HomeMy WebLinkAboutBOR April 11, 2007
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1685 CROSSTOWN BOULEVARD N,W, . ANDOVER, MINNESOTA 55304 . (763) 755-5100
FAX (763) 755-8923 . WWW.CI.ANDOVER.MN.US
Board of Review
7:00 PM
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Wednesday,
April 11, 2007
at Andover City Hall
Council Chambers
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CITY OF ANDOVER
COUNTY OF ANOKA
STATE OF MINNESOTA
ASSESSMENT NOTICE
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NOTICE IS HEREBY GIVEN, That the Local Board of Appeal and Equalization of
the City of Andover in Anoka County, Minnesota, will meet in the City Council
Chambers said City at 7:00 pm, on the 11th of April, 2007 for the purpose of reviewing
and correcting the assessment of said City for the year 2007. All persons considering
themselves aggrieved by said assessment, or who wish to complain that the property of
another is assessed too low, are hereby notified to appear at said meeting, and show cause
of having such assessment corrected.
No complaint that another person is assessed too low will be acted upon until the
person so assessed, or his agent, shall have been notified of such complaint.
Given under my hand this 3 t) -jf. day of -J71. ~ 2007.
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Clerk of the City of Andover
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MhartnerNickilnotice of assessments
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ANOKA
COUNTY
2007
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LOCAL BOARD OF APPEAL AND
EQUALIZATION
COUNTY ASSESSOR'S REPORT
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Anoka County
City of Andover
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o Table of Contents
Agenda.............,...........,...,.......... ..... ..... ..... ............ .........,...,.".....,......... .........,...., 1
Assessment Calendar...,..,.......... .................. ...........,....,.................. .........., ..... ..... 2
The 2007 Assessment.........,....................................................."...........,..,.......,.. 3
Quintile Map. ............. ............,. .......................................,.....,...,.,..".. ......... ...........4
Reassessment. ....., .................. ........ .......... ......... ...........,......,.......,... .................... 5
Market Value.. ................... ............ ............. ...... ............ ....... ................ ........... .......5
Authority of the Local Board of Appeal and Equalization..................................... 6
Market Values ..................................................................................................... 10
2007 Market Value by Property Class................................................................ 11
Residential Appraisal System ............................................................................. 13
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Sales Studies ........................... ........ ....................................,.............. ...... .......... 14
Sales Statistics Defined ...................................................................................... 14
Current Sales Study Statistics ............................................................................15
2007 Anoka County Ratio Study........................................................................ 16
Residential Ratio by Zones........,........................................................................ 17
Residential Tax Changes Examined ..................................................................18
ADDENDA. ..................... ..... .... .... ....................... ................ .... ,. ...... .... ................ 19
Statutes............................................................................................................... 20
Appraisal Terminology ..........,......,...................................................................... 51
Appeals Procedure ...........,..........,..........................................,........................... 57
Sample Market Value Notice .............................................................................. 59
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Minneapolis Area Association of Realtors@
2005 Residential Real Estate Activity Report..................................................... 61
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An ka County
2007 Board of Review
City of And v r
Agenda
.Api 11,2007
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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 2007 board is to review the assessment
as of January 2, 2007, which will be used to compute the property taxes
payable in 2008. Prior years' assessments or taxes (including taxes
payable in 2007) 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.
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If needed, the meeting will be reconvened at a date to be determined. 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.
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Anoka County
City of Andov r
Assessment Staff
Residential Appraisers
Jason Dagostino
Commercial Industrial Appraiser
John Leone
Aparbnent Appraiser
Jim Rouleau
Anoka County Assessor
Mike Suther1and
2007 Assessment Calendar
2007 Market Values for Properly Established
Final Day to Deliver Assessment Records to County
Final Day to File for an Exemption from Taxation
Final day to file for 1 B with Commissioner of Revenue
Local Board of Appeal and Equalization
, Final Day to File a Tax Court Petition for 2006 Assessment
Final day to file application for Green Acres
First Half Payable 2007 Taxes Due
Final Date for Manufactured Homes assessed as personal properly to establish homestead
State Board of Equalization
County Board of Appeal and Equalization
2007 Assessment Finalized
Date by which taxable properly becomes exempt
Final Day to File for 2006 Properly Tax Refund
Final Day to Pay the First Half Manufactured Home Taxes
2007 Abstract to the Department of Revenue
Second Half Pay 2007 Taxes Due
Final Day to Mail 2008 Proposed Tax Notices
Final Day to File Homestead Application for 2007
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Anoka County
The 2007 Ass ssm nt
City of Andov r
The 2007 assessment should be a reflection of the 2006 market conditions.
Sales of property are constantly analyzed to chart the activity of the market place.
The Assessing staff does not create value; they only measure its movement.
Assessing property values equitably is part science, part judgment and part
communication skill. Training as an assessor cannot tell us how to find the
"perfect" value of a property, but it does help us consistently produce the same
estimate of value for identical properties. That after all, is the working definition of
equalization.
As of January 2, 2007, there were 11,328 parcels in the City (including
manufactured homes). That is an increase of 307 or 2.8% over the 2006 parcel
count. This total includes:
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10,455 residential parcels
480 exempt parcels
198 agricultural parcels
143 commercial industrial parcels
20 apartment parcels
17 tax forfeit parcels
7 utility parcels
8 rr, pp, and mh parcels
Distribution of Parcels by Property Type
Exempt
4.2%
Residential
92,3%
Commercial Industrial
~ 1,3%
.~. p.......il.. f.t ...m........ e....n........t....i
~.0.2%.;
~ Agricultural
1.7%
Other
0,3%
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Anoka County
City of Andover
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Current state law mandates that all property must be re-assessed each year and physically
reviewed once every five years. We also inspect all properties with new construction each 0
year. During 2006 there were over 2,700 properties reviewed including 234 new homes built i. .
in 2006.
City of Andover
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D City Boundary
_ 2005 Re-,t>,ssessmentArea
_ 2007 Projected Re-Assessment Area
D Section Lines
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C::.'J=lrnJE'~'2.;prcp=ny Reoorde
3.'26.'t.:
This map illustrates the 2006 (2007 assessment for pay 2008) review area and the
projected review area for 2007 (2008 assessment for pay 2009).
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Anoka County
Reas essment
City of Andover
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 Andover 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
Eq ualization.
Market Value
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Market value has been defined many different ways. One way used by
many appraisers is the following:
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:
(1) buyer and seller are typically motivated:
(2) both parties are well informed or well advised, and acting in what
they consider their own best interests;
(3) a reasonable time is allowed for exposure in the open market;
(4) payment is made in terms of cash in U.S. dollars or in terms of
financial arrangements comparable thereto;
(5) 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.
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Anoka County City of Andover
Authority of th Local Board of Appeal and
Equalization
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Assessments of property are made to provide the means for the
measuring of the relative 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.
Minnesota Statutes Section 274.01 provides that the council of each
city shall be or 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 ,0
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 (beginning with the 2006 local boards) who has
attended an appeals and equalization course developed or approved by
the Commissioner of Revenue within the last four years. (The member
must attend the course by no later than January 1, 2006 and each year
thereafter.)
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.
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Anoka County
City of Andov r
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The Board of Appeal and Eaualization of any city. unless a lonaer
period is approved by the Commissioner of Revenue, must complete
its work and adiourn within twenty days from the time of conveninq
specified in the notice of the clerk. No action taken subseauent 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 the assessments in the district
of a given class of property. Changes in aggregate assessments by
classes are made by the County Board of Equalization.
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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.
In reviewing the individual assessments, the Board may find instances of
undervaluation. 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.
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Anoka County
City of Andover
When a Local Board of Appeal and Equalization convenes, it is necessary
that a majority of 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 his/her assessment books and papers. He/she 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 his/her 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.
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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 f'1iiii't..,
recess from day to day until all cases have been heard. If complaints are ~,...J
received after the adjournment of the Board of Appeal and Equalization
they must be handled on the staff level; as a property owner cannot
appear before a higher board unless he or 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.
A non-resident may file written objections to his/her assessment with the
county assessor prior to the meeting of the Board of Appeal and
Equalization. Such objections must be presented to the Board for
consideration while it is in session.
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Anoka County City f Andover
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 should be shown as prescribed in the form. After the
proceedings have been completed, the 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.
The 2007 assessment should be a reflection of the 2006 market conditions.
Sales of property are constantly analyzed to chart the activity of the market
place.
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Anoka County
Market Valu
City f Andover
After thorough studies of the sales in the market place are conducted, we establish the
assessed value of all real property. During the 2006 study period, we recorded 8,256
sales countywide (down 18% from the 2005 study period), of which we considered 4,563
"arms-length" sales.
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In accordance with the results of these sales studies, certain areas of the city and certain
styles and grades of homes may have been adjusted in value, either lower or higher than
the previous year's value. This will more properly reflect current market trends.
The 2007 assessment that is up for your review has a total unaudited assessed value of
$3,022,810,000, excluding exempt, forfeit, utility, manufactured homes and personal
property. It reflects an approximate valuation increase of 6.2% over the 2006
assessment.
The pattem of growth (including new construction) in the City's total value can be seen in
the following list and chart:
Growth in Property Values
2004 - 2007
(Total does not include manufactured homes, personal property, utilities. exempt, or forfeit)
Year Residential Commercial Agricultural Apartment Total %Chg
Industrial
2007 $2,798,436,900 $112,747,700 $94,356,900 $17.268,500 $3.022,810,000 6,2% r';- \
2006 $2,645,700,300 $101,780,100 $81.659,800 $17,578,900 $2,846,719,100 9.6% '''<t:.P:
2005 $2,417,683,000 $93,088,300 $70,832,700 $16,464.100 $2,598.068,100 12.4%
2004 $2,159,705,200 $70.119,800 $65,090,900 $15,688,200 $2.310.604,100 NA
$3,000,000,000
$2,500,000,000
Q)
" $2,000,000,000
to
>
;; $1,500,000,000
""
to
:2
to $1,000,000,000
0
I-
$500,000,000
$0
tII,
1/11 ~~
,,~
till
2007
2006 2005
Assessment Year
2004
Residential iii Commercial industrial Agricuitural Apartments
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Anoka County
City of Andover
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On the next two pages are more detailed breakdowns of changes in the 2007
assessment as compared to prior years.
The first example is the gross change in estimated market value by classification
from the 2005 assessment for tax payable 2006 to the 2007 assessment for tax
payable 2008.
The second example is the net change in estimated market value by
classification, not including new construction, from the 2006 assessment for tax
payable 2007 to the 2007 assessment for tax payable 2008.
PROPERTY TYPE
Residential
Commercial Industrial
Agricultural
Apartment
Total
GROWTH IN ESTIMATED MARKET VALUES BY PROPERTY TYPE
2005 TO 2007 ASSESSMENT YEARS
FOR TAXES PAYABLE 2006 TO 2008
2005 PAY 2006 2006 PAY 2007 2007 PAY 2008
ESTIMATED MARKET VALUE
$2,417,683,000 $2,645,700,300 $2.798,436,900
$93,088,300 $101,780.100 $112,747,700
$70,832,700 $81,359,800 $94,356,900
$16,464,100 $17.578.900 $17,268,500
$2.598,068,100 $2,846,419.100 $3.022,810,000
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GROWTH IN ESTIMATED MARKET VALUE BY PROPERTYTVPE
$3.000,000,000
$2,500,000,000
:l: $2,000,000,000
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s:
0
0: $1,500,000,000
(!)
w
::>
-' $1,000,000,000
<(
>
$500,000,000
$0
Residential
Commercial Industrial
Agricultural
TAX PAYABLE YEAR
- Residential"" Commercial Industrial ..~ Agricultural = Apartment
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Anoka County
City of Andover
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NET CHANGE IN ESTIMATED MARKET VALUE FOR TAXABLE PROPERTIES
2006 PAY 2007 2007 PAY 2008 2007 PAY 2008 2007 PAY 2008 2007 PAY 2008 2007 PAY 2008
GROSS EMV % OF CHANGE NEW GROSS GROSS
PROPERTY TYPE ESTIMATED BEFORE NEW NOT INCLUDING IMPROVEMENT ESTIMATED % OF CHANGE
MARKET VALUE IMPROVEMENTS NEW VALUE MARKET VALUE
IMPROVEMENTS
Agricultural $81,359,800 $95,842,000 17_8% $0 $95,842,000 17.8%
Apartment $17,578,900 $17,613,200 0.2% $0 $17,613.200 0.2%
Commercial Industrial $101,780,100 $106,705,800 4.8% $6,041,900 $112,747,700 10.8%
Residential $2,645,700,300 $2,738,633.400 3.5% $59,803,500 $2,798,436,900 5.8%
Total $2,846,419,100 $2,958,794.400 3.9% $65,845,400 $3,024,839,800 6.3%
()
DISTRIBUTION OF V ALUE BY PROPERTY TYPE
Residential
92.5%
Apartment
0,6%
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Anoka County
o Residential Appraisal Syst m
City of Andover
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.
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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 anlaysis 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.
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Anoka County
Sales Studi s
City of Andover
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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 s"ale 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.
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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%. To avoid this increase, the Anoka County Assessor
requests a median sales ratio of 94.5%.
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.
Sales Statistics Defined
In addition to the median ratio, we have the ability to develop other statistics to
test the accuracy of the assessment. Some of these are used at the state and
county level also. The primary statistics used are:
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An ka County
City f Andover
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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 95% to give us a margin to account for a fluctuating
market and still maintain ratios within state mandated guidelines.
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.
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Price Related Differential (PRO): This statistic measures the equality between
the assessment of high and low valued property. A PRO over 100 indicates a
regressive assessment, or the lower valued properties are assessed at a
greater degree than the higher. A PRO of less than 100 indicates a
progressive assessment or the opposite. A perfect PRO of 100 means that
both higher and lower valued properties are assessed exactly equal.
Current Sales Study Statistics
The following statistics are based upon ratios calculated using 2006 pay 2007
market values and 2005 sales. These are the ratios that our office uses for
citywide equalizations, checking assessment accuracy, and predicting trends in
the market.
2006 Anoka County
Residential Sales Ratio
Statistics
Median Ratio
Aggregate Ratio
Mean Ratio
COO on Median
PRO
94.54
94.33
95.23
6.34
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Anoka County
City of Andover
Anoka County Ratio Study - 2007 Asses ment
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Residential Single Family Sales Ratio History
2007 . 1998
Assessment Year 2007 2006 2005 2004 2003
Municipality # Median Coeff # Median Coeff # Median Coeff # Median Coeff # Median Coeff
Andover 370 93.3 4.9 550 94.5 4.2 591 95.4 23.6 479 94.4 3.6 531 94.6 3.2
Anoka .223 94.4 6.7 257 94.9 7.1 330 94.4 6.8 213 94.5 ' 5.4 233 94.5 5.6
Bethel 10 91.1 4.8 8 94.5 7.4 23 99.9 27,7 7 94.4 2.4 8 94.3 5.4
Blaine 868 93,6 5,5 1007 94.4 5,5 1428 95.7 17.6 900 94.4 5.4 845 94,5 4.9
Bums 35 90.5 9.0 44 94.2 5,2 91 95.2 51.8 77 94.5 9.2 50 94.4 8.4
Centerville 75 93.6 7.5 84 94.7 6.3 108 93,7 9,1 74 94.3 5,5 77 94.5 6.4
Circle Pines 70 96.7 5.5 91 94.6 4.8 174 94.6 7.5 52 94.4 4.1 58 94.5 7.2
Columbia Heiohts 294 94.0 7.3 380 94.6 8.3 383 91.9 11.5 255 94.3 7.0 263 94.4 7.0
Columbus 29 96.4 11.2 29 99.8 18.2 40 93.3 9.3 27 94.2 6.7 32 94,6 7.4
Coon Rapids 1000 93.7 5.2 1268 94.5 5.8 1488 94.3 36.6 793 94.4 . 5.4 801 94.4 5.5
East Bethel 137 97,2 5.9 176 95.7 17.7 202 92.0 13.8 169 94.7 7.4 139 94.6 7.3
Fridley . 317 93.4 6.1 429 94.7 8.4 441 98.0 7.7 290 94.5 6.5 260 94.5 6.1
Ham Lake 182 93.8 7.6 191 94.5 6.4 312 97.0 43.4 232 94.3 5.4 208 94.4 7.0
Hilltop 1 86.0 0.0 3 93.0 1.4 3 93.0 18.1 0 0,0 0.0 0 0,0 0.0
Lexinoton 25 92.9 9.3 30 94,3 7.2 23 95,2 7.9 14 94.6 4.1 21 94.5 4,9
Lino Lakes 235 94.4 8,8 276 94.6 6,5 284 92.5 17.6 264 94.4 7.1 329 94.4 7.4
Linwood 85 91.0 16.2 68 94.4 9,3 75 94.3 23.5 66 94.4 7.4 86 94.5 7.1
Oak Groye 94 93.2 11.3 116 94.9 8.4 129 97.0 11.8 109 94.6 6.4 116 94.4 8.5
Ramsev 315 93.7 6.9 379 94.6 6.7 561 95.7 13.7 351 94.4 6.6 308 94.4 6.0
Sprin9 Lake Park 69 96.1 4.8 87 94.5 6.8 112 94.9 6.4 71 94.4 4.3 77 94.5 4.4
St. Francis 129 93.7 4.3 158 94.7 4.3 203 96.9 31.7 250 94.4 5.0 155 94.5 5,9
Countv Total 4.563 93.8 6.3 5.632 94.5 6.3 7,000 95.2 21.7 4,693 94.4 5.7 4,597 94.5 5.9
Price Related Differential 99 101 111 101 101
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Assessment Year 2002 2001 2000 1999 1996
Municipality # Median Coeff # Median Coeff # Median Coeff # Median Coeff # Median Coeff
Andover 683 94.6 7.6 565 94.3 7.1 722 94.5 4.9 458 94.3 5,8 448 94.5 5.2
Anoka 206 94.5 6.2 204 94.4 7.2 218 94.5 7.5 240 94.4 6.2 207 94.3 6.2
Bethei 8 94,5 2.0 3 94.3 1.8 7 94,5 5.2 5 94.4 7.2 5 94.4 8.6
Blaine 906 94.5 6.7 713 94.4 5.1 859 94.4 4.7 810 94.3 4.2 583 94.3 4.3
Burns 45 94.4 8.7 48 94.4 10.4 48 94.4 4,6 29 94.5 3.1 21 94.4 6,3
Centerville 82 94.5 5.8 53 94.4 5.0 92 94.4 5.8 96 94.4 3.5 53 94.3 5.2
Circle Pines 64 94.5 6.5 58 94.3 6.9 61 94,5 3.4 53 94.4 4.4 50 94,3 4.3
Columbia Heiohts 255 94.4 7.3 228 94.3 6.2 232 94.5 6.8 225 94.3 5.6 208 94.3 7.2
Columbus 44 94.2 7.5 27 94.4 7.9 31 94.5 9.9 34 94.4 5.6 40 94.7 7.1
Coon Raoids 811 94.5 5.4 790 94.4 6.3 947 94.4 6.0 799 94.3 5.1 .733 94.3 4.7
East Bethel 186 94.5 8.1 208 94.4 5.9 174 94.4 5.9 189 94.3 6.7 168 94.4 6.4
Fridley 259 94.4 7.2 242 94.4 7.0 274 94.4 7.8 293 94.3 5,6 248 94.4 6.2
Ham Lake 267 94.5 7.8 225 94.4 5.7 227 94.4 5.3 199 94.3 5.0 178 94.5 5.7
Hilltop 0 0.0 0.0 0 0.0 0.0 0 0.0 0.0 1 94.2 0.0 1 95.3 0.0
Lexinaton 12 93.8 4.9 17 94.4 7.5 21 94,5 4.4 14 94.4 4.5 15 94.2 3.6
Lino Lakes 402 94.4 8.8 295 94.4 5.4 324 94.4 4.6 305 94.3 4.9 296. 94.4 4.6
Linwood 64 94.4 7.2 50 94.4 6.6 82 94.4 5.7 76 94.4 5.6 64 94.0 7.5
Oak Grove 100 94.4 9.2 85 94.4 6.6 111 94,5 4.8 79 94.5 4.2 81 94,5 5.5
Ramsev 339 94.4 6,3 318 94.4 5.9 407 94,5 4.1 458 94.4 5.0 367 94.6 4.7
Sorino Lake Park 91 94.5 5,9 63 94.4 6.0 81 94.5 6.0 75 94.5 4.4 62 94.2 5.0
51. Francis 157 94.4 7.2 107 94.4 6.1 182 94.4 3.7 78 94.5 3.6 59 94.5 4.2
Countv Total 4,971 94.4 6.8 4,299 94.4 6.1 5,100 94.4 5.4 4,516 94.4 5,2 3,907 94.4 5.2
Price Reiated Differential 101 100 100 100 100
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Anoka County City f Andover
0 2007 Andover Residential Ratio by Zones
Number Median Coefficient
Neighborhood Neighborhood of Sales of
Code Description Sales Ratio Dispersion
ADO 1-0 2.5 ACRE EXECUTIVE 14 91.8 9.5
AD01-1 ANDOVER LAKE 0 NA NA
AD01-2 2.5 ACRE AVERAGE NO S/W 21 94.4 4.0
AD01-3 ABOVE AVERAGE S&W 91 93.6 4.7
AD01-4 AVERAGE S&W 83 93.4 4.7
AD01-5 70 & 80"S - NO SEWER & WATER 42 93.3 5.1
AD01-6 NICER TOWNHOMES 24 92.6 4.0
AD01-7 2.5 TO 7 ACRE 8 92.6 7.7
AD01-8 LARGE TRACT 8-15 ACRE 4 95.3 5.3
0 AD01-8AG ANDOVER AG 44 93.1 4.9
AD01-9 BELOW AVE NO S/W 21 93.0 2.6
AD02-1 ANDOVER - CROOKED LAKE 0 NA NA
AD02-2 ANDOVER-TOWNHOMES 21 93.0 2.6
AD02-3 WOODLAND ESTATES 15 93.3 4.9
ADRV-1 ANDOVER RIVER 15 93.3 4.9
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Anoka County
Residential Tax Changes Examin d
City of Andover
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Although the Assessor's Office is considered by many to be the primary reason for any
property tax 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.
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Anoka County
o ADDENDA
City of Andover
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Anoka C unty
Statut s
Minnesota State Statute 273.11
Minnesota State Statute 273.121
Minnesota State Statute 273.13
Minnesota State Statute 274.01
Minnesota State Statute 274.014
Valuation of Property
Valuation of Real Property Notice
Classification of Property
Board of Appeal and Equalization
City of Andover
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Local Boards; Appeals and Equalization Course and Meeting
Requirements
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Anoka County City f Andov r
273.11 VALUATI N F PROPERTY.
Subdivision 1. Generally. 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.
Subd. 1 a. Limited market value. 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
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Anoka County
City of Andover
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 127 A.48, and the
computation of state aids paid under chapters 122A, 123A, 123B, 1240, 125A, 126C, 127A,
and
477 A, 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]
Subd. 5. Boards of review and equalization. Notwithstanding any other provision of law
to
the contrary, the limitation contained in subdivisions 1 and 1 a 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.
Subd. 6. Solar, wind, methane gas systems. 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.
Subd. 6a. Fire-safety sprinkler systems. 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, 1984c 502 art 3 s 36]
Subd. 8. Limited equity cooperative apartments. 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
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Anoka C unty
City of Andov r
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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 distJibution to members will be conveyed to
a charitable organization described in section 501 (c)(3) of the Internal Revenue Code of
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Anoka County City of Andover
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
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.
Subd. 9. Condominium property. 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]
Subd. 11. Valuation of restored or preserved wetland. 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
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Anoka County
City of Andover
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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 pennanently altered. Wetland value
shall
not reflect potential uses of the wetland that would vioJate the tenns of any existing
conservation
easement, or anyone-time payment received by the wetland owner under the tenns 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 nonnal circumstances support a prevalence of such vegetation.
Subd. 12. Neighborhood land trusts. (a) A neighborhood land trust, as defined under
chapter 462A, is (i) a community-based nonprofit corporation organized under chapter 317 A,
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 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.
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Anoka C unty
City of Andov r
(c) A unit which is owned by the occupant and used as a homestead by the occupant
qualifies
for homestead treatment as class 1 a 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.
Subd. 13. Valuation of income-producing property. 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.
Subd. 14. Vacant land platted before August 1, 2001. (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
26
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Anoka County
City of Andov r
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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.
Subd. 14a. Vacant land platted on or after August 1, 2001; located in metropolitan
counties. (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 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.
Subd. 14b. Vacant land platted on or after August 1, 2001; located in
nonmetropolitan
counties. (a) All land platted on or after August 1, 2001, located in a non 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
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Anoka County
City f Andover
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
W .
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.
Subd. 15. Vacant hospitals. 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
1,
and that on the date of sale is vacant and not used for hospital purposes or for any other
fh~~~~~ssor's estimated market value for taxes levied in the year of the sale shall be no 0
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.
Subd. 16. Valuation exclusion for certain improvements. 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 0,. C '
by the homeowner, excluding any market value increase relating to basic improvements that
are
28
Anoka County
City of Andover
o
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 anyone 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 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
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Anoka County
City of Andov r
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 riot 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.
Subd. 17. Valuation of contaminated properties. (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 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.
Subd. 18. Disclosure of valuation exclusion. No seller of real property shall sell or offer
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30
Anoka County
City of Andov r
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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.
Subd. 19. Valuation exclusion for improvements to certain business property.
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.
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Anoka County
City of Andover
For purposes of this subdivision, "population" has the same meaning given in Minnesota
Statutes, section 477 A.011. subdivision 3.
Subd. 20. Valuation exclusion for improvements to certain business property.
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 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 .
Subd. 21. Valuation reduction for homestead property damaged by mold. (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
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Anoka County City of Andover
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 1 a, 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 to new construction.
Subd. 22. Lead hazard market value reduction. Owners of property classified as class
1a,
1 b, 1 c, 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 a=mpanied 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 1 a, any
additional market value resulting from the lead hazard removal must be considered an
increase
in value due to new construction.
Subd. 23. First tier valuation limit; agricultural homestead property. (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
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Anoka County City of Andover
$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 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 $ 810; Ex1967 c 32 art 7 $ 3; 1969 c 574 $ 1; 1969 c 990 $ 1; 1971 c 427
$ 1; 1971 c 489 $ 1; 1971 c 831 $ 1; 1973 c 582 $ 3; 1973 c 650 art 23 $ 1-4; 1974 c 556 $
14;
1975 c 437 art 8 $ 4-6; 1976 c 2 $ 93; 1976 c 345 $ 1; 1977 c 423 art 4 $ 4; 1978 c 786 $
10,11;
1979 c 303 art 2 $ 7; 1Sp1981 c 1 art 2 $ 3,4; 1Sp1981 c 4 art 2 $ 50; 1982 c 424 $ 61,62;
1982 c
523 art 19 $ 2; art 21 $ 1; 1983 c 222 $ 7; 1983 c 342 art 2 $ 5-7; 1984 c 502 art 3 $ 6;
1Sp1985 c
14 art 4 $ 35; 1986 c 444; 1Sp1986 c 1 art 4 $ 12; 1987 c 268 art 5 $ 1; art 7 $ 32; 1987 c 384
art
3 $ 10; 1988 c 719 art 5 $ 84; 1989 c 329 art 13 $ 20; 1989 c 356 $ 13; 1990 c 480 art 7 $ 5;
1990
c 604 art 3 $ 9; 1991 c 291 art 1 $ 12; 1991 c 354 art 10 $ 7,8; 1992 c 511 art 2 $ 11,12; 1992
c
556 $ 2,3; 1992 c 597 $ 14; 1993 c 375 art 5 $ 8-13; art 8 $ 14; art 11 $ 3; art 12 $ 9; 1994 c
416
art 1 $ 13; 1994 c 587 art 5 $ 3-5; 1995 c 1 $ 2; 1995 c 264 art 16 $ 9; 1996 c 471 art 3 $ 5;
1997 c
231 art 2$ 10,11,52; art 8$2; 1997c251 $ 16; 1998 c 397 art 11 $3; 1999 c243 art5$ 6,7;
1 Sp2001 c 5 art 3 $ 23-26; 1 Sp2002 c 1 $ 14; 2003 c 127 art 5 $ 15; 1 Sp2003 c 21 art 4 $ 3;
2005
c 151 art 2 $ 6; art 5 $ 16; 1Sp2005 c 3 art 1 $ 8-10; 2006 c 259 art 4 $ 11
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.
Anoka County
City of Andover
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Anoka County City of Andover
273.121 VALUATION F REAL PR PERTY, N TICE.
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 by ordinary mail
at least ten days before the meeting of the local board of appeal and equalization under section
274.01 or the review process established under section 274.13. subdivision 1c. It shall contain: (1)
the market value for the current and prior assessment, (2) the limited market value under section
273.11. subdivision 1 a, for the current and prior assessment, (3) the qualifying amount of any
improvements under section 273.11, subdivision 16, 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 exclusion under section 273.11. subdivision 16, (7) the
assessor's office address, and (8) the dates, places, and times set for the meetings of the local board
of appeal and equalization, the review process established under section 274.13. subdivision 1 c,
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
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Anoka County
City of Andover
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37
Anoka County City of Andover
273.13 CLASSIFICATION OF PR PERTY.
Subdivision 1. How classified. 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, 1 Sp1985 c 14 art 4 s 98]
Subd. 6.[Repealed, 1Sp1985 c 14 art 4 s 98]
Subd. 6a.[Repealed, 1 Sp1985 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, 1 Sp1985 c 14 art 4 s 98]
Subd. 7c.[Repealed, 1Sp1985 c 14 art 4 s 98]
Subd. 7d.[Repealed, 1 Sp1985 c 14 art 4 s 98]
Subd. 8.[Repealed, Ex1967 c 32 art 4 s 3]
Subd. 8a.[Repealed, 1 Sp1985 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, 1 Sp1985 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]
Subd. 21a. Class rate. 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."
Subd. 21 b. Tax capacity. (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,
Subd. 22. Class 1. (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 1 a. 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 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 1 a property has a net class rate of one percent of
its market value; and the market value of class 1 a 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
/""
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38
An ka County
City of Andover
o
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; or
(2) any person, hereinafter referred to as ''veteran," who:
(i) served in the active military or naval service of the United States; and
(Ii) is entitled to compensation under the laws and regulations of the United States for
permanent and total service-connected disability due to the loss, or loss of use, by reason of
amputation, ankylosis, progressive muscular dystrophies, or paralysis, of both lower extremities,
such as to preclude motion without the aid of braces, crutches, canes, or a wheelchair; and
(Iii) has acquired a special housing unit with special fixtures or movable facilities made
necessary by the nature of the veteran's disability, or the surviving spouse of the deceased veteran
for as long as the surviving spouse retains the special housing unit as a homestead; or
(3) any person who is permanently and totally disabled.
Property is classified and assessed under clause (3) 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.
Property is classified and assessed pursuant to clause (1) only if the commissioner of revenue
certifies to the assessor 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 $32,000 market value of class 1 b property has a net
class rate of .45 percent of its market value. The remaining market value of class 1 b property
has a class rate using the rates for class 1 a or class 2a property, whichever is appropriate, of
similar market value.
(c) Class 1c property is commercial use real property that abuts a lakeshore line 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. The portion of the property used as a homestead is
class 1 a property under paragraph (a). The remainder of the property is classified as follows: the
first $500,000 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 1 c are: tier I, 0.55 percent; tier II, 1,0
percent; and tier III, 1.25 percent. If a class 1 c resort property has any market value in tier III, the
entire property must meet the requirements of subdivision 25, paragraph (d), clause (1), to qualify
for class 1 c treatment under this paragraph.
(d) Class 1 d 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 dOJ:ls 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 1 d property has the same class rates as class 1 a property under
paragraph (a).
Subd. 23. Class 2. (a) Class 2a property is agricultural land including any improvements
that is homesteaded. The market value of the house and garage and immediately surrounding
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Anoka County
City of Andover
one acre of land has the same class rates as class 1 a 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 0.55 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 2b property is (1) real estate, rural in character and used exclusively for growing
trees for timber, lumber, and wood and wood products; (2) real estate that is not improved
with a structure and is used exclusively for growing trees for timber, lumber, and wood and
wood products, if the owner has participated or is participating in a cost-sharing program for
afforestation, reforestation, or timber stand improvement on that particular property, administered
or coordinated by the commissioner of natural resources; (3) real estate that is non homestead
agricultural land; or (4) a landing area or public access area of a privately owned public use
airport. Class 2b property has a net class rate of one percent of market value.
(c) 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 or cultivation of agricultural products. "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 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. Contiguous acreage on the same parcel, or contiguous acreage on an
immediately adjacent parcel under the same ownership, may also qualify as agricultural land,
but only if it is pasture, timber, waste, unusable wild land, or land included in state or federal
farm programs. Agricultural classification for property shall be determined excluding the house,
garage, and immediately surrounding one acre of land, and shall not be based upon the market
value of any residential structures on the parcel or contiguous parcels under the same ownership.
(d) Real estate, excluding the house, garage, and immediately surrounding one acre of
land, of less than ten acres which is exclusively and intensively used for raising or cultivating
agricultural products, shall be considered as agricultural land.
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.
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.
(e) 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 tlie 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 .'Nhich is owned and 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 97 A.115;
(6) insects primarily bred to be used as food for animals;
(7) trees, grown for sale as a crop, 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.
(f) If a parcel used for agricultural purposes is also used for commercial or industrial
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Anoka County
City of And ver
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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 1 b, 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.
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.
(g) To qualify for classification under paragraph (b), clause (4), a privately owned public
use airport must be licensed as a public airport under section 360.018. For purposes of paragraph
(b), clause (4), "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 paragraph (b), clause (4), 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 paragraph (b), clause
(4). For purposes of paragraph (b), clause (4), "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.
Subd. 24, Class 3. (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
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Anoka County
City of Andover
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 3b. The class rates for class 3b property are determined under
paragraph (a).
Subd. 24a.[Repealed, 1 Sp2001 c 5 art 3 s 96]
Subd. 25. Class 4. (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 1 a 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 property devoted to temporary
and seasonal residential occupancy for recreation purposes, including real 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. In order for a property to be classified as class 4c, seasonal residential recreational
for commercial purposes, 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 also includes commercial use real property used exclusively
for recreational purposes in conjunction with class 4c property devoted to temporary and seasonal
residential occupancy for recreational purposes, up to a total of two acres, provided the property
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Anoka County
City of Andover
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is not devoted to commercial 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 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 1 c or 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 will be designated
class 1 c or 4c 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 1 c or 4c property must provide guest registers or other records
demonstrating that the units for which class 1c or 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, and (4) other nonresidential facility operated
on a commercial basis not directly related to temporary and seasonal residential occupancy for
recreation purposes shall not qualify for class 1 c or 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 one acre of land owned by a nonprofit community .
service oriented organization; provided that-the property is not used for a revenue-producing
activity for more than six days in the calendar year preceding the year of assessment and the
property is not used for residential purposes on either a temporary or permanent basis. For
purposes of this clause, 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), (10), or (19) of the Internal Revenue Code of
1986, as amended through December 31, 1990, For purposes of this clause, "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 which is used for revenue-producing activities for more than six days in the calendar
year preceding the year of assessment shall be assessed as 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;
(4) postsecondary student housing of not more than one acre of land that is owned by
a nonprofit corporation organized under chapter 317 A 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
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Anoka County
City of Andover
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
1 a property under subdivision 22.
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 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 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) and (6) 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.
Subd. 25a. Elderly assisted living facility property. "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
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Anoka County
City of Andover
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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]
Subd. 31. Class 5. 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]
Subd. 33. Classification of unimproved property. (a) All real property that is not improved
with a structure must be classified according to its current use.
(b) 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.
History: (1993) 1913c4835 1; 1923c 140; 1933c 132; 1933 c 359; 1937c3655 1;
Ex1937c865 1; 1939 c 48; 1941 c436; 1941 c437; 1941 c438; 1943c 1725 1; 1943c 6485 1;
1945c2745 1; 1945c5275 1; 1947c5375 1; 1949c 72351; 1951 c5105 1; 1951 c5855 1;
1953c3585 1,2; 1953c4005 1; 1953c 7475 1,2; 1955c 751 5 1,2; 1957c8665 1; 1957c9595
1; 1959 c 40 51; 1959 c 338 51; 1959 c 5415 1; 1959 c 562 53; Ex1959 c 70 art 1 5 2; 1961 c
24351; 1961 c 32251; 1961 c 340 53; 1961 c 475 51; 1961c 71051; 1963 c 426 51; 1965 c
25951; 1967 c 60651; Ex1967 c 32 art 1 5 2-4; art 4 51; art 9 51,2; 1969 c 25151; 1969 c 399
549; 1969 c 40751; 1969 c 41751; 1969 c 422 51,2; 1969 c 70954,5; 1969 c 76051; 1969
c 7635 1; 1969 c965 5 2; 1969 c 112652; 1969 c 112851,2; 1969 c 113251; 1969 c 11375
1; 1971 c 22651; 1971 c 42753-12,16,17; 1971 c 74751; 1971 c 791 5 1; 1971 c 79753,4;
Ex1971 c 31 art 9 51; art 22 51,2,4,6,7,8; Ex1971 c 31 art 36 51; 1973 c 355 51,2; 1973 c 456 5
1; 1973 c 492514; 1973 c 58253; 1973 c 59051; 1973 c 650 art 1451,2; art 20 5 3; art 24 5 3;
1973 c 77451; 1974 c 54553; 1974 c 556516; 1975 c 46 5 3; 1975 c 33959; 1975 c 359 523;
1975 c 376 51; 1975 c 395 51; 1975 c 437 art 1 525,27,28; 1976 c 2596,159-161,170; 1976 c
18152; 1976 c 245 51; 1977 c 31951,2; 1977 c 347543,44; 1977 c 423 art 355-8; 1978 c 767
57-11; 1979 c 303art25 11-17; art 1055; 1979 c 334 art 1 525; 1980c4375 5; 1980c5625 1;
1980c 607 art 25 7-15;art454; 1981 c1885 1; 1981 c3565 248; 1981 c36559; 1Sp1981 c 1
art 25 7-11;art552; 1Sp1981 C35 1; 1Sp1981 c4art 25 27; 2Sp1981 c 1 5 6;3Sp1981 c 1 art
152; 1982 c 523 art 651; art 1451; art 2352; 1982 c 64259; 1983 c 216 art 1 5 43,44; 1983
c 222511-13; 1983 c 342 art 2 59-18; art 8 51; 1984 c 502 art 3 5 9-14; art 751,2; 1984 c
52252; 1984 c 593522-28; 1984 c 654 art 5 558; 1985 c 248 570; 1985 c 30056; 1Sp1985
c 14art355-12;art4545-56; 1986 c 444; 1Sp1986c 1 art45 18-21; 1987c 268 art 554;
art 6 518,20-23; 1987 c 2915208-209; 1987 c 384 art 1 525; 1988 c 719 art 5 513-19; 1989
c 277 art 2 528,29; 1989 c 304 5137; 1Sp1989 c 1 art 2 51-8,11; 1990 c 480 art 757; 1990
c 604 art 3 516-19; 1991 c 249 531; 1991 c 291 art 1 5 20-25; 1992 c 363 art 1 512; 1992 c
511 art 2 s 17,18; art 4 5 4,5; 1993 c 224 art 1 5 27; 1993 c 375 art 3 516; art 5523-26; 1994
c 416 art 1 518,19; 1994 c 483 51; 1994 c 587 art 5 510,11; 1995 c 264 art 3 5 9,10; 1996 c
471 art 3 510-12; 1997 c 231 art 1 5 6-10; art 2 520,21; 3Sp1997 c 3528; 1998 c 254 art 1 5
74; 1998 c 389 art 258-12; 1999 c 243 art 5515-20; 1999 c 248518; 1999 c 249 5 22; 2000 c
490 art 5 512,13; 1Sp2001 c 5 art 3 532-36; 2002 c 377 art 4 516,17; art 105 6; 2003 c 127
art 2 513,14; art 5 517; 2003 c 128 art 3545; 1Sp2003 c 21 art 4 5 4; 2005 c 151 art 3 512;
1Sp2005 c 3 art 1 515,16; 2006 c 259 art 4 513; art 5 51,2
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Anoka C unty City of Andover
274.01 BOARD OF APPEAL AND EQUALIZATION.
SubdivisiQn 1. Ordinary board; meetings, deadlines, grievances. (a) The tQwn bQard Qf a
tQwn, Qr the council Qr Qther gQverning bQdy Qf a city, is the bQard Qf appeal and equalizatiQn
except (1) in cities whQse charters prQvide fQr a bQard Qf equalizatiQn Qr (2) in any city Qr tQwn
that has transferred its IQcal bQard Qf review PQwer and duties tQ the county bQard as provided
in subdivisiQn 3. The cQunty asseSSQr shall fix a day and tirne when the bQard Qr the board Qf
equalizatiQn shall meet in the assessment districts Qf the county. NQtwithstanding any law Qr city
charter tQ the contrary, a city bQard Qf equalizatiQn shall be referred tQ as a bQard Qf appeal and
equalizatiQn. On Qr befQre February 15 Qf each year the asseSSQr shall give written nQtice Qf the
time tQ the city or tQwn clerk. NQtwithstanding the provisiQns Qf any charter tQ the cQntrary, the
meetings must be held between April 1 and May 31 each year. The clerk shall give published and
posted nQtice Qf the meeting at least ten days befQre the date Qf the meeting.
The bQard shall meet at the Qffice Qf the clerk tQ review the assessment and c1assificatiQn
Qf property in the tQwn Qr city. NQ changes in valuatiQn Qr c1assificatiQn which are intended tQ
correct errors in judgment by the county asseSSQr may be made by the county asseSSQr after
the bQard has adjQurned in thQse cities Qr tQwns that hQld a IQcal bQard Qf review; hQwever,
cQrrectiQns Qf errQrs that are merely clerical in nature Qr changes that extend hQmestead treatment
tQ property are permitted after adjQurnment until the tax extensiQn date fQr that assessment
year. The changes must be fully dQcumented and maintained in the assessQr's Qffice and must
be available fQr review by any persQn. A CQPY Qf the changes made during this periQd in thQse
cities Qr 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 prQperty in the tQwn Qr city has been
properly placed on the list and properly valued by the asseSSQr. If real or personal prQperty has
been Qmitted, the bQard shall place it Qn the list with its market value, and correct the assessment
SQ that each tract Qr IQt Qf real prQperty, and each article, parcel, Qr class Qf persQnal prQperty,
is entered Qn the assessment list at its market value. No assessment Qf the prQperty Qf any
persQn may be raised unless the persQn has been duly nQtified Qf the intent Qf the bQard tQ dQ
SQ. On applicatiQn Qf any persQn feeling aggrieved, the bQard shall review the assessment Qr
classificatiQn, Qr both, and cQrrect it as appears just. The bQard may nQt make an individual market
value adjustment or classificatiQn change that WQuld benefit the prQperty if the Qwner Qr Qther
persQn having contrQI Qver the property has refused the asseSSQr access tQ inspect the prQperty and
the interiQr Qf any buildings Qr structures as prQvided in sectiQn 273.20.
(c) A IQcal bQard may reduce assessments uPQn petitiQn Qf the taxpayer but the tQtal
reductiQns must nQt reduce the aggregate assessment made by the county asseSSQr by mQre than
Qne percent. If the tQtal reductiQns WQuld IQwer the aggregate assessments made by the county
asseSSQr by mQre than Qne percent, nQne Qf the adjustments may be made. The asseSSQr shall
correct any clerical errQrs Qr dQuble assessments discQvered by the bQard withQut regard tQ
the Qne percent IimitatiQn.
(d) A IQcal bQard dQes nQt have authQrity tQ grant an exemptiQn Qr tQ Qrder prQperty remQved
from the tax rolls.
(e) A majority Qf the members may act at the meeting, and adjQurn from day tQ day until
they finish hearing the cases presented. The assessor shall attend, with the assessment bOQks and
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An ka County
City f Andover
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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 properly added to the list by the board and all
items of properly increased or decreased, with the market value of each item of properly, 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 properly, 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.Q1, 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 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 properly 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 130.04. 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 5 847; 1941 c 402 s 1; 1945 c 402 51; 1949 c 543 51; Ex1967 c 32 art 8
53; 1971 c434s3; 1971 c564s 6; 1973c 123art55 7; 1973c 1505 1; 1973c582s3; 1975c
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An ka County
City of Andover
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
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Anoka County City of Andov r
274.014 L CAL BARDS; 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 arl2 s 16; 2005 c 151 arl5 s 25,26
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Anoka County
City of Andover
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Anoka County
Appraisal T rminology
City of Andover
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.
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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.
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· 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.
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Anoka County City of Andover
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.
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. PHYSICAL CURABLE DEPRECIATION Physical deterioration which the
prudent buyer would anticipate correction upon purchase of the property. The
cost of effecting 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.
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. 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 C. ~>)
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
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Anoka County
City of Andover
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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.
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.
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IMPROVEMENT 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 non homestead ,
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.
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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
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Anoka County
City of And ver
of comparability or extent of adjustment necessary for time differences; and (d) the
absence of non-typical conditions affecting the sale price.
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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.
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.
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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.
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Anoka County City of And ver
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.
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.
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SPECIAL ASSESSMENT A charge made by government against real estate to defray
the cost of making a public improvement adjacent to the property which, wbile 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. Mayor may not have improvements such as
grading, sewer, etc.
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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
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Anoka County
City of Andover
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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 o.
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 are eligible.
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Anoka County
City of Andover
App als Proc dure
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:
1. The amount your local governments (town, city, county, etc.) spend to provide services to
your community;
2. The estimated market value of your property;
3. The classification 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.
Informal Appeal
.
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.
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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.
Local Board of Appeal and Equalization
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.
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Taxpayers can make their appeal in person or by letter.
The assessor is present to answer any questions and present evidence supporting their
value.
County Board of Appeal and Equalization
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.
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Anoka County
City of Andover
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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 Final ten working days in June.
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.
Minnesota Tax Court
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.
The Small Claims Division of the Tax Court only hears appeals involving one of the
following situations:
. The assessor's estimated market value of the property is <$300,000
. 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 possibl.e. 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.
The following page is a sample Valuation Notice.
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Anoka County
City of Andover
Notice of Valuation and Classification - County of Anoka
- This is not a bill-
This form is to notify you of the maI1<etvalue and classffication of your
property for assessment jeaJ' 2007. The property taxes you will pay in
2008 wiD be based on this vakJation and dassilication,
Property Records and Taxation
Michael R. Suthertand
Anoka County Assessor
2100 3" Avenue
Anoka, MN 55303-2281
(763)323-5475
If you believe your valuation and property
dass are correct, tt is not necessary to
contact your assessor or attend any listed
meeting.
If the property information is not correct, you
disagree with the values, or you have other
questions about this notice, please contact
your assessor first to discuss any
questions or concems. Otten your issues
can be resoh/ed a!this level.
if your questions or concerns are not
resch/ed, more formal appeal options are
available, Please read the back of this notice
for important information about the formal
appeal process,
Property Information (legal description and/or property address)
Parcell.D.:
Property Classification
Assessment Year 2006
Assessment Year 2007
Property Valuation
Assessment Year
2006
I Taxable Market Value
Please read the back of this notice for important appeal information.
59
Assessment Year
2007
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Anoka County
City of Andover
of'
Appealing the value or classification of your property
Informal appeal options - Contact your assessor
If you disagree with the classification or estimated market value for your
property for 2007, please contact your assessor's office first to discuss your
concerns, Often your issues can be resolved at this level. Contact
information for your assessor's office is on the other side of this notice.
Some jurisdictions choose to hold open book meetings to allow property
owners to discuss their concerns with the assessor. If this is an option
available to you, the meeting time(s) and location(s) will be indicated on the
other side of this notice,
Formal appeal options
If your questions or concerns are not resolved after meeting with your
assessor, you have two formal appeal options:
Option 1 - The Boards of Appeal and Equalization
You may appear before the Boards of Appeal and Equalization in person,
through a letter, or through a representative authorized by you, The meeting
times and locations are on the other side of this notice. You must have
presented your case to the Local Board of Appeal and Equalization
BEFORE going to the County Board of Appeal and Equalization.
Step 1 - Local Board of Appeal and Eaualization
If you believe your value or classification is incorrect, you may bring your
case to the Local Board of Appeal and Equalization, Please contact your
assessor's office for more information, If your city or township no longer has
a Local Board of Appeal and Equalization (as indicated on the other side of
this notice) you may appeal directly to the County Board of Appeal and
Equalization.
Step 2 - Countv Board of Appeal and Eaualization
If the Local Board of Appeal and Equalization did not resolve your concerns,
you may bring your case to the County Board of Appeal and Equalization,
You must call in advance to get on the agenda. Please contact the county
assessor's office to get on the agenda or for more information.
Option 2 - Minnesota Tax Court
Small Claims Division
You may take your case directly to the Small Claims Division of Tax Court if:
. The assessor's estimated market value of your property is less than
$300,000; or
. The entire parcel is classified as a residentiai homestead (1a or 1b) and the
parcel contains no more than one dwelling unit; or
. The entire property is classified as an agriculrural homestead (2aor 1b); or
. You are appealing the denial of a current year application for homestead
classification of your property.
Reaular Division
Regardless of your property type or the narure of your claim, you always have
the option to file directiy with the RegularDivision of Tax Court,
You have until April 30, 2008, to file an appeal with the Small Claims DMsion
or the Regular Division ofTax Court for your 2007 valuation and classification.
For more information, contact the Minnesota Tax Court:
25 Rev, Dr. Martin Luther King, Jr. Blvd, Room 245, St Paul, MN 55115
Phone: 651-296-2806 website: www.taxcourt.state.mn.us
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Definitions
Property Classification - The statutory
classification that has baen assigned to your property
based upon your use of the property. A change in
classification of your property can have a significant
impact on the real estate tax payable. Please
compare the 2006 and 2007 classifications listed on
the other side of this statement.
Estimated Market Value - This value is what the
assessor estimates your property would likely sell for
on the open market. State law requires assessors to
value property at 100 percent of market value,
Value of New Improvements - This Is the
assessor's estimate of the value of new or
previously unassessed improvements you have
made to your property, These improvements are
not eligible for limited market value.
Limited Market Value - Limits how much the
taxable vaiue of certain properties can Increase. With
the exception of new improvements, the value is
limited to the greater of: 1) 15 percent increase over
last year's iimited market value or 2) 33 percent of
the difference between this year's estimated market
value and last year's limited market value. This only
applies to agricultlJral, residential, timberland, or
noncommercial seasonal recreational residential
(cabins) property,
Green Acres - Only applies to agricultural property
that is facing increasing values due to development
pressures not related to the agriculturai value of the
land, The assessor arrives at this lower value by
looking at what comparable agricultural land is
selling for in areas where there is not development
pressure. The taxes on the higher value are
deferred until the property is sold or no longer
qualifies for the program.
Plat Deferment - For land that has been recen~y
platted (divided into individual lots) but not yet
improved with a structure, the increased market
value due to platting is added over a phase-in period.
If construction begins before the expiration of the
phase.in period, the lot will be assessed at fuil
market value in the next assessment.
This Old House Exclusion - This program expired
with the 2003 assessment. However, property may
still be receiving the value exclusion under this
program. Applied only to homestead property 45
years of age or older and valued at less than
$400,000, Improvements that increased the
estimated market value by $5,000 or more were
eligible to have some of the value deferred for a
maximum of 10 years, After this time, the deferred
value is phased in.
Taxable Market Value - This is the value that your
property taxes are actually based on, after all
reductions, limnations, exemptions and deferrals,
Your 2007 value, along wnh the class rate and the
budgets of your local government, will detemline how
much you will pay in taxes in 2008,
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For more information on appeals, check out the Department of Revenue website: hap://taxes.state,mn.us
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Anoka County City of Andover
2006 Residential Real Estate Activity Report
by the Minneapolis Area Association of Realtors.
The 2006 Residential Real Estate Activity Report was produced by the Minneapolis
Area Association of Realtors and is available on their web site at this link:
http://www.mplsrealtor.com/Segments/Realtors/RREAR_2006.pdf
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