Understanding Truth in Taxation Notices

Understanding your Proposed Tax Notice

The Truth in Taxation (TNT) Notice also known as the "Notice of Proposed Taxes" is mailed in mid-November each year. The notice estimates the property tax you will pay in the following year if the taxing jurisdictions approve the budget amounts they are considering. Property owners are invited to attend meetings held by the local units of government to express their opinions on local budgets and taxes.

Descriptions of Items that Appear on Notices

Taxable Market Value The taxable market value is the value used for determining the tax capacity or tax base of a property. It may be less than the Estimated market value, the value assigned by the county assessor, that you received on your value notice in March.

Property Classification

The legislature has established a property tax structure where the portion of a property's value that will be used for taxing purposes varies by the use or type of property. It also has established specific benefits that apply to particular uses. The most common are:

  • Home
  • Relative Homestead
  • Disabled Homestead
  • Agricultural
  • Commercial, Industrial
  • Public Utility

State General Tax

The State General tax is a statewide property tax levied by the State of Minnesota for taxes payable in 2002 and future years on commercial, industrial and seasonal properties. These taxes are paid to the State of Minnesota and go to the State General Fund with a portion used to fund school related expenditures.

School Voter Approved Levies

This includes all levies and debt obligations approved by the voters in that school district.

Note: If a referendum was passed at the November general election, the increase will not be reelected on the TNT notice.

School Other Local Levies

This includes school levies for community services and debt obligations that are not voter approved.

Other Special Taxing Districts

This includes the Cannon Falls Hospital District, Red Wing HRA, Red Wing Port Authority and Belle Creek Watershed. Not all areas have each of these districts.

Tax Increment Financing

A municipal development program enabling a city to use the additional property taxes that a proposed development project would generate to finance land acquisition, demolition and other costs necessary for that development to occur. Usually the issuance of a bond is necessary to finance these up front costs. Bonds are repaid by the extra taxes that are generated by the new development and construction. The taxes captured to repay the bonds come from all the taxing districts that normally levy a tax on the property. Properties with the same market value, class and area will pay the same tax even if one is in a tax increment district and the other is not. For further information about tax increment financing see the House Research report at the legislative website.