Understanding Your Property Taxes
Minnesota has a complicated property tax system. The League of Minnesota Cities explains the property tax system and why property taxes change from year to year.
The Homestead Market Value Exclusion (HMVE)
The homestead classification applies to properties occupied as primary residences by their owners. The state regulates the program.
Property Tax Statements
Hennepin County creates and mails all property tax statements. If you need a copy of your property tax statement, go to the Property Information Search section of the Hennepin County website and search for your property under the subhead "Property tax information online." Property tax statements payable in the current year are mailed by Hennepin County in early March and will be available online after April 1.
Each year in November homeowners receive a notice in the mail that outlines their proposed property tax for the coming year (see example). The notice also lists dates for the budget hearings of the various taxing jurisdictions (county, city, school district) so property owners can provide public comment. Golden Valley's 2021 Truth in Taxation meeting will be held Dec 7, 2021.
City Council meetings are being conducted in a hybrid format with in-person and remote options for attending, participating, and commenting. The public can make statements in this meeting during public comment sections, including the public forum.
Remote Attendance/Comment Options:
Members of the public may attend this meeting by watching on cable channel 16, streaming on CCXmedia.org, streaming via Webex, or by calling 1-415-655-0001 and entering access code 177 760 7633. Members of the public wishing to address the Council should call 763-593-8060.
Information about how to access and/or participate in the virtual meeting is available in the meeting agendas:
- Dec 7 HRA Special Meeting (6:30 pm)
- Dec 7 City Council Meeting (follows HRA Meeting)
You may also provide written comments via email to the City Finance Director or leave a voicemail at 763-593-8010.
- Leave voicemail or email by 2 pm on meeting date to ensure adequate time to disseminate your comment or testimony to the City Council.
- Include the item number and item name listed on the agenda.
- Include your name, phone number, and address when leaving a voicemail or email.
- Please indicate if you also plan to call in during the meeting to provide live comment or testimony.
1. Your Property Is Assessed And Its Market Value Determined
First, the assessor sets the market value of your property. Market value is the value, for tax purposes, of a particular parcel of property (land and buildings). County assessors value all property in the City annually.
Notices indicating these market values for the coming year are sent out in March. In April, the City’s Board of Review hears appeals, if any, from property owners. By July, market values are set. There is a lag time between when the property value is set and when the taxes are paid.
2. The Market Value Determines Your Property's Tax Capacity
Second, the tax capacity for each piece of property in the City is calculated by a formula that varies by property type. The formulas are set by the legislature and are subject to change. Total tax capacity, which becomes the City’s tax base, is determined by adding the tax capacities of all individual parcels of property in the entire City.
|Tax Capacity Percentage Table|
|Property Type||% of Market Value|
1% of first $500,000; 1.25% over $500,001
1% of first $500,000; 1.25% of remainder
|1.50% of first $150,000; 2% of remainder|
For example, the tax capacity on the average $335,000 residential homestead in Golden Valley is calculated this way:
- $345,000 (estimated market value) - $6,190 (homestead market value exclusion) = $338,810 (taxable market value)
- $338,810 (taxable market value) x 1% (tax capacity percentage) = 3,388 (tax capacity)
3. City Determines Budget & Levy
Third, the City must determine its total gross tax levy, or the amount of property tax money the City needs to operate and pay its loans (which is the debt service on bonded debt) each year. This amount is determined as part of the annual budgeting process.
4. City Calculates Tax Capacity Rate
Fourth, the City must calculate its tax capacity rate, which is used to calculate the amount of tax to be paid by all City taxpayers. It is determined by dividing the tax levy by the City’s total tax capacity.
5. Your Property Tax Amount Is Calculated
Finally, the City tax on a given property is calculated by taking the City's proposed tax capacity rate (52.19%) times the tax capacity of the property.
- Example: $3,388 (your tax capacity) x .5400 (City's proposed tax capacity rate) = $1,829.52 (your City property tax)