This tax is a government cost charged to a property owner based upon the property's taxable estimated market value
and classification. Counties, townships, cities, school districts, and a few miscellaneous taxing authorities levy
taxes on real estate and some personal property to help pay for local services, including road and bridge maintenance,
community services, police and fire protection, libraries, parks and education. The state also levies a general tax on
commercial/industrial and seasonal recreational residential properties.
Market values, budgets, property classification rates, and classification credits determine the property tax. The
first step in calculating a tax is to multiply a property's taxable market value (the value established after the
assessor's estimated market value has been adjusted by any applicable tax provision that provide limitations or
reductions) by its classification rate to obtain its tax capacity value. The second step is to establish a tax by
multiplying the property's tax capacity value by an overall tax rate. The overall rate is a multiplier, resulting
from the division of each district's total levy (the total revenue to be collected through the property tax) by the
district's tax capacity value. The third step is to subtract any property tax credits from the preceding tax calculation
to determine the net payable tax. Homestead and certain agricultural properties are examples of two property types
that have their tax bill reduced by credits.
- Taxable market value x property classification rate = tax capacity value
- Tax capacity value x overall tax rate (taxable levy/net tax capacity value) = property tax or property tax before credits
- Property tax before credits - tax credits = property tax
The Assessor estimates market values and classifies properties based on current use or the most likely use of the
property. An example of the different classifications are homestead, commercial, seasonal recreational residential, and
timber. The assessor's office also administers a number of property tax programs such as "Green Acres", senior citizens
property tax deferral, and special agricultural homestead programs.
Estimating Market Values
The law requires that assessors view each parcel of real estate to appraise its
market value based on current market conditions. In addition to current market, numerous physical changes affect the
value of land and buildings. All factors are considered when estimating the value of property. This requires physical
inspection of all property subject to assessment.
Classification of Property
The Assessor determines the classification of each property based on the
current use of each parcel. Some of the property are residential homestead, residential non-homestead, seasonal
recreational residential, agricultural, resort, or commercial. Each classification may be taxed at a different
percentage of market value. These percentages are set by the Minnesota State Legislature and may change from year to year.
Viewing Property
Approximately every fifth year, the assessor will view each taxable property. In
addition, all new construction, alterations or improvements are viewed in the current year.
Gathering Information
The Assessor gathers information on all characteristics of the property that
affect market value, such as size and age of the building, quality of construction, and special features such as
basement finish, fireplaces, walk-out basements, etc. Characteristics about the land are also observed, such as
location, number of acres of land, quality features of the land, as well as determining the amount and quality of
front footage on the lake involved.
Appraising Property
The Becker County Assessor's Office utilizes a computer-aided mass appraisal (CAMA)
system which helps the assessor achieve uniformity and equality during the assessment process.
According to state law, the assessors estimated market value are supposed to represent 100% of real value as
expressed in the real estate market. The Minnesota Department of Revenue, through the State Board of Equalization,
meets annually with the County Assessor and through the use of statistical measures determines and reviews the overall
quality and level of assessment. The estimated market values relative to properties which have sold during the previous
year should be at 90-105%.
Market value can be defined as the highest price in terms of money which a property will bring in a competitive and
open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably,
and assuming that neither is under undue duress.