A class 3a railroad property is owned or used by a railroad company to perform railroad transportation services.
The operating property of every railroad company doing business in Minnesota is assessed annually by the state. Operating property means all property owned or used by a railroad company in the performance of railroad transportation services, including franchises, rights-of-way, bridges, trestles, shops, docks, wharves, buildings, and structures.
The class rate for 3a railroad property is 1.50% for the first $150,000 of taxable market value and 2.00% for any remaining value. Railroad property over $100,000 is subject to the state general tax.
Real property is the land, all buildings and structures, natural resources on the land, and anything that could not be removed without causing damage to the building or structure. Real property does not include machinery, buildings or structures on leased lands, or manufactured homes.
Referendum market value (RMV) is the tax base for referendum levies. RMV means the market value of all taxable property, excluding property classified as:
Class 2a Agricultural Land
Class 2b Rural Vacant Land
Class 2c Managed Forest Land
Class 2d Private Airports
Class 2e Land with a Commercial Aggregate Deposit
Class 4c(12) Non-Commercial Seasonal Residential Recreational (cabins)
Class 4c(4) Post-Secondary Student Housing
The portion of class 2a agricultural property consisting of the house, garage and immediately surrounding one acre of land (HGA) is included in referendum market value.
Any class of property that is included in the definition of referendum market value and has a classification rate of less than one percent has a referendum market value equal to its net tax capacity multiplied by 100. This affects:
Class 1b Blind/Disabled Homesteads
Class 1c Homestead Resorts (first tier only)
Class 4d Qualifying Low Income Rental Housing
For class 1a, 1b, or 2a homestead property, the market value used to determine referendum market value is the market value prior to the homestead market value exclusion.
School districts, counties, cities, towns, and special taxing districts may have referendum market value based levies. These may be voter-approved or, in the case of school districts, certified by the school board.
School districts, counties, cities, towns, and special taxing districts may have voter-approved levies for either operating or bonding purposes. RMV is the tax base for all voter-approved levies. However, school district levies for bonded debt and other jurisdictions’ debt levies approved by voters after June 03, 2008 are levied on local net tax capacity.
School districts can have other RMV levies, including those for local optional revenue, equity, transition, and operating referendum.
A class 4a residential non-homestead 4+ units (apartment) is residential real estate containing four or more units and used by the owner, tenants, or lessees as a residence for rental periods of 30 days or more. This does not include property qualifying for class 4d low-income rental housing. The class rate for 4a property is 1.25% of its taxable market value.
4bb(1): non-homestead residential real estate containing one unit, other than cabins.
4bb(2): a single-family dwelling, garage, and surrounding one acre of property on a non-homestead farm.
4bb(3): non-commercial garage condominium storage units that have separate parcel identification numbers.
Property that has been classified as a cabin seasonal residential recreational property at any time during which it has been owned by the current owner cannot qualify for class 4bb and would receive a higher class rate.
A class 1c homestead resort is commercial-use real property that abuts public water or a state trail. It is devoted to temporary and seasonal residential occupancy for recreational purposes, but not devoted to commercial purposes for more than 250 days in the year preceding the year of assessment. It must also include a portion used as a homestead by a qualifying individual. Class 1c property has a classification rate of 0.50% for the first $600,000 of market value, 1.00% for taxable market value between $600,000 and $2.3 million, and 1.25% for market value exceeding $2.3 million. Class 1c market value over $2.3 million is subject to the state general tax.
A class 4c(1) commercial resort is real property devoted to commercial temporary and seasonal residential occupancy for recreation purposes for not more than 250 days in the year preceding the year of assessment. This classification differs from homestead resorts in that a portion of the property is not used as a homestead by a qualifying individual. Class 4c(1) property has a class rate of 1.00% for the first $500,000 of taxable market value and 1.25% for market value exceeding $500,000. Commercial resort property is subject to the state general tax.
Class 4c(1) property is real property devoted to commercial temporary and seasonal residential occupancy for recreation purposes (resorts) for not more than 250 days in the year preceding the year of assessment.
The Rural Preserve Program provides property tax relief for qualifying owners of rural vacant land that is part of a farm in areas where the market value of land is being affected by development pressure, sales of recreational land, or other factors.
Tax deferral program for rural vacant land in areas where land values are affected by development or non-agricultural influences.
Rural Preserves Deferral data includes the market value deferred for property taxes in the Rural Preserves programs. The program allows eligible property to be taxed at a value less than its full estimated market value. Under the program, when the market value of rural vacant property is influenced by other potential uses of the property, such as residential or retail development, or for recreational purposes, the assessor is required to value the property based only on its use as rural vacant land.
The Rural Preserves tax deferral program allows class 2b rural vacant land that is part of a homestead to be valued using an agricultural or rural vacant land value instead of the estimated market value. The market value deferred is the difference between the land's estimated market value and its rural vacant land value.
Deferred Market Value = Estimated Market Value - Program Value
When a property no longer qualifies for the program, the deferred tax for the current tax payable year and the two prior years must be paid to the county, plus deferred special assessments.