Minnesota Property Tax Watch for Taxes Payable in 2016
Minnesota taxpayers will soon have their first real glimpse of their 2016 real estate property tax obligations. Assessed values for 2016 taxes were sent in March or April, but many times the notices of value are filed away without much scrutiny. Now, taxpayers should expect to receive truth-in-taxation notices by November 24, 2015.
The truth-in-taxation notice will provide taxpayers with the proposed property tax levy and taxpayers will finally see a real amount for the property taxes they owe for 2016.
Assessed Value Trends
Assessed values are rising across all commercial property types. The following chart shows the average changes in value for five of the largest Twin Cities counties.
| Assessed Value Increases Between 2015 and 2016 taxes By Property Category | |||
| County | Apartment | Commercial/ Industrial | Total Increase (all property types) |
| Hennepin | 20.15% | 6.43% | 6.80% |
| Ramsey | 9.04% | 2.44% | 3.84% |
| Dakota | 5.15% | 1.81% | 4.71% |
| Washington | 8.33% | 1.35% | 2.80% |
| Anoka | 11.78% | 3.96% | 3.65% |
| Source: Hennepin, Ramsey, Dakota, Washington, and Anoka County Annual Assessment Reports; percentages calculated by Larkin Hoffman based on total assessed value per category. | |||
It is no surprise that the apartment category is leading the charge, but commercial and industrial properties are increasing across the board as well. Some will be subject to greater increases than others, but generally all values are going up quickly.
Potential Real Estate Tax Levies
Real estate tax levies are not all published. However, we have obtained data from some metro jurisdictions and the indication is that many jurisdictions are increasing their levies. Some jurisdictions are even increasing their levies faster than the tax base can rise.
Conclusion
Commercial real estate taxpayers should expect their real estate taxes to increase. Pay close attention to your truth-in-taxation notice – the tax will probably catch your eye, but taxes are based on the property’s assessed value, and we can challenge the value. The appeal deadline is April 30, 2016. We would be happy to review the assessed value of your property at no charge.
We frequently handle appeals on a contingent fee basis, so you will not pay us unless we reduce the assessed value of your property, which reduces your tax burden. If interested in a free review, please call Tim Rye or fill out our Property Tax Appeal Intake Review Form.