Property Tax Information

Assessed Market Value Information

State Tax Rate

45.95%

Commercial

$373,838,240

Municipal Tax Rate

30.78%

Residential

$168,270,500

County Tax Rate

42.60%

Other

$199,650,405

School Tax Rate

11.56%

Total

$741,759,145

Misc. Tax Rate

3.13%

Total Tax Rate

134.01%

Minnesota commercial real estate taxes are based upon market value of taxable property as set by the local assessor. To calculate the tax for the current year, first compute the tax capacity by multiplying all property value up to $150,000 times .015, plus any value over $150,000 times .02. Example: net tax capacity on a $200,000 business property: ($150,000 X .015) + ($50,000 X .02) = $2,250 + $1,000 = $3,250. Tax capacity times the tax rate equals taxes owed. Commercial and industrial property must also pay a state property tax, which is equal to the tax capacity times the State Tax Rate.

In some localities where voters have approved referendums, an additional referendum tax must be added, calculated by multiplying the referendum tax rate times the total market value of the commercial property.

Please note: Specific property tax classifications and computations can be more complex and result in different tax amounts. This simplified explanation applies in the most general situations and will allow a business to roughly estimate its potential property tax burden. The county assessor or auditor may be able to answer questions about specific properties and uses.

Rev. 2/09   www.mnpro.com