Property Taxes

Funding for the services that cities provide across Minnesota is derived primarily from property taxes and state revenue-sharing, including local government aid (LGA).

Property Assessment
The property tax system is a continuous cycle, but it effectively begins with the estimation of property market values by local assessors. Assessors attempt to determine the approximate selling price of each parcel of property based on the current market conditions. Along with the market value determination, a property class is ascribed to each parcel of property based on the use of the property.

For example, property that is owner-occupied as a personal residence is classified as a residential homestead. The “use class” is important because the Minnesota system, in effect, assigns a weight to each class of property. Generally, properties that are associated with income production (e.g. commercial and industrial properties) have a higher classification weight than other properties. The property classification system defines the tax capacity of each parcel as a percentage of each parcel’s market value. For example, a $75,000 home which is classified as a residential homestead has a class rate of 1.0 percent and therefore has a tax capacity of $75,000 x .01 or $750 less the 40% homestead market value exclusion of $30,000 results in net tax capacity of $45,000 x .01 or $450.

Government Budget Levies
The next step in calculating the tax burden for a parcel involves the determination of each local unit of government’s property tax levy. The city, county, school district and any special property taxing authorities must establish their levy by December 28 of the year preceding the year in which the levy will be paid by taxpayers. The property tax levy is set after the consideration of all other revenues including state aids such as LGA.

[city budget] - [all non-property tax revenues] = [city levy]

Additional Property Tax Resources
The League of Minnesota Cities has produced many resources to help residents understand the property tax sytem in Minnesota.  Property tax payers are encouraged to visit the League's website at www.lmc.org.

Hennepin County provides property tax and market value on  their website at www.hennepin.us/residents/property/property-information-search.

Hennepin County Annual "Sales Book"
Each year Hennepin County publishes a 'Sales Book' that highlights changes in market values for Mound. 

The 2021 Sales Book is available HERE.  
The 2022 Sales Book is available HERE. 
The 2023 Sales Book is available HERE.

Hennepin County "Open Book" Meeting
The Hennepin County Assessors Office hosts an Open Book meeting each year in April. This meeting provides an opportunity for property owners to discuss their property valuation one on on with the County Assessor. 

Alternatively, property owners can call the Hennepin County Assessor's Office at 612-348-3046 to make an appointment or to discuss assessed property value at any time. 

More information on the Open Book Meeting process can be found HERE.