The Assessor's Office mails a Value Notice to each property owner around the beginning of March every year. The assessment on January 2 forms the basis for the following year’s tax. A value notice is sent in March of the current year that would be the basis of your property taxes for the following year.
The market value of property, defined by Minnesota Statute 272.03, subd 8., provides the basis for the amount of property taxes you pay each year. This market value is based off of open market sales data over a year-long period. It also takes time to notify property owners of the value of property, so the market value that is established in one year is used to formulate the property taxes for the next year.
Understanding your notice
Each Notice of Valuation includes the following:
Estimated Market Value
This value is what the assessor estimates your property would likely sell for on the open market. State law requires assessors to value property at 100 percent of market value. See Determining Market Value for an expanded definition.
Value of New Improvements
This is the assessor's estimate of the value of the new improvements you have made to your property in the last year. New improvements are not eligible for limited market value.
Taxable Market Value
This is the value that your property taxes are actually based on, after all the reductions, limitations and deferrals. Your taxable value, along with the class rate and the budgets of your local government, will determine how much you will pay in taxes. The taxes you will pay in May will be determined from the previous year's taxable market value. Remember: your property is assessed in one year and taxed in the next year.