Links:

If you have any questions on property tax Statutes, Local Board of Appeal and County Board of Appeal and Equalization training or general questions regarding property tax, please go to the following link:

Minnesota Department of Revenue

Other useful sites:

Minnesota Tax Court

Association of Minnesota Counties (County Websites)

Minnesota Statues, Laws, and Rules

Information, Laws, and Classifications

General Information about the Assessor ...

Minnesota assessors must be licensed by the Minnesota State Board of Assessors. To be certified by the State Board, an assessor must first successfully pass three week-long courses on assessment procedures and appraisal practice, and serve a one year apprenticeship under a licensed assessor. Assessors have a continuing education requirement of 40 to 50 hours of training over each four year period. Beyond this, there are additional State Board requirements for appraising income producing properties and performing more difficult assessment functions.

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What is the responsibility of the Assessor in the property tax system ... ?

County assessors estimate property market values and classify them according to their use for property tax purposes. Each year the assessor reviews the market valuation of your property to determine if changes in the real estate market require a change in the estimated market value. Minnesota law requires that assessors actually view each parcel of real estate every four years to appraise its market value. In addition, each year the appraiser inspects parcels with new construction, alterations or improvements.

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How are your Real Estate taxes determined ... ?

Taxing jurisdictions such as the county, schools, cities, and townships, adopt their budget after public hearings. From these budgets the County Auditor determines the tax levy, which is used to calculate the rate of taxation required to raise the money budgeted. The taxes you pay are proportionate to the value and classification of your property compared to other properties in your taxing district.

* Collect Taxes
* Calculate Taxes
* Determine Tax Rate
* Establish Property Tax Laws

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What is Market Value ... ?

Market value is the price a willing, knowledgeable buyer would pay for your property if it were offered for sale on the open market. The assessor does not create this value, but instead interprets what is happening in the marketplace. Values change with economic conditions as well as changes to the property.

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How is Market Value estimated ... ?

The assessor visits your property to record the existence and character of improvements that contribute to its market value. The assessor collects sales information on all types of property, and studies characteristics such as location, size of the parcel, improvements and amenities that affect what buyers would pay for your property. Local sales will impact local values. The assessor uses actual sales of similar properties in your neighborhood to estimate what buyers would pay for your property. (A single sale does not make a market.)

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What is Classification ... ?

Classification is a definition of how the property is used, determined by its ownership and use. Classifications such as residential, seasonal, commercial and agricultural describe the primary use of a property, and affect the amount of property tax paid. By state law, various classes of property are taxed at different rates. For example, two neighboring homes of equal value will be taxed at different rates if one is homestead and one is a non-homestead property. Class rates are created and defined by the Minnesota State Legislature. New homeowners should contact their assessor to apply for the preferential homestead classification.

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How can I judge the accuracy and fairness of my value and classification ... ?

The assessor who values and classifies your property should be your first contact if you have questions or want more information. If you are not sure who your assessor is, call the Isanti County Assessor’s office at 763-689-2752.  Your assessor can review your parcel records with you, review local sales activity, and general market trends. You can also review how other local properties are valued and classified to judge if your property is fairly valued and classified.

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Special programs that may lower your taxes ... 

This program allows people 65 years of age or older, whose household incomes are $60,000 or less, to defer a portion of their homestead property taxes. The deferred taxes accrue as a lien on the property and are due within 90 days after the property is sold, transferred, or no longer qualifies as a homestead. Applications are due by August 1 to the Minnesota Department of Revenue.

This program provides for an income tax credit on seasonal properties where the property taxes have increased more than 10% and the amount of the increase is $100 or more. The credit equals 75% of the first $300 of tax increase in excess of 10 percent. Minnesota property owners may claim this credit on their income tax return in the year after the property tax was paid.

Homestead property owners who are legally blind, permanently and totally disabled, or a paraplegic veteran are eligible for a reduced tax rate on a portion of the value of their property. In some instances, there are income requirements that must be met to qualify. Contact your assessor for more information.

Homestead and non-homestead property may be eligible under this program for a maximum of 12 months of property tax credit where at least 50% of the structure(s) has been accidentally destroyed by fire or natural disaster. The credit is for the full calendar months that the property is not usable. Property owners should notify their assessor when the disaster occurs and then apply for the credit at the time they begin reuse of the property in Isanti County.

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What is Agriculture Classification ... ?

The 1997 Legislature defined agricultural property as: 

Examples of products sold could be: corn, soybeans, wheat, oats, alfalfa, nursery stock ,Christmas trees, livestock and vegetables.

If 10 acres or more are enrolled in a government agricultural program, they may also qualify. Examples of programs are: CRP, RIM, Registered Tree Farm, Pheasants Forever.

Example of activities that do not qualify for the agricultural classification are: pasturing of family pleasure horses, selling firewood, land left idle, trees planted with no care or maintenance, wild duck ponds, dog kennels.

The Legislature intended the agricultural classification for farmers. Farmers annually put themselves at risk financially by investing in a crop they put in the ground or in livestock they raise to be sold later. The class was not intended for people who engage in agricultural activity as a hobby and not as their main source of family income.

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The Minnesota Agricultural Property Tax Law, commonly known as the Green Acres Law, provides for deferment of assessment and taxes payable on farm lands whose valuations have been increased by Assessor’s to reflect prices in excess of farm land values due to potential residential or commercial land requirements. The law provides that certain property owners, engaged in agricultural pursuit, can apply for deferment of higher valuations and consequent taxes payable, including special assessments, and continue to have the property valued based upon its valuation for farm purposes.

Real estate is considered to be in agricultural use provided that annually, it is devoted to the production for sale of agricultural products as defined in section 273.13, subdivision 23, paragraph (e).

This includes:

Slough, wasteland, and woodland contiguous to or surrounded by this land is considered to be in agricultural use if it is under the same ownership and management.

When real property which is or has been valued and assessed according to the "Green Acres" law no longer qualifies, that portion which no longer qualifies is to be subject to additional taxes in the amount equal to the taxes which were deferred. That is, the difference between the tax that is based upon the agricultural value and the tax that is based upon the market value. The tax that is based upon the market value is not to be greater than if the actual bona fide sale price at an arm’s length transaction has been used in lieu of the market value. The additional taxes are to be extended against the property on the tax list for the current year. The additional taxes are only to be levied with respect to the last years that the property had been valued and assessed under the "Green Acres". No interest or penalties are to be levied on the additional taxes if they are timely paid.

When real property that is valued and assessed under the "Green Acres" is sold, no additional taxes or deferred special assessments plus interest are to be extended against the property provided that the property remains qualified for "Green Acres" and the new owner applies for the continued deferment within 30 days of the sale.

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