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Posted on: December 3, 2021

Commonly Used Budget Abbreviations and Terms

Wood blocks that spell out "Glossary".

Are you planning on attending the Truth-in-Taxation Public Hearing on Tuesday, December 7, 2021 at 7:00 P.M.? If so, knowing these terms and abbreviations may come in handy! 

๐—ฅ๐—ฒ๐—ฎ๐—น ๐—ฃ๐—ฟ๐—ผ๐—ฝ๐—ฒ๐—ฟ๐˜๐˜†: For the purposes of taxation, this is land, buildings, structures, improvements, or other fixtures on land, and all the rights and privileges associated with the land.

๐—ฃ๐—ฒ๐—ฟ๐˜€๐—ผ๐—ป๐—ฎ๐—น ๐—ฃ๐—ฟ๐—ผ๐—ฝ๐—ฒ๐—ฟ๐˜๐˜†: Personal property, for the purposes of taxation, is anything other than real property; generally, anything that is moveable. Some personal property (utilities, railroad docks, mobile homes, etc.) is taxable.

๐—ฅ๐— ๐—ฉ: Some voter-approved levies (e.g. school referendums) are extended against referendum market value, which is the market value of certain homesteads (1a, 1b, and 2a-HGA) prior to the homestead market value exclusion and the taxable market value of certain remaining properties.

๐—ง๐— ๐—ฉ: Referendum market value after applying exclusions, such as the homestead exclusion. 
Classification System: A classification rate is multiplied by the taxable market value of a property to yield the taxable base for most levies—the NTC.

๐—ก๐—ง๐—–: The result of multiplying the taxable market value of a property by its class rate.

๐—ง๐—ก๐—ง๐—–: Taxable NTC; some NTC is not taxable, such as certain properties with power line credits or tax increment financing (TIF) districts. 

๐—ก๐—ง๐—– ๐—ง๐—ฎ๐˜… ๐—ฅ๐—ฎ๐˜๐—ฒ: A taxing jurisdiction’s levy, divided by total TNTC, that is multiplied by individual property’s TNTC to calculate the amount of taxes due and payable.

๐—ฅ๐— ๐—ฉ ๐—ง๐—ฎ๐˜… ๐—ฅ๐—ฎ๐˜๐—ฒ: A taxing jurisdiction’s voter approved levy, divided by total RMV for the jurisdiction, to calculate the amount of taxes due and payable.

 ๐—Ÿ๐—ฒ๐˜ƒ๐˜†: The amount of money a taxing jurisdiction needs to fund operations; the amount to be collected via property taxes.

๐—ง๐—ฎ๐˜…๐—ถ๐—ป๐—ด ๐—๐˜‚๐—ฟ๐—ถ๐˜€๐—ฑ๐—ถ๐—ฐ๐˜๐—ถ๐—ผ๐—ป: Individual government units and associated public entities that have taxing authority (County, Township, City, School, etc.).

๐—ฆ๐—ฝ๐—ฒ๐—ฐ๐—ถ๐—ฎ๐—น ๐—”๐˜€๐˜€๐—ฒ๐˜€๐˜€๐—บ๐—ฒ๐—ป๐˜: An assessment levied by a government unit that is not assessed based on property value. Common special assessments include ditch assessments, sewer, water, etc.

For additional budget information, please visit www.millelacs.mn.gov/2022.

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