12-01-2008 Truth in Taxation Minutes

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Last modified: 04-11-08 Glossary of Assessment Terms Estimated Market Value (EMV): This value is what the assessor estimates your property would likely sell for on the open, competitive market. State law requires assessors to value property at 100 percent of market value. Minnesota Statute 272.03 defines "market value" as "the usual selling price...at the time of assessment." It is "the price that could be obtained at a private sale or an auction sale, if the assessor determines that the price from an auction sale represents an arm's length transaction. The price obtained at a forced sale shall not be considered." State law requires that the EMV and classification of real estate be established as of )anuary 2 each year. Limited Market Value (LMV): Limits how much the taxable value cf certain properties can increase, with the exception of new improvements. Limited Market Value is the difference between this year's estimated market value and last year's limited market value, whichever is greater. This only applies to agricultural, residential, timberland, or noncommercial seasonal recreational residential (cabins) property. (M.S. 273.11, Subd. la) • 2003 assessment payable 2004 - 12% or 20% of the difference . 2004 assessment payable 2005 - 15% or 25% of the difference • 2005 assessment payable 2006 - 15% or 25% of the difference • 2006 assessment payable 2007 - 15% or 25% of the difference • 2007 assessment payable 2008 - 15% or 33% of the difference • 2008 assessment payable 2009 - 15% or 50% of the difference • 2009 assessment payable 2010 - sunset of the program Property Ctassification: The statutory classification that has been assigned to your property based upon your use of the property. A change in classification of your property can have a significant impact on the real estate tax payable. (M.S. 273.13 - classification of property) Sales Ratio Analysis: This term refers to the process the assessor uses to measure market conditions by comparing the assessor's estimated market value with the sales prices. The Department of Revenue also uses the sales ratio analysis to measure assessor's performance.