Funding for the services that cities provide across Minnesota is derived primarily from property taxes and state revenue-sharing, including local government aid (LGA). The League provides a variety of resources to help cities and others understand trends in state funding, the intricacies of the property tax system, and a host of other fiscal issues.
- Local Government Aid: Questions and Answers (pdf)
- Local Government Aid 101 (pdf)
- LGA Formula Key Points (pdf)
- LGA Key Terms and Definitions (pdf)
- History of Local Government Aid to Cities (pdf)
PROPERTY TAX RESOURCES TO SHARE WITH RESIDENTS AND OTHERS
Video on city services and property taxes
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
FAQs on property taxes
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)
More property tax resources to share with residents and others
- Property Taxation 101 (pdf)
- Property Tax Statement 101 (pdf)
- Fiscal Disparities 101 (pdf)
- State Homeowner Property Tax Relief Programs 101 (pdf)
- Homestead Market Value Exclusion 101 (pdf)
PROPERTY TAX RESOURCES FOR CITIES
Fiscal Disparities Program
Fiscal Disparities is a revenue-sharing program that applies to cities in the Twin Cities metro area and on the Iron Range.
—Access Fiscal Disparities resources
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
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
CITY BUDGETING RESOURCES
- City Fund Balances 101 (pdf)
- Dates for City Budgets 101 (pdf)
- Implicit Price Deflator (IPD) for State and Local Government Consumption Expenditures and Gross Investment (pdf)
- Current city population estimates from the Minnesota state demographer’s website
RESOURCES ON OTHER FISCAL ISSUES
Revenue recapture authority for cities
Cities have general authority to contract with the Department of Revenue (DOR) to collect certain unpaid debts. 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.
—Learn more about revenue recapture from the DOR website
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
Resources from the State of Minnesota
MN House of Representatives House Research:
Visit them at www.house.leg.state.mn.us/
MN Department of Revenue:
Visit them at: www.revenue.state.mn.us