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I homas J. Barren, Esq. <br />June 27. 1995 <br />Page Two <br />I believe we all agree that the important qticstion.s th.it have to be answered ore as tollows: <br />1. Was there a record that 1 authcr.zed the combination lor tax <br />purposes? <br />2. Did I receive a tax saving with this alleged combination? <br />I was unable to find any record that I was involved in combining these Lots for tax purposes or <br />any other purposes. Instead of relying on my memory, I contacted the City of Orono Assessor’s <br />Office, the Hennepin County Assessor’s Office and the Hennepin County Tax Payers Service <br />Office to see if there is some sort of record that would support the claim that I requested a <br />combination of my Lots for tax purposes. They all reported that no such document exists. In <br />addition, the City of Orono Assessor’s Office, who is verv- familiar with this propeny and our <br />dispute believed that a combination of property of this size and value would not be wise. I <br />agree. This has been my position. Why would I ever wish to lose a ’’lot or record" designation <br />and essentially lose the potential value of my lots as biiildable lots without something of value in <br />return? <br />The City has suggested that I was motivated to combine the lo*.s because I received some tax <br />benefit from combination, i.e.. that the "combination was for tax purposes.’’! have searched <br />tlirough my records for the last 30 years and located most of my real e.state tax statements for that <br />period. They clearly show that there was no tax savings to me, afrer my lots were allegedly <br />combined. I was receiving the maximum homestead tax credit against the real estate taxes <br />charged against Lot 4. on which my personal residence is located. The real estate tax credit for <br />the owner of a homestead in .Minnesota in 1965, w hen 1 purchased my homestead on Lot 4, was <br />the lesser of 25% of the general tax or $250.00. The homestead tax credit remained the same <br />until 1974 when the credit was increased to S325.00. Since the general tax on Lot 4 has always <br />been over $1,000.00, while I have owned the property from 1965 through 1973 (in 1972 the <br />general tax on Lot 4 was $1,201.25). I was always entitled to and received the maximum <br />homestead tax credit of $250.00 every' year without a combination of my lots. That was also true <br />after 1974 when the homestead tax credit was increased to a maximum of $325 00, and in 1980 <br />when the credit was raised to $550.00, and when subsequent increases were made in the amount <br />of the homestead credit. There was no economic reason for me to request combination of my <br />Lots into a larger homestead, because increasing the aggregate market value, aggregate assessed <br />value, and aggregate general tax did not entitle me to a larger homestead tax credit. There was <br />no advantage to me to combine the lots for real estate tax purposes, and there was no <br />disadvantage to the City if I had combined the lots.