The estimated market values of commercial buildings in Minneapolis have fallen to a 10-year low, and city data shows more of the property tax burden could shift to homeowners next year.
The Minneapolis Assessor’s Office reported a 20% drop in commercial building values citywide, and City Assessor Rebecca Malmquist said 2% more of the city’s overall tax burden shifted from commercial to residential in 2026. In Minnesota, one year’s assessed property values are a part of determining the following year’s tax rates. That means this year’s shift could impact 2027 property tax bills.
“Just because there was a shift of 2% in the net tax capacity from commercial to residential, that does not directly translate to a 2% tax increase,” Malmquist said. “And there are other tax rates that go into your overall tax bill, including the county levy, watershed levy, and school district.”…