Descriptions of Items that Appear on Notices
Estimated Market Value
The Estimated Market Value is the value assigned to your property by the county assessor and reflects what the assessor believes the property would sell for in an "arm's length transaction" as of January 2 of the assessment year. This value was shown on the value notice you received in March.
Green Acres Value
Agricultural property in an urban area can be taxed at the going value for farmland rather than the value that would be indicated by the highest and best use of the property. The value shown on this line is the agricultural value that will be used for determining property taxes instead of the Estimated Market Value.
Newly-platted vacant land can have the increased value resulting from the platting added to the taxable value of the property over several years rather than all at once. The value shown on this line of the tax notice is the value that has been deferred.
This Old House Exclusion
Under this now-defunct exclusion, a portion of the value increase due to added improvements made to a Homestead property of at least 35 years in age was to be excluded for taxing purposes for up to 10 years. This program has been discontinued, so no new applications will be processed.
Disabled Vets Value Exclusion
Disabled veterans with a service-connected disability of 70% or more may qualify for a Disabled Vets Value Exclusion, which exempts all or a portion of the property from property taxes. Eligibility, forms and instructions are available on the Veteran's Info page.
Homestead Market Value Exclusion
In 2011 and prior years, a Homesteaded property received a Homestead "Credit", which was money paid by the state to reduce property taxes on Homestead property. In 2012, the legislature replaced the Homestead Credit with the Homestead Market Value Exclusion.
The Homestead Market Value Exclusion is equal to 40% of the first $76,000 of the home's Taxable Market Value less 9% of the Taxable Market Value above $76,000. The maximum exclusion of $30,400 occurs at $76,000 and decreases for values above $76,000. For taxable market values above $414,000, the Homestead Exclusion is $0. Starting with taxes payable in 2012, the Homestead Exclusion amount shows up on the Proposed Property Tax Notice in the valuation section near the top of the notice.
Taxable Market Value
The Taxable Market Value is the value used for determining the tax capacity or tax base of a property. It is the taxable value after all exemptions, exclusions, and deferrals.
The legislature has established a property tax structure where the portion of a property's value that will be used for taxing purposes varies by the use or type of property. It also has established specific benefits that apply to particular uses. The following classes are those that are most often asked about:
- Homestead - Designated on the tax notice as "HSTD." Homestead property is owned and occupied as the primary residence of the owner.
- Homesteads below $414,000 receive a Homestead Market Value Exclusion that exempts a portion of the property's value from property taxes.
- Homestead property owners may also be eligible for property tax refunds (see available property tax relief). Higher-valued homes that are not eligible for the Exclusion may still be eligible for property tax refunds.
- A special type of Homestead is a Relative Homestead designated by "RELATIVE" or "REL" on the notice. Relative homesteads are owned by a property owner and occupied as a primary residence by a qualifying relative of the property owner. Relative Homesteads receive the same type of Homestead Exclusion as other Homestead property but are usually not eligible for property tax refunds.
- Disabled Homestead - Homestead property owners that are blind, disabled or paraplegic receive reduced tax treatment on the first $50,000 of taxable market value. Properties designated with "DISABLED" or "DIS" as part of the property clasification receive this benefit. If you don't have this designation and believe you should, forms and instructions are available here.
- Low Income Housing – Designated as "Qual 4d Housing." This property classification is for rental property that is certified by the Minnesota Housing Finance Agency as low-income housing. To receive this designation, at least 75% of the units in the rental housing property have to qualify as "low-income" as defined by Minnesota Statute 273.128 subd. 1. If you don’t have this designation and believe you should, additional information is available at the Minnesota Housing Finance Agency website.
Regional Rail Authority - The Ramsey County Board wants to invite comment on Regional Rail initiatives. Further information about Regional Rail activities and proposed rail corridors can be found on the Regional Rail web page.
Public Safety Radio System - Beginning in 2004, the Ramsey County Board proposed a tax levy to support the development of a countywide 800-megahertz communication system that would allow all public safety personnel working for various public safety agencies (such as fire, police, emergency services) to communicate easily. This project is linked with state Anti-Terrorism efforts and federal Homeland Security initiatives. The federal government is providing significant funds to support the development of the system. Current levies are used to pay off debt issued to fund the original project.
Ramsey County Library - Beginning for taxes payable in 2006, the Ramsey County Library shows on a separate line below Ramsey County. The library tax only applies to properties located in suburban Ramsey County. Further information is available on the Library's website.
St. Paul Public Library - Beginning in 2004, City of St. Paul property taxes for city services are split into two separate components due to the creation of the new Saint Paul Library Agency as a separate entity from the rest of city government. Further information is available on the Library's website.
State General Tax - The State General tax is a statewide property tax levied by the State of Minnesota on commercial, industrial and seasonal properties. These taxes are paid to the State of Minnesota and go to the State General Fund, with a portion used to fund school-related expenditures.
School Voter-Approved Levies - This includes all levies and debt obligations approved by the voters in that school district.
School Other Local Levies - This includes school levies for community services and debt obligations that are not voter approved.
Metropolitan Special Taxing Districts - This is the Metropolitan Council, which includes the Metropolitan Transit District, and the Mosquito Control District.
Other Special Taxing Districts - This includes Housing and Redevelopment Authorities (HRA), Port Authorities, hospital districts and water management districts. Not all areas have each of these districts.
Tax Increment Financing (TIF) - TIF is a municipal development program enabling a city to use the additional property taxes that a proposed development project would generate to finance land acquisition, demolition and other costs necessary for that development to occur. Usually the issuance of a bond is necessary to finance these up-front costs. Bonds are repaid by the extra taxes that are generated by the new development and construction. The taxes captured to repay the bonds come from all the taxing districts that normally levy a tax on the property. Properties with the same market value, class and area will pay the same tax even if one is in a tax increment district and the other is not. See the State Legislature website for more information.
Fiscal Disparity - Fiscal Disparity, created in 1971, is a tax base sharing program in the seven-county metropolitan area to promote better regional planning and improve equity in the distribution of fiscal resources. Forty percent of the growth in commercial and industrial property is "shared" with all taxing jurisdictions in the seven-county metropolitan area. A percentage of the value of each commercial/industrial parcel is taxed at a uniform metropolitan tax rate. The remainder is taxed at the local tax rate. For further information see the House Research Report.
Contamination Tax- If your property is subject to a contamination tax, a message to that effect shows below your mailing address. The amount of the contamination tax is not included in either year's taxes.
What is a Special Assessment? A special assessment is a civic improvement that directly benefits the property. Common special assessments include costs for installation or maintenance of streets, sidewalks and sewers. It is shown as a separate amount on the tax statement and is not included on the Proposed Property Tax Notice. The amount is based on how much the property benefits from the improvement and the cost of the project. The property's market value is not used to determine the amount of the special assessment.
Why are Special Assessments and other charges or fees not shown on the Proposed Property Tax Notice? The special assessment information is not available from the cities at the time notices are prepared. Also, the intent of the Proposed Property Tax Notice is to provide the property owner with a parcel-specific impact of a tax jurisdiction's anticipated budget. Special assessments are not a part of the budget process as it relates to property tax levies.