Property Taxes, State Funding & Fiscal Issues

ptdocs Funding of city government operations in Minnesota is derived primarily from property taxes and state aids, 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.

Property tax resources to share with residents

A short video designed to help city residents better understand the local property tax system is available from The League of Minnesota Cities. City officials are encouraged to post this video, titled Special Delivery: City Services and Your Property Taxes on city websites, show the video at truth-in-taxation meetings and other public gatherings, and share it via social media. Short on time? The video is also available in three parts. Try showing part 1 to your audience for a quick primer.

You can find all the video segments on the Minnesota Cities Youtube channel.

Watch the complete Special Delivery video

video test

The League also has an FAQ resource—Why Your Property Taxes Change from Year to Year—to help you engage residents as your city finalizes its budget and property tax levy. You can share the FAQs with residents via your city website or newsletter. You can also print copies to have on hand at city hall events.
View the resource: Why Your Property Taxes Change from Year to Year (pdf)

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 a comparative data table are also published in Minnesota Cities magazine.)
Access the most recent LMC property tax reports

Revenue recapture authority for cities
Under 2008 Session Law chapter 154, cities have general authority to contract with the Department of Revenue (DOR) to collect certain unpaid debts (article 16, section 6). 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 authorization made changes to Minnesota Statutes, section 270A.

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