Understanding 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.

The Records & Revenue team

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 team.

State General Tax Levy

What is the State General Levy Tax?
The state general levy tax is a property tax applied only to certain properties. Revenue from the tax is deposited in the state general fund. The state property tax levy was enacted in 2001.

What is the tax used for?
The money raised from the state general tax does not go directly to local governments (counties, cities, school districts, etc.). Instead, money raised by the tax is deposited in the state general fund for the state’s budget use.

Is my property affected by the state general tax?

There are three types of property that must pay the state general tax, at different rates, and based on different values:

1.  Commercial/industrial properties: Class 3 commercial, industrial, and public utility property (exclusive of electric generating machinery) and class 5(1) unmined iron ore property.
2.  Seasonal residential recreational properties: Class 4c(1) resorts and 1c “Ma and Pa” resorts, and class 4c(12) non-commercial seasonal properties pay some state general tax.
3.  Certain non-profit community service organizations: Class 4c(3)(ii) property owned by a non-profit community service-oriented organization.

How much is the tax?

• The state general levy for commercial/industrial property is $784,590,000 for taxes payable in 2018 and thereafter.
• The state general levy for seasonal residential recreational property is $44,190,000 for taxes payable in 2018 and thereafter.
• The state property tax is included in your property tax statement and is paid to the county treasurer along with your local property taxes. Separate payments are not required. The county treasurer forwards the state tax to the Department of Revenue

What is the tax rate?
The tax rate is calculated annually and announced by the commissioner of revenue by January 1 of each year. For more information on the tax rate for the current year, you can visit the Minnesota Department of Revenue State General Property Tax website.

How is the rate determined?

• A preliminary state general levy rate is certified by the Commissioner of Revenue by October 1 each year. County Auditors use the preliminary rate in preparing Truth in Taxation notices for taxes payable the following year.
• The final state general levy rate is certified by the Commissioner of Revenue by January 1 each year. The final state general levy rate is used to calculate final tax amounts on property statements.

How has the rate changed over time?
For the first year in 2002, the state general levy amount was $592 million. Under current law, the levy is $828,780.00.

How much will I pay on my property?
If you have a cabin valued at $100,000.00, only 40 percent of the first $76,000 of market value would be subject to the new tax and the remaining $24,000 would be taxed at its full value. For commercial/industrial property, the first $100,000 of market value is excluded when applying the tax rate.

Property taxpayers in Olmsted County receive their "Notice of Proposed Taxes" in mid-November each year. This notice is also referred to as Truth in Taxation or TNT. The notice estimates the property tax for the following year if the taxing jurisdictions approve the budget amount they are considering. Property owners are invited to attend meetings held by the local units of government to express their opinions on local budgets and taxes. The meeting dates and locations are identified on the notice.

It is important to remember, however, that the proposed taxes on the notice do not reflect any special assessments on the property or any school or city referendums passed in the November general election. If any of the questions affecting their tax levy pass, the final taxes may be higher than expected or any special assessments on the property
 

The credit for Military Service in a Combat Zone is available to members of the military who have recently served in a designated combat zone or hazardous duty area. There is a credit of $120 for each month served.

For more information about military tax credits available, required documentation, forms, and instructions, visit the Minnesota Department of Revenue, Credit for Military Service in a Combat Zone page.

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

1. Regular Refund: Sometimes called the "circuit breaker," is based on your household income and the amount of property tax you pay.
2. 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.

Forms and instructions for the property tax deferral for senior citizens are available located below.
 

Ways to Apply:

• Online with the Online Application for Property Tax Deferral For Senior Citizens
• By mail using Form CR-SCD, Property Tax Deferral for Senior Citizens
  Senior Citizens Property Tax Deferral Application.pdf

Mail your completed application and a copy of this year’s property tax statement, and property report (see instructions) to:

Minnesota Department of Revenue
Mail Station 3340
600 N. Robert St.
St. Paul, MN 55146-3340