| Market Value and
Property Tax
Market Value
The City Assessor is required by law to
place a market value on all taxable real estate in the city every year.
Minnesota law requires the Assessor's market value of the home
to reflect its actual market value or sale price. Minnesota Statute 272.03 defines
"market value" as the price that could be obtained at a private sale or an
auction sale, if the assessor determines the price from an auction sale represents as
arms-length transaction. The price obtained at a forced sale shall not be considered.
Simply put, market value is what buyer would typically pay for the property in today's
real estate market.
The Assessor analyzes the sales within the city every year to find what properties are
selling for and how this will impact the properties within the city. The sales are used as
a guide to tell the Assessor what similar properties would likely sell for if they were
placed on the open market.
Property Taxes
Property taxes help pay for local
services such as police and fire protection, snowplowing, parks and playgrounds, public
health services county welfare and social service programs and more.
Policy makers – County Board, City
Council and other Taxing Districts – set the budgets for their governmental expenses.
Public hearings about the proposed budgets are held in late November to early December,
and final budgets are set by late December. Every owner receives a notice of these
meetings in October of each year.
The property tax payments are divided
among all of these agencies. Hennepin County mails property tax statements in late March.
Taxes can be paid in two equal installments. The first half-payment is due no later the
May15, and the second half payment no later than October 15. For most homeowners the
property taxes are paid as part the their monthly mortgage payment. If there are questions
about the tax statements or a new copy of the statement is needed, call the Hennepin
County Property Tax Statement Office at (612) 348-3011.
Assessor's
Review of Property
Under Minnesota Statute 273.08,
the appraiser is required to review each property at least once every four years. The
appraiser may visit your property at shorter intervals for any of the following reasons:
- To review new construction as a result of
a permit. The appraiser may stop by each year until all of the work is completed.
- To complete a review appraisal for an
appeal, such as a tax petition or an abatement.
- To review the property at the property
owner’s request.
- To review the property at any time the
assessor believes that the property information may be in error and/or incorrect value may
have been placed on the property
The appraiser collects information on all
the characteristics of the property that affect market value. Some of these items are,
size of the structure, age, quality, basement finish, fireplaces, walkout basements.
The appraiser will not be able to tell
the homeowner what the new value of a property is immediately after he/she is done
appraising. The appraiser collects and verifies all of the necessary information required
to value a property. Values are not calculated until January of each year. The homeowner
will receive a value notice in February or March of the following year.
The appraisal will take about ten minutes
to fifteen minutes. The appraiser will attempt to answer any questions one may have,
however, he/she is on a tight schedule and may not be able to spend as much time with the
homeowner as one would like. Please call the City office if a more detailed answer is
needed for a question. |
