To say that this has been a tumultuous year for Minneapolis commercial property owners is to understate the obvious. A global pandemic resulted in an unprecedented slowdown of economic activity and civic unrest resulted in significant damage to some commercial properties in the city.
Some Minneapolis property owners now have an urgent need for commercial property tax relief. Fortunately, the city acknowledges that reality and is taking steps to help provide that relief.
On its website, Minneapolis says reassessment is required for property tax relief for eligible properties in a disaster or emergency area, “and to other properties that may not qualify as being in a disaster or emergency area, but which apply for local option relief.”
Accounting for value lost
Assessors adjust values of damaged properties, accounting for the loss in value. To do the reassessment, the assessor estimates the value of each property “in its damaged condition.” That means the property should be reassessed before you begin reconstruction or repairs.
The city says taxes for properties “unintentionally damaged or destroyed by arson or vandalism” can qualify for property tax abatement and/or credit for taxes payable this year and next year.
Abatement and credit available
Three types of potential property tax relief are available:
- Local-option disaster abatements for taxes payable in 2020
- Local-option disaster credit for taxes payable in 2021
- Homestead disaster credit for taxes payable in 2021
If your property sustained damage, you must complete and submit the Disaster Reassessment intake form available on the city website. The form requires the property ID number, type of property (commercial), the cause of damage (fire, water, vandalism), the location of the damage (structural, windows, roof, plumbing, etc.) and then asks you to estimate the percentage of damage done to your property.
Estimating the damage
You can choose in 10-percent increments anywhere from “less than 10” to 100 percent.
You’re also asked to describe the damage (it’s a good idea to include photos to support your descriptions) and then asked if your insurer has viewed the property and what their estimate of the damage is.
We will have on Minneapolis commercial property reassessment and tax relief in an upcoming post. Please check back.
