U.S. Property Tax Association, Inc.


Text To: 612-735-1985

Fighting For The Underdogs In Commercial Property Tax Appeals

Part II: Tax relief for owners of damaged Minneapolis commercial properties

On Behalf of | Jul 9, 2020 | Commercial Property Tax Appeals

Let’s continue our look at the process of obtaining tax relief for owners of Minneapolis commercial properties damaged in the recent civil unrest. (If you haven’t read Part I, simply click here.)

Mandated reassessment

In order to obtain the commercial property tax relief, the city says you must have your commercial property reassessed. That’s the only way for them to determine the amount of damage and the resulting reduction in your property’s value.

If your property was damaged and you haven’t received a notice from the city, complete the form discussed in our previous blog post.

Examining the evidence

After the Assessor’s Office receives your completed form (with supporting documents such as photographs), the assessor will examine fire reports and aerial photos and conduct an exterior inspection.

It should be noted that the reassessment will be of the building’s value – the city says the value of the land is not impacted.

The reassessments are to be done over the rest of July and in August and then the information will be sent to the Hennepin County Auditor’s Office, which will recalculate taxes. Then it will all be sent to the state by November 1.

Half or more

The city says the local option abatement will apply to properties with at least 50 percent damage and that the relief will apply to taxes payable in 2020.

The local option credit (relief applied to taxes payable in 2021) is for “non-homestead properties,” again with at least 50 percent damage.

There is also tax relief available for homestead properties with damage (no minimum percentage of damage required).

Don’t forget this

A reminder: to make sure the reassessment includes all damage to your property, wait to begin reconstruction or repairs until after the reassessment.

The stakes are high in applications for commercial property tax relief. Property owners without qualified legal assistance can find themselves deep in bureaucratic jargon, paperwork and processes.

We will continue to update readers on tax relief for owners of damaged Minneapolis properties. Please check back.