Property Tax, Elections and License CentersProperty Taxes
In Minnesota, property taxes provide most of the funding for local government services. Carver County collects the taxes and distributes the money between the county, cities, townships, school districts and special districts such as the Metropolitan Council, Southwest Metro Transit, Water Maintenance Organizations, and the Metropolitan Mosquito Control District. Each property's share of taxes is determined according to its value, use, and the property tax levies. Assessors are responsible for estimating property values and setting property classification for tax purposes. State law requires that the value and classification of real estate be established as of January 2 each year. Property Assessment Department staff work throughout the year to estimate the market value of each property for the following January 2 assessment date. Every fifth year, an appraiser will physically review the property, both the interior and exterior. If the owner is not home, a door tag is left explaining the inspection process. The appraiser will still perform an exterior review at that time. In addition, all new construction, alterations or improvements will be viewed in the current year.
Certified Property Tax Levy
The Certified Property Tax Levy is the primary funding source for the County budget and the source of revenue over which the County has the most control. The levy request is determined by first applying all other funding sources against the costs for the budget year and then determining the amount needed to cover remaining costs. Once established, the property tax levy cannot be increased during the year. The county's annual budget includes the amount of property taxes levied for the year and estimated penalty fees.
Taxes on the Average-Value Home
The County Board directed that the County's 2015 tax impact on the average-value home not increase despite the significant increase in value of the average-value home: The value of the average home in Carver County increased from $267,300 in 2014 to $294,100 in 2015. The County's portion of the total property tax bill on an average-value home for 2015 will remain the same 2014 at $1,145. This means that 2015 is the tenth consecutive year that owners of an average-value home will be paying the same or less in County taxes compared to the previous year.
The following shows the changes in average home values and taxes from 2006 to 2015. It also shows how the average home's property tax has continually decreased compared to the Consumer Price Index (CPI), which has grown over the past several years. Carver County's bond rating, which is also listed on the chart, has been at the highest possible AAA rating since 2010.
Effective Tax Rate
The effective tax rate is the percentage of market value a homeowner is paying in property taxes. It is calculated by taking the home's market value and dividing it by the tax. Rising home values and the relatively modest rate of tax increases by the County resulted in a decreasing effective tax rate from 2006-2008 and again in 2014, as shown in the following graph. The upward movement of this tread reflects the decreasing valuation of homes that began in 2008 and ended in 2013.
The Taxpayer Services Department offers additional information on property taxes including the following:
More information on property taxes can also be found on the Minnesota Department of Revenue site.
Sales tax in Carver County is 7.375% throughout the county. The Minnesota Department of Revenue offers a Sales Tax Rate Calculator to determine the state and local general sales and use tax rates that apply to sales made in Minnesota.