include certain utility systems, railroad docks and wharves, improvements on federal or exempt land, leasehold or other property that would be taxable if the lessee or user were the owner, certain manufactured homes, and flight property.
Plat law excludes increases in property value that are associated with platting property. The law provides that the market value of land platted and not improved with a permanent structure shall be assessed based upon the highest and best use of the property as unplatted land. In establishing the market value of the property, the sales price of the unplatted land or comparable sales of un-platted land of similar use and with similar availability of public utilities will be considered.
Class 4c(4) is post-secondary student housing of not more than one acre of land owned by a non-profit corporation and used exclusively by a student cooperative, sorority, or fraternity for housing on or near campus.
A reduction in property tax for properties crossed by newer, high-voltage power lines.
In order for the property to qualify for the credit, the power line must meet two requirements:
The power line must have a capacity of 200 kilovolts or more.
Construction of the power line must have started after July 1, 1974.
Qualifying classes of property include:
Agricultural and non-agricultural homesteads
Non-homestead agricultural land
Commercial and non-commercial seasonal residential recreational
The calculation of the credit depends on the property's location:
In most jurisdictions, the credit is equal to the ratio of the length of the power line on the property and the total length of the power line in the jurisdiction, multiplied by 10 percent of the total tax revenue from the portion of the power line within the jurisdiction.
For power lines taxed at a county-wide average rate, the credit is equal to the ratio of the length of the power line on the property and the total length of the power line in all unorganized townships within the county, multiplied by 10 percent of the total tax revenue from the portion of the power line within the jurisdiction.
The credit cannot be more than 20 percent of total gross tax on the property.
The portion of tax paid by power lines that is credited to qualifying properties crossed by high voltage power lines.
Properties that are crossed by qualifying high voltage power lines are eligible for the power line credit. When computing tax rates, 10 percent of the net tax capacity of high voltage lines in organized townships and cities is set aside. This 10 percent set aside is called the power line net tax capacity (NTC) or the power line contribution value. The local tax rate calculated without this net tax capacity is then extended to the power line NTC to fund the power line credit. This fund for the power line credit is called the power line levy.
For power lines with a capacity of 200 kilovolts constructed on or after July 1, 1974, 10 percent of the net tax capacity is set aside to fund the power line credit.
Properties that are crossed by qualifying high voltage power lines are eligible for the power line credit. When computing tax rates, 10 percent of the net tax capacity of high voltage lines in organized townships and cities is set aside. This 10 percent set aside is called the power line net tax capacity (NTC) or the power line contribution value. The local tax rate calculated without this net tax capacity is then extended to the power line NTC to fund the power line credit. A transmission line that has the following features is included in power line NTC:
It is a conductor of electric energy
Construction on the line began after July 1, 1974
It is longer than 1,500 feet
It conducts voltage of 200 kilovolts or greater
It is located in a city or township
The credits for lines in unorganized townships are funded by simply setting aside 10 percent of the tax receipts. The NTC for these lines is not included in power line NTC.
A Preferential Entity is a single parcel or group of contiguous parcels that, due to its classification, receives a preferred net tax capacity rate. That preferred rate is applied to the taxable market value of that entity, up to a set value or tier limit. Property classified as 3a (commercial, industrial, and public utilities) and property classified as a homestead (agricultural and residential) are eligible to receive preferred net tax capacity rates.
The Preliminary Assessment file provides market values by property type for each taxable property in the state giving a snapshot of estimated market values at the time valuation notices are sent to property owners. It assists in determining State Board of Equalization Orders, studying the implementation of State Board Orders, and determining local changes. The file includes data formerly reported on the Spring Mini Abstract and the Preliminary Market Value by Parcel File.
The Adjusted Assessment file provides final estimated market values and classifications for each property after any value changes ordered by local or state appeal boards and includes exempt property data reported in every sixth year after the year 2010, and every year from 2020 on. The file includes data formerly reported on the Fall Mini Abstract, Abstract of Assessment, Exempt Real Property Abstract, Payment in Lieu of Taxation (PILT) Supplement, and the Final Market Value by Parcel File.
The Final Assessment and Tax file provides data on the extension of real estate and personal property taxes each year. It is typically produced after tax statements are mailed to taxpayers and supplies data on final market values, net tax capacities, tax rates, TIF taxes, levies, and credits as represented on tax statements. It is used for school aid calculations and calculating or paying state aids to local taxing districts. The file includes data formerly reported on the Abstract of Tax Lists, TIF Supplement, Fall Mini, and the Abstract of Assessment.
The Manufactured Home file provides data on the extension of property taxes each year on manufactured homes. It supplies data on values, levies, and credits for manufactured homes that are assessed as personal property and reported separately from real property. It is used to certify state-paid credits for manufactured homes and for legislative reporting and research. The file includes data formerly reported on the Manufactured Home Abstract.
A class 3a public utility property includes land and buildings owned by electric utilities and natural gas pipeline systems. Some utility machinery, including tools, implements, and other equipment, is classified as class 3a public utility property.
The state is responsible for valuing utility and pipeline operating property through unitary valuation. This involves valuing each utility company as a whole and allocating a value to all of the company's properties in the state. Public utility land and non-operating property is locally assessed.
Utility and pipeline properties are classified as 3a. Utility land and buildings have a class rate of 1.50% for the first $150,000 of taxable market value and 2.00% for the remaining value. All class 3a property consisting of machinery and equipment has a class rate of 2.00%.
Utility property over $100,000 is subject to the state general tax. Electric generation machinery is exempt from state general tax.