For more definitions, please see the Minnesota Department of Revenue Glossary.
| Term | Definition |
|---|---|
| Ad Valorem Tax | A tax based on the value of real estate or personal property. |
| Agricultural Homestead Credit | A state credit to buy down the property tax rate paid by agricultural homesteads to the local taxing jurisdiction. |
| Agricultural Preserves Credit | A reduction in property tax to enable agricultural use of land in areas facing development pressures. Property must be enrolled in the Metropolitan Agricultural Preserve Program in order to receive credit. |
| Apportionment | The share of property taxes given to each taxing district. |
| Class Rates | The percent of market value, set by state law, based on use and property type that establishes a property’s tax capacity which is subject to property tax. |
| Estimated Market Value | An assessor's estimate of what property would be worth if it were sold on the open market. |
| Green Acres | A property tax deferral program established for qualifying agricultural properties. |
| Homestead | A residence occupied by the owner or a qualifying relative of the owner. |
| Levy | The imposition of a tax, usually by a local unit of government. |
| Levy Limit | The amount a local unit of government is permitted to levy for specific services. |
| Local Tax Rate | The rate used to determine the property tax due on a property. |
| Powerline Credit | A property tax credit for certain properties that are crossed by high-voltage power lines. |
| Market Value | An assessor’s estimate of what property would be worth if it were sold on the open market. |
| Property Classification | The use of each parcel. For instance, property may be residential homestead (owner-occupied), residential non-homestead, agricultural, or commercial. Each classification is taxed at a different percentage of market value. |
| Property Tax | A tax levied on any kind of property. |
| Property Tax Refund | A partial property tax refund program for those who have property taxes out of proportion with their income. This program is available to homeowners and renters. |
| Referendum Market Value | The value of a property that is subject to taxation through a levied referendum. For most classifications, the referendum market value equals the estimated market value. |
| Riparian Rights | Riparian rights are the rights of a riparian landowner to certain uses of the river or stream adjoining their property. |
| Sales Ratio Study | A 12-month time period study of open market sales that is conducted by the Minnesota Department of Revenue. The study is then used as a guide to ensure that a property's market value adequately reflects the market. |
| Special Assessment | An improvement that directly benefits the property or other qualifying charges that is added as a separated amount to the tax statement. The property's market value is not used to determine the amount of a special assessment. |
| State General Property Tax | A state-imposed property tax on commercial, industrial and seasonal recreational properties. |
| Taxable Market Value | The estimated value determined by an assessor minus applicable exclusions and deferments. |
| Tax Capacity | The valuation of property based on market value and class rates, on which property taxes are determined. |
| Tax Increment Financing (TIF) | A financing tool giving some taxing districts the ability to promote growth where it might not otherwise occur. TIF directs a portion of the property taxes generated by the new development to pay for qualifying costs. |