The Hennepin County Assessor's office annually determines the market value and classification of all properties within the City, based on a variety of factors:
- Real estate market conditions (how prices increase, decrease or stay the same)
- Sales prices of similar properties
- How you use your property
- Improvements to the property
- Condition and usability of the property
- For income-producing property: market rents, vacancy rates, and capitalization rates
State law requires the physical review of all properties in the County every five years. County Assessor's office staff document the condition of each property and any improvements made. A property's condition and physical changes, such as building repairs, improvements or additions, affect that property’s assessed value. As noted above, the real estate market also influences the assessed value of all types of property.
The Assessor's office also determines the classification or use of each parcel. For instance, the property may be a residential homestead (owner occupied), a residential non-homestead, or commercial. Each classification is taxed at a different percentage of market value. These percentages are set by the state legislature.
Please visit the Hennepin County Assessor's webpage for additional information about how properties are assessed, and about the annual property valuation appeal process.