Our Community

Property Taxes

Minnesota commercial real estate taxes are based upon market value of taxable property as set by the local assessor. To compute the tax for the year 2004, first compute the tax capacity by multiplying all property value up to $150,000 times .015, plus any value over $150,000 times .02. Tax capacity times the tax rate equals taxes owed. In some localities where voters have approved referendums, an additional referendum tax must be added, calculated by multiplying the referendum tax rate times the total market value of the commercial property.

Net tax capacity on a $200,000 business property: ($150,000 * .015) + ($50,000 * .02) = $2,250 + $1,000 = $3,250

Source: League of Minnesota Cities based on Minnesota Department of Revenue tax abstracts.