Q: What is the
responsibility of the
Assessor in the property
tax
system?
A: County
assessors estimate
property market values and
classify them according to
their highest and best use
for property tax purposes.
Every year the assessor
reviews the market
valuation of all
properties in each
jurisdiction to determine
if changes in the real
estate market require a
change in the estimated
market value.
Minnesota law requires
that in addition,
assessors actually view
each parcel of real estate
every five years to
appraise its market value.
In addition, each year the
appraiser inspects parcels
with new construction,
alterations, or
improvements.
Taxing jurisdictions such
as the county, schools,
cities and townships,
adopt budgets after public
hearings. This
determines the tax levy,
which is used to calculate
the rate of taxation
required to raise the
money budgeted. The
taxes you pay are
proportionate to the value
and classification of your
property district.
The Assessor's
responsibility is with
market value and
classification, NOT
TAXES.
The Assessor does not:
*Collect Taxes
*Calculate Taxes
*Determine Tax Rate
*Establish Property Tax Laws
Q: What is market
value?
A: Market
value is the price a
willing, knowledgeable
buyer would pay for your
property if it were
offered for sale on the
open market. The
assessor does not create
this value, but instead
interprets what is
happening in the
marketplace between
buyers, sellers, their
agents, mortgage
companies, etc.
Values change with
economic conditions as
well as changes to the
property.
Q: How is market
value estimated?
A: The
assessor visits your
property to record the
existence and character of
improvements that
contribute to its market
value. The assessor
collects sales information
on all types of property,
and studies
characteristics such as
location, size of the
parcel, improvement and
amenities that affect what
buyers would pay for your
property. Local
sales will impact local
values. The assessor
uses actual sales of
similar properties in your
neighborhood to estimate
what buyers would pay for
your property. (A
single sale does not make
a market.)
Q: What is
classification?
A:
Classification is a
definition of how the
property is used,
determined by its
ownership and use.
Classifications such as
homestead, timber,
commercial, and
agricultural describe the
primary use of a property,
and affect the amount of
property tax paid.
By state law, various
classes of property are
taxed at different rates.
For example, tow
neighboring homes of equal
value will be taxed at
different rates if one is
a homestead and one is a
seasonal property.
Class rates are created
and defined by the
Minnesota State
legislature. New
homeowners should contact
their assessor to apply
for the preferential
homestead classification
rate.
Q: How can I
judge the accuracy and
fairness of my value and
classification?
A: The
assessor who values and
classifies your property
should be your first
contact if you have
questions or want more
information. If you
are not sure who your
assessor is, call the
county office. The
assessor can review your
parcel records with you,
review local sales
activity, zoning
regulations and general
market trends. You
can also review how other
local properties are
valued and classified to
judge if your property is
fairly valued and
classified. After
meeting with your assessor
to discuss your concerns
there are three levels of
appeal available to you if
you choose to appeal.
These must be completed in
order, unless you choose
to go directly to the
Regular Division of
Minnesota Tax Court.
