Minnesota has what is known as an ad valorem property tax system. This means property tax is divided among taxable properties according to their value. A mass appraisal process is used for estimating this value. Information from all sales that occur within the county is collected and closely analyzed by the Assessor's Office.
The Assessor's Office then adjusts market values by comparing properties that sold within a given area with properties that have not sold. This sales comparison by means of substitution provides the basis for the estimated market value of taxable property.
The final amount of property tax the owner pays in any given year is the end result of a process that begins over two years before property tax statements are actually mailed to property owners.