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Last Updated: 5/23/2018

Capitalization Rate Study

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Property Tax

Refund questions: 651-296-3781
Refund status and 1099G lookup: 651-296-4444
Other questions: 651-556-6091
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2018 Capitalization Rate Study

The Minnesota Department of Revenue assesses utility, pipeline, and railroad operating property. The department considers these market segments State Assessed Property. The department completes this study to determine unitary valuations of State Assessed Property in Minnesota.

The department’s Property Tax Division assesses these properties, in part, using the income approach to valuation. The income capitalization approach measures the present value of the anticipated future benefits of property ownership.

In order to complete the income capitalization approach, the department develops yield and direct capitalization rates for each market segment. The Capitalization Rate Study describes the development of these rates.   

The department provides two formal opportunities for interested parties to provide input regarding the Capitalization Rate Study. The department hosts an annual Spring Forum before the initial study is completed, and then provides a public comment period for the initial study each year.

At the forum, the department invites attendees to provide information about current market conditions, industry trends and developments, mergers and acquisitions, new projects, and any other topics that may affect the Capitalization Rate Study. Please see our State Assessed Property Forums webpage for more information.

The department reviews and considers the responses received during the comment period and then publishes the final study with any updates and a summary of the comments.

Staff Contact

Contact Jesse Larson for questions about the Capitalization Rate Study:

Phone: 651-556-6112


Mail: Minnesota Revenue
         Attn: Jesse Larson
         Mail Station 3340
         St. Paul, MN 55146-3340