Glossary of Terms

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Abatement


Government Survey


Right of Way

Acre


Gross Tax


School District Referenda Market Value

Ad Valorem Tax


Homestead


Special Assessment

Ag Preserve Credit


Homestead and Ag Credit Aid (HACA)


State Aids

Amount Due


Improvement


State General Tax

Appeal


Initial Tax Rate


Statute

Assessed Market Value


Legal Description


Structure

Assessment Date


Levy


Survey

Class Rate


Lien


Tax Capacity

Classification


Local Government Aid


Tax Increment Financing (TIF)

Date Due


Local Tax Rate


Tax Roll

Disparity Reduction Aid


Ownership


Taxes

Easement


Plat


Taxpayer

Equalization


Plat Deferral


This Old House

Estimated Market Value


Property


Title

Excess TIF


Property Class


Township

Fiscal Disparities


PID (Property Identification Number)


Tract

Foundation Square Feet


Property Tax


Truth in Taxation

Green Acres Land


Property Tax Levy


Value

Government Lots


Real Estate


Valuation





Waste Management Fee

Abatement:

A reduction or decrease in taxable value that results in a reduction of taxes after an assessment and levy.





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Acre:

A measure of land, equal to 160 square rods (43,560 square feet) in any shape.





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Ad Valorem Tax:

A tax based on the value of a property.





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Ag Preserve Credit:

A program available to qualified agricultural properties which provides annual property tax credits. For more information, contact the Assessor's office at (952)361-1960.





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Amount Due:

The total tax due if paid on or before the due date.





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Appeal:

The process by which a property owner contests an assessment, formally or informally, in Minnesota.





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Assessed Market Value:

County/City Assessor's determination of the market value of a piece of property.





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Assessment Date:

The date as of which the Assessed Market Value is based. The valuation and classification of a property is based upon its status on January 2 for taxes payable in the following year for Real Estate and Personal Property. Taxes payable on Manufactured Homes are based on the assessment on January 2 of the payable year.





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Class Rate:

Statutory percentage applied to the taxable market value of a parcel based on the parcel's classification. Class rates are uniform throughout the state.





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Classification:

The class that a type of property is assigned. A property's classification is based upon the existing use of the property. If the land is vacant and there is no identifiable use, the property classification would describe the most probable use of the land.





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Date Due:

The final date that the amount due can be paid before late fees begin to accrue.





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Disparity Reduction Aid:

A general purpose aid program designed to assist in the equalization of local tax rates.





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Easement:

A right held by one person to use the land of another for a specific purpose, such as access to other property.





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Equalization:

The process by which an appropriate government body attempts to ensure that all property under its jurisdiction is assessed at the same level of assessment.





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Estimated Market Value:

Represents the assessor's estimate of the property's actual market value. Market value is defined as the most probable price that a well-informed buyer would pay a well-informed seller for a property without either party being unduly forced to buy or sell.





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Excess TIF (Tax Increment Financing):

Tax dollars settled to county, city and school districts from post 5/1/88 TIF districts. Excess TIF dollars equal to Captured Net Tax Capacity of TIF districts multiplied by difference of current total local tax rate and frozen total local tax rate at time of certification of TIF Districts





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Fiscal Disparities:

Program (M.S. 473F) which provides for tax base sharing within the seven county metro area. Each municipality contributes 40% of the growth of its commercial/industrial tax base since 1971 to the seven county pool. This pool is then redistributed based on relative fiscal capacity to aid metro communities without that tax base. A percentage of the property tax on each commercial/industrial parcel is based on the seven county area-wide rate.





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Foundation Square Feet:

Square footage calculated using outside foundation measurements, excluding attached garages.





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Green Acres Land:

A real estate parcel of at least 10 acres, the owner of which is engaged in agricultural pursuits and otherwise qualifies for a deferment of assessment and taxes payable; intended to preserve farmland from the pressures of development.





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Government Lots:

Irregularly shaped parcels of land, usually fronting on water, which could not be divided practically into sections under government survey.





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Government Survey:

The survey from which our present system of townships, sections, etc., was developed.





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Gross Tax:

The amount of tax prior to applying applicable credits.





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Homestead:

For property tax purposes, homestead is a tax benefit granted to property owners (or qualifying relatives) who are Minnesota residents and who own and occupy their homes as their primary places of residence.





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Homestead & Agricultural Credit Aid (HACA):

The state gives this aid directly to local units of government. HACA has been eliminated for Pay 2002 for schools, cities, townships and special taxing districts





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Improvement:

A structure or building permanently attached to the land.





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Initial Tax Rate:

Tax rate before reduction for disparity reduction aid. Calculated by dividing a taxing district's levy, less the amount it will receive from fiscal disparities, but the taxable tax capacity of the taxing district.





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Legal Description:

This may be an abbreviated method of geographically identifying a parcel of land for tax purposes. The recorded legal description, which is acceptable in a court of law, is maintained by the county recorder.





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Levy:

The amount of money that a taxing district needs to raise through property taxes.





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Lien:

An encumbrance against property for money, either voluntary or involuntary. All liens are encumbrances but all encumbrances are not liens.





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Local Government Aids (LGA):

Dollars (in the form of general distribution aid) provided to cities for property tax relief.





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Local Tax Rate:

Rate applied to the tax capacity of a property to determine property tax due. Formerly known as tax capacity rate, and prior to that, mill rate.





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Market Value:

Estimated Market Value is what the Assessor has estimated the property would sell for if it were to be sold in an arm's length transaction. A limit is imposed on how much the Taxable Market Value of residential, agricultural and seasonal property can increase over the previous year's value. The limit does not apply to increases in value due to new improvements.





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Ownership:

Rights to the use, enjoyment and alienation of property to the exclusion of others.

 


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Plat:

A map intended to show the division of land into lots or parcels. Once the land is recorded with the county auditor, land included in the plat can then be legally described by reference to the plat.





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Plat Deferral:

A reduction in market value of a newly platted lot. One-third of the difference between the market value of the parcel before platting and the market value of the lot after platting is added in each of the three assessment years following the platting. Hence, taxes are calculated on a lower market value during the first three years following the initial platting or until construction begins, whichever comes first.





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Property:

An aggregate of things or rights to things. These rights are protected by law. There are two basic types of property, real and personal. Real property is the right to land and improvements to land. Personal property is not permanently attached and is, therefore, movable.





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Property Class:

The class that has been assigned to property based on the use of that property. (see Classification)





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PID (Property Identification Number):

A numerical representation of a specific land parcel and its legal description.





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Property Tax:

Generally, a tax levied on both real and personal property; the amount of the tax is dependent on the value and the class of the property. The actual tax will be dependent upon the levies, tax base and state aids





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Property Tax Levy:

The amount of taxes required to be raised in a jurisdiction by a government body with taxing authority.





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Real Estate:

The physical land and appurtenances affixed to the land (structures).





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Right of Way:

A strip of land which is used as roadbed, either for a street or railway. The land is set aside as an easement or in fee, either by agreement or condemnation. May also be used to describe the right itself to pass over the land of another.





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School District Referenda Market Value:

Market Value used to calc School District Market Value based tax. Taxable Market Value adjusted by 35% of first $115,000 of taxable market value, and 80% of taxable market value $115,000 - $600,000 in tax capacity calculations.





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Special Assessments:

Improvements (such as streets, curb &gutter, etc) as certified by each municipality, which directly benefit the property are shown as a separate item on the tax statement. The amount is based on how much the property benefits from the improvement, not on the value of the property.





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State Aids:

The State contends those individual taxes would be higher than shown on tax statements
if it were not for the local government, education and disparity reduction aids provided to the taxing districts. The presumed amount of aid is indicated for each parcel.





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State General Tax:

The state general tax is levied primarily on commercial/industrial, non-commercial seasonal recreational and personal property. The State General Tax Rate is applied to the net tax capacity of these properties. The tax is collected and sent directly to the State of Minnesota and is not distributed to any local municipality.





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Statute:

A law which comes from a legislative body. It is written law, rather than law established by court cases.





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Structure:

Any man-made building or edifice.





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Survey:

The measurement of the boundaries of a parcel of land, its area and sometimes its topography.





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Tax Capacity:

The market value of a property multiplied by its class-rate percentage. (ex., a residential homestead valued at $30,000 x 1% = 300 Tax Capacity.) Formerly known as assessed value.





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Tax Increment Financing (TIF):

Districts created by municipalities to fund improvements that increase market values of the properties in the district. The taxes generated by the increased market value are "captured" by the TIF district to finance project development costs.





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Tax Roll:

A list, usually published by a county, containing the descriptions of all parcels in the county, the names of the owners (or those receiving the tax bill), the assessed value and tax amount.





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Taxes:

A mandatory contribution of money to meet the expenses of a government, whether federal, state or local.





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Taxpayer:

A legal entity, usually the property owner, ultimately responsible for payment of property taxes.





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This Old House:

A 10 year exemption from property tax for up to all or a portion of the value of improvements made to homes at least 45 years old, designed to provide owners of older and deteriorated homes with an incentive to restore or renovate their houses. In addition to age, there are other qualifications, including an estimated market value of less than $400,000. New improvements (new construction) that increase estimated market value by $5,000 or more may have some of the value deferred for 10 years. To learn more about this program, please contact the Carver County Assessor at (952)361-1960.





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Title:

The union of all elements constituting proof of ownership, or the instrument that is evidence of ownership.





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Township:

A territorial division of land established by federal survey that is six miles square and contains thirty-six sections, each one mile square.





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Tract:

A parcel of land.





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Truth in Taxation:

A process where the taxpayer is notified of the proposed taxes to be levied with a comparison to the prior year. The taxpayer has the option of attending hearings where the budgetary or referendum issues are discussed prior to the levy becoming finalized.





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Value:

The usefulness of an object, or the monetary worth of an object.





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Valuation:

The estimating of value; appraisal.





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Waste Management Fee:

Annual county fee used to fund various Solid Waste programs required to protect our environment.





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