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ASSESSMENT FACT SHEET <br />( <br />UPDATED I'SO/Oa <br />The purpose of this local board meeting is to review the Estimated Market Value Classification for the 2003 <br />Assessment, ndiich will be reflected in taxes payable for 2004. <br />Any questions regarding the taxes payable in 2003 cannot be addressed at this meeting because they are based on the <br />assessment made in 2002. This Board has no authority to act on the 2003 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 four years. In addition, all new construction, alterations, or improvements will be appraised annually. <br />COMMONLY ASKED QUESTIONS AT BOARD OF APPEAL MEETINGS <br />1. IS IT ILLEGAL FOR THE ASSESSOR TO INCREASE MY VALVE SO MUCH IN ONE YEAR? <br />( No. The assessor must v.ilue property at market value each year. Property values chance conlinuously with <br />changing economic conditions. There is no limit as to the amount of increase or decrease in property \-alues in a <br />given year. <br />2, WHEN WILL THE VALUE 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 >’alues must follow <br />that trend. <br />3. WHAT DOES THE ASSESSOR LOOK AT TO DETERMINE A PROPERTY'S MARKET VALVE? <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. w’alkout basements, fireplaces, and extra baths), and site <br />characteristics. <br />4. ASA HOMESTEADING RESIDENT, WILL IRE TAXED OFF MY PROPERTY, ESPECIALLY IF I AM <br />ON A LIMITED INCOME? <br />i <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 Propert> Tax <br />ReAmd. Both of these must be qiplied for using the M • IPR 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 uicreased by more than 12% from 2002 to 2003 and the increase was SlOO or more. There <br />are speafk guidelines for each refimd, which sue included with the instructions for the M • IPR form