Glossary
Abatement - Tax, Value, or Classification change after Tax Statements have been sent out for the payable year. Usually a fee is associated with abatement.
ACH -Automated Clearing House transaction.
Ad Valorem Tax - Tax based on the value of a property.
Agriculture Homestead Credit - Credit that directly reduces the taxes payable on agricultural homestead property. The amount of the credit is based on the market value of the property.
Assessment/Assessed Value - The value of your property used to calculate your property taxes.
Assessment Date - The date as of which the assessments are based. The valuation and classification of a property is based upon its status on January 2 for taxes payable in the following year for Real Estate and Personal Property. Taxes payable on Manufactured Homes are based on the value on January 2 of the payable year.
CAMA - Computer Assisted Mass Appraisal
Classification of Property - Identifies the type of property, such as residential, agricultural, commercial, etc. based upon the use of the property Class Rate.
Class Rates - Statutory percentage applied to the taxable market value of a parcel based on the parcel’s classification. Class rates are uniform throughout the state.
COJ - Confession of judgment.
Contamination Tax - Tax based on reduction in value due to contamination
Contamination Value - The amount of market value reduction that is granted for property tax purposes due to the presence of contaminants.
CO-OP - Co-op group of apartments or condos that qualify for homestead credit, but not privately owned. There are two types of Co-ops.
CREP - Conservation Reserve Enhancement Program
CRP - Conservation Reserve Program
CRV - Certificate of Real Estate Value
DNR - Department of Natural Resources
DOR - Department of Revenue
ERER - Electronic Real Estate Recording
Estimated Market Value -Estimated market value is the amount the Assessor estimates a buyer would pay for your property if it were offered for sale. Each year the assessor reviews the market valuation of your property to determine if changes in the real estate market or improvements to your property require a change in the estimated market value. Market value deferments for Green Acres and open space, exclusions under the platted vacant land, limited market value and ‘This Old House’ laws are subtracted from the Estimated Market Value to arrive at the Taxable Market Value.
Forfeited Land - Property that has been forfeited to the State of Minnesota for non-payment of real estate taxes. Some forfeited land is available for sale and may be purchased through the Treasurer-Auditor’s Office.
GA/Green Acres - Minnesota law requires assessors to value property at its estimated market value. Market value reflects the greatest potential use of the land, known as the “highest and best use.” This is the use of the land that will bring the greatest economic return over a given time. In other words, the most profitable legal use that the land can be adapted to. The Legislature realized that this method of valuing agricultural property was actually forcing farmers off their land in certain situations. Recognizing the importance of preserving farms in Minnesota, they developed a mechanism that allows qualifying farmers to pay real estate taxes based upon the agricultural value of their land. This law, officially known as the “Agricultural Property Tax” law, is commonly referred to as Green Acres and can be found in Minnesota Statutes, section 273.111.
GIS - Geographic information system used to relate property information to physical and location mapping.
Homestead - For property tax purposes, homestead is a tax benefit granted to property owners (or qualifying relatives) who are Minnesota residents and who own and occupy their home as their primary place of residence. You must own and occupy by December 1 to receive the benefit for the following payable year. (See Residential Homestead Credit)
Levy - The amount of money that a taxing district has approved to be to raised through property taxes for a calendar year.
Levy Books - A monthly report produced by Olmsted County of beginning balances, changes/adjustments to what is due, collections made, and current expected ending balances, recorded by taxing entity.
Local Tax Rate - Rate applied to the tax capacity of a property to calculate the property tax. Formerly known as tax capacity rate.
Market Value Referenda Rate - Rate applied to the taxable market value of property to calculate the market value referenda tax, for certain local tax referendum levies which are based on referendum market value instead of tax capacity. The Cities, or schools that have passed referendums to approve the tax in their areas, give the market value referendum rate to the County. The referendum tax is based on the total of all referendum rates, given to the County, times the referendum market value that was derived for each parcel.
MH - Manufactured Homes/Mobile Homes
MRT - Mortgage Registration Tax
Parcel/PID/PIN - Unique identifying code for a parcel of real property, personal property, or manufactured home.
PILT - Payment In Lieu of Taxes
PP - Personal Property (not MH’s) 2 types.
Property Tax – A tax levied on any kind of property.
Property Tax Refund - State reimbursed refund to qualifying homeowners and renters based on personal income and the amount of the property taxes. Also known as PTR.
Referendum Market Value - A calculated value for each parcel, originating from the taxable market value. The calculation to get the Referendum Market Value is dependent on the property classification.
Residential Homestead Credit - Credit that directly reduces the taxes payable on homestead property. The amount of the credit is based on the market value of the property.
RIM - Reinvest in Minnesota
Sales Ratio Study – A study conducted by the DOR of open market property sales, which is then compared to local assessments to ensure that local assessments adequately reflect the market.
Special Assessments or Improvements - An amount owed to a local taxing district for local improvements (such as streets, sewers, etc.) which directly benefit the property. These payments are listed as a separate item on the tax statement. The amount is based on how much the property benefits from the improvement, not on the value of the property.
State Aids - The amount that the State estimates that property taxes would be increased if it were not for the local government and education aids the State provides to the taxing districts. The presumed amount of aid is indicated on the tax statement for each parcel.
State General Tax - The state general tax is levied primarily on commercial/industrial, non-commercial seasonal recreational and personal property. This tax is applied to the net tax capacity of these properties. The tax is forwarded to the State and is used for State purposes only.
Suspense File - Intermediate accounting file to hold overpayments, NSF’s, etc.
TCAP/Tax Capacity/Tax Capacity Value - A parcel’s taxable market value multiplied by the class rate for that type of property.
Tax Capacity Rate - Tax rate determined by dividing a taxing district’s property tax levy amount by the taxing district’s total tax capacity. The tax capacity rate will be expressed as a percentage of tax capacity.
TIF/Tax Increment Financing - TIF districts are created to fund improvements which increase market values of the properties in the district. The property taxes generated by the increased market value are “captured” by the TIF district to finance project development costs.
This Old House - Indicates a property that qualifies for an Old House Exclusion for real-estate tax calculation.
TNT/Truth in Taxation - a state-mandated tax/value forecast report a process which the legislature enacted in 1988 to enhance public participation in Minnesota’s property tax system. The components of TnT are: public advertisements on budget/levy of certain taxing jurisdictions, parcel-specific notices sent to the owner of the property, public hearings, and changes in the property tax statement.
TWP - Township