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HomeMy WebLinkAbout04/09/2012 Bd of Equalization OFFICIAL PROCEEDINGS CITY OF COLUMBIA HEIGHTS BOARD OF APPEALS AND EQUALIZATION MONDAY, APRIL 9, 2012 The following are the minutes for the Board of Appeals and Equalization for the City of Columbia Heights City Council held at 6:00 p.m. on Monday, April 9, 2012 in the City Council Chambers, City Hall, 590 40th Avenue N.E., Columbia Heights, MN. 1. ROLL CALL Present: Mayor Peterson, Council member Williams, Council member Nawrocki, Council member Diehm, Council member Schmitt 2. STATEMENT OF PURPOSE OF THE BOARD OF REVIEW To review property valuations as of January 2, 2012 for taxes payable 2013, and to hear appeals from citizens who feel aggrieved or have questions regarding property valuations. 3. INTRODUCTION The City Manager introduced the Anoka County Appraisers - Jim Rouleau, Senior and Commercial Appraiser and Mike Brown, Residential Appraiser. Brown referred to the Board of Review booklet he distributed. This is for the 2012 assessment to compute property taxes for 2013. The sales used were arm length transactions from October 1, 2010 to September 30, 2011. He explained recent changes in the Homestead Credit, which was replaced the Homestead Exclusion. As of January 2012, there were 7,596 parcels in the City of Columbia Heights, of which 90.9 percent were residential. He indicated on a map the areas in the City that he reviewed last year and areas to be reviewed this year. Brown explained the process of questioning a valuation. He gave market value statistics for Anoka County, of which 1,521 were arm length transactions. There was an overall decrease of 12.5 percent in the estimated market value in the County. The 2012 Anoka County residential Sales Ratio median was 94.5 and the Columbia Heights ratio was 94.1. Columbia Heights had 357 sales with 98 (27 percent) being qualified and 259 (73 percent) being unqualified sales. Of these, 185 (71 percent) were foreclosure and bank sales. 4. QUESTIONS AND ANSWERS REGARDING PROPERTY VALUES Zuo Zhi, representing American Medical Research for 4544 Fillmore and 4519 Taylor Street, stated they bought two duplexes for$71,900 and $72,000 that were built in the 1950's. She questioned the purchase price being so different from the County value of$120,000. She was infoiiued by Mr. Brown that there was not a similar good sale. She questioned that the value was determined by the 28% of good sales with no consideration for the 72% of sales that were considered "not good". She felt the appraisal tool used is not appropriate and requested an adjustment to somewhere between the amount they paid and the market value. Diehm stated there is a misconception that value times an amount determines the tax. We need to be fair across the city to collect the total tax required. She stated the reality that others have the opportunity to come to this meeting and they are not present. Rouleau indicated that we have no incentive to reduce or increase values. Brown stated that both of her properties were bank sales. He stated that the Department of Revenue would have disqualified these sales. Brown asked the rental amount. Zoe stated that the Taylor rent is between $700 and $800. Brown stated that would give it a value of$140,000. Zhi stated they pay the water bill. Rouleau stated that we look at the income approach for market value, which backs up the valuation. Brown asked what she felt it should be. Zhi stated Zilla.com puts it at around a $100,000 market value for their street. Rouleau stated these values are from one year ago. Schmitt asked Brown about good sales of duplexes. Brown stated there were 21 unqualified sales. Diehm stated the value has been reduced about $30,000 in the last two years. Brown indicated current good sales of$165,000 and $155,000 on duplexes. Peterson indicated that she can now go to the County with her grievance. Brown stated that the value has dropped consistently. Peterson stated this is done fairly across the city. Nawrocki questioned the assessed values compared to what she paid. They are $118,500 and she paid $72,000 and $126,300 and she paid $71,900. Schmitt referred to the qualified sales and asked what their value is today. Brown stated that the 2nd Street value was $141,000 and sold for $165,000 and 1332 Circle Terrace sold for $155,200 and the value was $148,900. Joel Carson, 4439 2nd Street stated he purchased his property in June and the assessed value is twice what the purchase price was. It seems we are basing taxes on a small portion of the sales. He asked that Mr. Brown meet with him at the property. Brown agreed and stated that the assessed value is $101,200 and he purchased it as a non-qualified sale for $51,000. Carson requested access to the data on qualified sales. Rouleau stated this is determined globally throughout the County. Carson stated the rent charged is $1,150. Rouleau stated this request will be left open so Mr. Carson can appeal at the County level. Mark Emme, 4130 3rd Street#202, stated he lives in a condominium next to three identical units and questioned why he pays a higher tax than his neighbors. Brown referred to the difference of value when a porch is included versus the same properties at ground level. Brown indicated that he would review this property. 5. COUNCIL ACTIONS REGARDING SPECIFIC CASES OR CASES ON WHICH ADDITIONAL INFORMATION IS DESIRED Motion by Diehm, second by Williams, to adopt the 2012 Assessment Rolls as presented and amended. Upon vote: All ayes. Motion carried. 6. Adjourn Mayor Peterson adjourned the meeting at 7:02 p.m. Al _ t Patricia Muscovitz MC City Clerk