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BOARD OF REVIEW INFORMATION <br />Definitions and Explanations <br />Powers of the Local Board of Review: The board may only increase or decrease the market value and/or <br />change the classification of any propenies on an individual basis. The board may also add any properties that <br />were omitted from the tax rolls. These changes can only be made for the January 2, 1996 assessment/'! 997 tax <br />year. <br />Limitations of the Local Board of Review: The board may make no aggregate changes to the entire <br />assessment and it is limited to indivdual changes not to e.xceed 1% of the total market value of the city. <br />Market Value. The most probable price in terms of money which a property should bring in a competitive and <br />open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, <br />knowledgeably and assuming the price is not affected by undue stimulus. <br />Classification: The use of a property as defined by Minnesota Law. The most common classifications are <br />apartment, double bungalow, triplex, commercial, farm, industrial, seasonal recreational, residential homestead, <br />and residential non-homestead. <br />Limited Value: A statutory value that is automatically calculated when the market value of a property is <br />increased over 10%. This value can increase either 10% each year or 1/3 of the difference between the current <br />and previous years' values if that difference is greater than 30%. <br />Qualifying Improvements: Used to describe the amount of an improvement under the "this old house" law. <br />This law allows homeowners of property at least 35 years old (and under $150,000 except in Excelsior, <br />Hopkins, and Minneapolis which have a $300,000 limit) at the time a permit is applied for to apply and have <br />certain improvements exempted from ta.\ation for 10 years. <br />Taxable Market Value: This is the net value used for taxation. It is the market or limited value, whichever is <br />lower, minus the qualifying improvements. Remembe-, tliat not every property will have a limited value or a <br />qualifying amount. <br />MOST ASKED QUESTIONS <br />Why does my market value keep increasing each year? Because properties in your city are in demand in the <br />real estate marketplace. When values decline it is usually because that market has become undesirable. <br />What if I think another property is undervalued? You may request, in writing, that the local board of <br />review have the assessor review that property. The board is required to notify the property owner and then to <br />direct the assessor to review the property. <br />Isn’t the assessor ’s value supposed to be lower than the actual value of a property ? Minnesota State Law <br />states that all properties are required to be valued at Market Value. As a practical matter the Minnesota <br />Department of Re\ enue and the Hennepin County Assessor ’s Office require the median sale in a city to be at <br />93“o; thus one half of the sales are abo\e and the other half are below this point. <br />0\ ER