FOR RESIDENTS
Tax Information
- Homestead tax credit
- How taxes are calculated
- Property taxes
- Senior citizen property tax deferral
- Special assessments
- Who gets the money?
Homestead tax credit
Individuals who live in their own home qualify for a real estate tax credit. This credit provides homeowners with substantial property tax savings. To qualify for the tax credit, you must own and occupy your home before December 1.
Individuals who own a home but live in a nursing home also qualify for homestead status. In addition, relatives who are living in the owner's home may retain the home's homestead classification.
To file for homestead, all new homeowners must come, in person, to city hall with evidence of title transfer. Proof of ownership can be a warranty deed, contract for deed, certificate of title, or quit claim deed. After the first filing, your homestead status is automatically renewed. No further action is required until you sell or rent your home or you no longer use the home as your primary living place.
Property owners who are permanently and totally disabled or blind may qualify for a tax reduction. For more information call (952) 924-2535
How taxes are calculated
Policy makers - school board, city council and county board - set the budget for their governmental entity. Public hearings about the proposed city and county budgets are held in November or December, and their final budgets are set by late December. The school district budget is developed in the spring for the upcoming school year.
Property taxes are set each year by determining the amount needed to provide services to the community. This amount is spread across the community based on taxable market values and property class rates.
Property taxes are based on assessed value. Minnesota law requires that the assessed value of your home reflect its market value: the price a buyer would typically pay for your home in today's real estate market. Assessors set your home's value by comparing what similar homes in your neighborhood actually sold for in the last year. For questions about your home's assessed value, call the city assessor's office at (952) 924-2535.
Property taxes do not fund either the state or federal government. These are funded by income and sales taxes.
Property taxes
Property taxes are set each year by determining the amount needed to provide services to the community. This amount is spread across the community based on taxable market values and property class rates. (The residential rate is different than a commercial or apartment rate.)
Minnesota law requires that the assessed value of your home reflect its market value: the price a buyer would typically pay for your home in today's real estate market. Assessors set your home's value by comparing what similar homes in your neighborhood actually sold for in the last year. For questions about your home's assessed value, call the city assessor's office at (952) 924-2535.
Hennepin County mails property tax statements in late March. If you have a question about your tax statement or need a new copy, call the County Property Tax Statement Office at (612) 348-3011.
Taxes can be paid in two installments. The first half-payment is due no later than May 15, and the second payment is due no later than October 15. Most property owners pay their property taxes as part of their monthly mortgage payment.
Senior citizen property tax deferral
Are you a senior citizen concerned about your ability to pay your property taxes? If so, the State of Minnesota's Senior Citizens Property Tax Deferral program may be able to help. Under this program, qualifying seniors pay no more than three percent of their net income toward their tax bill and the state pays any remaining tax as a low interest loan. The unpaid tax along with accumulated interest then becomes a lien on the property. This lien must be satisfied when the property is sold. Participants who apply for property tax refunds or rebates do not receive the refunds or rebates as cash payments. Instead, the refunds or rebates are applied to the deferred property tax total.
To be eligible, you must be at least 65 years old, have a household income of $60,000 or less, and have lived in your home for at least 15 years. Forms and instructions are available from the State of Minnesota's web site at http://www.taxes.state.mn.us/taxes/property/forms/crscd.pdf
Special assessments
Special assessments are one way that property owners pay for the benefit they receive from construction or repair of streets, sidewalks and alleys. The cost of a public improvement is usually divided on a front-foot or area basis. Public hearings are held to order the improvement and specify the special assessment amount for each property.
Special assessment payments are due November 15. Property owners pay a portion of the assessment, plus interest, over a period of years with the annual real estate taxes. Typically, special assessments are paid over a 20 year time period. Certified special assessments also may be paid in full at any time. Usually, special assessments must be paid in full at the time of sale.
Who Gets The Money?
Of a typical homeowner's $2,297 property tax payment, the City of St. Louis Park receives $643. The remaining $1,654 is divided among the county, school district and other governmental entities.
Here's how your property tax payment is allocated:
- St. Louis Park School District - 29 percent
- Hennepin County - 34 percent
- City of St. Louis Park - 28 percent
- Other entities - 9 percent (Mosquito Control District, Metropolitan Council, Watershed District, Metro Transit & vocational-technical schools)