Proposed Property Taxes

UNDERSTANDING YOUR PROPOSED TAX NOTICE

The Proposed Property Tax Notice, also known as the Truth in Taxation (TNT) Notice, is mailed in mid-November each year. The notice estimates the property tax you will pay in the following year if the taxing jurisdictions approve their levies as proposed.

Supplemental Budget Information

Revised for 2024, state law requires a Supplemental Information be included with your notice. The supplemental information for county, cities and schools includes:

  • The certified levy for taxes payable in the current year
  • The proposed levy for taxes payable in the following year
  • The percent change in levy

Contact your local taxing district if you have a question on the supplemental information.

Property Tax Notice Items

The following items appear on your proposed property tax notice:

Taxable Market Value: This is the property value used to calculate your property tax. It may be less than the estimated market value, the value you received on your value notice in March.

Property Classification: The Minnesota legislature has established different property tax classifications based on the use or type of property. It also has established specific benefits that apply to particular uses. The most common are:

  • Residential Homestead
  • Relative Homestead
  • Disabled Homestead
  • Agricultural
  • Commercial, Industrial
  • Public Utility
  • Seasonal Recreational

State General Tax: 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. A portion is used to fund school related expenditures.

School Voter Approved Levies: Includes all levies and debt obligations approved by the voters in that school district.

Note: If a referendum was passed at the November general election, the increase will not be reflected on the TNT notice.

Other School Levies: Includes school levies for community services and debt obligations that are not voter approved.

Other Special Taxing Districts:  Includes the Housing and Redevelopment Authorities (HRA), Port Authorities and watershed districts. Not all areas have each of these districts.

Tax Increment Financing (TIF): 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. To learn more about tax increment financing read the House Research report.