Commercial/Industrial Property:

(M.S. 273.13, subd. 24) provides that, each parcel of commercial, industrial and utility property has a reduced class rate on the first-tier of market value ($150,000) and "Non-preferred" rate on the remaining market value, except in the case of contiguous parcels owned by the same person or entity. The first-tier rate is synonymous with the "Preferred" Class Rate. Contiguous parcels will be classed at the "Non-preferred" rate. Please call your assessor for details and exceptions.

Green Acres:

Green Acres only applies to property that is primarily used for agricultural purposes that is facing increasing values due to development pressure not related to the agricultural value of the land. The assessor arrives at this lower value by looking at what comparable agricultural land is selling for in areas where there is not development pressure. The taxes on higher value are deferred until the property is sold or no longer qualifies for the program.

Limited Market Value (LMV):

The limited market value has been phased out. Starting with the 2009 assessment for taxes payable in 2010, there is no longer any limited market value.

Prior to the 2009 assessment there was a limit of how much the taxable value of certain properties could increase, with the exception of new improvements. Limited Market Value was determined by calculating the difference between the current year's estimated market value and the previous year's limited market value. For each year specified below it was whichever number that was greater. This only applied to agricultural, residential, timberland, or noncommercial seasonal recreational residential (cabins) property. (M.S. 273.11, Subd. 1a)

2003 assessment payable 2004 12% or 20% of the difference

2004 assessment payable 2005 15% or 25% of the difference

2005 assessment payable 2006 15% or 25% of the difference

2006 assessment payable 2007 15% or 25% of the difference

2007 assessment payable 2008 15% or 33% of the difference

2008 assessment payable 2009 15% or 50% of the difference

2009 assessment payable 2010 - No more limited market value

Annual Market Valuation Notice:

During the year of assessment, the assessor's office notifies property owners of the new market value of their property. This notice must be mailed to the property owner, so as to be received by the property owner at least ten days before the local board of appeal and equalization meeting and must include information about the market value appeal process, in addition to the following information:

The estimated market values for both the current and prior year assessments;

The limited market value for both the current and prior year assessments and

The classification of the property for both the current and prior year assessments.

Open Space:

Provides for a deferment of assessments and taxes payable on private outdoor, recreational, open space and parklands whose market values are higher than the values supported by their current recreational use. Nondiscrimination amendment authorizes county officials to review rules, by-laws and practices of private golf clubs that restrict golf course use, and authorizes county assessors to deny tax benefits when such rules, bylaws, or practices do not comply with the statue as interpreted by these guidelines. (M.S. 273.112)

Plat Deferment:

For land that has been recently platted (divided into individual lots) but not yet improved with a structure, the increased market value due to platting is added over a phase-in period. If construction begins before the expiration of the phase-in period, the lot will be assessed at full market value in the next assessment.

Property Classification:

The statutory classification (M.S. 273.13) that has been assigned to your property based upon your use of the property. A change in classification of your property can have a significant impact on the real estate tax payable.

Quintile Reappraisal/Assessor's Revaluation:

Approximately every fifth year, an appraiser from the assessor's office will physically view each property. The appraiser gathers information on all characteristics of the property that may affect market value. The appraiser will always have Steele County credentials and may or may not require an interior inspection.

Sales Ratio Analysis:

This term refers to the process the assessor uses to measure market conditions by comparing the assessor's estimated market value with the sales prices. The Department of Revenue also uses the sales ratio analysis to measure assessor's performance.

Taxable Market Value (TMV):

This is the value that your property taxes are actually based on, after all reductions, limitations, exemptions and deferrals. Your 2011 value, along with the class rate and the budgets of your local government, will determine how much you will pay in taxes in 2012.

This Old House Exclusion (TOH):

This is a value exclusion for certain improvements. This is the amount of the new improvement value excluded from taxation on homestead property 45 years of age or older (M.S. 273.11, Subd. 16). Improvements that increase the estimated market value by $5,000 or more may have some of the value excluded from taxation. Only improvements made before January 2, 2003, and assessed for the 2003 assessment will qualify for this exclusion. Value that has been deferred for 10 years began phasing in with the 2004 assessment.

Value of New Improvements:

This is the assessor's estimate of the value of new or previously un-assessed improvements you have made to your property. These improvements are not eligible for limited market value.