DEPARTMENT: Public Services and Revenue Administration
FILE TYPE: Consent Action
TITLE
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Approval Of Application For Property Tax And Penalty Abatement
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RESOLUTION
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WHEREAS, Iglesia Cedros Del Libano Inc. submitted an Abatement Application on July 7, 2026 after receiving a 2026 tax statement and several preceding tax notifications classifying their church property as taxable commercial property; and
WHEREAS, in accordance with Minn. Stat. § 375.192, subd. 2, upon written application by the owner of any property, the county board may grant the reduction or abatement of estimated market valuation or taxes and of any costs, penalties, or interest on them as the board deems just and equitable and order the refund in whole or part of any taxes, costs, penalties, or interest; and
WHEREAS, Minn. Stat. § 375.192, subd. 2 further states that the county board may consider and grant reductions or abatements on applications only as they relate to taxes payable in the current year without proof of a clerical error or hardship; and
WHEREAS, any changes made after the conclusion of the County Board of Appeal and Equalization must be handled by abatement or tax court petition; and
WHEREAS, Dakota County Abatement Policy 8751 states that County Board action is required when the reduction or abatement of taxes, penalty, interest and costs exceed $10,000; and
WHEREAS, the deadline to file a tax court petition (April 30, 2026) had passed; and
WHEREAS, abatements must be approved by the County Assessor and by the County Auditor (Director of Property Taxation & Records) before being considered by the county board; and
WHEREAS, Iglesia Cedros Del Libano Inc. submitted the Exemption Application and provided all documentation necessary to prove tax exempt status as a house of worship on May 28, 2026 and Assessing Services approved the exemption application on June 8, 2026; and
WHEREAS, The County Assessor denied the Payable 2026 hardship abatement request as hardship is not a consideration for current year payable taxes and must instead be considered by the County Board; and
WHEREAS, the Dakota County Property Taxation & Records and Assessing Services Departments request that the Dakota County Board of Commissioners approve the Payable 2026 abatement application for Iglesia Cedros Del Libano Inc.; and
WHEREAS, in accordance with Minn. Stat. § 375.192, subd. 2, any reduction or abatement when the reduction of taxes, costs, penalties, and interest exceed $10,000, the county board shall give notice within 20 days to the school board and the municipality in which the property is located.
NOW, THEREFORE, BE IT RESOLVED, That pursuant to Minn. Stat. § 375.192, the Dakota County Board of Commissioners hereby approves the tax and penalty abatements for the parcel described as follows:
Applicant: Iglesia Cedros Del Libano Inc.
Parcel ID Number: 20-13120-01-010
Owner: Iglesia Cedros Del Libano Inc.
Property Location: 5590 Babcock Trail, Inver Grove Heights, MN
2026 Tax Abatement $36,576.00
1st Half Penalty Abatement: $1,828.80
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BE IT FURTHER RESOLVED, That Board authorizes the Director of Property Taxation and Records to give notice to the school board and the municipality in which the property is located.
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BACKGROUND
A house of worship, owned by Iglesia Cedros Del Libano Inc. has applied for an abatement of taxes, penalty and interest for the 2025 assessment (current year taxes payable in 2026) on its operating church property. The property was acquired by the church after the prior owner's tax exemption had been established. The new owner did not file the required application for exemption by the statutory deadline and also filed their exemption application after the deadline for filing a petition for relief with the Minnesota Tax Court.
The County Board of Appeal and Equalization does not have the authority to grant a tax-exempt classification nor does the County Assessor have the authority to extend an exempt classification after the conclusion of the County Board of Appeal and Equalization. The County Board may grant abatements for current taxes payable year and two prior years (only in the case of a clerical error or documented hardship). Staff consulted with the MN Department of Revenue, and it was confirmed that abatements may be granted for the current taxes payable year for virtually any legal reason that the county deems just and equitable.
The relevant timeline and background are as follows:
• 2024 assessment (taxes payable 2025): Property was exempt under an application filed by the prior owner.
• July 12, 2024: Deed filed transferring ownership from Mercy Road Church to Iglesia Cedros Del Libano Inc. (the applicant).
• August 29, 2024: Assessing Services mailed the new owner a letter requesting an exemption application for the 2025 assessment (taxes payable 2026).
• February 11, 2025: No exemption application had been received. The property classification was changed to Commercial for the 2025 assessment (taxes payable 2026).
• March 2025: Valuation Notice was issued showing the property as taxable commercial property.
• November 2025: Truth-in-Taxation notice was issued showing the property as taxable commercial property and the proposed property tax due in 2026.
• March 2026: Property tax statement and valuation notice were issued showing the property as taxable commercial property.
• May 28, 2026: Assessing Services received an email containing an exemption application and supporting documentation.
• June 2, 2026: Property Taxation & Records mailed a courtesy letter that the 2026 first half 2026 taxes are past due.
• June 8, 2026: The exemption application was approved for the 2026 assessment (taxes payable 2027), and the approval letter was emailed to the owner.
• July 7, 2026: An abatement application was received requesting relief for the 2025 assessment (taxes payable 2026).
Based on these facts, the County Board has authority under Minn. Stat. § 375.192 to abate the current year 2025 payable 2026 property taxes, penalty and interest.
RECOMMENDATION
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Staff in the Dakota County Property Taxation & Records and Assessing Services Departments recommend that the Dakota County Board of Commissioners approve the abatement application for Iglesia Cedros Del Libano Inc.
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FINANCIAL AND STAFFING IMPACTS
The abatement reduces tax and penalty revenue by a total of $38,404.80. The County’s portion of the abated tax and penalty is $6,693.40.
PREVIOUS BOARD ACTION
None.
ATTACHMENTS
Attachment: Exemption Application
Attachment: Hardship Abatement Request
Attachment: Letter of Denial of Hardship Abatement
Attachment: Email correspondence from MN Dept of Revenue
CONTACT
Department Director: Teresa Mitchell
Author: Teresa Mitchell