04-26-1995 Board of Review - Laserfiche WebLink

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BOARD OF REVIEW INFORMATION Definitions and Explanations Powers of the Local Board of Review: The board may only increase or decrease the market value and/or change the classification of any properties on an individual basis. The board may also add any properties that were omitted from the tax rolls. These changes can only be made for the January 2, 1995 assessment/1996 tax year. Limitations of the Local Board of Review; The board may make no aggregate changes to the entire assessment and it is limited to indivdual changes not to exceed 1% of the total market value of the city. Market Value: The most probable price in terms of money which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Classiflcation: The use of a property as defined by Minnesota Law. The most common classifications are apartment, double bungalow, triplex, commercial, farm, industrial, seasonal recreational, residential homestead, and residential non-homestead. Limited Value: A stamtory value that is automatically calculated when the market value of a property is increased over 10%. This value can increase either 10% each year or 1/3 of the difference between the current and previous years' values if that difference is greater than 30%. Qualifying Improvements: Used to describe the amount of an improvement under the "this old house" law. This law allows homeowners of property at least 35 years old (and under $150,000 except in Excelsior, Hopkins, and Minneapolis which have a $300,000 limit) at the time a permit is applied for to apply and have certain improvements exempted from taxation for 10 years. Taxable Market Value: This is the net value used for taxation. It is the market or limited value, whichever is lower, minus the qualifying improvements. Remember, that not every property will have a limited value or a qualifying amount. MOST ASKED QUESTIONS Why does my market value keep increasing each year? Because properties in your city are in demand in the real estate marketplace. When values decline it is usually because that market has become undesirable. W,. It if I think another property is undervalued? You may request, in writing, that the local board of review have the assessor review that property. The board is required to notify the property owner and then to direct the assessor to review the property. Isn't the assessor ’s value supposed to be lower than the actual value of a property? Miimesota State Law states that all properties are required to be valued at Market Value. As a practical matter the Miimesota Department of Revenue and the Hennepin County Assessor's Office require the median sale in a city to be at 93%; thus one half of the sales are above and the other half are below this point. OVER