Here is what Scott County says about how declines in property values impact property taxes. This is taken directly from the Scott County website. We also provide some information on how to appeal your property tax valuation below:
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The news media, including: television, radio, newspapers, magazines, and the internet, report on the real estate market decline with stories on increases in foreclosures, fewer sales, and falling prices of housing.
What does this mean for the valuation of your property? County and city assessors are required, by Minnesota law, to value property at 100 percent of its market value. While this may seem like a moving target, the specific date of valuation is January 2 of each year, and market value is determined, in part, by reviewing sales during the year prior to January 2. The January 2, 2008, valuation is based on 2007 sales, and will affect the taxes you pay in 2009. This lag in time between valuation and taxes payable has been established by the State to allow adequate time for taxpayer appeals.
Will property valuations decrease for 2008? Not necessarily. If a property is found to be valued at just 80 percent of its market value, it should receive an increase in valuation. Again, State statute stipulates that properties are valued at 100 percent of their market value. The Department of Revenue is charged with enforcing this law, and has a general guideline of 90 percent to 105 percent of market value as acceptable. The Scott County Assessor's office follows the market as accurately as possible, and makes annual adjustments as the market indicates.
Keep in mind that not all areas are declining in value. The real estate market is very neighborhood-specific. Values in some neighborhoods, or for some types of property, may be falling while other areas may have stable or even slightly increasing values.
What effect does the increase in the number of foreclosures have on valuation? The Department of Revenue does not allow assessors to use foreclosure sales to determine market value (they are considered to be unqualified sales), however, a large number of foreclosures or "short" sales do impact the market. This impact should be reflected in the selling prices of other homes in the area, and those "arms-length" sales are used by assessors in analyzing market value trends.
The Notice of Valuation and Classification tells you the value and class of your property as of January 2, 2008. These will be used, along with the local tax levies, to calculate your taxes for 2009. Also listed are the dates of your Local Board of Appeal and Equalization Meeting, or Open Book Meeting, and the date of the Scott County Board of Appeal and Equalization Meeting. These are important dates if you want to appeal your valuation or classification.
What can you do if you think your property valuation is too high? Start by doing a little research. Why do you think the value is too high? Are there sales of similar properties in your area that indicate a lower value? If you believe your property value is too high or low, call the number listed on your notice. This will put you in contact with the Assessor for your area, who can explain how your property valuation was determined. The Assessor will suggest an appointment time to come out and review your property. Please note that if you refuse to allow the Assessor to inspect the interior and exterior of your property, you lose the right to appeal your property valuation. The Assessor's Office will work with you to find an acceptable time and date for an inspection.
If, after following these steps, you still think your property valuation is incorrect there is a three part formal appeal process. First, you can appear at your city or township Local Board of Appeal and Equalization or Open Book Meeting. The date of this meeting is listed on your valuation notice. Alternatively, you may also send a designated representative to the meeting, or send a letter prior to the meeting.
Second, you may appear at the County Board of Appeal and Equalization. This date is also listed on your notice. Please note that you cannot appear at the County Board meeting unless you have first attended the Local Board of Appeal meeting, if your city or town has one.
Third, you may appeal to the Minnesota Tax Court, either the small claims division or regular division.
For more information, see www.taxcourt.state.mn.us, or contact Minnesota Tax Court, Minnesota Judicial Center, Suite 245, 25 Rev. Dr. Martin Luther King, Jr. Blvd. St. Paul, Minnesota 55155; or by telephone, 651-296-2806 (voice); 1-800-627-3529 (TDD users ask for 651-296-2806).
Questions may be sent to info@taxcourt.state.mn.us . All claims must be filed on or before April 30 of the year the tax becomes payable. You may also chose to appeal directly to the Tax Court, without attending local and County board meetings.
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