Property tax glossary
-- Abatement: A reduction in tax after the assessment and levy to correct assessment errors. -- Appeal: The process utilized by a property owner to contest an assessment. -- Class rates: Percent of market value - set by state law - that establish...
-- Abatement: A reduction in tax after the assessment and levy to correct assessment errors.
-- Appeal: The process utilized by a property owner to contest an assessment.
-- Class rates: Percent of market value - set by state law - that establishes what percentage of property value is paid in taxes. Homes have a lower class rate than businesses and other property.
-- County Program Aid: Property tax relief counties receive from the state based on needs.
-- Date due: Final date property taxes can be paid before late fees begin to incur.
-- Deferred: Payment postponed until a future time by resolution of a taxing authority.
-- Equalization: Process undertaken by different government bodies to ensure that all property under its jurisdiction is equitably assessed.
-- Green acres value: Assessor's estimate of agricultural value based upon the provisions of a program designed to protect farm land from valuation or taxation increases resulting from outside economic influences such as urban sprawl.
-- Levy: How much each local taxing jurisdiction wants to raise through the property tax.
-- Levy limit: Legislators sometimes impose limits on how much property taxes may increase.
-- Limited market value: Agricultural, residential, cabin and timberland may not increase more than 10 percent a year or 15 percent of the difference between the two years' values, whichever is greater.
-- Local Government Aid: Money the state sends to cities so they don't have to collect as much property tax.
-- Market value-based levy and tax rate: Some voter-approved levies must be levied against market value rather than net tax capacity on which most property taxes are based.
-- Market value: Assessor's estimate of what property would be worth if it were sold.
-- Market value agriculture credit: State credit to reduce property tax rate paid by agricultural homesteads.
-- Market value homestead credit: State credit to reduce property tax rate paid by residential homesteads.
-- Property tax refund: Partial property tax refund program for those who have property taxes out of proportion with their income.
-- Special assessment: Charge made by a governmental unit against real estate to defray the cost of making a public improvement adjacent to the property which is of special benefit to the property assessed.
-- Special taxing districts: Besides city, county, school and township taxing authorities, a variety of other governmental bodies can levy property taxes. For example, watershed and mosquito control districts can levy taxes.
-- Taxable market value: This value is the dollar figure that is used to calculate the property tax. It is the final value after all reductions and limitations.
-- This old house: Tax break for owners of homes 45 years old and older.
-- Truth in Taxation statement: Mailed to property owners to show how much each governmental body is asking in property taxes.
Sources: League of Minnesota Cities, Minnesota House Research, various county governments