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ASSESSMENT FACT SHEET <br /> Updated 3/9/06 <br /> The purpose of this local board meeting is to review the Estimated Market Value and Classification far the 2006 <br /> Assessment, which will be reflected in taxes payable for 2007. <br /> Any questions regarding the taxes payable in 2006 cannot be addressed at this meeting because they are based on the <br /> assessment made in 2005. This Board has no authority to act on the 2006 taxes as per MN statute, Sec. 274.01. <br /> While we realize the MN Property Tax system is rather complicated and, at times, difficult to understand, it is hoped that <br /> the following information will help you when trying to communicate your questions and concerns with regard to your <br /> property's market value. <br /> State law requires that the value and classification of real estate be established as of January 2nd each year. Market values <br /> are based on sales of properties within your market area. The Minnesota Department of Revenue requires the overall level <br /> of assessment to be between 90% and 105% of market value. If the overall level of assessment is not at least 90%,the state <br /> may impose an aggregate increase on all properties within a city or classification. If sales indicate the market values have <br /> changed, the assessor must follow the trend indicated, whether it is to increase or decrease property values. <br /> Mass appraisal is the method used by assessors to estimate the market value of properties. Each property is physically <br /> viewed every five years. In addition, all new construction, alterations, or improvements will be appraised annually. <br /> COMMONLY ASKED OUESTIONS AT BOARD OF APPEAL MEETINGS <br /> 1. IS IT ILLEGAL FOR THE ASSESSOR TO INCREASE MY VAL UE SO MUCH IN ONE YEAR? <br /> No. The assessor must value property at market value each year. Property values change continuously with <br /> changing economic conditions. There is no limit as to the amount of increase or decrease in property values in a <br /> given year. <br /> 2. WHEN WILL THE VAL UE INCREASES STOP? <br /> This is impossible to predict. Our values are dictated by the market. If sale prices are increasing, our <br /> estimated market values will increase. If sale prices are falling, then our estimated market values must follow <br /> that trend. <br /> 3. WHAT DOES THE ASSESSOR LOOKAT TO DETERMINE A PROPERTY'S MARKET VALUE? <br /> Each property is viewed to gather information on all characteristics that affect its market value such as location, <br /> size, age, quality of construction, amenities (i.e. walkout basements, fireplaces, and extra baths), and site <br /> characteristics. <br /> 4. AS A HOMESTEADING RESIDENT, WILL I BE TAXED OFF MY PROPERTY,ESPECIALL Y IF I AM <br /> ON A LIMITED INCOME? <br /> Homesteading residents are eligible for property tax breaks in Minnesota through the use of the Homestead <br /> Classification. This decreases the property taxes on most residences. In addition to the Homestead Classification, <br /> residents of Minnesota are eligible to apply for the Regular Property Tax Refund or the Special Property Tax <br /> Refund. Both of these must be applied for using the M- 1PR form issued by the State of Minnesota. The Regular <br /> Refund is based on income, so check the requirements stated on the form. You may qualify for the Special Refund <br /> if your property taxes increased by more than 12% from 2005 to 2006 and the increase was $100 or more. There <br /> are specific guidelines for each refund, which are included with the instructions for the M- 1PR form <br />