Property Taxes, State Funding & Fiscal Issues

ptdocs Funding of city government operations in Minnesota is derived primarily from property taxes and state aids and credits, including local government aid (LGA). The League provides a variety of resources to help cities and others understand complex state-aid formulas, trends in state funding and property taxes, and a host of other fiscal issues.
___________________________________________________________________________

Change from MVHC to market value exclusion program
During the 2011 special session, the Legislature repealed the market value homestead credit (MVHC) program and created a new market value exclusion for qualifying homes. These changes are effective for taxes payable in 2012.
Read more and access resources to manage this change ___________________________________________________________________________

Property tax reports
Each year the League prepares an annual property tax report containing levy and rate information for all Minnesota cities. (The report and property tax data are also published in Minnesota Cities magazine.)
Read more and access LMC property tax reports (2002-2012)
___________________________________________________________________________

Revenue recapture authority for cities
Under 2008 Session Law chapter 154, cities are given more general authority to contract with the Department of Revenue (DOR) to collect certain unpaid debts (article 16, section 6). Cities had a limited use of this tool prior to passage of this legislation. Now cities can use the tool for such debts as unpaid taxes, interest and penalties on the unpaid taxes, criminal and petty misdemeanor fines, and court-ordered restitution. The new authorization makes changes to Minnesota Statutes, section 270A.
Learn more about revenue recapture from the Department of Revenue web site
View the form to contract with the DOR for revenue recapture (pdf)
View a DOR fact sheet about revenue recapture (pdf) ___________________________________________________________________________

Tax increment financing (TIF) decertification
TIF is a tool for economic development. When TIF districts are decertified, it can affect a city's tax base and LGA distribution.
Read more about TIF Decertification
___________________________________________________________________________

Property Tax Calculator
Our Property Tax Calculator is an interactive tool that allows users to compare cities with each other and over time.
Access the Property Tax Calculator
___________________________________________________________________________

View other key League resources

LGA resources

Property tax resources

City budgeting resources