Minnesota Property Tax Update: Three Legislative Changes to Be Aware of in 2024

Alan Heichman, Principal 312.980.1129 | alan.heichman@ryan.com

Lane Thor, Director 763.445.4200 | lane.thor@ryan.com

Minnesota real estate owners are reminded of their upcoming property tax appeal deadline early each year. The deadline to appeal the 2023 pay 2024 assessment is April 30, 2024. In Minnesota, properties are assessed and classified based on their use as of January 2 of the assessment year. Assessors in the Twin Cities metropolitan area and throughout Minnesota reassess multifamily apartments, industrial, and commercial properties annually, with notices of valuation and classification usually sent to property owners in the spring.

As values change year over year, the Minnesota Legislature also enacts yearly changes that impact how property taxes are administered. Property owners should be aware of the following three legislative changes effective in assessment year 2024:

The Low-Income Classification 4d(1): The yearly application process now requires owners to certify that tax savings are utilized for property maintenance, security, improvements, rent stabilization, and to increase the property’s reserve fund. The former tiered classification rate of .75% for the first $100,000 of market value and .25% for any remaining value is being replaced by a set rate of .25% for all class 4d(1) property.
Delinquent Taxes: The 10% minimum interest rate is removed, while the maximum remains 14%. The Minnesota Department of Revenue will determine the interest rate.
Service of Property Tax Petitions: Property tax petitions are now only required to be served to the county auditor, who will then notify the county treasurer, county attorney, and county assessor.

The local Ryan experts have extensive experience in navigating Minnesota’s property tax system. We can provide valuable insights into exemptions, property valuation challenges, and various strategies to reduce your tax obligations. Contact one of our local team members to learn more.