Overview
Many jurisdictions in the State of Minnesota levy property taxes. The primary recipients of property taxes (in approximate order of magnitude) are the school districts, counties, and cities. Other taxing jurisdictions have minor levies to fund the Metropolitan Council, various watershed districts, and other minor functions.
Taxes are levied on two different bases: tax capacity (TC) and estimated market value (EMV). Estimated market value is the easier of the concepts to understand. It is merely the total Assessor’s market value for each taxable piece of property in a jurisdiction.
For EMV tax levies, every property pays the same rate based on property value.
Tax Capacity
The tax capacity is calculated by taking the EMV and multiplying it by a statutory formula based on the classification of the property and its value. The categories are numerous, but the primary ones are agricultural, homesteaded residential, non-homesteaded residential, apartments, and commercial-industrial.
Each of the categories has a different percentage rate that generally increases in the order presented. All of these calculated values are then totaled, and the tax levy is determined by dividing the total tax levy by the total tax capacity. Each property is then taxed a proportional share based on its tax capacity.
The effect of this tax basis is that apartments and commercial-industrial properties shoulder a greater property tax burden than a straight percentage of their value would indicate.
Truth in Taxation
“Truth in Taxation" (TNT) is a process first enacted by the legislature in 1988 to enhance public participation in Minnesota’s property tax system. Read more about TNT.
The TNT process consists of these three components:
- Each local government is required to formally adopt a “proposed levy” in September for the upcoming year; the final levy, when ultimately adopted, may not exceed the proposed levy.
- County auditors generate parcel-specific notices of proposed taxes for all parcels of property based on the proposed levies
- Each local government is required to hold a public meeting prior to adopting its final levy where budget and tax issues are discussed and where public testimony must be allowed after the notices come out.
The goal of TNT is improving accountability by focusing taxpayers on the relationship between budget decisions and property taxes. It provides taxpayers with a greater opportunity to become involved in the local government budgeting process.
In September 2024, the Chanhassen City Council will set a preliminary tax levy used to generate Truth in Taxation notices that are mailed to all Chanhassen property owners. The amount the city council sets is the "not to exceed" amount for taxes payable in 2025 for the City of Chanhassen (other taxing jurisdictions will follow a similar process).
This TNT meeting is the opportunity for all taxpaying residents and businesses in Chanhassen to give input on the preliminary tax levy and what the final levy should be for 2025. Following the public hearing, the City Council will set a final levy which cannot be higher than the preliminary. That levy will be used for generation of final tax statements that all taxpayers will receive in 2025.
Related Property Tax Resources
To determine the amount of tax on your property, you may visit the appropriate county website and look up your tax information at:
To appeal a proposed property assessment, visit our Board of Appeal and Equalization webpage.
