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Home My WebLink About04/11/2011 Board of EqualizationMayor Gary L. Peterson CCH ITY OF OLUMBIAEIGHTS Councilmembers Robert A. Williams ruce Nawrocki B Tammera Diehm th 590 40 Avenue NE, Columbia Heights, MN 55421-3878 (763)706-3600 TDD (763) 706-3692 Donna Schmitt Visit our website at: www.ci.columbia-heights.mn.us CityManager Walter R. Fehst The following is the agenda for the BOARD OF APPEALS AND EQUALIZATION for the City of 6:00 p.m. on Monday, April 11, 2011 Columbia Heights City Council to be held at in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids for disabled persons are available upon request when the request is made at least 96 hours in advance. Please call the City Clerk at 763-706-3611, to make arrangements. (TDD/706-3692 for deaf or hearing impaired only) BOARD OF REVIEW 1.ROLL CALL 2.STATEMENT OF PURPOSE OF THE BOARD OF REVIEW To review property valuations as of January 2, 2011 for taxes payable 2012, and to hear appeals from citizens who feel aggrieved or have questions regarding property valuations. 3.INTRODUCTION The City Manager will introduce the Anoka County Appraisers. Jim Rouleau – Senior and Commercial Appraiser Mike Brown, Residential Appraiser 4.QUESTIONS AND ANSWERS REGARDING PROPERTY VALUES Citizens in attendance will be given an opportunity to raise questions regarding their property valuations. 5.COUNCIL ACTIONS REGARDING SPECIFIC CASES OR CASES ON WHICH ADDITIONAL INFORMATION IS DESIRED The Council may, at this time, take action regarding any of the properties that were discussed or instruct the County Assessor’s Office to provide more information at a continued meeting. 1)Recommended Motion: Move to adopt the 2011 Assessment Rolls as presented and amended. 2)Alternate Motion: Move to continue the Board of Appeals and equalization meeting to ________________ for the purpose of hearing additional information regarding only those property values appealed and discussed on April 11, 2011 and to consider adoption of the 2011Property Assessment Rolls. 6.Adjourn Walter R. Fehst, City Manager WF/pvm ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ ß°®·´ ïï îðïï Ý±´«³¾·¿ Ø»·¹¸¬ ÔÞßÛ øÔ±½¿´ Þ±¿®¼ ±º ß°°»¿´ ¿²¼ Û¯«¿´·¦¿¬·±²÷ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ Ì¿¾´» ±º Ý±²¬»²¬ Agenda ................................................................................................................. 1 Assessment Calendar ........................................................................................ 2 Understanding Assessment and Tax Calculation .......................................... 3 Assessment Statistics........................................................................................ 7 Reassessment Map ............................................................................................ 8 Authority of the Local Board of Appeal and Equalization (LBAE) .............. 9 Market Value Statistics ..................................................................................... 12 Residential Appraisal System ......................................................................... 16 Sales Studies and Statistics ............................................................................ 17 Anoka County 10 Year Sales Ratio History ................................................... 19 Columbia Heights Residential Sales Ratios by Neighborhood ................. 20 Residential Tax Changes Examined .............................................................. 21 ADDENDA .......................................................................................................... 22 MN § 270.12 State Board of Equalization ....................................................... 24 MN § 273.11 Valuation of Property ................................................................. 26 MN § 273.121 Valuation of Real Property, Notice ......................................... 35 MN § 273.13 Classification of Property .......................................................... 36 MN § 273.20 Assessor May Enter Dwellings, Buildings or Structures ...... 48 MN § 274.01 Board of Appeal and Equalization ............................................ 49 MN § 274.014 Local Boards (Training Requirements) ................................. 51 Appraisal Terminology ..................................................................................... 52 Avenues of Appeal ........................................................................................... 56 Sample Notice of Valuation and Classification ............................................. 59 Web Links for Metro Realtor Associations Housing Statistics .................. 61 ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ 2011 Local Board of Appeal and Equalization ß¹»²¼¿ April 11, 2011 1. Call the Board of Review to Order 2. Roll Call 3. Read Official Notice of the Board of Review 4. Board Chair outlines the ground rules for the meeting. The specific ground rules may vary for each local board but should include: Purpose of the meeting; Remind property owners that only appeals for the current year valuation or classification may be made. The 2011 board is to review the assessment as of January 2, 2011, which will be used to compute the property taxes payable in 201211) are not within the jurisdiction of the board; The order of the appellants - by appointment first, followed by walk-ins on a first-come basis. The board will also receive written appeals from property owners. The secretary will record the required information (name, mailing address, telephone number, and address of property, etc.) The expectations of the appellant when presenting their appeal (i.e. the appeal must be substantiated by facts; where the appellant should stand or sit; the appellant should be prepared to answer questions posed by the board, etc.); Time limits imposed (if any); The procedure the board will follow for making decisions (Will the board hear all appeals before making any decisions? Will the board send a letter to appellants to inform them of the decision? Etc.) The Board may correct any erroneous valuation and add any omission of properties or increase of value after due process. The total decrease of valuations may not exceed one percent of the total valuation of the taxing district; 5. The Board Chair should give the assessor the opportunity to present a brief overview of the property tax process and a recap of the current assessment. 6. Appellants should then present their appeals to the board. If the assessor has had a chance to review the property prior to the meeting, the assessor can present facts and information either supporting the valuation and or classification, or recommend that the board make a change. If the assessor has not had a chance to review the property prior to the meeting, the board may ask the assessor to review the property and present his/her findings to the board at a reconvene meeting. 7. Recess or Close the Meeting. (If needed, the meeting will be reconvened at a date to be determined. The Board of Appeal and Equalization of any city must complete its work and adjourn within twenty days from the time of convening as specified in the notice of the clerk, unless a longer period is approved by the Commissioner of Revenue. No action taken subsequent to such date shall be valid.) ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ Columbia Heights Assessment Staff Mike Brown Residential Appraiser Jim Rouleau Commercial Industrial Appraiser Mike Sutherland County Assessor 2011 Assessment Calendar îðïï Ó¿®µ»¬ Ê¿´«» º±® Ð®±°»®¬§ Û¬¿¾´·¸»¼ Jan 2 Ú·²¿´ Ü¿§ ¬± Ü»´·ª»® ß»³»²¬ Î»½±®¼ ¬± Ý±«²¬§ ¾§ Ô±½¿´ ß»±® Feb 1 Ú·²¿´ Ü¿§ ¬± Ú·´» º±® ¿² Û¨»³°¬·±² º®±³ Ì¿¨¿¬·±² Feb 1 Ú·²¿´ Ü¿§ ¬± Ú·´» º±® ïÞ ©·¬¸ Ý±«²¬§ ß»±® Mar 1 îðïï Ê¿´«¿¬·±² Ò±¬·½» Ó¿·´»¼ Mar 14 Ô±½¿´ Þ±¿®¼ ±º ß°°»¿´ ¿²¼ Û¯«¿´·¦¿¬·±² ¿²¼ Ñ°»² Þ±±µ Ó»»¬·²¹ Apr - May Ú·²¿´ Ü¿§ ¬± Ú·´» ¿ Ì¿¨ Ý±«®¬ Ð»¬·¬·±² º±® îðïð ø°¿§¿¾´» îðïï÷ ß»³»²¬ Apr 30 Ú·²¿´ Ü¿§ ¬± Ú·´» ¿² ß°°´·½¿¬·±² º±® Ù®»»² ß½®» May 1 Ú·®¬ Ø¿´º ±º Ð¿§¿¾´» îðïï Î»¿´ Û¬¿¬» Ì¿¨ · Ü«» May 15 Ú·²¿´ Ü¿§ ¬± ß°°´§ º±® Ó¿²«º¿½¬«®»¼ Ø±³» Ø±³»¬»¿¼ May 29 Ý±«²¬§ Þ±¿®¼ ±º ß°°»¿´ ¿²¼ Û¯«¿´·¦¿¬·±² Jun 13 Í¬¿¬» Þ±¿®¼ ±º Û¯«¿´·¦¿¬·±² Jun 21 îðïï ß»³»²¬ Ú·²¿´·¦»¼ øßº¬»® ÝÞßÛ ß¼¶±«®²÷ Jun 24 Ñ©²»®¸·° Ü»¿¼´·²» º±® Ì¿¨ Û¨»³°¬ Í¬¿¬« Jul 1 Ú·²¿´ Ü¿§ ¬± Ú·´» º±® îðïï Ð®±°»®¬§ Ì¿¨ Î»º«²¼ Aug 15 Ú·®¬ Ø¿´º ±º Ð¿§¿¾´» îðïï Ó¿²«º¿½¬«®»¼ Ø±³» Ì¿¨ · Ü«» Aug 31 îðïï ß¾¬®¿½¬ Ü«» ¬± Ü»°¿®¬³»²¬ ±º Î»ª»²«» Sep 1 Í»½±²¼ Ø¿´º ±º Ð¿§¿¾´» îðïï Ì¿¨ · Ü«» Oct 15 Ú·²¿´ Ü¿§ ¬± ß°°´§ º±® Î»¿´ Û¬¿¬» Ø±³»¬»¿¼ Dec 15 ¬ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ Understanding Assessment and Tax Calculation Assessment Process Timeline In Minnesota it is the duty of the Assessor to value and classify property. This is done annually as of nd January 2 the assessment date of . Each year's assessment is based on arms-length transactions (sales that meet the criteria of an open market transaction, see market value definition below) that previous October through September occurred the . When the assessment is complete the local taxing jurisdictions begin their budgeting process for the following year. They use the total assessment to determine their tax base and develop their tax rates (formerly referred to as mill rates). All aspects of the assessment, including but not limited to the assessment date, sales period for each assessment and property tax classification are dictated by state statute and under the oversight of the Minnesota Department of Revenue. Market Value Defined As in private appraisal, Market Value is defined as: The most probable price that a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by any undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: buyer and seller are typically motivated: both parties are well informed or well advised, and acting in what they consider their own best interests; a reasonable time is allowed for exposure in the open market; payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale (a foreclosure sale or a short sale [a sale to avoid foreclosure] is not considered an arms- length transaction). Mass Appraisal Defined Property values for Minnesota real estate tax purposes are determined by mass appraisal. Mass appraisal is the practice of determining individual values based on statistical analysis of a group of sales for a large area. The values are determined as of a specific date and are based on arms-length transactions that occurred during a specified sales period. « ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ As part of this mass appraisal process, all properties are re-valued annually based on the information on record. Properties are physically inspected and property records reviewed once every 5 years (as statutorily required). This is an ongoing process whereby 20% of a city is inspected each year so that in a cycle of 5 years all properties have been inspected at least once. In addition to this quintile review, properties are also inspected when there is a building permit issued or at the request of the property owner. The sale of a property does not initiate a reassessment. As stated earlier, Minnesota state law governs the assessment date, which is January 2nd of each year, as well as the sales periods associated with each assessment date. The 2010 assessment , which was used for tax calculations this year (2011), was based on transactions that closed between October 1, 2008 and September 30, 2009. Property owners were notified of their 2010 value on their Notice of Valuation and Classification. The notices were mailed out in March of 2010 in the same envelope as the 2010 tax statement. The appeals process took place at the municipal level during the months of April and May, and at the county level in June. At this point, if a property owner wishes to appeal their 2010 assessment (for taxes payable 2011) their only option is to file a tax court petition. This must be done no later than April 30, 2011. The 2011 assessment has just been completed and Notices of Valuation and Classificationhave been mailed. This is the assessment that will be used for tax calculations next year, for taxes payable in 2012. The sales period associated with this assessment is October 1, 2009 through September 30, 2010. As with past assessments, the local appeals process will begin in April and finish up in June. The options and requirements to appeal this assessment are listed on the back of the Notice of Valuation and Classification. If a property owner has an issue with their 2011 assessment the first thing they should do is contact their local assessor. The phone numbers are listed on the notices. The following chart may be helpful in following the timeline of your assessment. SALES PERIODASSESSMENT DATETAX YEAR October 1, 2008 toJanuary 2, 20102011 September 30, 2009 October 1, 2009 toJanuary 2, 20112012 September 30, 2010 October 1, 2010 toJanuary 2, 20122013 September 30, 2011 stth So in review, by the time you are paying your 1 half real estate tax on May 15, the sales that were used to determine the estimated market value on which those taxes are based occurred somewhere between 19 to 31 months earlier. ª ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ We are aware that due to the time frames we are required to work within, it sometimes alue does not represent the market. It is lower than is should be during times of inflation and higher than it should be in times of deflation. The following chart illustrates the relationship between assessed values and actual sale prices and how the as open market. As you can see, there is a point in time where the relationship between the and the sales prices intersect. It is at that point in time that the market took a large downward turn. T reduced to reflect that trend. And we have responded with lower assessed values each year since as the market continues to decline. prior One last important point to make note of is that the assessment process is completed to the start of the budget process. The assessor does not adjust values in order to increase tax revenue. There is little correlation between changes in assessments due to market changes and how the resulting real estate tax changes. When we adjust assessments due to market increases or decreases, all properties are adjusted upwards or downwards. The the increase or decrease in the resulting tax, is if the change in value is due to value added for new construction or value removed due to demolition/destruction of an improvement. © ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ How your tax amount changes from year to year is influenced more by legislative changes to the tax laws and revenues needed by your local taxing authorities (including school districts). With all other factors remaining the same, if we were to reduce all values by 50%, this would not reduce the taxes by 50%. Instead, the tax rates would be increased to generate the same tax revenue. The following example illustrates that basic concept. 2009 Assessment 2010 Assessment Tax Payable 2010 Tax Payable 2011 Overall Change Ì¸» ª¿´«» ¿®» PropertyEMVPropertyEMVIn EMV ®»¼«½»¼ ©¸·½¸ A$375,000A$187,500-$187,500 ¼»½®»¿» ¬¸» ±ª»®¿´´ ¬¿¨ ¾¿»ò B$120,000B$60,000-$60,000 C$150,000C$75,000-$75,000 D$400,000D$200,000-$200,000 E$250,000E$125,000-$125,000 Total Tax Base$1,295,000Total Tax Base$647,500-$647,500 When the Tax Base decreases, 2010 Tax Rate Calculation2011 Tax Rate Calculation the Tax Rate is adjusted upward to produce the same Revenue Needed$10,000Revenue Needed$10,000 amount of Divided by Total Tax Base$1,295,000Divided by Total Tax Base$647,500 revenue. Equals Tax Rate0.0077Equals Tax Rate0.0154 Resulting 2010 Tax CalculationsResulting 2011 Tax Calculations 2010 Tax 2011 Tax Overall Change PropertyAmountPropertyAmountIn Tax Amount The Tax Amounts Remain the Same A$2,896A$2,896$0 B$927B$927$0 C$1,158C$1,158$0 D$3,089D$3,089$0 E$1,931E$1,931$0 Total Tax Generated$10,000Total Tax Generated$10,000$0 Adhering to the same timeframes and working within the parameters of the law will ensure that everyone is being treated fairly. If assessors were to choose to work outside of those timeframes the end result would be inequity between taxing jurisdictions. Here is an example of the impact at the local level: The assessment sales period for Anoka County is October 1, 2009 through September 30, 2010, except for Blaine, where the assessor decided to use January 1, 2010 to December 31, 2010. Given the volati, the Blaine 2011 assessments could be measurably lower than the rest of the county assessment. That lower tax base would not reduce the amount of county or school district revenues generated by real estate taxes; it would result in a shift in the tax burden from Blaine properties to all of the other properties in the county and any common school districts. While Blaine property owners would enjoy a lower tax bill, the rest of the county property owners would be unfairly paying a disproportionately higher tax amount to make up the difference. So in conclusion, while it may seem arbitrary to have a set period to measure an assessment, it does create an environment whereby the assessments are uniform, fair, and equitable. ¨ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ 2011 Assessment Statistics As of January 2, 2011 there were 7,597* parcels in the City. This total includes: 6,906 Residential and Agricultural Parcels 316 Exempt Parcels 242 Commercial and Industrial Parcels 124 Apartment Parcels 4 Tax Forfeit * Un-audited numbers - spring mini-abstract is not yet available. § ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ Reassessment State Statute reads: "All real property subject to taxation shall be listed and reassessed every year with reference to its value on January 2nd preceding the assessment." This has been done, and the owners of property in Columbia Heights have been notified of any value change. "." Minnesota Statute 273.11 reads: All property shall be valued at its market value It further " states that In estimating and determining such value, the Assessor shall not adopt a lower or different standard of value because the same is to serve as a basis for taxation, nor shall the assessor adopt as a criterion of value the price for which such property would sell at auction or at a forced sale, or in the aggregate with all the property in the town or district; but the assessor shall value each article or description of property by itself, and at such sum or price " as the assessor believes the same to be fairly worth in money. The Statute says all property shall be valued at market value, not may be valued at market value. This means that no factors other than market factors should affect the Assessor's value and the subsequent action by the Board of Appeal and Equalization. ¦ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ In accordance with current state law we physically review all properties at least once every five years. Each year we also inspect all properties with new construction and at the request of the property owner. During 2010 there were over 1,500 properties reviewed, including 2 new homes and 40 new townhomes (up from a total of 18 new homes and townhomes the previous year). This map illustrates the 2010 (2011 assessment for pay 2012) residential review area and the projected residential review area for 2011 (2012 assessment for pay 2013). Additionally, approximately 50% of the apartment properties were reviewed during 2010. The remaining apartment properties, as well as commercial and industrial properties valued at or below $350,000 are in the projected review area for 2011. ¥ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ Authority of the Local Board of Appeal and Equalization relative Assessments of property are made to provide the means for the measuring of the share of each taxpayer in meeting the costs of local government. It is the duty of the Assessor to assess all real and personal property except that which is exempt or taxable under some special method of taxation. If the burden of local government is to be fairly and justly shared among the owners of all property of value, it is necessary that all taxable property be listed on the tax rolls and that all assessments be made accurately. Whenever any property that should be assessed is omitted from the tax rolls, an unfair burden falls upon the owners of all property that has been assessed. If any property is undervalued in relation to the other property on the assessment record, the owners of the other property are called upon automatically to assume part of the tax burden that should be borne by the undervalued property. Fairness and justice in property taxation demands both completeness and equality in assessment. council of each city shall be or Minnesota Statutes Section 274.01 provides that the appoint a Board of Appeal and Equalization . The charter of certain cities provides for the establishment of a Board of Equalization. The provisions of Section 274.01 and this regulation apply to all Boards of Appeal or Boards of Equalization. The 2003 Legislature enacted State Statute 274.014 which requires that there be at least one member at each meeting of a Local Board of Appeal and Equalization who has attended an appeals and equalization course developed or approved by the Commissioner of Revenue within the last four years. Section 274.01 states the county assessor shall fix a date for each Board of Appeal and Equalization to meet for the purpose of reviewing the assessment of property in its respective town or city. The county assessor is required to serve written notice to the clerk of each of such bodies on or before February 15th of each year. These meetings are required to be held between April 1st and May 31st; and the clerk of the Board of Appeal and Equalization is required to give published and posted notice at least ten days before the date set for the first meeting. The Board of Appeal and Equalization of any city, unless a longer period is approved by the Commissioner of Revenue, must complete its work and adjourn within twenty days from the time of convening specified in the notice of the clerk. No action taken subsequent to such date shall be valid. A request for additional time in order to complete the work of the Board of Appeal and Equalization must be addressed to the Commissioner of Revenue in writing. The Commissioner's approval is necessary to legalize any procedure subsequent to the expiration of the twenty day period. The Commissioner of Revenue will not, however, extend the time for local Boards of Appeal and Equalization to meet beyond the time when the County Board of Equalization meets, which is the Final two weeks of June. The authority of the local Board extends over the individual assessments of real and personal property. The Board does not have the power to increase or decrease by percentage all of Changes in aggregate the assessments in the district of a given class of property. assessments by classes are made by the County Board of Equalization. ® ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ Although the Local Board of Appeal and Equalization has the authority to increase or reduce individual assessments, the total of such adjustments must not reduce the aggregate assessment made by the Assessor by more than one percent of said aggregate assessment. If the total of such adjustments does lower the aggregate assessment made by the Assessor by more than one percent, none of the adjustments will be allowed. This limitation does not apply, however, to the correction of clerical errors or to the removal of duplicate assessments. The Local Board of Appeal and Equalization does not have the authority in any year to reopen former assessments on which taxes are due and payable. The Board considers only the assessments that are in process in the current year. Adjustment can be made only by the process of abatement or by legal action. undervaluation In reviewing the individual assessments, the Board may find instances of . Before the Board can raise the market value of property it must notify the owner. The law does not prescribe any particular form of notice except that the person whose property is to be increased in value must be notified of the intent of the Board to make the increase. The Local Board of Appeal and Equalization meetings assure a property owner an opportunity to contest any other matter relating to the taxability of their property. The Board is required to review the matter and make any corrections that it deems just. majority of When a Local Board of Appeal and Equalization convenes, it is necessary that a the members be in attendance in order that any valid action may be taken. The local assessor is required by law to be present with her/his assessment books and papers. She/he is required also to take part in the proceedings but has no vote. In addition to the local assessor, the county assessor or one of her/his assistants is required to attend. The Board should proceed immediately to review the assessments of property. The Board should ask the local assessor and county assessor to present any tables that have been prepared, making comparisons of the current assessments in the district. The county assessor is required to have maps and tables relating particularly to land values for the guidance of Boards of Appeal and Equalization. Comparisons should be presented of assessments of types of property with previous years and with other assessment districts in the same county. It is the primary duty of each Board of Appeal and Equalization to examine the assessment record to see that all taxable property in the assessment district has been properly placed upon the list and valued by the assessor. In case any property, either real or personal, has been omitted; the Board has the duty of making the assessment. The complaints and objections of persons who feel aggrieved with any assessments for the current year should be considered very carefully by the Board. Such assessments must be reviewed in detail and the Board has the authority to make corrections it deems to be just. The Board may recess from day to day until all cases have been heard. If complaints are received after the adjournment of the Board of Appeal and Equalization they must be handled property owner cannot appear before a higher board unless he or at the staff level; as a she has first appeared at the lower board levels . Pursuant to Minnesota Statute 274.01: The Board may not make an individual market value adjustment or classification change that would benefit the property in cases where the owner or other person having control over the property will not permit the assessor to inspect the property and the interior of any buildings or structures. ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ A non-resident may file written objections to his/her assessment with the county assessor objections must be prior to the meeting of the Board of Appeal and Equalization. Such presented to the Board for consideration while it is in session. Before adjourning, the Board of Appeal and Equalization should cause the record of the official proceedings to be prepared. The law requires that the proceedings be listed on a separate form which is appended to the assessment book. The assessments of omitted property must be listed in detail and all assessments that have been increased or decreased the should be shown as prescribed in the form. After the proceedings have been completed, record should be signed and dated by the members of the Board of Appeal and Equalization. It is the duty of the county assessor to enter changes by Boards of Appeal and Equalization in the assessment book of each district. The Local Board of Appeal and Equalization has the opportunity of making a great contribution to the equality of all assessments of property in a district. No other agency in the assessment process has the knowledge of the property within a district that is possessed jointly by the individual members of a Board of Appeal and Equalization. The County or State Board of Equalization cannot give the detailed attention to individual assessments that is possible in the session of the Local Board. The faithful performance of duty by the Local Board of Appeal and Equalization will make a direct contribution to the attainment of equality in meeting the costs of providing the essential services of local government. Market Value Statistics After thoroughly analyzing the sales that occur during the sales period, we establish the assessed value of all real property. During the 2010 study period for the 2011 assessment, we recorded 5,378 sales of all property types countywide. Of these sales only 34%, or 1,855 were considered arms-length transactions. This is a slight improvement over the previous year when there were 5,223 recorded sales, with only 30% of them considered arms-length. In accordance with the results of these sales studies, certain areas of the city and certain styles and grades of homes may have adjusted values either lower or higher than the previous year's value. The new values reflect market trends during the period of October 2009 through September 2010. ¬ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ The 2011 assessment that is up for your review has a total unaudited assessed value of $1,127,329,300; excluding exempt, forfeit, and personal property. It reflects an overall value decrease of 4.8% below the 2010 assessment. In comparison, the drop from 2009 to 2010 was 9.2%, so the deflation appears to be slowing. The pattern of growth and decline (including new construction) in the City's total value can be seen in the following list and chart: Growth and Decline in Property Values 2004 to 2011 values.) (Total does not include exempt, tax forfeit, or personal property Î»·¼»²¬·¿´Ý±³³»®½·¿´ ×²¼«¬®·¿´Ì±¬¿´Ð»®½»²¬ Ç»¿®Ð®±°»®¬§Ð®±°»®¬§Û¬·³¿¬»¼±º Ê¿´«»Ê¿´«»Ó¿®µ»¬ Ê¿´«»Ý¸¿²¹» îðïïüïôðîïôììïôèððüïðëôèèéôëððüïôïîéôíîçôíððóìòìû îðïðüïôðêçôîëïôðððüïïðôïéçôïððüïôïéçôìíðôïððóçòîû îððçüïôïèïôìíðôêððüïïéôéíìôéððüïôîççôïêëôíððóèòìû îððèüïôîççôïëîôðððüïïçôèçíôêððüïôìïçôðìëôêððóîòîû îððéüïôííéôðìêôîððüïïìôîìíôéððüïôìëïôîèçôçððîòçû îððêüïôíïïôëëïôèððüççôïéçôìððüïôìïðôéíïôîððéòçû îððëüïôîïïôïéèôêððüçëôèïðôçððüïôíðêôçèçôëððèòíû îððìüïôïïèôêêîôéððüèèôêèêôðððüïôîðéôíìèôéððÒß üïôìððôðððôððð üïôíððôðððôððð üïôîððôðððôððð üïôïððôðððôððð üïôðððôðððôððð üçððôðððôððð üèððôðððôððð üéððôðððôððð üêððôðððôððð üëððôðððôððð üìððôðððôððð üíððôðððôððð üîððôðððôððð üïððôðððôððð üð îððìîððëîððêîððéîððèîððçîðïðîðïï Ý·¬§©·¼» Î»·¼»²¬·¿´ ß»»¼ Ê¿´«»Ý·¬§©·¼» Ý±³³»®½·¿´ ×²¼«¬®·¿´ ß»»¼ Ê¿´«» Residential includes all property classified Residential, Agricultural and Apartment. Commercial Industrial includes all property classified Commercial, Industrial and Manufactured Home Park. « ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ Market Value Effect of New Improvements The next example is a more detailed breakdown of changes for the 2011 assessment when compared to the 2010 assessment. The chart shows the percentage of change in value not including value added for new improvements. And then it shows the change after including new improvement values. As you can see, the overall decrease in value is 5.1 improvements and 4.4% when that value has been included. îðïïÐ»®½»²¬ ±ºîðïïÐ»®½»²¬ ±º îðïðÛ¬·³¿¬»¼Ý¸¿²¹»Û¬·³¿¬»¼Ý¸¿²¹» Ì±¬¿´Ó¿®µ»¬ Ê¿´«»îðïð ¬± îðïïîðïïÓ¿®µ»¬ Ê¿´«»îðïð ¬± îðïï Û¬·³¿¬»¼Ò±¬ ×²½´«¼·²¹Ò±¬ ×²½´«¼·²¹Ò»©×²½´«¼·²¹×²½´«¼·²¹ Ð®±°»®¬§Ó¿®µ»¬Ò»© ×³°®±ª»³»²¬Ò»© ×³°®±ª»³»²¬×³°®±ª»³»²¬Ò»© ×³°®±ª»³»²¬Ò»© ×³°®±ª»³»²¬ Ì§°»Ê¿´«»Ê¿´«»Ê¿´«»Ê¿´«»Ê¿´«»Ê¿´«» Î»·¼»²¬·¿´üïôðêçôîëïôðððüïôðïíôèëêôìððóëòîûüéôëèëôìððüïôðîïôììïôèððóìòëû Ý±³³»®½·¿´ üïïðôïéçôïððüïðëôíèïôîððóìòìûüëðêôíððüïðëôèèéôëððóíòçû ×²¼«¬®·¿´ Ì±¬¿´üïôïéçôìíðôïððüïôïïçôîíéôêððóëòïûüèôðçïôéððüïôïîéôíîçôíððóìòìû Residential includes all property classified Residential, Agricultural and Apartment. Commercial Industrial includes all property classified Commercial, Industrial and Manufactured Home Park. ª ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ Market Value Distribution by Property Type The charts below illustrate the relative distribution of estimated market value between residential properties (74.7%), commercial & industrial properties (10.7%), apartment (6.2%), and exempt, tax forfeit & personal property (8.4%). The distribution of the estimated market value by property type has remained fairly constant over recent years. Û¬·³¿¬»¼Ð»®½»²¬ ±º Ð®±°»®¬§ Ì§°»Ó¿®µ»¬Ì±¬¿´ Û¬·³¿¬»¼ Ê¿´«»Ó¿®µ»¬ Ê¿´«» Î»·¼»²¬·¿´üçìîôéêðôèððéìòéû Ý±³³»®½·¿´ ×²¼«¬®·¿´üïðëôèèéôëððïðòéû Û¨»³°¬ô Ì¿¨ Ú±®º»·¬ô Ð»®±²¿´ Ð®±°»®¬§üéèôêèïôðððèòìû ß°¿®¬³»²¬üïíëôëêîôëððêòîû Ì±¬¿´ Û¬·³¿¬»¼ Ó¿®µ»¬ Ê¿´«»üïôîêîôèçïôèððïððòðû Û¬·³¿¬»¼ Ó¿®µ»¬ Ê¿´«» ¾§ Ð®±°»®¬§ Ì§°» Û¨»³°¬ô Ì¿¨ Ú±®º»·¬ ú Ð»®±²¿´ Ð®±°»®¬§ ïðòéû Ý±³³»®½·¿´ ×²¼«¬®·¿´ èòìû Î»·¼»²¬·¿´ éìòéû ß°¿®¬³»²¬ êòîû © ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ Î»·¼»²¬·¿´ ß°°®¿·¿´ Í§¬»³ Per State Statute, each property must be physically inspected and individually appraised once every five years. For this individual appraisal, or in the event of an assessed value appeal, we use two standard appraisal methods to determine and verify the estimated market value of our residential properties: 1. First, an appraiser inspects each property to verify data. If we are unable to view the interior of a home on the first visit, a tag is left requesting a return telephone call from the owner to schedule this inspection. Interior inspections are necessary to confirm our data on the plans and specifications of new homes and to determine depreciation factors in older homes. 2. To calculate the estimated market value from the property data we use a Computer Assisted Mass Appraisal (CAMA) system based on a reconstruction less depreciation method of appraisal. The cost variables and land schedules are developed through an analysis of stratified sales within the city. This method uses the "Principle of Substitution" and calculates what a buyer would have to pay to replace each home today less age dependent depreciation. 3. A comparative market analysis is used to verify these estimates. The properties used for these studies are those that most recently have sold and by computer analysis, are most comparable to the subject property taking into consideration construction quality, location, size, style, etc. The main point in doing a market analysis is to make sure that you are comparing "apples with apples". This will make the comparable properties "equivalent to" the subject property and establish a probable sale price of the subject. These three steps give us the information to verify assessed value or to adjust it if necessary. The following pages contain an example of the appraisal information for one property. They include data calculations, plan sketch, photo, comparative analysis, and photos and a map of comparable properties. ¨ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ Í¿´» Í¬«¼·» According to State Law, it is the assessor's job to appraise all real property at market value for property tax purposes. As a method of checks and balances, the Department of Revenue uses statistics and ratios relating to assessed market value and current sale prices to confirm that the law is upheld. Assessors use similar statistics and sales ratios to identify market trends in developing market values. A sales ratio is obtained by comparing the assessor's market value to the adjusted sales price of each property sold in an arms-length transaction within a fixed period. An "arms- length" transaction is one that is generated after a property has had sufficient time on the open market, between both an informed buyer and seller with no undue pressure on either party. The median or mid-point ratios are calculated and stratified by property classification. 100% The only perfect assessment would have a 100% ratio for every sale. This is of course, impossible. Because we are not able to predict major events that may cause significant shifts in the market, the state allows a 15% margin of error. The Department of Revenue adjusts the median ratio by the percentage of growth from the previous year's abstract value of the same class of property within the same jurisdiction. This adjusted median ratio must fall between 90% and 105%. Any deviation will warrant a state mandated jurisdiction-wide adjustment of at least 5%. In Anoka County, we have the ability to stratify the ratios by style, age, quality of construction, size, land zone and value. This assists us in appraising all of our properties closer to our goal ratio. Í¿´» Í¬¿¬·¬·½ Ü»º·²»¼ We have the ability by using statistical analysis to test the accuracy of the assessment. We use these statistics to ensure equity between properties at the neighborhood, municipal and county levels. The Minnesota Department of Revenue also uses these same techniques to test for equity between counties. The primary statistics used are: Median Ratio: This is a measure of central tendency that is the midpoint of a group of sales ratios when arrayed from low to high. The median is a useful statistic as it is not affected by extreme ratios. Aggregate Ratio : This is the total market value of all sale properties divided by the total sale prices. It, along with the mean ratio, gives an idea of our assessment level. Within the city, we constantly try to achieve an aggregate and mean ratio of 94% to § ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ 95% to give us a margin to account for a fluctuating market and still maintain ratios Weighted Mean within state mandated guidelines. Also referred to as the . Mean Ratio : The mean is the average ratio. We use this ratio not only to watch our assessment level, but also to analyze property values by development, type of dwelling and value range. These studies enable us to track market trends in neighborhoods, popular housing types and classes of property. Coefficient of Dispersion (COD) : The COD measures the accuracy of the assessment. It is possible to have a median ratio of 93% with 300 sales, two ratios at 93%, 149 at 80% and 149 at 103%. Although this is an excellent median ratio, there is obviously a great inequality in the assessment. The COD indicates the spread of the ratios from the mean or median ratio. The goal of a good assessment is a COD of 10 to 20. A COD under 10 is considered excellent and anything over 20 will mean an assessment review by the Department of Revenue. Price Related Differential (PRD) : This statistic measures the equality between the assessments of high and low valued property. A PRD over 100 indicates a regressive assessment, or the lower valued properties are assessed at a greater degree than the higher. A PRD of less than 100 indicates a progressive assessment or the opposite. A perfect PRD of 100 means that both higher and lower valued properties are assessed exactly equal. Ý«®®»²¬ Í¿´» Í¬«¼§ Í¬¿¬·¬·½ The following statistics are based upon ratios calculated using 2011 pay 2012 market values and October 2009 through September 2010 sales. These are the ratios that our office uses for countywide equalization, checking assessment accuracy, and predicting trends in the market. 2011 Anoka County Residential Sales Ratio Statistics Median Ratio 94.9 Aggregate Ratio 94.6 Mean Ratio 95.5 Coefficient of Dispersion on Median 6.7 Price Related Differential 101 ¦ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ ß²±µ¿ Ý±«²¬§ Î¿¬·± Í¬«¼§ îðïï ß»³»²¬ Residential Single Family Sales Ratio History 2002 - 2011 Assessment Year20112010200920082007 Municipality#MedianCoeff#MedianCoeff#MedianCoeff#MedianCoeff#MedianCoeff Andover22094.55.614595.95.719193.06.424894.44.437093.34.9 Anoka 8394.57.66195.58.17594.57.013294.25.422394.46.7 Bethel398.85.6397.92.0395.53.9894.27.31091.14.8 Blaine40095.47.134495.68.732594.85.759094.06.286893.65.5 Centerville2391.810.23194.55.83495.86.14595.34.57593.67.5 Circle Pines2795.37.43393.87.03294.17.15494.74.67096.75.5 Columbia Heights10696.29.412896.510.213494.68.319494.69.129494.07.3 Columbus1695.99.61894.06.92694.77.22097.77.02996.411.2 Coon Rapids24794.55.627594.88.336994.45.861393.74.9100093.75.2 East Bethel5296.16.43593.77.45192.48.08394.29.113797.25.9 Fridley11795.07.412694.49.916094.48.025394.76.831793.46.1 Ham Lake7294.48.85395.77.57794.48.09793.66.318293.87.6 Hilltop1102.30.00- - -- - -0- - -- - -196.6- - -186.0- - - Lexington596.18.1796.23.8594.56.01393.28.92592.99.3 Lino Lakes10895.26.77895.17.910793.86.617894.66.523594.48.8 Linwood2397.29.31596.66.42093.88.15195.79.48591.016.2 Nowthen (fka Burns)1994.410.51595.316.0792.46.73196.77.63590.59.0 Oak Grove3394.59.22295.08.93694.79.16493.88.19493.211.3 Ramsey10994.17.410596.16.713993.97.222094.75.831593.76.9 Spring Lake Park3695.19.43092.17.54294.86.75993.64.86996.14.8 St. Francis3495.26.32497.26.63294.04.58794.75.012993.74.3 County Total173494.96.7154895.38.2186594.36.9304194.36.14,56393.86.3 Differential 10110210110199 Assessment Year20062005200420032002 Municipality#MedianCoeff#MedianCoeff#MedianCoeff#MedianCoeff#MedianCoeff Andover55094.54.259195.423.647994.43.653194.63.268394.67.6 Anoka 25794.97.133094.46.821394.55.423394.55.620694.56.2 Bethel894.57.42399.927.7794.42.4894.35.4894.52.0 Blaine100794.45.5142895.717.690094.45.484594.54.990694.56.7 Centerville8494.76.310693.79.17494.35.57794.56.48294.55.8 Circle Pines9194.64.817494.67.55294.44.15894.57.25494.56.5 Columbia Heights38094.68.338391.911.525594.37.026394.47.025594.47.3 Columbus2999.818.24093.39.32794.26.73294.67.44494.27.5 Coon Rapids126894.55.8148894.336.679394.45.480194.45.581194.55.4 East Bethel17695.717.720292.013.816994.77.413994.67.318694.58.1 Fridley42994.78.444198.07.729094.56.526094.56.125994.47.2 Ham Lake19194.56.431297.043.423294.35.420894.47.026794.57.8 Hilltop393.01.4393.018.10- - -- - -0- - -- - -0- - -- - - Lexington3094.37.22395.27.91494.64.12194.54.91293.84.9 Lino Lakes27694.66.528492.517.626494.47.132994.47.440294.48.8 Linwood6894.49.37594.323.56694.47.48694.57.16494.47.2 Nowthen (fka Burns)4494.25.29195.251.87794.59.25094.48.44594.48.7 Oak Grove11694.98.412997.011.810994.66.411694.48.510094.49.2 Ramsey37994.66.756195.713.735194.46.630894.46.033994.46.3 Spring Lake Park8794.58.811294.96.47194.44.37794.54.49194.55.9 St. Francis15894.74.320396.931.725094.45.015594.55.915794.47.2 County Total5,63294.56.37,00095.221.74,69394.45.74,59794.55.94,97194.46.8 Differential 101111101101101 ¥ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ îðïï Ý±´«³¾·¿ Ø»·¹¸¬ Î»·¼»²¬·¿´ Î¿¬·± ¾§ Æ±²» ÒËÓÞÛÎÓÛÜ×ßÒÝÑÛÚÚ×Ý×ÛÒÌ ÒÛ×ÙØÞÑÎØÑÑÜÒÛ×ÙØÞÑÎØÑÑÜÑÚÍßÔÛÍÑÚ ÝÑÜÛÜÛÍÝÎ×ÐÌ×ÑÒÍßÔÛÍÎßÌ×ÑÜ×ÍÐÛÎÍ×ÑÒ ÝØððÌÑÉÒØÑÓÛÍëèçòëíòë ÝØðïïçëð ó ïçêð ÉÛÍÌ ÑÚ ÝÛÒÌÎßÔîðçêòççòî ÝØðîÜÑËÞÔÛÍíéìòíëòí ÝØðíÍÓßÔÔ ÔÑÌÍ ÑÔÜÛÎ ØÑÓÛÍíìçìòèèòé ÝØðìÝÑÒÜÑÍíïïèòéïðòç ÝØðëÔßÎÙÛÎ ÔÑÌÍ ÛßÍÌ ÑÚ ÝÛÒÌÎßÔïëçêòîéòé ÝØðéØ×ÙØÔßÒÜ ÔßÕÛïîçêòêçòç ÝØðèÓßÌØß×ÎÛéçìòêêòé ÝØðç×ÒÒÍÞÎËÝÕëïðïëòë Ý×ÌÇÉ×ÜÛ ÎÛÍ×ÜÛÒÌ×ßÔ ÍßÔÛÍ ÎßÌ×Ñïðìçêòïçòî ¬® ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ Î»·¼»²¬·¿´ Ì¿¨ Ý¸¿²¹» Û¨¿³·²»¼ changes there are actually several elements that can contribute to this change, including, but not limited to: Changes in the approved levies of individual taxing jurisdictions. Bond referendum approvals. Tax rate changes approved by the State Legislature. Changes to the homestead credit, educational credits and agricultural aid. Changes in assessed market value. Changes in the classification of the property. A combination of any of these factors can bring about a change in the annual property tax bill. If you have questions, please call 763-323-5400. ¬ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ ßÜÜÛÒÜß ¬¬ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ Í¬¿¬«¬» Minnesota State Statute 270.12 State Board of Equalization section 8 of subd. 2 outlines sales study period Minnesota State Statute 273.11 Valuation of Property Minnesota State Statute 273.121 Valuation of Real Property Notice Minnesota State Statute 273.13 Classification of Property Minnesota State Statute 273.20 Assessor May Enter Dwellings, Buildings, or Structures authorizes assessors to make assumptions if unable to gain access to structures Minnesota State Statute 274.01 Board of Appeal and Equalization subd. 1b states that the board has no authority to make any change that would benefit the property owner if the assessor has been denied entry Minnesota State Statute 274.014 Local Boards; Appeals and Equalization Course and Meeting Requirements ¬« ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ 270.12 STATE BOARD OF EQUALIZATION; DUTIES. Subdivision 1.Commissioner of revenue constitutes board. The commissioner of revenue shall constitute the State Board of Equalization. The board may adjourn from day to day and employ necessary clerical assistance. Subd. 2.Meeting dates; duties. The board shall meet annually between April 15 and June 30 at the office of the commissioner of revenue and examine and compare the returns of the assessment of the property in the several counties, and equalize the same so that all the taxable property in the state shall be assessed at its market value, subject to the following rules: (1) The board shall add to the aggregate valuation of the real property of every county, which the board believes to be valued below its market value in money, such percent as will bring the same to its market value in money; (2) The board shall deduct from the aggregate valuation of the real property of every county, which the board believes to be valued above its market value in money, such percent as will reduce the same to its market value in money; (3) If the board believes the valuation for a part of a class determined by a range of market value under clause (8) or otherwise, a class, or classes of the real property of any town or district in any county, or the valuation for a part of a class, a class, or classes of the real property of any county not in towns or cities, should be raised or reduced, without raising or reducing the other real property of such county, or without raising or reducing it in the same ratio, the board may add to, or take from, the valuation of a part of a class, a class, or classes in any one or more of such towns or cities, or of the property not in towns or cities, such percent as the board believes will raise or reduce the same to its market value in money; (4) The board shall add to the aggregate valuation of any part of a class, a class, or classes of personal property of any county, town, or city, which the board believes to be valued below the market value thereof, such percent as will raise the same to its market value in money; (5) The board shall take from the aggregate valuation of any part of a class, a class, or classes of personal property in any county, town or city, which the board believes to be valued above the market value thereof, such percent as will reduce the same to its market value in money; (6) The board shall not reduce the aggregate valuation of all the property of the state, as returned by the several county auditors, more than one percent on the whole valuation thereof; (7) When it would be of assistance in equalizing values the board may require any county auditor to furnish statements showing assessments of real and personal property of any individuals, firms, or corporations within the county. The board shall consider and equalize such assessments and may increase the assessment of individuals, firms, or corporations above the amount returned by the county board of equalization when it shall appear to be undervalued, first giving notice to such persons of the intention of the board so to do, which notice shall fix a time and place of hearing. The board shall not decrease any such assessment below the valuation placed by the county board of equalization; (8) In equalizing values pursuant to this section, the board shall utilize a 12-month assessment/sales ratio study conducted by the Department of Revenue containing only sales that are filed in the county auditor's office under section 272.115, by November 1 of the previous year and that occurred between October 1 of the year immediately preceding the previous year and September 30 of the previous year. The assessment/sales ratio study may separate the values of residential property into market value categories. The board may adjust the market value categories and the number of categories as necessary to create an adequate sample size for each market value category. The board may determine the adequate sample size. To the extent practicable, the methodology used in preparing the assessment/sales ratio study must be consistent with the most recent Standard on Assessment Sales Ratio Studies published by the Assessment Standards Committee of the International Association of Assessing Officers. The board may determine the geographic area used in preparing the study to accurately equalize values. A sales ratio study separating residential property into market value categories may not be used as the basis for a petition under chapter 278. The sales prices used in the study must be discounted for terms of financing. The board shall use the median ratio as the statistical measure of the level of assessment for any particular category of property; and (9) The board shall receive from each county the estimated market values on the assessment date falling within the study period for all parcels by magnetic tape or other medium as prescribed by the commissioner of revenue. Subd. 3.Jurisdictions in two or more counties. ¬ª ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ When a taxing jurisdiction lies in two or more counties, if the sales ratio studies prepared by the Department of Revenue show that the average levels of assessment in the several portions of the taxing jurisdictions in the different counties differ by more than five percent, the board may order the apportionment of the levy. When the sales ratio studies prepared by the Department of Revenue show that the average levels of assessment in the several portions of the taxing jurisdictions in the different counties differ by more than ten percent, the board shall order the apportionment of the levy unless (a) the proportion of total adjusted gross tax capacity in one of the counties is less than ten percent of the total adjusted gross tax capacity in the taxing jurisdiction and the average level of assessment in that portion of the taxing jurisdiction is the level which differs by more than five percent from the assessment level in any one of the other portions of the taxing jurisdiction; (b) significant changes have been made in the level of assessment in the taxing jurisdiction which have not been reflected in the sales ratio study, and those changes alter the assessment levels in the portions of the taxing jurisdiction so that the assessment level now differs by five percent or less; or (c) commercial, industrial, mineral, or public utility property predominates in one county within the taxing jurisdiction and another class of property predominates in another county within that same taxing jurisdiction. If one or more of these factors are present, the board may order the apportionment of the levy. Notwithstanding any other provision, the levy for the Metropolitan Mosquito Control District, Metropolitan Council, metropolitan transit district, and metropolitan transit area must be apportioned without regard to the percentage difference. If, pursuant to this subdivision, the board apportions the levy, then that levy apportionment among the portions in the different counties shall be made in the same proportion as the adjusted gross tax capacity as determined by the commissioner in each portion is to the total adjusted gross tax capacity of the taxing jurisdiction. For the purposes of this section, the average level of assessment in a taxing jurisdiction or portion thereof shall be the aggregate assessment sales ratio. Gross tax capacities as determined by the commissioner shall be the gross tax capacities as determined for the year preceding the year in which the levy to be apportioned is levied. Actions pursuant to this subdivision shall be commenced subsequent to the annual meeting on April 15 of the State Board of Equalization, but notice of the action shall be given to the affected jurisdiction and the appropriate county auditors by the following June 30. Apportionment of a levy pursuant to this subdivision shall be considered as a remedy to be taken after equalization pursuant to subdivision 2, and when equalization within the jurisdiction would disturb equalization within other jurisdictions of which the several portions of the jurisdiction in question are a part. Subd. 4.Public utility property. For purposes of equalization only, public utility personal property shall be treated as a separate class of property notwithstanding the fact that its class rate is the same as commercial-industrial property. Subd. 5.Equalization orders. The Board of Equalization may, pursuant to its responsibilities under subdivisions 2 and 3, issue orders to ensure that the results of local and county boards of equalization are consistent with the objective of state equalization. The board may issue, at its discretion, a supplemental order to amend, supersede, or correct a prior order of the board or an order of a local or county board. The supplemental order must be issued within 60 days of the order to be changed. The board may issue to a local or county board of equalization, within ten business days of the receipt of minutes of a local or county board of equalization, an order explaining the action that the state board believes will be necessary to effect the objective of state equalization. History: (2366) RL s 863; 1971 c 564 s 3; 1973 c 123 art 5 s 7; 1973 c 582 s 3; 1975 c 295 s 1; 1975 c 339 s 8; 1978 c 766 s 1; 1980 c 616 s 10; 1983 c 222 s 3; 1985 c 300 s 3; 1Sp1986 c 1 art 4 s 10; 1987 c 268 art 7 s 20,21; 1988 c 719 art 5 s 84; 1989 c 277 art 2 s 12; 1989 c 329 art 15 s 20; 1Sp1989 c 1 art 2 s 11; art 3 s 1; art 9 s 9,10; 1991 c 291 art 1 s 7; art 12 s 3; 1994 c 416 art 1 s 7 ¬© ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ 273.11 VALUATION OF PROPERTY. Generally. Subdivision 1. Except as provided in this section or section 273.17, subdivision 1 , all property shall be valued at its market value. The market value as determined pursuant to this section shall be stated such that any amount under $100 is rounded up to $100 and any amount exceeding $100 shall be rounded to the nearest $100. In estimating and determining such value, the assessor shall not adopt a lower or different standard of value because the same is to serve as a basis of taxation, nor shall the assessor adopt as a criterion of value the price for which such property would sell at a forced sale, or in the aggregate with all the property in the town or district; but the assessor shall value each article or description of property by itself, and at such sum or price as the assessor believes the same to be fairly worth in money. The assessor shall take into account the effect on the market value of property of environmental factors in the vicinity of the property. In assessing any tract or lot of real property, the value of the land, exclusive of structures and improvements, shall be determined, and also the value of all structures and improvements thereon, and the aggregate value of the property, including all structures and improvements, excluding the value of crops growing upon cultivated land. In valuing real property upon which there is a mine or quarry, it shall be valued at such price as such property, including the mine or quarry, would sell for at a fair, voluntary sale, for cash, if the material being mined or quarried is not subject to taxation under section 298.015 and the mine or quarry is not exempt from the general property tax under section 298.25. In valuing real property which is vacant, platted property shall be assessed as provided in subdivision 14. All property, or the use thereof, which is taxable under section 272.01, subdivision 2, or 273.19, shall be valued at the market value of such property and not at the value of a leasehold estate in such property, or at some lesser value than its market value. Limited market value. Subd. 1a. In the case of all property classified as agricultural homestead or nonhomestead, residential homestead or nonhomestead, timber, or noncommercial seasonal residential recreational, the assessor shall compare the value with the taxable portion of the value determined in the preceding assessment.For assessment years 2004, 2005, and 2006, the amount of the increase shall not exceed the greater of (1) 15 percent of the value in the preceding assessment, or (2) 25 percent of the difference between the current assessment and the preceding assessment. For assessment year 2007, the amount of the increase shall not exceed the greater of (1) 15 percent of the value in the preceding assessment, or (2) 33 percent of the difference between the current assessment and the preceding assessment. For assessment year 2008, the amount of the increase shall not exceed the greater of (1) 15 percent of the value in the preceding assessment, or (2) 50 percent of the difference between the current assessment and the preceding assessment. This limitation shall not apply to increases in value due to improvements. For purposes of this subdivision, the term "assessment" means the value prior to any exclusion under subdivision 16.The provisions of this subdivision shall be in effect through assessment year 2008 as provided in this subdivision. For purposes of the assessment/sales ratio study conducted under section 127A.48, and the computation of state aids paid under chapters 122A, 123A, 123B, 124D, 125A, 126C, 127A, and 477A, market values and net tax capacities determined under this subdivision and subdivision 16, shall be used. Subd. 2.[Repealed, 1979 c 303 art 2 s 38] Subd. 3.[Repealed, 1975 c 437 art 8 s 10] Subd. 4.[Repealed, 1976 c 345 s 3] Boards of review and equalization. Subd. 5. Notwithstanding any other provision of law to the contrary, the limitation contained in subdivisions 1 and 1a shall also apply to the authority of the local board of review as provided in section 274.01, the county board of equalization as provided in section 274.13, the State Board of Equalization and the commissioner of revenue as provided in sections 270.11, subdivision 1, 270.12, 270C.92, and 270C.94. Solar, wind, methane gas systems. Subd. 6. For purposes of property taxation, the market value of real and personal property installed prior to January 1, 1984, which is a solar, wind, or agriculturally derived methane gas system used as a heating, cooling, or electric power source of a building or structure shall be excluded from the market value of that building or structure if the property is not used to provide energy for sale. ¬¨ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ Fire-safety sprinkler systems. Subd. 6a. For purposes of property taxation, the market value of automatic fire-safety sprinkler systems installed in existing buildings after January 1, 1992, meeting the standards of the Minnesota Fire Code shall be excluded from the market value of (1) existing multifamily residential real estate containing four or more units and used or held for use by the owner or by the tenants or lessees of the owner as a residence and (2) existing real estate containing four or more contiguous residential units for use by customers of the owner, such as hotels, motels, and lodging houses and (3) existing office buildings or mixed use commercial-residential buildings, in which at least one story capable of occupancy is at least 75 feet above the ground. The market value exclusion under this section shall expire if the property is sold. Subd. 7.[Repealed, 1984 c 502 art 3 s 36] Limited equity cooperative apartments. Subd. 8. For the purposes of this subdivision, the terms defined in this subdivision have the meanings given them.A "limited equity cooperative" is a corporation organized under chapter 308A or 308B, which has as its primary purpose the provision of housing and related services to its members which meets one of the following criteria with respect to the income of its members: (1) a minimum of 75 percent of members must have incomes at or less than 90 percent of area median income, (2) a minimum of 40 percent of members must have incomes at or less than 60 percent of area median income, or (3) a minimum of 20 percent of members must have incomes at or less than 50 percent of area median income. For purposes of this clause, "member income" shall mean the income of a member existing at the time the member acquires cooperative membership, and median income shall mean the St. Paul-Minneapolis metropolitan area median income as determined by the United States Department of Housing and Urban Development. It must also meet the following requirements:(a) The articles of incorporation set the sale price of occupancy entitling cooperative shares or memberships at no more than a transfer value determined as provided in the articles. That value may not exceed the sum of the following:(1) the consideration paid for the membership or shares by the first occupant of the unit, as shown in the records of the corporation;(2) the fair market value, as shown in the records of the corporation, of any improvements to the real property that were installed at the sole expense of the member with the prior approval of the board of directors;(3) accumulated interest, or an inflation allowance not to exceed the greater of a ten percent annual noncompounded increase on the consideration paid for the membership or share by the first occupant of the unit, or the amount that would have been paid on that consideration if interest had been paid on it at the rate of the percentage increase in the revised Consumer Price Index for All Urban Consumers for the Minneapolis-St. Paul metropolitan area prepared by the United States Department of Labor, provided that the amount determined pursuant to this clause may not exceed $500 for each year or fraction of a year the membership or share was owned; plus(4) real property capital contributions shown in the records of the corporation to have been paid by the transferor member and previous holders of the same membership, or of separate memberships that had entitled occupancy to the unit of the member involved. These contributions include contributions to a corporate reserve account the use of which is restricted to real property improvements or acquisitions, contributions to the corporation which are used for real property improvements or acquisitions, and the amount of principal amortized by the corporation on its indebtedness due to the financing of real property acquisition or improvement or the averaging of principal paid by the corporation over the term of its real property-related indebtedness.(b) The articles of incorporation require that the board of directors limit the purchase price of stock or membership interests for new member-occupants or resident shareholders to an amount which does not exceed the transfer value for the membership or stock as defined in clause (a).(c) The articles of incorporation require that the total distribution out of capital to a member shall not exceed that transfer value.(d) The articles of incorporation require that upon liquidation of the corporation any assets remaining after retirement of corporate debts and distribution to members will be conveyed to a charitable organization described in section 501(c)(3) of the Internal Revenue Code of 1986, as amended through December 31, 1992, or a public agency.A "limited equity cooperative apartment" is a dwelling unit owned by a limited equity cooperative."Occupancy entitling cooperative share or membership" is the ownership interest in a cooperative organization which entitles the holder to an exclusive right to occupy a dwelling unit ¬§ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ owned or leased by the cooperative. For purposes of taxation, the assessor shall value a unit owned by a limited equity cooperative at the lesser of its market value or the value determined by capitalizing the net operating income of a comparable apartment operated on a rental basis at the capitalization rate used in valuing comparable buildings that are not limited equity cooperatives. If a cooperative fails to operate in accordance with the provisions of clauses (a) to (d), the property shall be subject to additional property taxes in the amount of the difference between the taxes determined in accordance with this subdivision for the last ten years that the property had been assessed pursuant to this subdivision and the amount that would have been paid if the provisions of this subdivision had not applied to it. The additional taxes, plus interest at the rate specified in section 549.09, shall be extended against the property on the tax list for the current year. Condominium property. Subd. 9. Notwithstanding any other provision of law to the contrary, for purposes of property taxation, condominium property shall be valued in accordance with this subdivision.(a) A structure or building that is initially constructed as condominiums shall be identified as separate units after the filing of a declaration. The market value of the residential units in that structure or building and included in the declaration shall be valued as condominiums.(b) When 60 percent or more of the residential units in a structure or building being converted to condominiums have been sold as condominiums including those units that the converters retain for their own investment, the market value of the remaining residential units in that structure or building which are included in the declaration shall be valued as condominiums. If not all of the residential units in the structure or building are included in the declaration, the 60 percent factor shall apply to those in the declaration. A separate description shall be recognized when a declaration is filed. For purposes of this clause, "retain" shall mean units that are rented and completed units that are not available for sale.(c) For purposes of this subdivision, a "sale" is defined as the date when the first written document for the purchase or conveyance of the property is signed, unless that document is revoked. Subd. 10.[Repealed, 1999 c 243 art 5 s 54] Valuation of restored or preserved wetland. Subd. 11. Wetlands restored by the federal, state, or local government, or by a nonprofit organization, or preserved under the terms of a temporary or perpetual easement by the federal or state government, must be valued by assessors at their wetland value. "Wetland value" in this subdivision means the market value of wetlands in any potential use in which the wetland character is not permanently altered. Wetland value shall not reflect potential uses of the wetland that would violate the terms of any existing conservation easement, or any one-time payment received by the wetland owner under the terms of a state or federal conservation easement. Wetland value shall reflect any potential income consistent with a property's wetland character, including but not limited to lease payments for hunting or other recreational uses. The commissioner of revenue shall issue a bulletin advising assessors of the provisions of this section by October 1, 1991.For purposes of this subdivision, "wetlands" means lands transitional between terrestrial and aquatic systems where the water table is usually at or near the surface or the land is covered by shallow water. For purposes of this definition, wetlands must have the following three attributes:(1) have a predominance of hydric soils;(2) are inundated or saturated by surface or ground water at a frequency and duration sufficient to support a prevalence of hydrophytic vegetation typically adapted for life in saturated soil conditions; and(3) under normal circumstances support a prevalence of such vegetation. Neighborhood land trusts. Subd. 12. (a) A neighborhood land trust, as defined under chapter 462A, is (i) a community-based nonprofit corporation organized under chapter 317A, which qualifies for tax exempt status under 501(c)(3), or (ii) a "city" as defined in section 462C.02, subdivision 6, which has received funding from the Minnesota housing finance agency for purposes of the neighborhood land trust program. The Minnesota Housing Finance Agency shall set the criteria for neighborhood land trusts. (b) All occupants of a neighborhood land trust building must have a family income of less than 80 percent of the greater of (1) the state median income, or (2) the area or county median income, as most recently determined by the Department of Housing and Urban Development. Before the neighborhood land trust can rent or sell a unit to an applicant, the neighborhood land trust shall verify to the satisfaction of the administering agency or the city that the family income of each ¬¦ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ person or family applying for a unit in the neighborhood land trust building is within the income criteria provided in this paragraph. The administering agency or the city shall verify to the satisfaction of the county assessor that the occupant meets the income criteria under this paragraph. The property tax benefits under paragraph (c) shall be granted only to property owned or rented by persons or families within the qualifying income limits. The family income criteria and verification is only necessary at the time of initial occupancy in the property.(c) A unit which is owned by the occupant and used as a homestead by the occupant qualifies for homestead treatment as class 1a under section 273.13, subdivision 22. A unit which is rented by the occupant and used as a homestead by the occupant shall be class 4a or 4b property, under section 273.13, subdivision 25, whichever is applicable. Any remaining portion of the property not used for residential purposes shall be classified by the assessor in the appropriate class based upon the use of that portion of the property owned by the neighborhood land trust. The land upon which the building is located shall be assessed at the same class rate as the units within the building, provided that if the building contains some units assessed as class 1a and some units assessed as class 4a or 4b, the market value of the land will be assessed in the same proportions as the value of the building. Valuation of income-producing property. Subd. 13. Beginning with the 1995 assessment, only accredited assessors or senior accredited assessors or other licensed assessors who have successfully completed at least two income-producing property appraisal courses may value income- producing property for ad valorem tax purposes. "Income-producing property" as used in this subdivision means the taxable property in class 3a and 3b in section 273.13, subdivision 24; class 4a and 4c, except for seasonal recreational property not used for commercial purposes; and class 5 in section 273.13, subdivision 31. "Income-producing property" includes any property in class 4e in section 273.13, subdivision 25, that would be income-producing property under the definition in this subdivision if it were not substandard. "Income-producing property appraisal course" as used in this subdivision means a course of study of approximately 30 instructional hours, with a final comprehensive test. An assessor must successfully complete the final examination for each of the two required courses. The course must be approved by the board of assessors. Vacant land platted before August 1, 2001. Subd. 14. (a) All land platted before August 1, 2001, and not improved with a permanent structure, shall be assessed as provided in this subdivision. The assessor shall determine the market value of each individual lot based upon the highest and best use of the property as unplatted land. In establishing the market value of the property, the assessor shall consider the sale price of the unplatted land or comparable sales of unplatted land of similar use and similar availability of public utilities.(b) The market value determined in paragraph (a) shall be increased as follows for each of the three assessment years immediately following the final approval of the plat: one-third of the difference between the property's unplatted market value as determined under paragraph (a) and the market value based upon the highest and best use of the land as platted property shall be added in each of the three subsequent assessment years.(c) Any increase in market value after the first assessment year following the plat's final approval shall be added to the property's market value in the next assessment year. Notwithstanding paragraph (b), if construction begins before the expiration of the three years in paragraph (b), that lot shall be eligible for revaluation in the next assessment year. The market value of a platted lot determined under this subdivision shall not exceed the value of that lot based upon the highest and best use of the property as platted land. Vacant land platted on or after August 1, 2001; located in metropolitan counties. Subd. 14a. (a) All land platted on or after August 1, 2001, located in a metropolitan county, and not improved with a permanent structure, shall be assessed as provided in this subdivision. The assessor shall determine the market value of each individual lot based upon the highest and best use of the property as unplatted land. In establishing the market value of the property, the assessor shall consider the sale price of the unplatted land or comparable sales of unplatted land of similar use and similar availability of public utilities.(b) The market value determined in paragraph (a) shall be increased as follows for each of the three assessment years immediately following the final approval of the plat: one-third of the difference between the property's unplatted market value as determined under paragraph (a) and the market value based upon the highest and best use of the land as platted ¬¥ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ property shall be added in each of the three subsequent assessment years.(c) Any increase in market value after the first assessment year following the plat's final approval shall be added to the property's market value in the next assessment year. Notwithstanding paragraph (b), if construction begins before the expiration of the three years in paragraph (b), that lot shall be eligible for revaluation in the next assessment year. The market value of a platted lot determined under this subdivision shall not exceed the value of that lot based upon the highest and best use of the property as platted land.(d) For purposes of this section, "metropolitan county" means the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. Vacant land platted on or after August 1, 2001; located in nonmetropolitan Subd. 14b. counties. (a) All land platted on or after August 1, 2001, located in a nonmetropolitan county, and not improved with a permanent structure, shall be assessed as provided in this subdivision. The assessor shall determine the market value of each individual lot based upon the highest and best use of the property as unplatted land. In establishing the market value of the property, the assessor shall consider the sale price of the unplatted land or comparable sales of unplatted land of similar use and similar availability of public utilities.(b) The market value determined in paragraph (a) shall be increased as follows for each of the seven assessment years immediately following the final approval of the plat: one-seventh of the difference between the property's unplatted market value as determined under paragraph (a) and the market value based upon the highest and best use of the land as platted property shall be added in each of the seven subsequent assessment years.(c) Any increase in market value after the first assessment year following the plat's final approval shall be added to the property's market value in the next assessment year. Notwithstanding paragraph (b), if construction begins before the expiration of the seven years in paragraph (b), that lot shall be eligible for revaluation in the next assessment year. The market value of a platted lot determined under this subdivision shall not exceed the value of that lot based upon the highest and best use of the property as platted land. Vacant hospitals. Subd. 15. In valuing a hospital, as defined in section 144.50, subdivision 2 , that is located outside of a metropolitan county, as defined in section 473.121, subdivision 4, and that on the date of sale is vacant and not used for hospital purposes or for any other purpose, the assessor's estimated market value for taxes levied in the year of the sale shall be no greater than the sales price of the property, including both the land and the buildings, as adjusted for terms of financing. If the sale is made later than December 15, the market value as determined under this subdivision shall be used for taxes levied in the following year. This subdivision applies only if the sales price of the property was determined under an arm's-length transaction. Valuation exclusion for certain improvements. Subd. 16. Improvements to homestead property made before January 2, 2003, shall be fully or partially excluded from the value of the property for assessment purposes provided that (1) the house is at least 45 years old at the time of the improvement and (2) the assessor's estimated market value of the house on January 2 of the current year is equal to or less than $400,000.For purposes of determining this eligibility, "house" means land and buildings. The age of a residence is the number of years since the original year of its construction. In the case of a residence that is relocated, the relocation must be from a location within the state and the only improvements eligible for exclusion under this subdivision are (1) those for which building permits were issued to the homeowner after the residence was relocated to its present site, and (2) those undertaken during or after the year the residence is initially occupied by the homeowner, excluding any market value increase relating to basic improvements that are necessary to install the residence on its foundation and connect it to utilities at its present site. In the case of an owner- occupied duplex or triplex, the improvement is eligible regardless of which portion of the property was improved. If the property lies in a jurisdiction which is subject to a building permit process, a building permit must have been issued prior to commencement of the improvement. The improvements for a single project or in any one year must add at least $5,000 to the value of the property to be eligible for exclusion under this subdivision. Only improvements to the structure which is the residence of the qualifying homesteader or construction of or improvements to no more than one two-car garage per residence qualify for the provisions of this subdivision. If an improvement was begun between January «® ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ 2, 1992, and January 2, 1993, any value added from that improvement for the January 1994 and subsequent assessments shall qualify for exclusion under this subdivision provided that a building permit was obtained for the improvement between January 2, 1992, and January 2, 1993. Whenever a building permit is issued for property currently classified as homestead, the issuing jurisdiction shall notify the property owner of the possibility of valuation exclusion under this subdivision. The assessor shall require an application, including documentation of the age of the house from the owner, if unknown by the assessor. The application may be filed subsequent to the date of the building permit provided that the application must be filed within three years of the date the building permit was issued for the improvement. If the property lies in a jurisdiction which is not subject to a building permit process, the application must be filed within three years of the date the improvement was made. The assessor may require proof from the taxpayer of the date the improvement was made. Applications must be received prior to July 1 of any year in order to be effective for taxes payable in the following year. No exclusion for an improvement may be granted by a local board of review or county board of equalization, and no abatement of the taxes for qualifying improvements may be granted by the county board unless (1) a building permit was issued prior to the commencement of the improvement if the jurisdiction requires a building permit, and (2) an application was completed. The assessor shall note the qualifying value of each improvement on the property's record, and the sum of those amounts shall be subtracted from the value of the property in each year for ten years after the improvement has been made. After ten years the amount of the qualifying value shall be added back as follows:(1) 50 percent in the two subsequent assessment years if the qualifying value is equal to or less than $10,000 market value; or(2) 20 percent in the five subsequent assessment years if the qualifying value is greater than $10,000 market value. If an application is filed after the first assessment date at which an improvement could have been subject to the valuation exclusion under this subdivision, the ten- year period during which the value is subject to exclusion is reduced by the number of years that have elapsed since the property would have qualified initially. The valuation exclusion shall terminate whenever (1) the property is sold, or (2) the property is reclassified to a class which does not qualify for treatment under this subdivision. Improvements made by an occupant who is the purchaser of the property under a conditional purchase contract do not qualify under this subdivision unless the seller of the property is a governmental entity. The qualifying value of the property shall be computed based upon the increase from that structure's market value as of January 2 preceding the acquisition of the property by the governmental entity. The total qualifying value for a homestead may not exceed $50,000. The total qualifying value for a homestead with a house that is less than 70 years old may not exceed $25,000. The term "qualifying value" means the increase in estimated market value resulting from the improvement if the improvement occurs when the house is at least 70 years old, or one-half of the increase in estimated market value resulting from the improvement otherwise. The $25,000 and $50,000 maximum qualifying value under this subdivision may result from multiple improvements to the homestead. If 50 percent or more of the square footage of a structure is voluntarily razed or removed, the valuation increase attributable to any subsequent improvements to the remaining structure does not qualify for the exclusion under this subdivision. If a structure is unintentionally or accidentally destroyed by a natural disaster, the property is eligible for an exclusion under this subdivision provided that the structure was not completely destroyed. The qualifying value on property destroyed by a natural disaster shall be computed based upon the increase from that structure's market value as determined on January 2 of the year in which the disaster occurred. A property receiving benefits under the homestead disaster provisions under section 273.123 is not disqualified from receiving an exclusion under this subdivision. If any combination of improvements made to a structure after January 1, 1993, increases the size of the structure by 100 percent or more, the valuation increase attributable to the portion of the improvement that causes the structure's size to exceed 100 percent does not qualify for exclusion under this subdivision. Valuation of contaminated properties. Subd. 17. (a) In determining the market value of property containing contaminants, the assessor shall reduce the market value of the property by the contamination value of the property. The contamination value is the amount of the market value reduction that results from the presence of the contaminants, but it may not exceed the cost of a « ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ reasonable response action plan or asbestos abatement plan or management program for the property.(b) For purposes of this subdivision, "asbestos abatement plan," "contaminants," and "response action plan" have the meanings as used in sections 270.91 and 270.92. Disclosure of valuation exclusion. Subd. 18. No seller of real property shall sell or offer for sale property that, for purposes of property taxation, has an exclusion from market value for home improvements under subdivision 16, without disclosing to the buyer the existence of the excluded valuation and informing the buyer that the exclusion will end upon the sale of the property and that the property's estimated market value for property tax purposes will increase accordingly. Valuation exclusion for improvements to certain business property. Subd. 19. Property classified under Minnesota Statutes, section 273.13, subdivision 24, which is eligible for the preferred class rate on the market value up to $150,000, shall qualify for a valuation exclusion for assessment purposes, provided all of the following conditions are met: (1) the building must be at least 50 years old at the time of the improvement or damaged by the 1997 floods;(2) the building must be located in a city or town with a population of 10,000 or less that is located outside the seven-county metropolitan area, as defined in section 473.121, subdivision 2; (3) the total estimated market value of the land and buildings must be $100,000 or less prior to the improvement and prior to the damage caused by the 1997 floods;(4) the current year's estimated market value of the property must be equal to or less than the property's estimated market value in each of the two previous years' assessments;(5) a building permit must have been issued prior to the commencement of the improvement, or if the building is located in a city or town which does not have a building permit process, the property owner must notify the assessor prior to the commencement of the improvement;(6) the property, including its improvements, has received no public assistance, grants or financing except, that in the case of property damaged by the 1997 floods, the property is eligible to the extent that the flood losses are not reimbursed by insurance or any public assistance, grants, or financing;(7) the property is not receiving a property tax abatement under section 469.1813; and (8) the improvements are made after the effective date of Laws 1997, chapter 231, and prior to January 1, 1999.The assessor shall estimate the market value of the building in the assessment year immediately following the year that (1) the building permit was taken out, or (2) the taxpayer notified the assessor that an improvement was to be made. If the estimated market value of the building has increased over the prior year's assessment, the assessor shall note the amount of the increase on the property's record, and that amount shall be subtracted from the value of the property in each year for five years after the improvement has been made, at which time an amount equal to 20 percent of the excluded value shall be added back in each of the five subsequent assessment years. For any property, there can be no more than two improvements qualifying for exclusion under this subdivision. The maximum amount of value that can be excluded from any property under this subdivision is $50,000.The assessor shall require an application, including documentation of the age of the building from the owner, if unknown by the assessor. Applications must be received prior to July 1 of any year in order to be effective for taxes payable in the following year. For purposes of this subdivision, "population" has the same meaning given in Minnesota Statutes, section 477A.011, subdivision 3. Valuation exclusion for improvements to certain business property. Subd. 20. Property classified under section 273.13, subdivision 24, qualifies for a valuation exclusion for assessment purposes, provided all of the following conditions are met: (1) the building must have been damaged by the 2002 floods;(2) the building must be located in a city or town with a population of 10,000 or less that is located in a county in the area included in DR-1419;(3) the total estimated market value of the land and buildings must be $150,000 or less for assessment year 2002;(4) a building permit must have been issued prior to the commencement of the improvement, or if the building is located in a city or town which does not have a building permit process, the property owner must notify the assessor prior to the commencement of the improvement;(5) the property is not receiving a property tax abatement under section 469.1813; and (6) the improvements are made before January 1, 2004.The assessor shall estimate the market value of the building in the assessment year immediately following the year that (1) the building permit was taken out, or (2) the taxpayer notified the assessor that an improvement was to be made. If the estimated market value of the building has increased over the «¬ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ 2002 assessment before any reassessment due to flood damage, the assessor shall note the amount of the increase on the property's record, and that amount shall be subtracted from the value of the property in each year for five years after the improvement has been made. In each of the next five subsequent assessment years, an amount equal to 20 percent of the value excluded in the fifth year for that improvement shall be added back. The maximum amount of value that can be excluded for all improvements to any property under this subdivision is $50,000.The assessor shall require an application. Applications must be received by December 31, 2002, or December 31, 2003, in order to be effective for taxes payable in the following year. For purposes of this subdivision, "population" has the meaning given in section 477A.011, subdivision 3 . Valuation reduction for homestead property damaged by mold. Subd. 21. (a) The owner of homestead property may apply in writing to the assessor for a reduction in the market value of the property that has been damaged by mold. The notification must include the estimated cost to cure the mold condition provided by a licensed contractor. The estimated cost must be at least $20,000. Upon completion of the work, the owner must file an application on a form prescribed by the commissioner of revenue, accompanied by a copy of the contractor's estimate.(b) If the conditions in paragraph (a) are met, the county board must grant a reduction in the market value of the homestead dwelling equal to the estimated cost to cure the mold condition. If a property owner applies for a reduction under this subdivision between January 1 and June 30 of any year, the reduction applies for taxes payable in the following year. If a property owner applies for a reduction under this subdivision between July 1 and December 31 of any year, the reduction applies for taxes payable in the second following year.(c) A denial of a reduction under this section by the county board may be appealed to the tax court. If the county board takes no action on the application within 90 days after its receipt, it is considered an approval.(d) For purposes of subdivision 1a, in the assessment year following the assessment year when a valuation reduction has occurred under this section, any market value added by the assessor to the property resulting from curing the mold condition must be considered an increase in value due Lead hazard market value reduction. to new construction. Subd. 22. Owners of property classified as class 1a, 1b, 1c, 2a, 4b, 4bb, or 4d under section 273.13 may apply for a lead hazard valuation reduction, provided that the property is located in a city which has authorized valuation reductions under this subdivision. A city that authorizes reductions under this subdivision must establish guidelines for qualifying lead hazard reduction projects and must designate an agency within the city to issue certificates of completion of qualifying projects. For purposes of this subdivision, "lead hazard reduction" has the same meaning as in section 144.9501, subdivision 17.The property owner must obtain a certificate from the agency stating (1) that the project has been completed and (2) the total cost incurred by the owner, which must be at least $3,000. Only projects originating after July 1, 2005, and completed before July 1, 2010, qualify for a reduction under this subdivision. The property owner shall apply for the valuation reduction to the assessor on a form prescribed by the assessor accompanied by a copy of the certificate of completion from the agency. A qualifying property is eligible for a one-year valuation reduction equal to the actual cost incurred, to a maximum of $20,000. If a property owner applies to the assessor for the valuation reduction under this subdivision between January 1 and June 30 of any year, the reduction applies for taxes payable in the following year. If a property owner applies to the assessor for the valuation reduction under this subdivision between July 1 and December 31, the reduction applies for taxes payable in the second following year. For purposes of subdivision 1a, any additional market value resulting from the lead hazard removal must be considered an increase in value due to new construction. First tier valuation limit; agricultural homestead property. Subd. 23. (a) Beginning with assessment year 2006, the commissioner of revenue shall annually certify the first tier limit for agricultural homestead property as the product of (i) $600,000, and (ii) the ratio of the statewide average taxable market value of agricultural property per acre of deeded farm land in the preceding assessment year to the statewide average taxable market value of agricultural property per acre of deeded farm land for assessment year 2004. The limit shall be rounded to the nearest $10,000.(b) For the purposes of this subdivision, "agricultural property" means all class 2 property under section 273.13, subdivision 23, except for (1) timberland, (2) a landing area or public access area of a «« ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ privately owned public use airport, and (3) property consisting of the house, garage, and immediately surrounding one acre of land of an agricultural homestead.(c) The commissioner shall certify the limit by January 2 of each assessment year, except that for assessment year 2006 the commissioner shall certify the limit by June 1, 2006. History: (1992) RL s 810; Ex1967 c 32 art 7 s 3; 1969 c 574 s 1; 1969 c 990 s 1; 1971 c 427 s 1; 1971 c 489 s 1; 1971 c 831 s 1; 1973 c 582 s 3; 1973 c 650 art 23 s 1-4; 1974 c 556 s 14; 1975 c 437 art 8 s 4-6; 1976 c 2 s 93; 1976 c 345 s 1; 1977 c 423 art 4 s 4; 1978 c 786 s 10,11; 1979 c 303 art 2 s 7; 1Sp1981 c 1 art 2 s 3,4; 1Sp1981 c 4 art 2 s 50; 1982 c 424 s 61,62; 1982 c 523 art 19 s 2; art 21 s 1; 1983 c 222 s 7; 1983 c 342 art 2 s 5-7; 1984 c 502 art 3 s 6; 1Sp1985 c 14 art 4 s 35; 1986 c 444; 1Sp1986 c 1 art 4 s 12; 1987 c 268 art 5 s 1; art 7 s 32; 1987 c 384 art 3 s 10; 1988 c 719 art 5 s 84; 1989 c 329 art 13 s 20; 1989 c 356 s 13; 1990 c 480 art 7 s 5; 1990 c 604 art 3 s 9; 1991 c 291 art 1 s 12; 1991 c 354 art 10 s 7,8; 1992 c 511 art 2 s 11,12; 1992 c 556 s 2,3; 1992 c 597 s 14; 1993 c 375 art 5 s 8-13; art 8 s 14; art 11 s 3; art 12 s 9; 1994 c 416 art 1 s 13; 1994 c 587 art 5 s 3-5; 1995 c 1 s 2; 1995 c 264 art 16 s 9; 1996 c 471 art 3 s 5; 1997 c 231 art 2 s 10,11,52; art 8 s 2; 1997 c 251 s 16; 1998 c 397 art 11 s 3; 1999 c 243 art 5 s 6,7; 1Sp2001 c 5 art 3 s 23-26; 1Sp2002 c 1 s 14; 2003 c 127 art 5 s 15; 1Sp2003 c 21 art 4 s 3; 2005 c 151 art 2 s 6; art 5 s 16; 1Sp2005 c 3 art 1 s 8-10; 2006 c 259 art 4 s 11 «ª ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ 273.121 VALUATION OF REAL PROPERTY, NOTICE. Any county assessor or city assessor having the powers of a county assessor, valuing or classifying taxable real property shall in each year notify those persons whose property is to be included on the assessment roll that year if the person's address is known to the assessor, otherwise the occupant of the property. The notice shall be in writing and shall be sent 274.01 by ordinary mail at least ten days before the meeting of the local board of appeal and equalization under section 274.13, subdivision 1c or the review process established under section . It shall contain: (1) the market value for the 273.11, subdivision 1a current and prior assessment, (2) the limited market value under section , for the current and 273.11, subdivision 16 prior assessment, (3) the qualifying amount of any improvements under section , for the current assessment, (4) the market value subject to taxation after subtracting the amount of any qualifying improvements for the current assessment, (5) the classification of the property for the current and prior assessment, (6) a note that if the property is homestead and at least 45 years old, improvements made to the property may be eligible for a valuation 273.11, subdivision 16 exclusion under section , (7) the assessor's office address, and (8) the dates, places, and times 274.13, set for the meetings of the local board of appeal and equalization, the review process established under section subdivision 1c , and the county board of appeal and equalization. The commissioner of revenue shall specify the form of the notice. The assessor shall attach to the assessment roll a statement that the notices required by this section have been mailed. Any assessor who is not provided sufficient funds from the assessor's governing body to provide such notices, may make application to the commissioner of revenue to finance such notices. The commissioner of revenue shall conduct an investigation and, if satisfied that the assessor does not have the necessary funds, issue a certification to the commissioner of finance of the amount necessary to provide such notices. The commissioner of finance shall issue a warrant for such amount and shall deduct such amount from any state payment to such county or municipality. The necessary funds to make such payments are hereby appropriated. Failure to receive the notice shall in no way affect the validity of the assessment, the resulting tax, the procedures of any board of review or equalization, or the enforcement of delinquent taxes by statutory means. History: Ex1971 c 31 art 23 s 2; 1973 c 492 s 14; 1974 c 363 s 1; 1975 c 437 art 8 s 7; 1980 c 437 s 3; 1982 c 523 art 23 s 1; 1Sp1985 c 14 art 4 s 41; 1986 c 444; 1988 c 719 art 6 s 8; 1993 c 375 art 5 s 16; 1995 c 1 s 3; 1997 c 231 art 2 s 17; 1Sp2001 c 5 art 7 s 20; 2002 c 377 art 10 s 5 «© ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ 273.13 CLASSIFICATION OF PROPERTY. How classified. Subdivision 1. All real and personal property subject to a general property tax and not subject to any gross earnings or other in-lieu tax is hereby classified for purposes of taxation as provided by this section. Subd. 2.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 2a.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 3.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 4.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 5.[Repealed, Ex1971 c 31 art 22 s 5] Subd. 5a.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 6.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 6a.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 7.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 7a.[Repealed, 1988 c 719 art 5 s 81] Subd. 7b.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 7c.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 7d.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 8.[Repealed, Ex1967 c 32 art 4 s 3] Subd. 8a.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 9.[Repealed, 1988 c 719 art 5 s 81] Subd. 10.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 11.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 12.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 13.[Repealed, 1974 c 313 s 1] Subd. 14.[Repealed, 1984 c 593 s 46] Subd. 14a.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 15.[Repealed, Ex1971 c 31 art 36 s 2] Subd. 15a.[Repealed, 1988 c 719 art 5 s 81] Subd. 15b.[Repealed, 1983 c 342 art 2 s 30] Subd. 16.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 17.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 17a.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 17b.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 17c.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 17d.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 18.[Repealed, 1983 c 222 s 45] Subd. 19.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 20.[Repealed, 1Sp1985 c 14 art 4 s 98] Subd. 21.[Repealed, 1Sp1985 c 14 art 4 s 98] Class rate Subd. 21a.. In this section, wherever the "class rate" of a class of property is specified without qualification as to whether it is the property's "net class rate" or its "gross class rate," the "net class rate" and "gross class rate" of that property are the same as its "class rate." Tax capacity Subd. 21b.. (a) Gross tax capacity means the product of the appropriate gross class rates in this section and market values. (b) Net tax capacity means the product of the appropriate net class rates in this section and market values. Class 1 Subd. 22. . (a) Except as provided in subdivision 23 and in paragraphs (b) and (c), real estate which is residential and used for homestead purposes is class 1a. In the case of a duplex or triplex in which one of the units is used for homestead purposes, the entire property is deemed to «¨ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ be used for homestead purposes. The market value of class 1a property must be determined based upon the value of the house, garage, and land. The first $500,000 of market value of class 1a property has a net class rate of one percent of its market value; and the market value of class 1a property that exceeds $500,000 has a class rate of 1.25 percent of its market value. (b) Class 1b property includes homestead real estate or homestead manufactured homes used for the purposes of a homestead by: (1) any person who is blind as defined in section 256D.35, or the blind person and the blind person's spouse; (2) any person who is permanently and totally disabled or by the disabled person and the disabled person's spouse; or (3) the surviving spouse of a permanently and totally disabled veteran homesteading a property classified under this paragraph for taxes payable in 2008. Property is classified and assessed under clause (2) only if the government agency or income-providing source certifies, upon the request of the homestead occupant, that the homestead occupant satisfies the disability requirements of this paragraph, and that the property is not eligible for the valuation exclusion under subdivision 34. Property is classified and assessed under paragraph (b) only if the commissioner of revenue or the county assessor certifies that the homestead occupant satisfies the requirements of this paragraph. Permanently and totally disabled for the purpose of this subdivision means a condition which is permanent in nature and totally incapacitates the person from working at an occupation which brings the person an income. The first $50,000 market value of class 1b property has a net class rate of .45 percent of its market value. The remaining market value of class 1b property has a class rate using the rates for class 1a or class 2a property, whichever is appropriate, of similar market value. (c) Class 1c property is commercial use real and personal property that abuts public water as defined in section 103G.005, subdivision 15, and is devoted to temporary and seasonal residential occupancy for recreational purposes but not devoted to commercial purposes for more than 250 days in the year preceding the year of assessment, and that includes a portion used as a homestead by the owner, which includes a dwelling occupied as a homestead by a shareholder of a corporation that owns the resort, a partner in a partnership that owns the resort, or a member of a limited liability company that owns the resort even if the title to the homestead is held by the corporation, partnership, or limited liability company. For purposes of this clause, property is devoted to a commercial purpose on a specific day if any portion of the property, excluding the portion used exclusively as a homestead, is used for residential occupancy and a fee is charged for residential occupancy. Class 1c property must contain three or more rental units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site equipped with water and electrical hookups for recreational vehicles. Class 1c property must provide recreational activities such as the rental of ice fishing houses, boats and motors, snowmobiles, downhill or cross-country ski equipment; provide marina services, launch services, or guide services; or sell bait and fishing tackle. Any unit in which the right to use the property is transferred to an individual or entity by deeded interest, or the sale of shares or stock, no longer qualifies for class 1c even though it may remain available for rent. A camping pad offered for rent by a property that otherwise qualifies for class 1c is also class 1c, regardless of the term of the rental agreement, as long as the use of the camping pad does not exceed 250 days. The portion of the property used as a homestead is class 1a property under paragraph (a). The remainder of the property is classified as follows: the first $600,000 of market value is tier I, the next $1,700,000 of market value is tier II, and any remaining market value is tier III. The class rates for class 1c are: tier I, 0.50 percent; tier II, 1.0 percent; and tier III, 1.25 percent. Owners of real and personal property devoted to temporary and seasonal residential occupancy for recreation purposes in which all or a portion of the property was devoted to commercial purposes for not more than 250 days in the year preceding the year of assessment desiring classification as class 1c, must submit a declaration to the «§ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ assessor designating the cabins or units occupied for 250 days or less in the year preceding the year of assessment by January 15 of the assessment year. Those cabins or units and a proportionate share of the land on which they are located must be designated as class 1c as otherwise provided. The remainder of the cabins or units and a proportionate share of the land on which they are located must be designated as class 3a commercial. The owner of property desiring designation as class 1c property must provide guest registers or other records demonstrating that the units for which class 1c designation is sought were not occupied for more than 250 days in the year preceding the assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility operated on a commercial basis not directly related to temporary and seasonal residential occupancy for recreation purposes does not qualify for class 1c. (d) Class 1d property includes structures that meet all of the following criteria: (1) the structure is located on property that is classified as agricultural property under section 273.13, subdivision 23; (2) the structure is occupied exclusively by seasonal farm workers during the time when they work on that farm, and the occupants are not charged rent for the privilege of occupying the property, provided that use of the structure for storage of farm equipment and produce does not disqualify the property from classification under this paragraph; (3) the structure meets all applicable health and safety requirements for the appropriate season; and (4) the structure is not salable as residential property because it does not comply with local ordinances relating to location in relation to streets or roads. The market value of class 1d property has the same class rates as class 1a property under paragraph (a). Class 2 Subd. 23.. (a) An agricultural homestead consists of class 2a agricultural land that is homesteaded, along with any class 2b rural vacant land that is contiguous to the class 2a land under the same ownership. The market value of the house and garage and immediately surrounding one acre of land has the same class rates as class 1a or 1b property under subdivision 22. The value of the remaining land including improvements up to the first tier valuation limit of agricultural homestead property has a net class rate of 0.5 percent of market value. The remaining property over the first tier has a class rate of one percent of market value. For purposes of this subdivision, the "first tier valuation limit of agricultural homestead property" and "first tier" means the limit certified under section 273.11, subdivision 23. (b) Class 2a agricultural land consists of parcels of property, or portions thereof, that are agricultural land and buildings. Class 2a property has a net class rate of one percent of market value, unless it is part of an agricultural homestead under paragraph (a). Class 2a property must also include any property that would otherwise be classified as 2b, but is interspersed with class 2a property, including but not limited to sloughs, wooded wind shelters, acreage abutting ditches, ravines, rock piles, land subject to a setback requirement, and other similar land that is impractical for the assessor to value separately from the rest of the property or that is unlikely to be able to be sold separately from the rest of the property. An assessor may classify the part of a parcel described in this subdivision that is used for agricultural purposes as class 2a and the remainder in the class appropriate to its use. (c) Class 2b rural vacant land consists of parcels of property, or portions thereof, that are unplatted real estate, rural in character and not used for agricultural purposes, including land used for growing trees for timber, lumber, and wood and wood products, that is not improved with a structure. The presence of a minor, ancillary nonresidential structure as defined by the commissioner of revenue does not disqualify the property from classification under this paragraph. Any parcel of 20 acres or more improved with a structure that is not a minor, ancillary nonresidential structure must be split-classified, and ten acres must be assigned to the split parcel containing the structure. Class 2b property has a net class rate of one percent of market value unless it is «¦ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ part of an agricultural homestead under paragraph (a), or qualifies as class 2c under paragraph (d). (d) Class 2c managed forest land consists of no less than 20 and no more than 1,920 acres statewide per taxpayer that is being managed under a forest management plan that meets the requirements of chapter 290C, but is not enrolled in the sustainable forest resource management incentive program. It has a class rate of .65 percent, provided that the owner of the property must apply to the assessor in order for the property to initially qualify for the reduced rate and provide the information required by the assessor to verify that the property qualifies for the reduced rate. If the assessor receives the application and information before May 1 in an assessment year, the property qualifies beginning with that assessment year. If the assessor receives the application and information after April 30 in an assessment year, the property may not qualify until the next assessment year. The commissioner of natural resources must concur that the land is qualified. The commissioner of natural resources shall annually provide county assessors verification information on a timely basis. The presence of a minor, ancillary nonresidential structure as defined by the commissioner of revenue does not disqualify the property from classification under this paragraph. (e) Agricultural land as used in this section means contiguous acreage of ten acres or more, used during the preceding year for agricultural purposes. "Agricultural purposes" as used in this section means the raising, cultivation, drying, or storage of agricultural products for sale, or the storage of machinery or equipment used in support of agricultural production by the same farm entity. For a property to be classified as agricultural based only on the drying or storage of agricultural products, the products being dried or stored must have been produced by the same farm entity as the entity operating the drying or storage facility. "Agricultural purposes" also includes enrollment in the Reinvest in Minnesota program under sections 103F.501 to 103F.535 or the federal Conservation Reserve Program as contained in Public Law 99-198 or a similar state or federal conservation program if the property was classified as agricultural (i) under this subdivision for the assessment year 2002 or (ii) in the year prior to its enrollment. Agricultural classification shall not be based upon the market value of any residential structures on the parcel or contiguous parcels under the same ownership. (f) Real estate of less than ten acres, which is exclusively or intensively used for raising or cultivating agricultural products, shall be considered as agricultural land. To qualify under this paragraph, property that includes a residential structure must be used intensively for one of the following purposes: (i) for drying or storage of grain or storage of machinery or equipment used to support agricultural activities on other parcels of property operated by the same farming entity; (ii) as a nursery, provided that only those acres used to produce nursery stock are considered agricultural land; (iii) for livestock or poultry confinement, provided that land that is used only for pasturing and grazing does not qualify; or (iv) for market farming; for purposes of this paragraph, "market farming" means the cultivation of one or more fruits or vegetables or production of animal or other agricultural products for sale to local markets by the farmer or an organization with which the farmer is affiliated. (g) Land shall be classified as agricultural even if all or a portion of the agricultural use of that property is the leasing to, or use by another person for agricultural purposes. Classification under this subdivision is not determinative for qualifying under section 273.111. (h) The property classification under this section supersedes, for property tax purposes only, any locally administered agricultural policies or land use restrictions that define minimum or maximum farm acreage. (i) The term "agricultural products" as used in this subdivision includes production for sale of: (1) livestock, dairy animals, dairy products, poultry and poultry products, fur-bearing animals, horticultural and nursery stock, fruit of all kinds, vegetables, forage, grains, bees, and apiary products by the owner; (2) fish bred for sale and consumption if the fish breeding occurs on land zoned for agricultural use; (3) the commercial boarding of horses if the boarding is done in conjunction with raising or cultivating agricultural products as defined in clause (1); (4) property which is owned and «¥ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ operated by nonprofit organizations used for equestrian activities, excluding racing; (5) game birds and waterfowl bred and raised for use on a shooting preserve licensed under section 97A.115; (6) insects primarily bred to be used as food for animals; (7) trees, grown for sale as a crop, including short rotation woody crops, and not sold for timber, lumber, wood, or wood products; and (8) maple syrup taken from trees grown by a person licensed by the Minnesota Department of Agriculture under chapter 28A as a food processor. (j) If a parcel used for agricultural purposes is also used for commercial or industrial purposes, including but not limited to: (1) wholesale and retail sales; (2) processing of raw agricultural products or other goods; (3) warehousing or storage of processed goods; and (4) office facilities for the support of the activities enumerated in clauses (1), (2), and (3), the assessor shall classify the part of the parcel used for agricultural purposes as class 1b, 2a, or 2b, whichever is appropriate, and the remainder in the class appropriate to its use. The grading, sorting, and packaging of raw agricultural products for first sale is considered an agricultural purpose. A greenhouse or other building where horticultural or nursery products are grown that is also used for the conduct of retail sales must be classified as agricultural if it is primarily used for the growing of horticultural or nursery products from seed, cuttings, or roots and occasionally as a showroom for the retail sale of those products. Use of a greenhouse or building only for the display of already grown horticultural or nursery products does not qualify as an agricultural purpose. (k) The assessor shall determine and list separately on the records the market value of the homestead dwelling and the one acre of land on which that dwelling is located. If any farm buildings or structures are located on this homesteaded acre of land, their market value shall not be included in this separate determination. (l) Class 2d airport landing area consists of a landing area or public access area of a privately owned public use airport. It has a class rate of one percent of market value. To qualify for classification under this paragraph, a privately owned public use airport must be licensed as a public airport under section 360.018. For purposes of this paragraph, "landing area" means that part of a privately owned public use airport properly cleared, regularly maintained, and made available to the public for use by aircraft and includes runways, taxiways, aprons, and sites upon which are situated landing or navigational aids. A landing area also includes land underlying both the primary surface and the approach surfaces that comply with all of the following: (i) the land is properly cleared and regularly maintained for the primary purposes of the landing, taking off, and taxiing of aircraft; but that portion of the land that contains facilities for servicing, repair, or maintenance of aircraft is not included as a landing area; (ii) the land is part of the airport property; and (iii) the land is not used for commercial or residential purposes. The land contained in a landing area under this paragraph must be described and certified by the commissioner of transportation. The certification is effective until it is modified, or until the airport or landing area no longer meets the requirements of this paragraph. For purposes of this paragraph, "public access area" means property used as an aircraft parking ramp, apron, or storage hangar, or an arrival and departure building in connection with the airport. (m) Class 2e consists of land with a commercial aggregate deposit that is not actively being mined and is not otherwise classified as class 2a or 2b, provided that the land is not located in a county that has elected to opt-out of the aggregate preservation program as provided in section 273.1115, subdivision 6. It has a class rate of one percent of market value. To qualify for classification under this paragraph, the property must be at least ten contiguous acres in size and the owner of the property must record with the county recorder of the county in which the property is located an affidavit containing: (1) a legal description of the property; (2) a disclosure that the property contains a commercial aggregate deposit that is not actively being mined but is present on the entire parcel enrolled; (3) documentation that the conditional use under the county or local zoning ordinance of this property is for mining; and (4) documentation that a permit has been issued by the local ª® ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ unit of government or the mining activity is allowed under local ordinance. The disclosure must include a statement from a registered professional geologist, engineer, or soil scientist delineating the deposit and certifying that it is a commercial aggregate deposit. For purposes of this section and section 273.1115, "commercial aggregate deposit" means a deposit that will yield crushed stone or sand and gravel that is suitable for use as a construction aggregate; and "actively mined" means the removal of top soil and overburden in preparation for excavation or excavation of a commercial deposit. (n) When any portion of the property under this subdivision or subdivision 22 begins to be actively mined, the owner must file a supplemental affidavit within 60 days from the day any aggregate is removed stating the number of acres of the property that is actively being mined. The acres actively being mined must be (1) valued and classified under subdivision 24 in the next subsequent assessment year, and (2) removed from the aggregate resource preservation property tax program under section 273.1115, if the land was enrolled in that program. Copies of the original affidavit and all supplemental affidavits must be filed with the county assessor, the local zoning administrator, and the Department of Natural Resources, Division of Land and Minerals. A supplemental affidavit must be filed each time a subsequent portion of the property is actively mined, provided that the minimum acreage change is five acres, even if the actual mining activity constitutes less than five acres. (o) The definitions prescribed by the commissioner under paragraphs (c) and (d) are not rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in section 14.386 concerning exempt rules do not apply. Class 3 Subd. 24.. (a) Commercial and industrial property and utility real and personal property is class 3a. (1) Except as otherwise provided, each parcel of commercial, industrial, or utility real property has a class rate of 1.5 percent of the first tier of market value, and 2.0 percent of the remaining market value. In the case of contiguous parcels of property owned by the same person or entity, only the value equal to the first-tier value of the contiguous parcels qualifies for the reduced class rate, except that contiguous parcels owned by the same person or entity shall be eligible for the first-tier value class rate on each separate business operated by the owner of the property, provided the business is housed in a separate structure. For the purposes of this subdivision, the first tier means the first $150,000 of market value. Real property owned in fee by a utility for transmission line right-of-way shall be classified at the class rate for the higher tier. For purposes of this subdivision, parcels are considered to be contiguous even if they are separated from each other by a road, street, waterway, or other similar intervening type of property. Connections between parcels that consist of power lines or pipelines do not cause the parcels to be contiguous. Property owners who have contiguous parcels of property that constitute separate businesses that may qualify for the first-tier class rate shall notify the assessor by July 1, for treatment beginning in the following taxes payable year. (2) All personal property that is: (i) part of an electric generation, transmission, or distribution system; or (ii) part of a pipeline system transporting or distributing water, gas, crude oil, or petroleum products; and (iii) not described in clause (3), and all railroad operating property has a class rate as provided under clause (1) for the first tier of market value and the remaining market value. In the case of multiple parcels in one county that are owned by one person or entity, only one first tier amount is eligible for the reduced rate. (3) The entire market value of personal property that is: (i) tools, implements, and machinery of an electric generation, transmission, or distribution system; (ii) tools, implements, and machinery of a pipeline system transporting or distributing water, gas, crude oil, or petroleum products; or (iii) the mains and pipes used in the distribution of steam or hot or chilled water for heating or cooling buildings, has a class rate as provided under clause (1) for the remaining market value in excess of the first tier. (b) Employment property defined in section 469.166, during the period provided in section 469.170, shall constitute class ª ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ 3b. The class rates for class 3b property are determined under paragraph (a). Subd. 24a. [Repealed, 1Sp2001 c 5 art 3 s 96] Class 4 Subd. 25.. (a) Class 4a is residential real estate containing four or more units and used or held for use by the owner or by the tenants or lessees of the owner as a residence for rental periods of 30 days or more, excluding property qualifying for class 4d. Class 4a also includes hospitals licensed under sections 144.50 to 144.56, other than hospitals exempt under section 272.02, and contiguous property used for hospital purposes, without regard to whether the property has been platted or subdivided. The market value of class 4a property has a class rate of 1.25 percent. (b) Class 4b includes: (1) residential real estate containing less than four units that does not qualify as class 4bb, other than seasonal residential recreational property; (2) manufactured homes not classified under any other provision; (3) a dwelling, garage, and surrounding one acre of property on a nonhomestead farm classified under subdivision 23, paragraph (b) containing two or three units; and (4) unimproved property that is classified residential as determined under subdivision 33. The market value of class 4b property has a class rate of 1.25 percent. (c) Class 4bb includes: (1) nonhomestead residential real estate containing one unit, other than seasonal residential recreational property; and (2) a single family dwelling, garage, and surrounding one acre of property on a nonhomestead farm classified under subdivision 23, paragraph (b). Class 4bb property has the same class rates as class 1a property under subdivision 22. Property that has been classified as seasonal residential recreational property at any time during which it has been owned by the current owner or spouse of the current owner does not qualify for class 4bb. (d) Class 4c property includes: (1) except as provided in subdivision 22, paragraph (c), real and personal property devoted to temporary and seasonal residential occupancy for recreation purposes, including real and personal property devoted to temporary and seasonal residential occupancy for recreation purposes and not devoted to commercial purposes for more than 250 days in the year preceding the year of assessment. For purposes of this clause, property is devoted to a commercial purpose on a specific day if any portion of the property is used for residential occupancy, and a fee is charged for residential occupancy. Class 4c property under this clause must contain three or more rental units. A "rental unit" is defined as a cabin, condominium, townhouse, sleeping room, or individual camping site equipped with water and electrical hookups for recreational vehicles. Class 4c property under this clause must provide recreational activities such as renting ice fishing houses, boats and motors, snowmobiles, downhill or cross-country ski equipment; provide marina services, launch services, or guide services; or sell bait and fishing tackle. A camping pad offered for rent by a property that otherwise qualifies for class 4c under this clause is also class 4c under this clause regardless of the term of the rental agreement, as long as the use of the camping pad does not exceed 250 days. In order for a property to be classified as class 4c, seasonal residential recreational for commercial purposes under this clause, at least 40 percent of the annual gross lodging receipts related to the property must be from business conducted during 90 consecutive days and either (i) at least 60 percent of all paid bookings by lodging guests during the year must be for periods of at least two consecutive nights; or (ii) at least 20 percent of the annual gross receipts must be from charges for rental of fish houses, boats and motors, snowmobiles, downhill or cross- country ski equipment, or charges for marina services, launch services, and guide services, or the sale of bait and fishing tackle. For purposes of this determination, a paid booking of five or more nights shall be counted as two bookings. Class 4c property classified under this clause also includes commercial use real property used exclusively for recreational purposes in conjunction with other class 4c property classified under this clause and devoted to temporary and seasonal residential occupancy for recreational purposes, up to a total of two acres, provided the property is not devoted to commercial ª¬ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ recreational use for more than 250 days in the year preceding the year of assessment and is located within two miles of the class 4c property with which it is used. Owners of real and personal property devoted to temporary and seasonal residential occupancy for recreation purposes and all or a portion of which was devoted to commercial purposes for not more than 250 days in the year preceding the year of assessment desiring classification as class 4c, must submit a declaration to the assessor designating the cabins or units occupied for 250 days or less in the year preceding the year of assessment by January 15 of the assessment year. Those cabins or units and a proportionate share of the land on which they are located must be designated class 4c under this clause as otherwise provided. The remainder of the cabins or units and a proportionate share of the land on which they are located will be designated as class 3a. The owner of property desiring designation as class 4c property under this clause must provide guest registers or other records demonstrating that the units for which class 4c designation is sought were not occupied for more than 250 days in the year preceding the assessment if so requested. The portion of a property operated as a (1) restaurant, (2) bar, (3) gift shop, (4) conference center or meeting room, and (5) other nonresidential facility operated on a commercial basis not directly related to temporary and seasonal residential occupancy for recreation purposes does not qualify for class 4c; (2) qualified property used as a golf course if: (i) it is open to the public on a daily fee basis. It may charge membership fees or dues, but a membership fee may not be required in order to use the property for golfing, and its green fees for golfing must be comparable to green fees typically charged by municipal courses; and (ii) it meets the requirements of section 273.112, subdivision 3, paragraph (d). A structure used as a clubhouse, restaurant, or place of refreshment in conjunction with the golf course is classified as class 3a property; (3) real property up to a maximum of three acres of land owned and used by a nonprofit community service oriented organization and not used for residential purposes on either a temporary or permanent basis, provided that: (i) the property is not used for a revenue-producing activity for more than six days in the calendar year preceding the year of assessment; or (ii) the organization makes annual charitable contributions and donations at least equal to the property's previous year's property taxes and the property is allowed to be used for public and community meetings or events for no charge, as appropriate to the size of the facility. For purposes of this clause, (A) "charitable contributions and donations" has the same meaning as lawful gambling purposes under section 349.12, subdivision 25, excluding those purposes relating to the payment of taxes, assessments, fees, auditing costs, and utility payments; (B) "property taxes" excludes the state general tax; (C) a "nonprofit community service oriented organization" means any corporation, society, association, foundation, or institution organized and operated exclusively for charitable, religious, fraternal, civic, or educational purposes, and which is exempt from federal income taxation pursuant to section 501(c)(3), (8), (10), or (19) of the Internal Revenue Code; and (D) "revenue-producing activities" shall include but not be limited to property or that portion of the property that is used as an on-sale intoxicating liquor or 3.2 percent malt liquor establishment licensed under chapter 340A, a restaurant open to the public, bowling alley, a retail store, gambling conducted by organizations licensed under chapter 349, an insurance business, or office or other space leased or rented to a lessee who conducts a for-profit enterprise on the premises. Any portion of the property not qualifying under either item (i) or (ii) is class 3a. The use of the property for social events open exclusively to members and their guests for periods of less than 24 hours, when an admission is not charged nor any revenues are received by the organization shall not be considered a revenue-producing activity. The organization shall maintain records of its charitable contributions and donations and of public meetings and events held on the property and make them available upon request any time to the assessor to ensure eligibility. An organization meeting the requirement under item (ii) must file an application ª« ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ by May 1 with the assessor for eligibility for the current year's assessment. The commissioner shall prescribe a uniform application form and instructions; (4) postsecondary student housing of not more than one acre of land that is owned by a nonprofit corporation organized under chapter 317A and is used exclusively by a student cooperative, sorority, or fraternity for on-campus housing or housing located within two miles of the border of a college campus; (5) manufactured home parks as defined in section 327.14, subdivision 3; (6) real property that is actively and exclusively devoted to indoor fitness, health, social, recreational, and related uses, is owned and operated by a not-for-profit corporation, and is located within the metropolitan area as defined in section 473.121, subdivision 2; (7) a leased or privately owned noncommercial aircraft storage hangar not exempt under section 272.01, subdivision 2, and the land on which it is located, provided that: (i) the land is on an airport owned or operated by a city, town, county, Metropolitan Airports Commission, or group thereof; and (ii) the land lease, or any ordinance or signed agreement restricting the use of the leased premise, prohibits commercial activity performed at the hangar. If a hangar classified under this clause is sold after June 30, 2000, a bill of sale must be filed by the new owner with the assessor of the county where the property is located within 60 days of the sale; (8) a privately owned noncommercial aircraft storage hangar not exempt under section 272.01, subdivision 2, and the land on which it is located, provided that: (i) the land abuts a public airport; and (ii) the owner of the aircraft storage hangar provides the assessor with a signed agreement restricting the use of the premises, prohibiting commercial use or activity performed at the hangar; and (9) residential real estate, a portion of which is used by the owner for homestead purposes, and that is also a place of lodging, if all of the following criteria are met: (i) rooms are provided for rent to transient guests that generally stay for periods of 14 or fewer days; (ii) meals are provided to persons who rent rooms, the cost of which is incorporated in the basic room rate; (iii) meals are not provided to the general public except for special events on fewer than seven days in the calendar year preceding the year of the assessment; and (iv) the owner is the operator of the property. The market value subject to the 4c classification under this clause is limited to five rental units. Any rental units on the property in excess of five, must be valued and assessed as class 3a. The portion of the property used for purposes of a homestead by the owner must be classified as class 1a property under subdivision 22; (10) real property up to a maximum of three acres and operated as a restaurant as defined under section 157.15, subdivision 12, provided it: (A) is located on a lake as defined under section 103G.005, subdivision 15, paragraph (a), clause (3); and (B) is either devoted to commercial purposes for not more than 250 consecutive days, or receives at least 60 percent of its annual gross receipts from business conducted during four consecutive months. Gross receipts from the sale of alcoholic beverages must be included in determining the property's qualification under subitem (B). The property's primary business must be as a restaurant and not as a bar. Gross receipts from gift shop sales located on the premises must be excluded. Owners of real property desiring 4c classification under this clause must submit an annual declaration to the assessor by February 1 of the current assessment year, based on the property's relevant information for the preceding assessment year; and (11) lakeshore and riparian property and adjacent land, not to exceed six acres, used as a marina, as defined in section 86A.20, subdivision 5, which is made accessible to the public and devoted to recreational use for marina services. The marina owner must annually provide evidence to the assessor that it provides services, including lake or river access to the public. No more than 800 feet of lakeshore may be included in this classification. Buildings used in conjunction with a marina for marina services, including but not limited to buildings used to provide food and beverage services, fuel, boat repairs, or the sale of bait or fishing tackle, are classified as class 3a property. Class 4c property has a class rate of 1.5 percent of market value, except that (i) each parcel of seasonal residential recreational property not ªª ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ used for commercial purposes has the same class rates as class 4bb property, (ii) manufactured home parks assessed under clause (5) have the same class rate as class 4b property, (iii) commercial-use seasonal residential recreational property and marina recreational land as described in clause (11), has a class rate of one percent for the first $500,000 of market value, and 1.25 percent for the remaining market value, (iv) the market value of property described in clause (4) has a class rate of one percent, (v) the market value of property described in clauses (2), (6), and (10) has a class rate of 1.25 percent, and (vi) that portion of the market value of property in clause (9) qualifying for class 4c property has a class rate of 1.25 percent. (e) Class 4d property is qualifying low-income rental housing certified to the assessor by the Housing Finance Agency under section 273.128, subdivision 3. If only a portion of the units in the building qualify as low-income rental housing units as certified under section 273.128, subdivision 3, only the proportion of qualifying units to the total number of units in the building qualify for class 4d. The remaining portion of the building shall be classified by the assessor based upon its use. Class 4d also includes the same proportion of land as the qualifying low-income rental housing units are to the total units in the building. For all properties qualifying as class 4d, the market value determined by the assessor must be based on the normal approach to value using normal unrestricted rents. Class 4d property has a class rate of 0.75 percent. Elderly assisted living facility property Subd. 25a.. "Elderly assisted living facility property" means residential real estate containing more than one unit held for use by the tenants or lessees as a residence for periods of 30 days or more, along with community rooms, lounges, activity rooms, and related facilities, designed to meet the housing, health, and financial security needs of the elderly. The real estate may be owned by an individual, partnership, limited partnership, for-profit corporation or nonprofit corporation exempt from federal income taxation under United States Code, title 26, section 501(c)(3) or related sections. An admission or initiation fee may be required of tenants. Monthly charges may include charges for the residential unit, meals, housekeeping, utilities, social programs, a health care alert system, or any combination of them. On-site health care may be provided by in-house staff or an outside health care provider. The assessor shall classify elderly assisted living facility property, depending upon the property's ownership, occupancy, and use. The applicable class rates shall apply based on its classification, if taxable. Subd. 26. [Repealed, 1987 c 268 art 6 s 53] Subd. 27. [Repealed, 1987 c 268 art 6 s 53] Subd. 28. [Repealed, 1987 c 268 art 6 s 53] Subd. 29. [Repealed, 1987 c 268 art 6 s 53] Subd. 30. [Repealed, 1988 c 719 art 5 s 81] Class 5. Subd. 31. Class 5 property includes: (1) unmined iron ore and low-grade iron-bearing formations as defined in section 273.14; and (2) all other property not otherwise classified. Class 5 property has a class rate of 2.0 percent of market value. Subd. 32. [Repealed, 1998 c 389 art 2 s 21] Classification of unimproved property Subd. 33.. (a) All real property that is not improved with a structure must be classified according to its current use. (b) Except as provided in subdivision 23, paragraph (c) or (d), real property that is not improved with a structure and for which there is no identifiable current use must be classified according to its highest and best use permitted under the local zoning ordinance. If the ordinance permits more than one use, the land must be classified according to the highest and best use permitted under the ordinance. If no such ordinance exists, the assessor shall consider the most likely potential use of the unimproved land based upon the use made of surrounding land or land in proximity to the unimproved land. Subd. 34. Homestead of disabled veteran. (a) All or a portion of the market value of ª© ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ property owned by a veteran or by the veteran and the veteran's spouse qualifying for homestead classification under subdivision 22 or 23 is excluded in determining the property's taxable market value if it serves as the homestead of a military veteran, as defined in section 197.447, who has a service-connected disability of 70 percent or more. To qualify for exclusion under this subdivision, the veteran must have been honorably discharged from the United States armed forces, as indicated by United States Government Form DD214 or other official military discharge papers, and must be certified by the United States Veterans Administration as having a service-connected disability. (b)(1) For a disability rating of 70 percent or more, $150,000 of market value is excluded, except as provided in clause (2); and (2) for a total (100 percent) and permanent disability, $300,000 of market value is excluded. (c) If a disabled veteran qualifying for a valuation exclusion under paragraph (b), clause (2), predeceases the veteran's spouse, and if upon the death of the veteran the spouse holds the legal or beneficial title to the homestead and permanently resides there, the exclusion shall carry over to the benefit of the veteran's spouse for one additional assessment year or until such time as the spouse sells, transfers, or otherwise disposes of the property, whichever comes first. (d) In the case of an agricultural homestead, only the portion of the property consisting of the house and garage and immediately surrounding one acre of land qualifies for the valuation exclusion under this subdivision. (e) A property qualifying for a valuation exclusion under this subdivision is not eligible for the credit under section 273.1384, subdivision 1, or classification under subdivision 22, paragraph (b). (f) To qualify for a valuation exclusion under this subdivision a property owner must apply to the assessor by July 1 of each assessment year, except that an annual reapplication is not required once a property has been accepted for a valuation exclusion under paragraph (b), clause (2), and the property continues to qualify until there is a change in ownership. History: (1993) 1913 c 483 s 1; 1923 c 140; 1933 c 132; 1933 c 359; 1937 c 365 s 1; Ex1937 c 86 s 1; 1939 c 48; 1941 c 436; 1941 c 437; 1941 c 438; 1943 c 172 s 1; 1943 c 648 s 1; 1945 c 274 s 1; 1945 c 527 s 1; 1947 c 537 s 1; 1949 c 723 s 1; 1951 c 510 s 1; 1951 c 585 s 1; 1953 c 358 s 1,2; 1953 c 400 s 1; 1953 c 747 s 1,2; 1955 c 751 s 1,2; 1957 c 866 s 1; 1957 c 959 s 1; 1959 c 40 s 1; 1959 c 338 s 1; 1959 c 541 s 1; 1959 c 562 s 3; Ex1959 c 70 art 1 s 2; 1961 c 243 s 1; 1961 c 322 s 1; 1961 c 340 s 3; 1961 c 475 s 1; 1961 c 710 s 1; 1963 c 426 s 1; 1965 c 259 s 1; 1967 c 606 s 1; Ex1967 c 32 art 1 s 2-4; art 4 s 1; art 9 s 1,2; 1969 c 251 s 1; 1969 c 399 s 49; 1969 c 407 s 1; 1969 c 417 s 1; 1969 c 422 s 1,2; 1969 c 709 s 4,5; 1969 c 760 s 1; 1969 c 763 s 1; 1969 c 965 s 2; 1969 c 1126 s 2; 1969 c 1128 s 1,2; 1969 c 1132 s 1; 1969 c 1137 s 1; 1971 c 226 s 1; 1971 c 427 s 3-12,16,17; 1971 c 747 s 1; 1971 c 791 s 1; 1971 c 797 s 3,4; Ex1971 c 31 art 9 s 1; art 22 s 1,2,4,6,7,8; Ex1971 c 31 art 36 s 1; 1973 c 355 s 1,2; 1973 c 456 s 1; 1973 c 492 s 14; 1973 c 582 s 3; 1973 c 590 s 1; 1973 c 650 art 14 s 1,2; art 20 s 3; art 24 s 3; 1973 c 774 s 1; 1974 c 545 s 3; 1974 c 556 s 16; 1975 c 46 s 3; 1975 c 339 s 9; 1975 c 359 s 23; 1975 c 376 s 1; 1975 c 395 s 1; 1975 c 437 art 1 s 25,27,28; 1976 c 2 s 96,159-161,170; 1976 c 181 s 2; 1976 c 245 s 1; 1977 c 319 s 1,2; 1977 c 347 s 43,44; 1977 c 423 art 3 s 5-8; 1978 c 767 s 7-11; 1979 c 303 art 2 s 11-17; art 10 s 5; 1979 c 334 art 1 s 25; 1980 c 437 s 5; 1980 c 562 s 1; 1980 c 607 art 2 s 7-15; art 4 s 4; 1981 c 188 s 1; 1981 c 356 s 248; 1981 c 365 s 9; 1Sp1981 c 1 art 2 s 7-11; art 5 s 2; 1Sp1981 c 3 s 1; 1Sp1981 c 4 art 2 s 27; 2Sp1981 c 1 s 6; 3Sp1981 c 1 art 1 s 2; 1982 c 523 art 6 s 1; art 14 s 1; art 23 s 2; 1982 c 642 s 9; 1983 c 216 art 1 s 43,44; 1983 c 222 s 11-13; 1983 c 342 art 2 s 9-18; art 8 s 1; 1984 c 502 art 3 s 9-14; art 7 s 1,2; 1984 c 522 s 2; 1984 c 593 s 22-28; 1984 c 654 art 5 s 58; 1985 c 248 s 70; 1985 c 300 s 6; 1Sp1985 c 14 art 3 s 5-12; art 4 s 45-56; 1986 c 444; 1Sp1986 c 1 art 4 s 18-21; 1987 c 268 art 5 s 4; art 6 s 18,20-23; 1987 c 291 s 208-209; 1987 c 384 art 1 s 25; 1988 c 719 art 5 s 13-19; 1989 c 277 art 2 s 28,29; 1989 c 304 s 137; 1Sp1989 c 1 art 2 s 1- 8,11; 1990 c 480 art 7 s 7; 1990 c 604 art 3 s 16-19; 1991 c 249 s 31; 1991 c 291 art 1 s 20-25; 1992 c 363 art 1 s 12; 1992 c 511 art 2 s 17,18; art 4 s 4,5; 1993 c 224 art 1 s 27; 1993 c 375 art 3 s 16; art 5 s 23-26; 1994 c 416 art 1 s 18,19; 1994 c 483 s 1; 1994 c 587 art 5 s 10,11; 1995 c 264 art 3 s 9,10; 1996 c 471 art 3 s 10-12; 1997 c 231 art 1 s 6-10; art 2 s 20,21; 3Sp1997 c 3 s 28; 1998 c 254 art 1 s 74; 1998 c 389 art 2 s 8-12; 1999 c 243 art 5 s 15-20; 1999 c 248 s 18; 1999 c 249 s 22; 2000 c 490 art 5 s 12,13; 1Sp2001 c 5 art 3 s 32-36; 2002 c 377 art 4 s 16,17; art 10 s 6; 2003 c 127 art 2 s 13,14; art 5 s 17; 2003 c 128 art 3 s 45; 1Sp2003 c 21 art 4 s 4; 2005 c 151 art 3 s 12; 1Sp2005 c 3 art 1 s 15,16; 2006 c 259 art 4 s 13; art 5 s 1,2; 2008 c 154 art 2 s 11-14; 2008 c 366 art 6 s 26-28; art 11 s 13; art 15 s 14,15; 2009 c 12 art 2 s 6; 2009 c 88 art 2 s 18; art 10 s 6-8 NOTE: The amendment to subdivision 22 by Laws 2008, chapter 154, article 2, section 11, is effective for taxes payable in 2010 and thereafter, except the amendments to paragraph (b) and to the portions of paragraph (c) decreasing the class rate and increasing the market value of the first tier of class 1c ª¨ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ homestead resorts are effective for taxes payable in 2009 and thereafter. Laws 2008, chapter 154, article 2, section 11, the effective date, and Laws 2008, chapter 366, article 6, section 44. NOTE: The amendment to subdivision 23 by Laws 2008, chapter 366, article 6, section 26, is effective for taxes payable in 2010 and thereafter, except the portions of subdivision 23 reducing the agricultural class rate, expanding the definition of "agricultural purposes" in paragraph (e) and "agricultural products" in paragraph (h), and relating to managed forest land in paragraph (d), are effective for taxes payable in 2009 and thereafter. Laws 2008, chapter 366, article 6, section 26, the effective date. NOTE: The amendment to subdivision 25 by Laws 2008, chapter 154, article 2, section 13, relating to class 4c resorts in paragraph (d), clause (1), is effective for assessment year 2009 and thereafter, for taxes payable in 2010 and thereafter. Laws 2008, chapter 154, article 2, section 13, the effective date. NOTE: The amendment to subdivision 33 by Laws 2008, chapter 366, article 6, section 28, is effective for taxes payable in 2010 and thereafter. Laws 2008, chapter 366, article 6, section 28, the effective date. NOTE: The amendment to subdivision 23 by Laws 2009, chapter 12, article 2, section 6, is effective for assessments in 2010 for taxes payable in 2011, and thereafter. Laws 2009, chapter 12, article 2, section 6, the effective date. ª§ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ 273.20 ASSESSOR MAY ENTER DWELLINGS, BUILDINGS, OR STRUCTURES. Any officer authorized by law to assess property for taxation may, when necessary to the proper performance of duties, enter any dwelling-house, building, or structure, and view the same and the property therein. Any officer authorized by law to assess property for ad valorem tax purposes shall have reasonable access to land and structures as necessary for the proper performance of their duties. A property owner may refuse to allow an assessor to inspect their property. This refusal by the property owner must be either verbal or expressly stated in a letter to the county assessor. If the assessor is denied access to view a property, the assessor is authorized to estimate the property's estimated market value by making assumptions believed appropriate concerning the property's finish and condition. History : (1997) RL s 814; 1986 c 444; 1999 c 243 art 5 s 24 ª¦ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ 274.01 BOARD OF APPEAL AND EQUALIZATION. Subdivision 1. Ordinary board; meetings, deadlines, grievances. (a) The town board of a town, or the council or other governing body of a city, is the board of appeal and equalization except (1) in cities whose charters provide for a board of equalization or (2) in any city or town that has transferred its local board of review power and duties to the county board as provided in subdivision 3. The county assessor shall fix a day and time when the board or the board of equalization shall meet in the assessment districts of the county. Notwithstanding any law or city charter to the contrary, a city board of equalization shall be referred to as a board of appeal and equalization. On or before February 15 of each year the assessor shall give written notice of the time to the city or town clerk. Notwithstanding the provisions of any charter to the contrary, the meetings must be held between April 1 and May 31 each year. The clerk shall give published and posted notice of the meeting at least ten days before the date of the meeting. The board shall meet at the office of the clerk to review the assessment and classification of property in the town or city. No changes in valuation or classification which are intended to correct errors in judgment by the county assessor may be made by the county assessor after the board has adjourned in those cities or towns that hold a local board of review; however, corrections of errors that are merely clerical in nature or changes that extend homestead treatment to property are permitted after adjournment until the tax extension date for that assessment year. The changes must be fully documented and maintained in the assessor's office and must be available for review by any person. A copy of the changes made during this period in those cities or towns that hold a local board of review must be sent to the county board no later than December 31 of the assessment year.(b) The board shall determine whether the taxable property in the town or city has been properly placed on the list and properly valued by the assessor. If real or personal property has been omitted, the board shall place it on the list with its market value, and correct the assessment so that each tract or lot of real property, and each article, parcel, or class of personal property, is entered on the assessment list at its market value. No assessment of the property of any person may be raised unless the person has been duly notified of the intent of the board to do so. On application of any person feeling aggrieved, the board shall review the assessment or classification, or both, and correct it as appears just. The board may not make an individual market value adjustment or classification change that would benefit the property if the owner or other person having control over the property has refused the assessor access to inspect the property and the interior of any buildings or structures as provided in section 273.20.(c) A local board may reduce assessments upon petition of the taxpayer but the total reductions must not reduce the aggregate assessment made by the county assessor by more than one percent. If the total reductions would lower the aggregate assessments made by the county assessor by more than one percent, none of the adjustments may be made. The assessor shall correct any clerical errors or double assessments discovered by the board without regard to the one percent limitation.(d) A local board does not have authority to grant an exemption or to order property removed from the tax rolls.(e) A majority of the members may act at the meeting, and adjourn from day to day until they finish hearing the cases presented. The assessor shall attend, with the assessment books and papers, and take part in the proceedings, but must not vote. The county assessor, or an assistant delegated by the county assessor shall attend the meetings. The board shall list separately, on a form appended to the assessment book, all omitted property added to the list by the board and all items of property increased or decreased, with the market value of each item of property, added or changed by the board, placed opposite the item. The county assessor shall enter all changes made by the board in the assessment book.(f) Except as provided in subdivision 3, if a person fails to appear in person, by counsel, or by written communication before the board after being duly notified of the board's intent to raise the assessment of the property, or if a person feeling aggrieved by an assessment or classification fails to apply for a review of the assessment or classification, the person may not appear before the county board of appeal and equalization for a review of the assessment or classification. This paragraph does not apply if an assessment was made after the local board meeting, as provided in section 273.01, or if the person can establish not having received notice of market value at least five days before the local board meeting.(g) The local board must complete its work and adjourn within 20 days from the time of convening stated in the notice of the clerk, unless a longer period is approved by the commissioner of revenue. No action taken after that date is valid. All complaints about an assessment or classification made after the meeting of the board must be heard and determined by the county board of equalization. A nonresident may, at any time, before the meeting of the board file written objections to an assessment or classification with the county assessor. The objections must be presented to the board at its meeting by the county assessor for its consideration. Subd. 2. Special board; duties delegated. The governing body of a city, including a city whose charter provides for a board of equalization, may appoint a special board of review. The city may delegate to the special board of review all of the powers and duties in subdivision 1. The special board of review shall serve at the direction and discretion of the appointing body, subject to the restrictions imposed by law. The appointing body shall determine the number of members of the board, the compensation and expenses to be paid, and the term ª¥ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ of office of each member. At least one member of the special board of review must be an appraiser, realtor, or other person familiar with property valuations in the assessment district. Subd. 3. Local board duties transferred to county. The town board of any town or the governing body of any home rule charter or statutory city may transfer its powers and duties under subdivision 1 to the county board, and no longer perform the function of a local board. Before the town board or the governing body of a city transfers the powers and duties to the county board, the town board or city's governing body shall give public notice of the meeting at which the proposal for transfer is to be considered. The public notice shall follow the procedure contained in section 13D.04, subdivision 2. A transfer of duties as permitted under this subdivision must be communicated to the county assessor, in writing, before December 1 of any year to be effective for the following year's assessment. This transfer of duties to the county may either be permanent or for a specified number of years, provided that the transfer cannot be for less than three years. Its length must be stated in writing. A town or city may renew its option to transfer. The option to transfer duties under this subdivision is only available to a town or city whose assessment is done by the county. History: (2034) RL s 847; 1941 c 402 s 1; 1945 c 402 s 1; 1949 c 543 s 1; Ex1967 c 32 art 8 s 3; 1971 c 434 s 3; 1971 c 564 s 6; 1973 c 123 art 5 s 7; 1973 c 150 s 1; 1973 c 582 s 3; 1975 c 339 s 5; 1977 c 434 s 11; 1986 c 444; 1987 c 229 art 4 s 1; 1987 c 268 art 7 s 37; 1988 c 719 art 7 s 8; 1990 c 480 art 7 s 14; 1995 c 264 art 3 s 13; 1997 c 231 art 2 s 23; 1998 c 254 art 1 s 77; 1999 c 243 art 5 s 25; 1Sp2001 c 5 art 7 s 21; 2003 c 127 art 5 s 22; 1Sp2005 c 3 art 1 s 18 ©® ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ 274.014 LOCAL BOARDS; APPEALS AND EQUALIZATION COURSE AND MEETING REQUIREMENTS. Subdivision 1. Handbook for local boards. By no later than January 1, 2005, the commissioner of revenue must develop a handbook detailing procedures, responsibilities, and requirements for local boards of appeal and equalization. The handbook must include, but need not be limited to, the role of the local board in the assessment process, the legal and policy reasons for fair and impartial appeal and equalization hearings, local board meeting procedures that foster fair and impartial assessment reviews and other best practices recommendations, quorum requirements for local boards, and explanations of alternate methods of appeal. Subd. 2. Appeals and equalization course. Beginning in 2006, and each year thereafter, there must be at least one member at each meeting of a local board of appeal and equalization who has attended an appeals and equalization course developed or approved by the commissioner within the last four years, as certified by the commissioner. The course may be offered in conjunction with a meeting of the Minnesota League of Cities or the Minnesota Association of Townships. The course content must include, but need not be limited to, a review of the handbook developed by the commissioner under subdivision 1. Subd. 3. Proof of compliance; transfer of duties. (a) Any city or town that conducts local boards of appeal and equalization meetings must provide proof to the county assessor by December 1, 2006, and each year thereafter, that it is in compliance with the requirements of subdivision 2. Beginning in 2006, this notice must also verify that there was a quorum of voting members at each meeting of the board of appeal and equalization in the current year. A city or town that does not comply with these requirements is deemed to have transferred its board of appeal and equalization powers to the county beginning with the following year's assessment and continuing unless the powers are reinstated under paragraph (c).(b) The county shall notify the taxpayers when the board of appeal and equalization for a city or town has been transferred to the county under this subdivision and, prior to the meeting time of the county board of equalization, the county shall make available to those taxpayers a procedure for a review of the assessments, including, but not limited to, open book meetings. This alternate review process shall take place in April and May.(c) A local board whose powers are transferred to the county under this subdivision may be reinstated by resolution of the governing body of the city or town and upon proof of compliance with the requirements of subdivision 2. The resolution and proofs must be provided to the county assessor by December 1 in order to be effective for the following year's assessment. History: 2003 c 127 art 2 s 16; 2005 c 151 art 5 s 25,26 © ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ ß°°®¿·¿´ Ì»®³·²±´±¹§ CLASSIFICATION The class that a type of property is assigned. A property's classification is based upon the existing use of the property. If the land is vacant and there is no identifiable use, the proper classification would be the most probable use of the land, which would most likely be determined by the zoning classification. CLASSIFICATION RATES The class rate assigned to a particular classification of property. Classification rates are established by the state legislature. Class rates are the same upon the same class of property throughout Minnesota. COEFFICIENT OF DISPERSION Average deviation of a group of numbers from the median, expressed as a percentage of the median. COEFFICIENT OF VARIATION Standard deviation expressed as a percentage of the mean. COMPARABLES (COMPARABLE SALES) Recently sold properties that are similar in important respects to a property being appraised to assist in estimating the value of a specific property. COST APPROACH That approach in appraisal analysis which is based on the proposition that the informed purchaser would pay no more than the cost of producing a substitute property with the same utility as the subject property. It is particularly applicable when the property being appraised involves relatively new improvements which represent the highest and best use of the land or when relatively unique or specialized improvements are located on the site and for which there exist no comparable properties on the market. DEPRECIATION A loss of utility and, hence, value from any cause. An effect caused by deterioration and/or obsolescence. Deterioration or physical depreciation is evidenced by wear and tear, decay, dry rot, cracks, encrustational or structural defects. Obsolescence is divisible into two parts, functional and economic. Functional obsolescence may be due to poor floor plan, mechanical inadequacy or over adequacy, functional inadequacy or over adequacy due to size, style, age, etc. It is evidenced by conditions within the property. Economic obsolescence is caused by changes external to the property, such as neighborhood infiltrations of inharmonious groups or property uses, legislation, etc. It is also the actual decline in market value of the improvement to land from time of purchase to the time of resale. CURABLE DEPRECIATION Those items of physical deterioration and functional obsolescence which are economically feasible to cure and hence are customarily repaired or replaced by a prudent property owner. The estimate of this depreciation is usually computed as a dollar amount of the cost-to-cure. INCURABLE DEPRECIATION Elements of physical deterioration or functional obsolescence which either cannot be corrected; or, if possible to correct, cannot be corrected except at a cost in excess of their contribution to the value of the property. PHYSICAL DEPRECIATION A reduction in utility resulting from an impairment of physical condition. For purposes of appraisal analysis, it is most common and convenient to divide physical deterioration into curable and incurable components. PHYSICAL CURABLE DEPRECIATION Physical deterioration which the prudent buyer would anticipate correction upon purchase of the property. The cost of effecting ©¬ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ the correction or cure would be no more than the anticipated addition to utility, and hence ultimately to value, associated with the cure. PHYSICAL INCURABLE DEPRECIATION Physical deterioration which in terms of market conditions as of the date of the appraisal is not feasible or economically justified to correct. The cost of correcting the condition or effecting a cure is estimated to be greater than the anticipated increase in utility, and hence ultimately in value of the property that will result from correcting or curing the condition. FUNCTIONAL DEPRECIATION Impairment of functional capacity or efficiency. Functional obsolescence reflects the loss in value brought about by such factors as overcapacity, inadequacy and changes in the art, that affect the property item itself or its relation with other items comprising a larger property. The inability of a structure to perform adequately the function for which it is currently employed. FUNCTIONAL CURABLE DEPRECIATION Functional obsolescence which may be corrected or cured when the cost of replacing the outmoded or unaccep-table component is at least offset by the anticipated increase in utility, and hence ultimately in value, resulting from the replacement. FUNCTIONAL INCURABLE DEPRECIATION Functional obsolescence that results from structural deficiencies or superadequacies that the prudent purchaser or owner would not be justified in replacing, adding or removing, because the cost of effecting a cure would be greater than the anticipated increase in utility resulting from the replacement, addition or removal. ECONOMIC OBSOLESCENCE Impairment of desirability or useful life arising from factors external to the property, such as economic forces of environmental changes which affect supply-demand relationships in the market. Loss in the use and value of a property arising from the factors of economic obsolescence is to be distinguished from loss in value from physical deterioration and functional obsolescence, both of which are inherent to the property. Also referred to as Locational or Environmental Obsolescence. EASEMENT A right held by one person to use the land of another for a specific purpose such as access to other property. EQUALIZATION The adjustment of estimated market valuation of real property in a particular area to establish a more equitable division of the total tax burden within the area. ESTIMATED MARKET VALUE Represents the assessor's estimate of the property's actual market value. Market value is defined as the most probable price that a well informed buyer would pay a well informed seller for a property without either party being unduly forced to buy or sell. In other words, what the property would likely sell for if it were to be sold in an arm's length transaction. Although the sale price of a property often reflects the market value; market value and sale price are not always synonymous. GRADING OF PROPERTY The process used by an appraiser to identify the quality of construction in the physical structure. HIGHEST AND BEST USE That reasonable and probable use that will support the highest present value, as defined, as of the effective date of an appraisal. ©« ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ HOMESTEAD For property tax purposes, homestead is a tax benefit granted to property owners (or qualifying relatives) who are Minnesota residents and who own and occupy their home as their primary place of residence. Homestead is a fact question which may require the assessor to utilize a number of indicators to determine if it is being appropriately claimed. Although factors such as mailing address and drivers license may sometimes be useful indicators to determine where a person lives, in the final analysis, the question comes down to, "Is the residence occupied as the applicant's primary place of residence?" In other words, do they actually live there? If the answer is no, no amount of supporting documentation such as voter registrations or mailing addresses can alter the fact. IMPROVED LAND Land having either on-site improvements, off-site improvements or both. MPROVEMENT I A structure or building permanently attached to the land. INCOME APPROACH That procedure in appraisal analysis which converts anticipated benefits (dollar income or amenities) to be derived from the ownership of property into a value estimate. The income approach is widely applied in appraising income-producing properties. Anticipated future income and/or revisions are discounted to a present worth figure through the capitalization process. INDEX OF REGRESSION Mean assessment ratio divided by the sales weighted-aggregate ratio. LEGAL DESCRIPTION A statement containing a designation by which land is identified according to a system set up by law or approved by law. LIMITED MARKET VALUE A limitation which is imposed on how much the taxable value of certain classes of property (agricultural homestead or nonhomestead, residential homestead or nonhomestead, noncommercial seasonal recreational residential) can increase over the preceding year's value. This limit does not apply to an increase in your value due to improvement made to the property. MARKET APPROACH Traditionally, an appraisal procedure in which the market value estimate is predicated upon prices paid in actual market transactions and current listings, the former fixing the lower limit of value in a static or advancing market (price wise), and fixing the higher limit of value in a declining market; and the latter fixing the higher limit in any market. It is a process of analyzing sales of similar recently sold properties in order to derive an indication of the most probable sales price of the property being appraised. The reliability of this technique is dependent upon (a) the availability of comparable sales data, (b) the verification of the sales data, (c) the degree of comparability or extent of adjustment necessary for time differences; and (d) the absence of non-typical conditions affecting the sale price. MASS APPRAISING A method used in revaluation of a community for tax purposes. As the term implies, it is a method of appraising a large number of properties at one time by adopting standard techniques, and giving due consideration to the appraisal process so that uniformity or equality of values may be achieved between all properties. MEAN ASSESSMENT RATIO Total of ratios divided by number of properties. MEDIAN ASSESSMENT RATIO Middle assessment ratio or the average of the two middle terms when the ratios are lined up from low to high. ©ª ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ METES AND BOUNDS A description of a parcel of land by reference to the courses (bearings, that is, the angles East or West of due North and due South) and distances (usually feet or chains) of each straight line which forms its boundary, with one of the corners tied to an established point; that is, the bearing and distance from an established point, such as a section corner or to the intersection of the center lines of two roads, etc. If one part of the boundary is on a curve, this part is described by showing the number of degrees of the central angle subtended by the curve (arc), the length of the radius and the length along the curve. MODE Assessment-ratio that appears most frequently. NET TAX CAPACITY New for payable 1990. Is used to extend taxes in accordance to multiplying the market value by the appropriate class rate. OBSOLESCENCE One of the causes of depreciation. It is the impairment of desirability and usefulness brought about by new inventions, current changes in design and improved processes for production, or from external influencing factors, which make a property less desirable and valuable for a continued use. Obsolescence may be either economic or functional. PARCEL A piece of land, regardless of size in one ownership. PROPERTY CLASS The class that has been assigned to the property based upon the use of the property. PROPERTY IDENTIFICATION NUMBER A geographically related parcel numbering system. The number contains twelve digits made up of section, township, range, quarter-quarter and parcel. The first six digits, based on the public land survey, geographically locate the section in which the property is located. The next two digits will designate in which quarter-quarter the property is located. The ninth through twelfth digits indicate the parcel within the quarter-quarter. The parcels will be numbered consecutively beginning with 0001. When a division is made, the next consecutive available number(s) will be assigned, and the old number(s) will be retained for historical data. RANGE Difference between the high sales ratio and the low sales ratio. REVALUATION The mass appraisal of all property within an assessment jurisdiction to obtain equalization of estimated market values. Reappraisal of a former assessment. SALES ASSESSMENT RATIO The ratio derived by dividing the estimated market value by the selling price. AGGREGATE RATIO The ratio determined by dividing the total estimated market value of all sales by the total selling prices. AVERAGE MEAN The total of all the ratios in a given set divided by the number of items in the set. MEDIAN RATIO The value of the middle item where an odd number of items are arranged (arrayed) according to size, or the arithmetic average of the two central items if there is an even number of items. It is a positional average and is not affected by the size of extreme values. ©© ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ SALES WEIGHTED AGGREGATE RATIO Total of assessment values divided by total of selling price. SAMPLE SUFFICIENCY GAUGE Square root of half the range divided by the number of properties. SPECIAL ASSESSMENT A charge made by government against real estate to defray the cost of making a public improvement adjacent to the property which, while of general community benefit, is of special benefit to the property so assessed. STANDARD DEVIATION Square root of total of squared deviations from mean divided by number of properties. TAX CAPACITY RATE (Local Tax Rate): Determined by dividing a taxing district's property tax levy by the taxing district's total net tax capacity. The tax capacity rate is expressed as a percentage of net tax capacity. TOPOGRAPHY The contour of land surface, i.e., flat, rolling, mountainous, etc. TRUTH IN TAXATION Provides taxpayers with a preliminary property tax notifica-tion if any taxing district proposes to increase taxes through proposed budget increases. Included on the notification is the market value, classification, a proposed tax by taxing district, and time and place of taxing district budget hearings. UNIMPROVED LAND Land without buildings, in its natural state. VACANT LAND Land without buildings. May or may not have improvements such as grading, sewer, etc. VALUE EXEMPTION FOR CERTAIN IMPROVEMENTS (THIS OLD HOUSE) Qualifying homes, 35 years or older, were previously eligible to receive a temporary exemption on all or a portion of the assessor's estimated value for certain newly constructed improvements with an assessed value of $1,000 or more if a building permit was issued by June 30, 1999. Legislative action in 1999 amended this law effective July 1, 1999 that to qualify for exemption of improvements from the property tax, the property must be 45 years of age or older at the time the improvements commence and the property must be receiving the homestead classification. The minimum assessed value must be $5,000 for eligible improvement. This includes properties classified as residential homestead (including duplexes and triplexes), blind/paraplegic veteran/disabled homestead and agricultural homestead. In addition, the owner must have taken out a building permit and file an application for the exemption with the assessor. This law has since expired and only improvements made prior to January 2, 2003 have been grandfathered in and are still enrolled in the program. ß°°»¿´ Ð®±½»¼«®» Each spring Anoka County sends out a property tax bill (based on the prior year assessment) along with a notice of the new assessment. Three factors that affect the tax bill are: ©¨ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ 1. The amount your local governments (town, city, county, etc.) spend to provide services to your community; estimated market value 2. The of your property; classification 3. The of your property (how it is used). The assessor determines the final two factors. You may appeal the value or classification of your property as described below. ×²º±®³¿´ ß°°»¿´ Property owners are encouraged to call the appraiser or assessor whenever they have questions or concerns about their market value, classification of the property, or the assessment process. Almost all questions can be answered during this informal appeal process. When taxpayers call questioning their market value, every effort is made to make an appointment to inspect properties that were not previously inspected. If the data on the property is correct, the appraiser is able to show the property owner other sales in the market that support the estimated market value. If errors are found during the inspection, or other factors indicate a value reduction is warranted, the appraiser can easily make the changes at this time. Ô±½¿´ Þ±¿®¼ ±º ß°°»¿´ ¿²¼ Û¯«¿´·¦¿¬·±² The Local Board of Appeal and Equalization is typically made up of city council members or township board members. The Board meets during late April and early May. Taxpayers can make their appeal in person or by letter. The assessor is present to answer any questions and present evidence supporting their value. Ý±«²¬§ Þ±¿®¼ ±º ß°°»¿´ ¿²¼ Û¯«¿´·¦¿¬·±² In order to appeal to the County Board of Appeal and Equalization, a property owner must first appeal to the Local Board of Appeal and Equalization. The County Board of Appeal and Equalization follows the Local Board of Appeal and Equalization in the assessment appeals process. Their role is to ensure equalization among individual assessment districts and classes of property. The board meets during the second half of the month of June. ©§ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ A taxpayer must first appeal to the local board before appealing to the county board. Decisions of the County Board of Appeal and Equalization can be appealed to tax court. Ó·²²»±¬¿ Ì¿¨ Ý±«®¬ The Tax Court has statewide jurisdiction. Except for an appeal to the Supreme Court, the Tax Court shall be the sole, exclusive and final authority for the hearing and determination of all questions of law and fact arising under the tax laws of the state. There are two divisions of tax court: the small claims division and the regular division. Small Claims Division of the Tax Court The only hears appeals involving one of the following situations: The entire parcel is classified as a residential homestead and the parcel contains no more than one dwelling unit. The entire property is classified as an agricultural homestead. Appeals involving the denial of a current year application for homestead classification of the property. The proceedings of the small claims division are less formal and property owners often represent themselves. There is no official record of the proceedings. Decisions made by the small claims division are final and cannot be appealed further. Small claims decisions do not set precedent. The Regular Division of the Tax Court will hear all appeals, including those with the jurisdiction of the small claims division. Decisions made here can be appealed to a higher court. The principal office for the Tax Court is located in St. Paul. However, the Tax Court is a circuit court and can hold hearings at any other place within the state so that taxpayers may appear with as little inconvenience and expense to the taxpayer as possible. Appeals of property located in Anoka County are heard at the Anoka County Courthouse, with trials scheduled to begin on Thursdays. Three judges make up the Tax Court. Each may hear and decide cases independently. However, a case may be tried before the entire court under certain circumstances. The petitioner must file in tax court on or before April 30 of the year in which the tax is payable. On the following two pages is a sample Valuation Notice. ©¦ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ Valuation Notice Front ©¥ ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ Valuation Notice Back ¨® ß²±µ¿ Ý±«²¬§ Ý·¬§ ±º Ý±´«³¾·¿ Ø»·¹¸¬ More housing statistics may be found on the websites of local area realtor associations. The following links will take you to two helpful websites. North Metro Realtors Association Housing Statistics http://www.northmetro.com/communications/housing-statistics- detail.php?intResourceID=4716 Minneapolis Area Association of Realtors Real Estate Market Info http://mplsrealtor.com/market.aspx ¨