Understanding Property Taxes

Factors that Affect Property Taxes

  • The market value of a property may change.

  • The market value of other properties in your taxing district may change, shifting taxes from one property to another.

  • The State General Property Tax may change.

  • The city budget and levy may change.

  • The township budget and levy may change.

  • The county budget and levy may change.

  • The school district's budget and levy may change.

  • A special district's budget and levy may change.

  • Special assessments may be added to your property tax bill.

  • Voters may have approved a school, city/township, county, or special district referendum.

  • Federal and state mandates may have changed.

  • Aid and revenue from the state and federal governments may have changed.

  • The state legislature may have changed the portion of the tax base paid by different types of properties.

  • Other state law changes may adjust the tax base.

How Taxes are Calculated

The Records & Revenue Department computes your property taxes by multiplying the value of your property by the total tax rate of the district in which your property is located.

The value and classification of your property is determined by the Assessing Services Department.

Property Tax Refunds

Two refund programs are available to homestead property owners. Both are through the State of Minnesota:

Regular Refund: Sometimes called the "circuit breaker," is based on your household income and the amount of property tax you pay.

Special Refund: To qualify, your net property tax must increase by at least 12 percent and $100. The special refund is not based on income. For more information or to determine if you are eligible for either of these refunds, read and fill out Form M1PR.

Forms and instructions for the Property Tax Refund are available through the Minnesota Department of Revenue.

Senior Citizens' Property Tax Deferment

  • Is administered by the State of MN

  • Must be 65 years old

  • Household income is $60,000 or less

  • Must have lived in home at least 15 years

  • Property taxes must not exceed 3% of net income

  • State pays remaining tax as a low interest loan

  • Unpaid tax and interest will become a lien on the property

  • The lien must be paid at the time of sale

Forms and instructions for the Property Tax Deferral for Senior Citizens are available located below.