Property tax programs for businesses and organizations

If you meet certain criteria, you can reduce what you owe in property taxes.

Property tax exemptions, exclusions and lowered tax rates are based on how you use your property.

Your property tax is based on your property assessment.

Property tax exemption

Qualification

The applicant must own the property.

Properties that may qualify for a property tax exemption are listed in Minnesota Statute 272.02.

Deadline

Your application deadline depends on when during the year you qualify.

If you qualify:

• Before July 1, apply by July 1 of the same year
• On or after July 1, apply by February 1 of the following year

Taxes owed on your property

You still must pay taxes due for the property in the current calendar year. An exemption won't take effect until a future calendar year.

Examples

Bought:

• Before July 1, you may be exempt from taxes due in the next calendar year
• On or after July 1, you may be exempt from taxes due the year after next

Apply

Online exemption application

Nonprofit community service organizations

Deadline

May 1 each year

Apply

Organizations can apply for one of two separate exemption classes.

4c3i

The business does not generate revenue more than six (6) days a year.

• 4c3i Nonprofit community service organizations (PDF, 1MB)

4c3ii

The business generates revenue more than six (6) days a year and donates at least as much as property taxes owed.

• 4c3ii Nonprofit community service organizations (PDF, 1MB)
• 4c3ii Form for recording donations (PDF, 1MB) – submit with application

Seasonal marinas and restaurants

4c11 Marina

Qualifications

• Lakeshore property and adjacent land up to six acres used as a marina
• Property must include public water access by ramp or other facility.

No more than 800 feet of lakeshore is eligible for this classification.

Deadline

March 1 each year

Apply

4c11 marina allowing public use (PDF, 1MB)

4c10 Seasonal restaurant on a lake

Qualification

Qualifications are based on the previous calendar year’s sales information.

A restaurant and up to 3 acres of land on a lake may qualify provided the business:

• Is open no more than 250 consecutive days or
• Earns at least 60 percent of its gross annual receipts from business conducted during four consecutive months. Annual receipts include alcohol sales but not gift shop sales.

Deadline

February 1 each year

Apply

4c10 seasonal restaurant on a lake (PDF, 1MB)

Manufactured home parks

4c5iii Manufactured home parks

Qualification

Applicants must:

• Own a manufactured home park
• Complete 12 hours of qualifying courses every three years (by owner, corporate officer or on-site attendant)

Deadline

December 15 every three years

Apply

4c5iii Class I manufactured home park (PDF, 1MB)

Open space

Program overview

This is a property tax deferral program for certain agricultural property.

Two values are determined on qualifying property:

1. The ‘actual market value’ based on sales of similar property, which may be influenced by development pressures
2. The ‘agricultural value’ based on sales of agricultural property not impacted by other influences, such as development

Taxes are calculated on both market values, but paid on the lower, agricultural value each year.

The difference between the tax calculated on agricultural market value and the actual market value is deferred until the property is sold or no longer qualifies for the program.

Qualifications

Property must be devoted to golf, skiing, lawn bowling, croquet, archery or firearms range recreational use or other recreational uses carried on at the establishment.

Deadline

November 1 each year

Apply

Minnesota open space property tax law application (PDF, 1MB)

Changes in ownership or use of property

The county will evaluate your property when there is a change in:

• Use
• Ownership

Any new owner must apply for the program within 30 days of a transfer of ownership. Enrollment in the program does not transfer from owner to owner.

If no new application is submitted by the new owner or the property no longer qualifies due to change in use, the owner must pay:

• Deferred tax for the current year and seven additional years
• Any deferred special assessments plus interest

To initiate removal from the program please complete (the request) and email to ao.programs@hennepin.us.