There are many state laws that affect both the amount of your property tax and the way it's determined.
Learn why property taxes vary from year to year (PDF, 1MB).
Tax levies
There are more than 70 local governments in Hennepin County.
All properties are part of more than 1 taxing district. A property can be in a county, city, school district and other special taxing districts.
Each year local governments determine what local services they will provide. They do this in their budget process.
They decide how much the services will cost, and where they'll get the money.
After taking into account other sources of revenue like state paid aid, fees, etc., the rest is levied on taxable properties.
Local governments may decide not to change the amount of their levy from one year to the next. If this happens, your tax may go down, go up, or remain the same.
The county auditor calculates the tax rate for each taxing district by using the levy and property assessment data.
Property value
The assessor determines the value of your property. Property assessment.
The value of your property relative to the value of all other property in the district is the basis for your share of the levies.
Property use
Property is taxed based on its use even if it has the same market value as another property.
For example, commercial property has a higher tax than residential property of the same value.
Classification and use are assigned during the annual property assessment.
Things I can do to impact my property tax
There are several ways you can take part in the property tax process.
- Attend the annual truth-In-taxation meeting to discuss how tax levies were determined for the coming year. If your district is not required to have a meeting or you cannot attend, call or write your elected officials.
- Direct questions about your property value or its classification to your local assessor.
- If you are concerned with spending, get involved in the budget process.
- Contact your state representative and/or state senator, if you would like to see changes in the property tax process.