Minnesota Tax Court
September 2005
The Minnesota Tax Court is a specialized court that was established by the State Legislature to only hear and act on tax-related issues. It has statewide jurisdiction and addresses questions of law dealing with taxes, aids, and matters administered by the Commissioner of Revenue as well as the assessment and taxation of property. A taxpayer may either appeal to the tax court through the one-step appeal (without utilizing the city or township local board of appeal and equalization and the county board of appeal and equalization) or as a final measure in the three step appeal process (if the decisions of both the local and county boards of appeal and equalization were not satisfying). This forum like other appeal proceedings is conducted fairly and objectively by judges who travel from their office in St. Paul throughout the state to conduct trials.
Who are the people that comprise the Tax Court?
The Tax Court consists of a panel of three judges who are appointed by the governor. These judges have expertise in tax law, possess several years of legal experience, and serve on various boards and commissions. They take an oath to honorably and impartially perform the duties of the court. Each of them works independently by presiding over assigned tax court cases and rendering decisions based on the facts and evidence presented. However, a case may be tried before the entire court under certain circumstances.
What types of property tax appeals are heard by these judges?
The Tax Court has two divisions: the small claims division and the regular division. Both divisions hear appeals involving the valuation, classification, equalization, exemption, and taxation of real and personal property. The small claims division specifically hears appeals relating to one of the following situations: the denial of a current year homestead application; a single parcel containing one residential homestead (class 1a or 1b) dwelling unit; property classified as agricultural homestead (class 2a or 1b); and property of any tax classification having an estimated market value of less than $300,000 as determined by the assessor. The regular division hears all appeals, including those within the jurisdiction of the small claims division. A taxpayer who elects to appeal to the regular division cannot appeal the same matter to the small claims division.
Other than the types of property tax appeals that can be heard by each of the two tax court divisions, are there any other significant differences between them?
The small claims division is informal with a more relaxed atmosphere than the regular division. Taxpayers generally represent themselves, and the hearings are not recorded. A decision rendered in the small claims division does not set legal precedent. It is considered to be final and cannot be appealed by either party. The regular division is formal because the ordinary rules of court and evidence apply. Attorneys often represent taxpayers and the counties, too. The hearing is recorded by a court reporter and decisions of the regular division can be appealed to a higher court.
Is there a deadline for filing a property tax appeal to the Tax Court?
Yes, an appeal to the Tax Court may be filed after May 1st in the year before the tax is payable, and it must be filed on or before April 30th in the year the property tax becomes payable. If the assessor changes the value or classification of a property once the assessment has been certified or after the tax has been levied in the year in which it becomes payable, the taxpayer must file a petition with the court on or before 60 days from the mailing of the notice of change.
How does one file a property tax appeal?
A taxpayer must complete Minnesota Tax Court Form 7---“Real Property Tax Petition” in its entirety and include attachments (i.e. the contested notice of valuation, notice of proposed tax, the property tax statement, or a legal description of the property having a parcel identification number). This form may be obtained from the Minnesota Tax Court or the District Court Administrator’s Office.
It must be filed with the Court Administrator’s Office of the District Court in the county where the property is located and copies of this petition and attachments must also be served on several county officials. In particular, three copies are to be formally delivered to the county assessor and one copy each should be presented to the county auditor, county treasurer, and county attorney.
Specific instructions on how to appeal to the Tax Court can be obtained by contacting either:
Stearns County Court Administrator’s Office
725 Courthouse Square, St. Cloud, MN 56303;
Telephone (320) 656-3620;
See Court Administration website.
or the Minnesota Tax Court at
Room 245, 25 Constitution Avenue, St. Paul, MN 55155;
Telephone (651) 296-2806;
Visit the Tax Court web site www.taxcourt.state.mn.us.
Is there a fee to file a property tax appeal?
Yes, each division of the tax court has a filing fee. The cost of filing in the small claims division is $150.00 plus a county law library fee. The fee to file in the regular division is $240.00 plus an additional fee for the law library. Furthermore, taxpayers are required to pay for the court reporter’s time at hearings that take place in the regular division.
When will the property tax appeal be heard by the Tax Court?
The tax court will usually hear the appeal within twelve months of the petition filing. All parties to the appeal are mailed a notice at least three months prior to the hearing date.
Does a taxpayer need to pay the property tax if an appeal is pending?
Yes, the tax must be paid when it is due. If the tax is not paid, it will result in the automatic dismissal of the property tax petition. Once the case is heard and if the decision is favorable for the taxpayer, any overpayment of the tax will be refunded with interest.
Does the burden of contesting a property assessment to the Tax Court rest with the taxpayer?
Yes, it is no different at the state level than it is at the county and local levels of appeal. The assumption that the assessor has properly assessed all property still applies in tax court. The taxpayer must present market and/or factual evidence as of the assessment date being challenged to disprove the assessment.