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House Research Department Updated: September 2008 <br />Special Assessments Page 5 <br /> <br /> <br />Special Assessments on Other Government Property <br />A city or town may levy special assessments against property owned by the state or a political <br />subdivision.11 There are two approaches in the statutes governing assessments against property <br />owned by another governmental entity. In general, property owned by the state or another local <br />government can be assessed to the extent it is benefited by the improvement just as if it were <br />privately owned. Unpaid assessments may be recovered in a civil action.12 For the state and a <br />few political subdivisions, however, the governmental entity being assessed determines the <br />benefit. The state, the cities of Minneapolis, St. Paul, and Duluth and any political subdivision <br />within the city (e.g., the school district), and the Metropolitan Council with regard to regional <br />parks and open space property, sewer system property, and sports facilities property are subject <br />to special assessments imposed by other cities and towns but determine the benefit of the <br />improvement.13 Finally, the state is required to pay special assessments as long as money is <br />appropriated that can be used for that purpose. <br /> <br /> <br />Procedure to Impose Special Assessments <br />Minnesota Statutes, chapter 429, specifies the procedures that must be followed in order to use <br />special assessments.14 Local governments must be careful to follow all of the necessary steps to <br />ensure that the assessments are properly imposed to avoid legal challenges from the landowners. <br /> <br />Although the statutes do not refer to phases, it may be easier to understand the complicated <br />procedure as if it is divided into three phases, as summarized below. For specific types of <br />projects, there are specific additions or exceptions to these procedures. The law also provides for <br />supplemental assessments and appeals from assessments, which are not covered here. <br /> <br />Phase I: Initiation and Preliminary Assessment15 <br /> <br />• Initiate the process. Either the local government or a petition signed by the affected <br />property owners may initiate the proceedings. <br />• Prepare a report. The local government must have a report prepared on the necessity, <br />cost-effectiveness, and feasibility of the proposed improvement. The city engineer or <br />some other competent person prepares the report. <br /> <br />11 Federal property is exempt. Op. Atty. Gen. 408-C (Sept. 21, 1953). <br />12 Minn. Stat. § 435.19. This excludes imposing special assessments for highway rights-of-way. <br />13 Minn. Stat. §§ 435.19; 473.334 (Metropolitan Council, parks and open space); 473.545 (Metropolitan <br />Council regional sewer system); 473.556, subd. 4 (Metropolitan Council sports facilities). Under Minnesota <br />Statutes, section 473.448, the Metropolitan Council transit facilities are subject to special assessments the same as <br />other political subdivisions. <br />14 Chapter 429 does not prescribe the procedures to be followed by a municipality in making improvements <br />financed without the use of special assessments. Minn. Stat. § 429.021, subd. 3. <br />15 Minn. Stat. § 429.031.