The Minnesota property tax system includes a system of classification, based on use. Classification is a definition of how the property is used, determined by its ownership and use. Classifications such as homestead, commercial, and agricultural describe the primary use of a property, and affect the amount of property tax paid.
The assessor determines the classification or use of each parcel. Each classification is taxed and receives credits at a different percentage of market value. These percentages are set by the State Legislature.