EXCLUSIONS Exclusion Statute 2011 Value Purpose Application Market Value Exclusion 273.13, subd. 35 $29,271,297,983 Provide homestead incentive to classified as 1a (residential), 1b (blind/disabled) and 2a HGA (agricultural) For a homestead valued at $76,000 or less, the exclusion is 40 percent of market value, yielding a maximum exclusion of $30,400 at $76,000 of market value. For a homestead valued between $76,000 and $413,800, the exclusion is $30,400 minus nine percent of the valuation over $76,000. For a homestead valued at $413,800 or more, there is no valuation exclusion. This Old House subd. 16 $241,185,150 Designed to provide owners of older homes with an incentive to renovate them so as to preserve and revitalize older neighborhoods House 45-60 years: max of $25,000 House 70 years or older: max of $50,000 Only improvements made to the residence and garage are eligible for the exclusion Disabled Veterans 273.13, subd. 34 $1,487,991,908 To help ease the burdens of war for disabled veterans, primary family caregivers, and surviving spouses of qualified disabled veterans or those veterans killed in action 70-100% service connected disability: $150,000 Total (100%) and permanent disability: $300,000 Plat Law subd. 14a, 14b $200,201,455 Excludes increases in value that are associated with platting 1/3 of the difference between the 's unplatted market value and the market value based upon the highest and best use of the land as platted shall be added in each of the 3 subsequent assessment years This Old Business subd. 19 $61,400 Designed to provide owners of older business (those eligible for the preferred class rate on the market value up to $150,000) with an incentive to renovate them Assessor estimates the market value in the assessment year following the year the building permit is taken out. The increase over that year's assessment is excluded for each of the next five years. After the five years, the value will be added in 20% increments in each of the next five years. The max value of the exclusion from any is $50,000 Property Damaged by Mold subd. 21 No Data Incentive to clean up mold damaged properties The county board grants a reduction in the market value equal to the estimated cost of repairing the mold damage Lead Hazard Property subd. 22 No Data Incentive to remove lead hazard from properties classfied as: 1a, 1b, 1c, 2a, 4b, 4bb, 4d The reduction is a one-year valuation reduction equal to actual costs upto $20,000 Exclusions
CREDITS How Applied Local State Extend Payment NTC NTC RMV Thru Application Statute 2011 Value Eligibility Funding Paid by Dates Tax Tax Tax Chains Parameters Disaster 273.123 $605,326 homestead located within a disaster or emergency area ; DOR to per M.S. December 26 YES NO YES Only to the extent that the dwelling and garage may sit on multiple parcels applied to the homestead dwelling and garage Local Option Disaster 273.123, subd. 7 $109,921 homestead not qualifying for the Disaster or nonhomestead that is destroyed based on application and local discretion local levies NA NA YES NO YES Only to the extent that the damaged dwelling or structures may sit on multiple parcels applied to the damaged dwellings or structures Power Line Agricultural Preserves Disparity Reduction County Conservation 273.42 $87,516 473H.10 $572,794 273.1398, subd. 4 $6,279,233 273.119 $197,646 agricultural or nonagricultural homestead, nonhomestead agricultural land, rental residential, and both commercial and noncommercial seasonal residential recreational over which runs certain high voltage transmission lines agricultural lands and nonresidential buildings in agricultural use within an agricultural preserve class 4a, class 3a, and class 3b that is located in qualifying cities (This includes the cities of Breckenridge, Dilworth, East Grand Forks, and Moorhead.) land located in an agricultural preserve created under M.S. 40A levies on the 10% of power line net tax capacity set aside from local taxes, or 10% of receipts from taxes on power lines levied at the countywide average rate County Conservation Account; Minnesota Conservation Fund; County Conservation Account; Minnesota Conservation Fund NA NA County; if county fund is insufficient, MDE per M.S. to school, DOR to December 26 ; DOR to per M.S. December 26 County; if county fund is insufficient, MDE per M.S. to school, DOR to December 26 the whole gross tax on a parcel applied to classified as agricultural only applies to class 4a, 3a, and 3b applied to classified as agricultural s (2 pages)
CREDITS How Applied Local State Extend Payment NTC NTC RMV Thru Application Statute 2011 Value Eligibility Funding Paid by Dates Tax Tax Tax Chains Parameters Agricultural Market Value 273.1384, subd. 2 $23,689,705 Agricultural homestead ; DOR to (when not cut by separate legislation) per M.S. October 31 and December 27 YES NO NO YES ; credit is fractionalized for fractional Taconite 273.135 $14,582,380 homestead within a taconite tax relief area (This includes school 166, 316, 319, 381, 695, 696, 701, 706, 712, 2142, 2154, and 2711 located in Cook, Itasca, Koochiching, Lake, and St. Louis counties.) Taconite Property Tax Relief Account (and if necessary the Douglas J. Johnson Economic Protection Fund) both funded from taconite production taxes St. Louis County to each county for inclusion in May and October By April 15 and September 15 for inclusion in May and October YES NO YES YES ; limit is fractionalized for fractional Supplemental Taconite 273.1391 $7,840,148 homestead within certain school not included in the taconite tax relief area (This includes school 001 and 182 in Aitkin and Crow Wing counties, 317 and 318 in Itasca County, and 698 in Aitkin and St. Louis counties.) DOR to each county for inclusion in May and October July 20 and December 26 for inclusion in May and October YES NO YES YES ; limit is fractionalized for fractional s (2 pages)
EXEMPTIONS M.S. 272.01, subd. 1. All real and personal in this state, and all personal of persons residing therein, including the of corporations, banks, banking companies, and bankers, is taxable, except Indian lands and such other as is by law exempt from taxation. The basis of tax exemptions is the accomplishment of public purposes and not the favoring of particular persons or corporations at the expense of taxpayers. Ownership, use, and necessity of ownership are key elements in determining exemption. It is important to note that that is exempt from tax is not exempt from special assessments. Special assessments are not taxes; they are fees for a service or improvement. MN Constitution, Article X, Section 1. Power of taxation; exemptions; legislative powers. The power of taxation shall never be surrendered, suspended or contracted away. Taxes shall be uniform upon the same class of subjects and shall be levied and collected for public purposes, but public burying grounds, public school houses, public hospitals, academies, colleges, universities, all seminaries of learning, all churches, church, houses of worship, institutions of purely public charity, and public used exclusively for any public purpose, shall be exempt from taxation except as provided in this section. There may be exempted from taxation personal not exceeding in value $200 for each household, individual or head of a family, and household goods and farm machinery as the legislature determines. The legislature may authorize municipal corporations to levy and collect assessments for local improvements upon benefited thereby without regard to cash valuation. The legislature by law may define or limit the exempt under this section other than churches, houses of worship, and solely used for educational purposes by academies, colleges, universities and seminaries of learning. Type # Parcels 2010 Value % Total Public Property (Federal, state and local) 123,933 $37,176,226,065 44.36% K-12 Schools 6,133 $16,785,958,827 20.03% Church Property 12,238 $8,230,032,041 9.82% Colleges & Universities 2,403 $9,381,246,900 11.19% Hospitals 1,121 $5,035,379,900 6.01% Charitable Institutions/Nonprofits 5,222 $4,163,528,180 4.97% Native American Lands 3,436 $1,877,060,700 2.24% JOBZ Property 180 $38,480,655 0.05% Other 22,166 $1,113,107,172 1.33% Total 176,832 $83,801,020,440 100% Exemptions
Exemption Group Exemption Statutory Authority Indian Reservations Indian reservations 272.01 Cemeteries K-12 Schools Hospitals Cemeteries - public K-12 schools - public Public hospitals 272.02, subd. 2 272.02, subd. 3 or 42 272.02, subd. 4 Cemeteries - private K-12 schools - private Private hospitals 272.02, subd. 58, and 307.09 272.02, subd. 5 272.02, subd. 4 Colleges - public 272.02, subd. 5 or 21 Colleges & Universities, etc. Colleges - private 272.02, subd. 5 Apprenticeship training facilities 272.02, subd. 86 Church Property Church properties 272.02, subd. 6 or 74 Charitable institutions 272.02, subd. 7 Emergency shelters for victims of domestic abuse 272.02, subd. 13 Senior citizens facilities 272.02, subd. 14 Transitional housing 272.02, subd. 20 Charitable Institutions Ice arenas and baseball parks owned by non-profits 272.02, subd. 25 Recreational for Vets 272.02, subd. 27, 81 Ag historical society 272.02, subd. 49 Children's homes 272.02, subd. 75 Elderly living facilities 272.02, subd. 66 and 94 Nonprofit nursing homes 272.02, subd. 90 Forests, parks and wildlife refuges 272.02, subd. 8 Federal 272.02, subd. 8 State 272.02, subd. 8 or 18 Public Property County public service enterprises 272.02, subd. 8 or 30 County (all other) 272.02, subd. 8 or 30 Municipal public service enterprises 272.02, subd. 8 or 30 Municipal (all other) 272.02, subd. 8, 30, 60, 61, 62, or 91 or 272.021 and 273.0213 Special taxing 272.02, subd. 8, 30, 59, or 60, or 76-78 Economic Development Property Business incubator (nonprofit) 272.02, subd. 31 International economic development zone 272.02, subd. 83 Pollution control 272.02, subd. 10 and 41 Ag containment facilities 272.02, subd. 23 Pollution Control Property Manure pits 272.02, subd. 28 Water and wastewater treatment facilities 272.02, subd. 32 or 63 Monosloped roofs 272.02, subd. 87 Wetlands Wetlands 272.02, subd. 11 Native Prairie Native prairie 272.02, subd. 12 Hydro power 272.02, subd. 15 Utilities Hot water heat by nonprofit group 272.02, subd. 17 Wind energy conversion systems 272.02, subd. 22 Miscellaneous 272.02, subd.16 or 57,79,88; Laws 2005, c152, art1, s38; 473.753; Laws 2009, c88, art2, s45 Misc. Taconite production tax land & building only 272.02, subd. 73 Modular homes used as models 272.02, subd. 85 Exemption enumerated in Article X of the MN Constitution List of Exemptions