City Of St. Louis Park: Understanding Property Taxes

Press release from the City of St. Louis Park:

November 01, 2021

Why do we have property taxes?

Property taxes are the primary funding source for local services provided by cities, counties, school districts and other special districts. Unlike sales or income taxes which can vary, the property tax is an exact levy to fund budgets – no more, no less. Property taxes work in three steps.

Step 1 – Determining assessed value and classification

The city’s assessing office determines the estimated market value (EMV) and classification (use) of your property on Jan. 2 each year. The EMV is determined after reviewing market activity (comparable sales, rents, costs). The EMV may be reduced by programs such as the homestead market value exclusion and disabled veteran exclusion which “exclude” part of the value from taxation. This reduced value is known as the taxable market value (TMV). The TMV is converted into tax capacity by the classification rates set by the Minnesota legislature. Note: If there are no exclusions, the EMV and TMV may be the same.

How am I notified?

The valuation and classification notices are mailed in March. When you receive the notice, read it carefully. If you believe your property valuation and classification are accurate, no further action is needed. If you have questions about either, contact the St. Louis Park Assessing Division at 952.924.2535. Most questions can be answered in an informal discussion. If you disagree with the valuation or classification, follow the appeal process steps listed on the notice. Don’t delay in calling – this is the time to appeal or question your valuation and classification. Valuations cannot be appealed after proposed property taxes are sent. Taxes may not be appealed.

Step 2 – Establishing a budget

Every year, local governments establish a budget for the following year after determining planned revenue and expenses. The property tax levy is set in September and is determined by subtracting all non-property tax revenue from the total proposed budget. The preliminary levy for each of the taxing jurisdictions (county, city, schools, Metropolitan Council, watershed, etc.) is totaled and spread among all taxable properties according to their individual tax capacity.

How am I notified?

The Truth-in-Taxation notice is the second notice you will receive. Sent in November, it shows the proposed tax amount for the following year for each taxing jurisdiction (county, city, schools, Metropolitan Council, watershed, etc.). The notice also includes the meeting dates where you can provide input on the budgets and proposed levies. Budgets are finalized in December after these meetings.

Step 3 – Calculating property taxes

Your property taxes are calculated using the prior year’s value and classification relative to the budgets levied. The property tax is your share of the costs to provide the services approved by elected officials.

How am I notified?

The final notice you receive is your property tax statement, which tells you how much property tax you owe for the year. It provides an itemized list of all local property taxes, including city, county, school district, etc. It also includes any special assessments on your property. Property tax statements are mailed by March 31 of each year.

When are property taxes due?

Most property taxes are due May 15 and Oct. 15 in equal installments.

Potential property tax refunds

Property owners and renters are urged to annually review their eligibility for property tax refunds. The Minnesota Department of Revenue’s website offers information about refunds and property taxes. For information about refunds, enter “property tax refunds” in the website’s search bar. For more information on property taxes in general, enter “property tax fact sheets” in the search bar.

You may also contact the St. Louis Park Assessing Division at 952.924.2535 for more information.

This press release was produced by the City of St. Louis Park. The views expressed here are the author’s own.