Classification ExplainedClassification of property is one of the primary responsibilities of the Assessor’s Office. The classification is based on a property’s use and different classifications result in different tax amounts. There are five basic classifications in Minnesota, but there are over 50 different subclasses. The appraisers determine the classification as of January 2 of each year.
How Classifications Are DeterminedAppraisers look at how each property is used when completing the assessment review. For instance, property may be residential homestead (owner-occupied), residential nonhomestead, apartment, agricultural, or commercial. The most common classification is the residential homestead, which has an application requirement as well as ownership and occupancy requirements.
If there is no use that is apparent on the assessment date, the appraisers look to a property's most probable, highest and best use. This may include looking at past use of the property in some cases, or they may look to potential uses or uses of neighboring property.