Abatement

Hazardous & Solid Waste Fee

Real Estate

Acre

Government Survey

Right of Way

Ad Valorem Tax

Gross Tax

School District Referenda Market Value

Ag Preserve Credit

Homestead

Special Assessment

Appeal

Improvement

State General Tax

Assessed Market Value

Initial Tax Rate

Statute

Assessment Date

Legal Description

Structure

Class Rate

Lien

Survey

Classification

Local Government Aid

Tax Capacity

Date Due

Local Tax Rate

Tax Increment Financing (TIF)

Disparity Reduction Aid

Ownership

Tax Roll

Easement

Plat

Taxes

Equalization

Plat Deferral

Taxpayer

Estimated Market Value

Property

Title

Excess TIF

Property Class

Tract

Fiscal Disparities

PID (Property Identification Number)

Truth in Taxation

Foundation Square Feet

Property Tax

Value

Green Acres Land

Property Tax Levy

Valuation

Government Lots

Abatement:

A reduction or decrease in taxable value that results in a reduction of taxes after an assessment and levy.

Acre:

A measure of land, equal to 160 square rods (43,560 square feet) in any shape.

Ad Valorem Tax:

A tax based on the value of a property.

Ag Preserve Credit:

A program available to qualified agricultural properties which provides annual property tax credits. For more information, contact the Assessor's office at (952)361-1960.

Appeal:

The process by which a property owner contests an assessment, formally or informally, in Minnesota.

Assessed Market Value:

County/City Assessor's determination of the market value of a piece of property.

Assessment Date:

The date as of which the Assessed Market Value is 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 assessment on January 2 of the payable year.

Class Rate:

Statutory percentage applied to the taxable market value of a parcel based on the parcel's classification. Class rates are uniform throughout the state.

Classification:

The class that a type of property is assigned. A property's classification is based upon the existing use of the property. If the land is vacant and there is no identifiable use, the property classification would describe the most probable use of the land.

Date Due:

The final date that the amount due can be paid before penalty begins to accrue.

Disparity Reduction Aid:

A general purpose aid program designed to assist in the equalization of local tax rates.

Easement:

A right held by one person to use the land of another for a specific purpose, such as access to other property.

Equalization:

The process by which an appropriate government body attempts to ensure that all property under its jurisdiction is assessed at the same level of assessment.

Estimated Market Value:

Represents the assessor's estimate of the property's actual market value. Market value is defined as the most probable price that a well-informed buyer would pay a well-informed seller for a property without either party being unduly forced to buy or sell.

Excess TIF Taxes (Tax Increment Financing):

Tax dollars settled to county, city and school districts from post 5/1/88 TIF districts. Excess TIF dollars equal to Captured Net Tax Capacity of TIF districts multiplied by difference of current total local tax rate and frozen total local tax rate at time of certification of TIF Districts

Fiscal Disparities:

Program (M.S. 473F) which provides for tax base sharing within the seven county metro area. Each municipality contributes 40% of the growth of its commercial/industrial tax base since 1971 to the seven county pool. This pool is then redistributed based on relative fiscal capacity to aid metro communities without that tax base. A percentage of the property tax on each commercial/industrial parcel is based on the seven county area-wide rate.

Foundation Square Feet:

Square footage calculated using outside foundation measurements, excluding attached garages.

Green Acres Land:

A real estate parcel of at least 10 acres, the owner of which is engaged in agricultural pursuits and otherwise qualifies for a deferment of assessment and taxes payable; intended to preserve farmland from the pressures of development.

Government Lots:

Irregularly shaped parcels of land, usually fronting on water, which could not be divided practically into sections under government survey.

Government Survey:

The survey from which our present system of townships, sections, etc., was developed.

Gross Tax:

The amount of tax prior to applying applicable credits.

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 homes as their primary places of residence.

Improvement:

A structure or building permanently attached to the land.

Initial Tax Rate:

Tax rate before reduction for disparity reduction aid. Calculated by dividing a taxing district's levy, less the amount it will receive from fiscal disparities, but the taxable tax capacity of the taxing district.

Legal Description:

The recorded legal description, which is acceptable in a court of law, is maintained by the County Recorder and our Land Record's Department. The legal description shown on your tax statement may be an abbreviated method of geographically identifying a parcel of land for tax purposes. 

Lien:

An encumbrance against property for money, either voluntary or involuntary. All liens are encumbrances but all encumbrances are not liens.

Local Government Aids (LGA):

Dollars (in the form of general distribution aid) provided to cities for property tax relief.

Local Tax Rate:

Rate that is extended on the net tax capacity of a parcel which determines the tax each parcel owes. 

Market Value:

Estimated Market Value is what the Assessor has estimated the property would sell for if it were to be sold in an arm's length transaction. 

Ownership:

Rights to the use, enjoyment and alienation of property to the exclusion of others.

Plat:

A map intended to show the division of land into lots or parcels. Once the land is recorded with the county auditor, land included in the plat can then be legally described by reference to the plat.

Plat Deferral:

A reduction in market value of a newly platted lot. One-third of the difference between the market value of the parcel before platting and the market value of the lot after platting is added in each of the three assessment years following the platting. Hence, taxes are calculated on a lower market value during the first three years following the initial platting or until construction begins, whichever comes first.

Property:

An aggregate of things or rights to things. These rights are protected by law. There are two basic types of property, real and personal. Real property is the right to land and improvements to land. Personal property is not permanently attached and is, therefore, movable.

Property Class:

The class that has been assigned to property based on the use of that property. (see Classification)

PID (Property Identification Number):

A numerical representation of a specific land parcel and its legal description. PID is also known as parcel number or property number. 

Property Tax:

Generally, a tax levied on both real and personal property; the amount of the tax is dependent on the value and the class of the property. The actual tax will be dependent upon the levies, tax base and state aids

Property Tax Levy:

The amount of taxes required to be raised in a jurisdiction by a government body with taxing authority.

Real Estate:

The physical land and appurtenances affixed to the land (structures).

Right of Way:

A strip of land which is used as roadbed, either for a street or railway. The land is set aside as an easement or in fee, either by agreement or condemnation. May also be used to describe the right itself to pass over the land of another.

School District Referenda Market Value:

Market Value used to calc School District Market Value based tax. Some Property Classifications do not pay Referenda market value tax. 

Special Assessments & Service Charges:

Minnesota statutes and city charters provide for a number of different special assessments and special service charges to be extended against benefited properties and and to appear on the tax rolls. They will show as a separate line item on the tax statement. 

State General Tax:

The state general tax is levied primarily on commercial/industrial, non-commercial seasonal recreational and personal property. The tax is collected and sent directly to the State of Minnesota and is not distributed to any local municipality.

Statute:

A law which comes from a legislative body. It is written law, rather than law established by court cases.

Structure:

Any man-made building or edifice.

Survey:

The measurement of the boundaries of a parcel of land, its area and sometimes its topography.

Tax Capacity:

The market value of a property multiplied by its class-rate percentage. (ex., a residential homestead valued at $30,000 x 1% = 300 Tax Capacity.) Formerly known as assessed value.

Tax Increment Financing (TIF):

Districts created by municipalities to fund improvements that increase market values of the properties in the district. The taxes generated by the increased market value are "captured" by the TIF district to finance project development costs.

Tax Roll:

A list, usually published by a county, containing the descriptions of all parcels in the county, the names of the owners (or those receiving the tax bill), the assessed value and tax amount.

Taxes:

A mandatory contribution of money to meet the expenses of a government, whether federal, state or local.

Taxpayer:

A legal entity, usually the property owner, ultimately responsible for payment of property taxes.

Title:

The union of all elements constituting proof of ownership, or the instrument that is evidence of ownership.

Tract:

A parcel of land.

Truth in Taxation:

A process where the taxpayer is notified of the proposed taxes to be levied with a comparison to the prior year. The taxpayer has the option of attending hearings where the budgetary or referendum issues are discussed prior to the levy becoming finalized.

Value:

The usefulness of an object, or the monetary worth of an object.

Valuation:

The estimating of value; appraisal.

Hazardous & Solid Waste Fee:

Annual county fee used to fund various Solid Waste programs required to protect our environment.