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Albany Industries, a Minnesota non-profit corporation, works with the local
government on Economic Development Projects.
REAL ESTATE TAXES:
Minnesota real estate taxes are based on
each property's tax capacity value that is calculated
from the property's taxable market value (the value after all reductions,
limitations, and deferrals have been subtracted from a property's
estimated market value) and classification rate. The tax capacity
value is multiplied by the tax capacity rates as set by the school
board, county board of commissioners, and city council, and if
pertinent, any miscellaneous district boards. When applicable, a
state general property tax rate is applied to commercial/industrial and
seasonal recreational residential properties. A referendum market
value tax is added to the property tax bill by multiplying the
referendum market value by the market value rate.
For commercial/industrial property (one ownership
parcel), the following formula is used to calculate the property's tax
capacity value: the first $150,000 of market value times 1.5% and
the remaining market value times 2.00%.
For residential homesteaded property, the property's tax
capacity value is calculated on the taxable market value: the
first $500,000 of taxable market value times 1.00% and over $500,000 of
taxable market value times 1.25%. The total tax on residential
homesteaded property is also reduced by a homestead market value tax
credit. This credit is equal to 0.40% of the taxable market value
with a maximum amount of $304, reduced by a credit phase-out equal to
0.09% of the taxable market value greater than $76,000 (that reduces it
to $0 for taxable market value equal to or greater than $413,800). |
