HomeMy WebLinkAboutBOR May 5, 2009
0 C I T Y o F
NDOVE
1685 CROSSTOWN BOULEVARD N,W, . ANDOVER, MINNESOTA 55304 . (763) 755-5100
FAX (763) 755-8923 . WWW,CI.ANDOVER,MN.US
TO: Mayor and Councilmembers
FROM: Jim Dickinson, City Administrator
SUBJECT: Reconvene - 2009 Local Board of Appeal & Equalization
DATE: May 5, 2009
INTRODUCTION
On April 23, 2009 the City of Andover conducted the initial 2009 Local Board of Appeal and
Equalization. That meeting was recessed to reconvene on May?, 2009 at 7:00 p.m. to allow City
Staff and County Assessor Staff to secure answers for unanswered questions at the initial hearing
on April 23 rd.
0 Jason Dagostino, Molly Johnson and John Duklow from the County Assessor's Office will be
present at the meeting to assist with discussion and answer questions.
Attached to this staff report are the following:
- Winslow Holasek appeal letter
- Draft minutes of the initial hearing from April 23rd
- Mn. Stat 274.01
- April 23rd Board of Review Packet
DISCUSSION
As part of an appeal from Winslow Holasek (appeal attached), the question was whether or not
the Local Board of Appeal and Equalization could adjust the tax value of the properties that Mr.
Holasek was appealing. It was determined at that meeting that an opinion should come from the
Anoka County Attorney's Office. As of the writing of this staff report (April 29th) that legal
opinion has yet to be rendered.
It is the City Administrator's and City Attorney's opinion that the Local Board of Review and
Equalization can act on the market value of the properties in question but not the tax value. The
tax value is set by the Minnesota Department of Revenue (see attached Mn. Stat. 274.01).
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ACTION REQUESTED
The Council is requested to reconvene the 2009 Local Board of Appeal and Equalization, and
follow the following Agenda:
1. Discuss Green Areas Application to Andover Properties
2. Discuss Appeal of Market & User Valuations - Holasek Properties
3. Close 2009 Local Board of Appeal & Equalization
Reconvene City Council Meeting
.....
0 Attachments
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April 23, 2009
Andover Board of Review
Honorable Mayor and City Council
City of Andover
1685 Crosstown Blvd NW
Andover, MN 55304
Re: Andover local Board of Appeal and Equalization for property taxes
I object to my 2009 property valuations as being to high. Therefore I would like to
appeal the market and user valuations for the following pin numbers.
R23 32 24 31 0025 R23 322444 0001
R23 32 24 31 0026 R24 32 24 310001
R23 32 24 32 0006 R24 32 24 32 0001
R23 32 24 33 0002 R24 32 24 33 0001
R23 32 24 340052 R24 32 24340001
R23 3224410001 R24 322443 0001
0 R23 32 24 42 0002 R26 3224 120001
R23 32 24 42 0003 R26 32 24 13 0001
R23 3224430001 R26 32 24 21 0002
R23 32 2443 0002 R26 32 24 24 0002
I understand that by appealing before the Andover Board of Review it will preserve my
right to appeal to the County Board of Appeal and Equalization on June 15,2009. Thank
you.
Sincerely,
W~ Ud~1I
Winslow Holasek
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3
4 ANDOVER BOARD OF REVIEW
5 APRIL 23, 2009 - MINUTES
6
7
8 The Annual Board of Review was called to order by Acting Mayor Julie Trude at 7:00 p.m.,
9 Thursday, April 23, 2009 at the Andover City Hall, 1685 Crosstown Boulevard NW.
10 Andover, Minnesota.
11
12 Councilmembers Present: Sheri Bukkila, Don Jacobson, Mike Knight
13 Councilmembers Absent: Mayor Mike Gamache
14 Also Present: Jason Dagastino, Anoka County
15 John Leone, Anoka County
16 Jim Dickinson, City Administrator
17 Mike Duklow, Appraiser
18 Molly Johnson, Appraiser
19 Acting Mayor Trude noted that official notices of the pnblic ~ sent to the homes
20
21 of residents and is posted outside the Council Chambers. She ad ". .... that they would only be
22 reviewing assessments from the current year. ~~I~
023 Vacant l'roperties with no address (pID 25-~, 25-32-24-4 b'1JOS:25-32-24-41-
24
25 0012 25-32-24-41-0003 and 25- 32-24-3,fIl'00~ ~,v
26
27 Mr. Dagastino noted that these properties are all :~the .~e property owner and advised
28 that it is an ongoing appeal and wou~dremain open a.: this time."
29 Shawn Weinand - 1188 Stafi~n Parkwai'~ PID 34-314~-0021
30
31 Mr. Leone advised that~~.bee ,
32 orItll1g~ltl1rtSs property owner and this appeal would also
53 remain open at this time.
34 Mr. Dagast~ had f""". ",~04 calls this year and explained that 95 percent of
35
36 those c~re residents tha . were co sed in the process. He advised that he then explains the
37 process, '.lmeframe, and rules and regu ations used to set the values of the properties. He advised
38 that he had .]hncted revie1homes that had not been visited recently and was able to help
39 100 percent of tl:l i .e people. ,Fe advised that the price had been lowered when possible and
40 when not possible t ..r~7was noted.
41 Mr. Leone advised t~e had received five calls for vacant lots. He advised that the value of
42
43 the commercial condo office type buildings had dropped.
44
045 Councilmember Jacobson explained if residents do not agree with the decision made by the
46 Board tonight they could continue their appeal to the County.
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Andover Board of Review Meeting
Minutes - April 23, 2009
Page 2
01
2 Mr. Dagastino reported that there had been a decrease of 11.5 percent in overall value, the
3 median sale price was $268,000 in 2008 and dropped to $234,000 in 2009. He advised that
4 different areas ofthe County have dropped differently, such as lake homes remaining the same
5 and townhomes dropping considerably. He explained market value to be the price an educated
6 buyer and seller would consider in an open arms length transaction. He advised that short sales
7 and foreclosures are not used in the market value determination. He advised that although about
8 45 percent of the sales in the last year were bank sales, there were still a number of op~n arms
9 length transactions within the City to use in determining market value.
10. .,)'.W).)/~t:.
11 Joyce Wikkin. 3322 143rd Avenue NW (29-32-24-44-0043)~ Larry Larson 325~0;t~rd Av~;ue
12 NW (29-32-24-44-0036)~ Elizabeth Bohn. 3312 143rd Avenue NW (29-32~~::44-00f1.~)
i ~ Mr. Dagastino explained that there are 11 Woodland Creek Townh~s .~~€ Val~ ~I
15 dropped drastically. He stated that there were many calls receiv~na~ value had not beg
16 .dropped enough. He advised that he strives to reach the vaL.u. e. tnat the home would sell for 0
17 the open market. He advised that the value was $375,000~rtlfJanuary 2..2008, reported th
18 property to have around 2,200 square feet, and explained,lllahe pric~o ped to $243,700.
19
20 Ms. Bohn advised that the sale the value was based on was a forect~e sale. She thought that
~~ the value should be higher as two ofthe sales in .e.,::~t two years wY~ure sales.
023 Councilmemher Jacobson qnestioned wh~~ill!bli.;alue is bas<;!l1on.
~~ Mr. Dagastino advised that he had received sev~cal111';'gar ,.,;.the golf course that has not
26 opened and is still in doubt of being developed. Hlt~avised tha~ callers did not think that the
27 homes would be sold at the pr~_~He advised\\li~t one home had sat on the market at
28 $319,000 for 243 days. H~~sed tha_he ~alue h~OiR~~~et in January and the foreclosure
29 sale took place after that di.{te had no em.phasIs on his ywuatlOn of the home. He felt that he set
30 the ~rice correctlYon.tiifi r.~~... ... o..m.:.......e..~;.~.~~i,~~Fthe home was originally on a golf course
31 and IS no longer.//' ~oJ
32 Ij;
33 Mr. Leone ~at criteria t~es~dents are looking at to set a value and questioned
~~ what V~y actually ~tto be~ct.
36 Ms. WiKkin ~.. u"estio n.e d ifth.e.ta xes would drop by 30 percent to match the drop in the value of
37 the property.. I
38 L
39 Councilmember Jacd\json~ffdvised that it would depend on the amount ofthe levy set next year.
:~ Ms. Wikkin qUestione~ortgages are taken into account in valuing the homes.
42
43 Mr. Dagastino advised that he does not use mortgage amounts in the valuation ofthe home.
044
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Andover Board of Review Meeting
Minutes -April 23, 2009
01 Page 3
Acting Mayor Trude questioned the size of the lots and what the effect of the golf course area
2 would have on the townhomes.
3
4 Mr. Dickinson advised that most of the homes along the golf course would generally be higher
5 value homes. He advised that some property owners will see increase in value and some would
6 see decrease, but it would ultimately bring them to the 10.8 percent city wide drop in value. He
7 advised of the townhomes, which would be considered higher value and advised that some
8 higher end detached townhomes were being priced to sell at about $234,000.
9
10 Acting Mayor Trude confirmed the size of the detached townhomes at 2150
11 level.
12
13 Councilmember Knight confirmed that part of the problem in this
14 of the golf course. ... ~~
15 "
16 Mr. Dagastino thought th~t the Aztec Estate Townhomes wo~lJe compar~b~e to
17 townhon:es and were sellmg f~r ~ound $250,000. He ex~l~n .d that~ ongmal
18 factored m.the golf.co,mse, whIch IS no longer a factor. H~d t~'Plse townhom~s have
19 been equalIzed to sImIlar townhomes that are not connected WI .M if co rse. He adVIsed that
20 everything on the golf conrse that was single family was lowered 0 ~ent.
21 Acting Mayor Trude thooght that this appeal.iilI\!ll~~ePt open to gatlie i!fIler information.
022
23 She. confi~ed that .the for~closure sale d~~ctonto ,the valuatIOn' he ?rop.e~y the .
24 seIlmg pnce was shghtly !ugher than the valua1i<>J1 and~~~a factor m rmsmg the pnce.
25
26 Ms. Wikk!n was under the impression that the t~\$t:OnlAn equally with the value of
27 the home dropping. ,\
28 Mr. Dickinson thought t ail''the City polon of the re~~Bt, tax amount would drop.
29
30 'Ob' ;;'''f><<-;,:",,48
31 Ms. Bohn stated that she just ~COnfirm . all the homes along the golf conrse had
32 fallen in value an t . ust the to ...' omes.
33 Mr. Dickins'On reported tha "he golf cobihas a failing irrigation system and is in need of
34
35 serious il~ades before it coultl beco~perational. He did not think that the current owner
36 would be w1l1'ing to sell it at thldiscounted rate needed. He thought that most likely that owner
37 wonld .seIl th~ dev7ent or wetland banking.
38
39 CouncIlmember JacolJsontsuggested mcreasemg the pnce to $250,000 plus an extra five percent
40 for the wetland ameni~rmer golf course found near the homes, which would be $262,500.
41
42 Mr. Dickinson advised that if the value is changed it would need to be changed on all 11
43 properties and explained that those residents may not be in favor of the increase, as they are not
044 appealing their value.
45
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Andover Board of Review Meeting
Minutes - April 23, 2009
0 Page 4
Councilmember Knight advised that the residents that did not attend the meeting could not have
1
2 known in advance that the price may be raised on their home.
3
4 Mr. Dagastino confirmed that they could raise the level of the three homes this year and equalize
5 the other units the following year.
6
7 Mr. Leone advised that in the 30 years that he has been doing this he has only seen one resident
8 request a higher value and explained that was because the owner wanted the City to their
9 land.
10
11 Ms. Bohn agreed to the value of the townhome since she found that the
12 along the course had dropped.
13
14 Ms. Wikkin stated that she could not agree with a 30 percent drop ~li,t~u~.
15 Mr. Dagastino did not think that more information would be m\€tt: to~ue these
16
17 A1JY
felt the valuation was correct ~ ~
18
19 Councilmember Knight agreed that the valuation was in li:e~~lIun; that time
20 period. .
21 ' iIIi?
022 Mr. Dickinson pointed out that a comparab~e~n found for'~~tes and was
23 more concerned with the values being eq'jJm ' . er tlla .. :l;changing only t . (i) or three.
24 Councilmember Jacobson questioned the status \e.~, eown~1iii.'Ms. Wikkin was not
25
26 agreeable to the value, Mr. Larson was agreeable ~!pnhe valu~-4r~d Ms. Bohn was also
27 agreeable with the value set ~
28
29 Motion by Councilmembeli :Tacobson,€conded by CQ~member Bukkila, to concur with the
30 valuation of the three ~~':~scus~~~essment made by the Anoka County
31 Assessor Office. Mohon carn~moUSIY, ..
32
33 Winslow Hola~~dover ~~:Ulevatd, (PID R23-32-24-31-0025, R23-32-24-31-0026,
34 R23-32-24w~~0006, R23~24-33-00'0~1R23-32-24-34-0052, R23-32-24-41-0001 , R23-32-24-
35 42-00024ii23-32-24-42-0003tR23-3~-43-000 1 , R23-32-24-43-0002, R23- 32-24-44-0001 ,
36 -~ Il\
R24-32-24-31~0001, R24-32-2w'LJ!.-32-000 1 , R24-32-24-33-0001, R24-32-24-34-0001 , R24-32-24-
37 43 -000 1 , R26~:;24-12-000 1 ,iI26- 32- 24-13 -000 1 , R26- 32-24-21-0002, R26- 3 2- 24-24-0002)
38 Mr. Holasek cou~re was a greeu acres law cbange and another made in the past
39
40 year that would affect~~e ability to appeal the value of that type of property. He questioned if
41 some background information could be given on green acreage.
42
43 Acting Mayor Trude advised that a bill had been passed regarding green acres last week.
044
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Andover Board of Review Meeting
Minutes - April 23, 2009
Page 5
01 Mr. Duklow advised that the legislature made some big changes in the past year stating that the
2 County would need to distinguish between productive and nonproductive land. He advised that
3 the newest session developed a new law, signed on April 3, 2009, stating that productive and
4 nonproductive land would stay and another plan that land owners have until 2010 to decide if
5 they would like to pull their nonproductive land out of green acreage without back taxes being
6 owed. He advised that rule now states that landowners have until May 1, 2011 to decide if they
7 would like to do this. He advised that the value of Mr. Holasek's land raised from $2,100 to
8 $2,752 an acre. He advised that the value is rising because of the tillable land. He agyised that
9 o~:n~'t
the value is set on actual sales in the southwest corner of the state where farmlandsfrfeS"are found
10 . - <g;>.':Y -;<~~~'\. .
more frequently. He advIsed that $4,000 per acre was set by the Department o~:~evenue':a;nd IS
11 then swayed by the soil level. He advised that in Anoka County it has been4~'i'iltt~;~,752.
12 ;~1J) "~,
13 Mr. Dagastino advised that a border meeting is held to determine the~~u~e a~~ure
14 land and equahze those values. ~~' y
15 Mr. Duklow advised that Mr. Holasek could contest his m"Z~alue or tillable amount ona>!, "
16
17 but nothing could be done with the green acre value set by t: ~ State. ,.
18 Mr. Holasek advised that he is present to voice his oPiniO~bjeC . n and contest. He
19
20 advised that he is not present to dispute the value of the green acre law but just to object to the
21 value.
~~ Councilmember Jacobson confirmed that~~. ed by Mr' I@tlasek is green acre~.
24
25 Mr. Holasek thought that the valuatIon had been ~ $1, I " 'l~ $1,500 m 2007, then It
26 rose from $1,500 to $2,100 III 2008, and then from...2 100 to $2(f52 III the current year. He
27 advised that the overall increas :0: :,007 to 2009:ould be an 83.5 percent increase. He
28 questioned how the County ,.,;ched th alue for ys.
29 Mr. Duklow advi~ th~unty~. ~;~~ ~alue at $3,200 and they instead came
30
31 back to the State wIth a value 0$W 2. He advlsetl that It IS $448 less than the value suggested
32 by the State. ~that ther, are three classifications of soil in the County in which A
33 would be valu:. a ,4 : !1}>:and Bane would be valued at $2,752.
34 Acting. ~ ~rude acknJed tlJa Mr. Holasek had a grievance with the value of his land
35
36 but co Irme~at the price fo ,green acreage had been set by the State and this Board would not
37 be able to chang that value. .'
38
39 Mr. Holasek asked a:@j teefmical questions regarding the amount set by the County and State.
40 Mr. Duklow advised t11a. phe would research that information for him.
v
41 ,.
42 Councilmember Bukkila left the meeting at 8:25 p.m.
43
044 Mr. Leone left the meeting at 8:25 p.m.
45
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Andover Board of Review Meeting
Minutes - April 23, 2009
01 Page 6
Mr. Holasek read a statement to the Board stating that he objected to the market and user value
2 of his property.
3
4 Motion by CouncilmemberJacobson, Seconded by Acting Mayor Trude, to enter into the record
5 a letter written by Mr. Holasek in regard to his objection of the 2009 market and user values of
6 his property, and forward to the County for review at the meeting on June 15,2009. Motion
7 carried unanimously.
8
9 Mr. Holasek requested that the City Attorney review whether or not the local
10 would have the authority to change the value of his land.
11
12 Councilmember Jacobson questioned whether or not the City Attorney
13 to review this issue.
14 Mr. Dickinson advised that any value that would be modified by uAJi would need
15
16 approved by the County and would then come under the autholii~f the County
17 not the City Attorney. ~ ~II
18
19 Councih?ember Jacobs~n thought that.this should be cou~n~t'uunty Buard of Review
20 andthat Issue should ultunately be reViewed bYthe~ounty Attorn~i2d make the
21 deCISIOn. " '
022 MotWn by Knight, Seconded by Trnde, t~~~r s parcels OiP' to the reconvene
23
24 meetmg on May 5, 2009. Mohon earned unam'tsl~~
25
26 Mr. Duklow advised that he would speak with the 1,Qjl1ity Attorney tomorrow along with the
27 Department of Revenue. Q '{!
28 MotWn by Jacobso.n, s~~ by Kni' \ to continu::~~oard of Review meeting to May 5,
29
30 2009. MotIOn carned ',. mmously. ;J-/Y
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37 Amanda Stapl
38 TimeSaver Off Si Inc.
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04-24-09 07:32am From-PROP REC & TAX 7633235421 T-S23 P.02/0S F-304
0 274.01 BOARD OF APPEAL AND EQUALIZATION.
Subdivision 1. Ordinary board; meetings,
deadlines, grievances.
(a) The town board of a town, or the council or
other governing body of a city, is t~e board of appeal
and equalization except (1) in cities whose charters
provide for a board of equalization or (2) in any city
or town that has transferred its local board of review
power and duties to the county board as provided in
subdivision 3. The county assessor shall fix a day and
time when the board or the board of equalization shall
meet in the assessment districts of the county.
Notwithstanding any law or city charter to the
contrary, a city board of equalization shall be referred
0 to as a board of appeal and equalization. On or before
February 15 of ea.ch year the assessor shall give
written notice of the time to the city or town clerk.
Notwithstanding the provisions of any charter to the
contrary, the meetings must be held between April 1
and May 31 each year. The clerk shall give published
and posted notice of the meeting at least ten days
before the date of the meeting.
The board shall meet at the office of the clerk to
review the assessment and classification of property
in the town or city. No changes in valuation or
classification which are intended to correct errors in
judgment by the county assessor may be made by the
county assessor after the board has adjourned in those
0 cities or towns tha.t hold a local board of review;
- 10 .
04-24-09 07:32am From-PROP REC & TAX 7633235421 T-823 P,03!08 F-304
o however, corrections of errors that are merely clerical
in nature or changes that extend homestead treatment
to property are permitted after adjournment until the
tax extension date for that assessment year. The
changes must be fully documented and maintained in
the assessor's office and must be available for review
by any person. A copy of the changes made during
this period in those cities or towns that hold a local
board of review must be sent to the county board no
later than December 31 of the assessm,ent year.
(b) The board shall determine whether the taxable
property in the town or city has been properly placed
on the list and properly valued by the assessor. Ifreal
or personal property has been omitted, the board shall .
o place it on the list with its market value, and correct
~t:I"'..T:,'.,....n "'''~:'''''::: ./':' 'r.' . 'l'A!,r'. .",~.t... .'j. ~ :I'r."""\"f'1/l'~'~~1: C ',:l..:I' .ln1.,,.. "':I'~: ;:'\:~f.i~I' .,\.,....1,
the assessment so tija:.~./~i~:C~:;i)it.Jt.~~~/~f:~~:~~Q~t;;:\q;~j::~ti:,~
'.r'.1 ~ ','" 'M: ,.... ". ,"'" I,'.'.; ,'/.r'\1' }t.), ./.:'\( Ij.~ '11'"1,,'1". v,,~.,"....'~.. .; \~ '~"\' :" 'I"... . '''I' '" ~It.~ .... "', l'~' ,. I'" I +1' '~Il" .......NI.~'
; I . I ,,". ......,,: " '\f'.~I" ':.I'I"I'l"I'''"''~''.' ()I.' .,....m,n.""I\\
,,,:,..,:--: I..: '.:.".' ..~. . '''..''1.. .11.:'f"":':..;'i~ '.1 ,......,o. .':"."11'::...' ,.;,."~' ".'} , : 'I:": '".~,:.,.I.,. 'l.'.<"e'.:'~~:..:i ,~'..l\.I,... :.'..':.!~:)Il'.l!",J...'"
\',: : '\.:~f. ,. ." I:~" ....11;;.; !',~.. ':~".!'::"~'
if:A "iI'lll ..,' . ,!:II, \ .. ~iI:f;'F.ll: 'ar. e e ,. :i!:lIl't:' , .,... ..'0.1: '~ jlClCl.S 1M" ',. in' ..g~'.
~. ,. "~~J .. ~\ 'I ':'. "~ .~,;:~ I ~ I, );:\;ti~~' , ".!. ", I"., " ,4 \ .J.:. ",! 'I ,a-i ~ ;' ,~" :;~~e' "::~~:~{ i~o; ",: 'p.1 '~'ll \ I ".. ~I' ':<<i II
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~" III' ..P, .... ~ '.. .l""""J~~'~"'1 '1'1"1 .F.,'IlI.MlI.... I'. "1" "..,:1B".. II. ....11 .'..II~'.!'I.IM'.."'..I.'.'.'~..,...I, Ir'l,r..,n"'\'P;'I".J."'_'_Nk"~.L'.__I'
,pf;,. ,. I.' .,11", \'~ .1,l.'lSl"""'" . I ."....",'.. I ..,..... '11.,1""'" ., ...' /. ,,,,.,...
..,.,.)"1 ,. . ,"".', ","II"~~I""" .M' '\'" '~ll"""IJ"d'\' '. ..,'., . 'll' '," \ 'I"...I'I'\"~ "", .1..~ll""'.r"I.' ""'I~'.'I'l'''' "~IL"' ')11''''1 '~'N
,...,'...,'.',.,..,," .. ..'.'-'8'. 'I:"''''.''I~. ...,..,.,. .'''()... ::.t. ...,.".,,:, . ........'.sm.' .v.'t.... t.,.."'t.., .~' ,
IJl e . "'.'J ". r.e. .... e"as:ses 'e "l '.:.a ..1[1; S
' ,. I"", . I" .". , .\ .' ,I " . I . . \ " " I I - . ' I' , '\ ,.' . '1' 'I "\1 E '\.. '
. '..: ',:, , , , ' , . ";~" :1:' ' .,' . :" I . '.~ .' . .' I.:: . . . . .. ..' ..' . : I ' .. ~ ,/ ., ..' .
P,..... .,P',....~?",\,.~...,\,'~...."~.._, ..........,."...Ji).........,....."."., .\.,... ..",..,_m.". ,<.~, "..,.,'h.'.. $...,. .....,..1."" ,..,J
:inl~~~t::!~~a\liuiQ No assessment of the property of an.. y
, ~ J I r
person may be raised unless the person has been duly
notified of the intent of the board to do so. On
application of any person feeling aggrieved, the board
shall review the assessment or classification, or both,
and correct it as appears just. The board may not
make an individual market value adjustment or
classification change that would benefit the property
if the owner or other person having control over the
property has refused the assessor access to inspect the
property and the interior of any buildings or
o
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04-24-09 07:33am From-PROP REC & TAX 7633235421 T-823 P,04!08 F-304
o structures as provided in section 273.20. A board
member shall not participate in any actions of the
board which result in market value adjustments or
classification changes to property owned by the board
member, the spouse, parent, stepparent, child,
stepchild, grandparent, grandchild, brother, sister,
uncle, aunt, nephew, or niece of a board member, or
property in which a board member has a financial
interest. The relationship may be by blood or
.
marrIage.
(c) A local board may reduce assessments upon
petition of the taxpayer but the total reductions must
not reduce the aggregate assessment made by the
county assessor by more than one percent. If the total
reductions would lower the aggregate assessments
o made by the county assessor by more than one
percent, none of the adjustments may be made. The
assessor shall correct any clerical errors or double
assessments discovered by the board without regard
to the one percent limitation. T11e "Gteen
Acres" program I~
\~Ir.! r "1',1 ~.TI" ",..1',11 I",.... ....,~. ..r"', I'd "'~"'l" 'j .t"lj~"IIIl.:1"" .....,...: i II".~ W(... t, ':1':\...: . .:I\"t.lt,.,....,.... '''''W\':\<UM'~'''''ll''?'' '''';,,'1.
,~.. ,II, '''I ,:., "IJ . ":", I I'..... an 4....Amption
(d) ~.i. j~~';.i~".".,:''':'.a:' .:IlI::~n.:.".,."'1ttI.: ..;0'. '(.'~'a" .'", "~..,...,"~!J:'n.:'.;.:". ....~. "'ill: '. I..;'.,. :..,...,.'..tet'.I':'m;'" .,....~..,:.)j'.:.;i.~(..:I;...
.. .t.,.':~'r:',.,.,.;;, r,., """.:.::t";: ......... ,
, . ,,,,..,:. '.0 ",'" 't::1 :1'" ,." 't::'i' S'" t::\ ' .i!'!lI"'Z'e. ..fl. '~ . ' ,.. '. .,' th'" &4't Id
"~'" . 'I' ~~ I '.'\ ~I ~\: j 'l,'~ ~. '. ',i" I '\!7! ':;.. ,,:e:a;:y:': .~. ",., I (I ~ )" .1 'I' 'II '.::~ ' .~. ~j.r, " ~) II 'ii'lelOrCl t WOll
' , ::'.:..\" \". I. ',', ' . .r. ",'., ,1" "','> ,.,f....~.. ',". I " .,' .' .. .. .,... ' ',. ",' ..l. .' \ ;'" I ' : ~. \" .\, .
....' .,p.:: '~''''''I~.~Il'(,1 K:::a .,~\ R~'~ .'..~....! :': ,. ,.";,,,.. ,.; ,;. ',:...\::.: ::.:., '!'l" .' I., ~"...,'1.::':..;' .;:., I ." .',: :..;'.~,. ~:: '.'.' ::.,... :!..~:.,:
'.'1' "..:',..'.:,.: '.! ,l'.:;~... :',! ~ }]?:: :.~,~. stand to reason
..."..'.:,.,".:.;'., "./"..t..,." ',.1 '...!,..,.,,,....,'. ... .....;...~'.;.... .....,. ..(:1'. .'e"'l'..'" .'. ""'(;)."...1." '..f{Y...,. "'..':t:\'. "1".,'..'.r~:'..'[fii:'.'\~.l.t,.~.
'..I1!'),,\1..."...".m". ,,1.1.,".. thatt~... bo~'d
an. .e'"e. 'P' 81.'0[.' G 'Q~ ")fl" .F ..e em'.' e" II. 'JW.' .e' Il", U"
' I . I , ~. ." \ '" . ': '. 1,1 ,: I .' . i .I I ", : \' "'l .\. ~ .,. . "I. ',' . I ,\ "I I . I ';"" I' .', . I ~I'. ..::' . .
.' . 'MI'~ ' .l..;: ", .;,', "':,,, ," .:~,,,, "," '..:','". - ': ~:'. I 1 ',' '~l....r , .;~;"';. .. '~'I' I I, WO oth \f
.. ."...!. ..., ..:.",:.HI"'fl..,.. ...... ,,,.'." "....,. . .,......... ,',.-.\ .. ."..,P ~,P.....,. - ........... .., .." ..,-...".. ._ .,. ., "A',., _.., .... I.rld n a e
t';.'...~".."':',.~\>.;]IJ.I$"(:'; the authority to
. Q, .. '1;:1:\:1 . ..., make ~(l'l
~ I.r ~ ".tt.
:..." , ,. ..".....,.. ,,=. ., ,... adjustment to the
(e) A majority of the members may act at the use value,
meeting, and adj ourn from day to day until they finish
hearing the cases presented. The assessor shall attend, tck)C \J4 \v.e..
with the assessment books and papers, and take part
in the proceedings, but must not vote. The county
o
- ,') ..
04-24-09 07:33am From-PROP REC & TAX 7633235421 T-823 P,05/08 F-304
0 assessor, or an assistant delegated by the county
assessor shall attend the meetings. The board shall list
separately, on a form appended to the assessment
book, all omitted property added to the list by the
board and all items of property increased or
decreased, with the market value of each item of
property, added or changed by the board, placed
opposite the item. The county assessor shall enter all
changes made by the board in the assessment book.
(f) Except as provided in subdivision 3, if a person
fails to appear in person, by counsel, or by written
communication before the board after being duly
notified of the board's intent to raise the assessment
of the property, or if a person feeling aggrieved by an
0 assessment or classification fails to apply for a review
of the assessment or classification, the person may
not appear before the county board of appeal and
equalization for a review of the assessment or
classification. This paragraph does not apply if an
assessment was made after the local board meeting, as
provided in section 273.01, or if the person can
establish not having received notice of market value
at least five days before the local board meeting.
(g) The local board must complete its work and
adjourn within 20 days from the time of convening
stated in the notice of the clerk, unless a longer period
is approved by the commissioner of revenue. No
action taken after that date is valid. All complaints
0 about an assessment or classification made after the
- r;-
04-24-09 07:33am From-PROP REC & TAX 7633235421 T-823 P,06/08 F-304
0 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
0 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 lnember. At least one member of the
special.board of review must be an appraiser, realtor,
or other person familiar with property valuations in
the assessment district.
Subd. 3.Local board duties transferred to
county.
The town board of any town or the governing body
of any home rule charter or statutory city may transfer
its powers and duties under subdivision 1 to the
county board, and no longer perform the function of a
0
- 14-
04-24-09 07:34am From-PROP REC & TAX 7633235421 T-823 P,07/08 F-304
0 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 follnw the procedure contained in section
13D.04, subdivision 2. A transfer of duties as
permitted under t.his 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
0 writing. A town or city may renew its option to
transfer. The option to transfer duties under this
subdivision is only available to a town or city whose
assessment is done by the county.
History:
(.2034) RL s 847; 1941 c 402 s 1J' 1945 c 402 S ]J'
1949 c 543 s 1; Ex:1967 c 32 art 8 s 3; 1971 c 434 s 3J'
1971 c 564 s 6J' 1973 c 123 art 5 s 7: 1973 c 150 s l~'
1973 c 582 s 3J' 1975 c 339 s 5; 1977 c 434 s 11; 1986
c 444; 1987 c 229 art 4 s 1; 1987 c 268 art 7 s 37J'
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 23J' 1998 C 254 art
1 s 77; 1999 c 243 art 5 s 25; lSp2001 c 5 art 7 s 21:
0
-\~ .
04-24-09 07:34am From-PROP REC & TAX 7633235421 T-823 P,08/08 F-304
0 2003 c 127 art 5 s 22~' 1 Sp2005 c 3 art 1 s 18; 2008 c
154 art 13 s 35
0
..
0
-\, .
0
ANOKA
COUNTY
2009
0
LOCAL BOARD OF APPEAL AND
EQUALIZATION
COUNTY ASSESSOR'S REPORT
0
Anoka County City of Andover
0 Table of Conteilts
Agenda.............. ...,.,......,. .......,........................,.............,.............,.....,...,............... 1
Assessnlent Calendar...,....... .....................,........,......""...........,.,..."..,.,.,........"... 2
Understanding Assessment and Tax Calculation ................................................3
2009 Assessment Statistics........ ...... .................... ...................,............................7
Reassessment Map.............................................................................................. 8
Authority of the Local Board of Appeal and Equalization (LBAE) ....................... 9
Market Value Statistics ............... ............ .......... ..... ...................... ........ ..... .......... 11
Residential Appraisal System. ............................................................................. 15
Sales Stud ies and Statistics................................................................................ 16
Anoka County 10 Year Sales Ratio History .......................................................18
2009 !3laine Residential Sales Ratios by Neighborhood ..................................19
0 Residential Tax Changes Examined ................... ...... .... ........ .... ................ ... ...... 20
ADDENDA........................................................................................................... 21
MN S 270.12 State Board of Equalization ..........................................................23
MN S 273.11 Valuation of Property ....................................................................25
MN S 273.121 Valuation of Real Property, Notice .............................................34
MN S 273.13 Classification of Property...... ............ ...... ........... ............ ............... 35
MN S 273.20 Assessor May Enter Dwellings, Buildings or Structures ..............41
MN S 274.01 Board of Appeal and Equalization ................................................42
MN S 274.014 Local Boards (Training Requirements) ......................................44
Appraisal Terminology.... ............ ............ ............................ ........................... ..... 45
Avenues of Appeal.. .................... .......... .............. ............ ........... ...... ....... ...... ...... 50
Sample Notice of Valuation and Classification ............... ...... ..................... ......... 52
0 Web Links for Metro Realtor Associations Housing Statistics Sites .....:............ 54
Anoka County City cf Andover
2009 Local Board of Appeal and Equalization
0 ~~g~~'ilth.:~
Apri~ 23, 2009
1. Call the Board of Review to Order
2, RollCall
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 2009 board is to review the assessment
as of January 2, 2009, which will be used to compute the property taxes
payable in 2010. Prior years' assessments or taxes (including taxes
payable in 2009) 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.)
0 The expectations of the appellant when presenting their appeal (Le. the
appeal must be substantiated by facts; where the appeilant 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 totEd 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 assess.or has not had a chance to review the property prior to the meeting,
the board may ask the assessor to review the property and present his/her findings to the
board at a reconvene meeting.
7. Recess or Close the Meeting. (If needed, the meeting will be reconvened at a date to be determined. The Board of
Appeal and Equalization of any city must complete its work and adjourn within twenty days from the time of convening as
specified in the notice of the clerk, unless a longer period is approved by the Commissioner of Revenue, No action taken
subsequent to such date shall be valid.)
0
"I
Anoka County City of Andover
Understanding Assessment And Tax Calculation
0
j'j,il ] j"'1 J~~~
In Minnesota it is the duty of the Assessor to value and classify property. This is done annually as
of the assessment date of January 2nd. Each year's assessment is based on arms-length
transactions (sales that meet the criteria of an open market transaction, see market value
definition below) that occurred the previous October thru September. When the assessment is
complete the local taxing jurisdictions begin their budgeting process for the following year. They
use the total assessment to determine their tax base and develop their tax rates (formerly referred
to as mill rates). All aspects of the assessment, including but not limited to the assessment date,
sales period for each assessment and property tax classification are dictated by state statute and
under the oversight of the Minnesota Department of Revenue.
Market Value Defined
As in private appraisal, Market Value is defined as:
The most probable price that a properly 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
0 specified date and the passing of title from seller to buyer under conditions
whereby:
'. buyet and seller are typically motivated:
<l both parlies are well informed or well advised, and acting in what
they consider their own best interests;
. .a reasonable time is allowed for exposure in the open market;
Ii payment is made in terms of cash in U.S. dollars or in terms of
financial arrangements comparable thereto;
i) the price represents the normal consideration for the properly sold
unaffected by special or creative financing or sales concessions
granted by anyone associated with the sale (a foreclosure sale or a
shorl sale [a sale to avoid foreclosure] is not considered an arms-
length transaction).
Mass Appraisal Defined
Property values for Minnesota real estate tax purposes are determined by mass appraisal. Mass
appraisal is the practice of determining individual values based on statistical analysis of a group of
sales for a large area. The values are determined as of a specific date and are based on arms-
length transactions that occurred during a specified sales period.
0
:3
Anoka County City of Andover
We are aware that due to the time frames we are required to work within it sometimes
0 seems as though the assessor's estimated market value does not represent the market.
It is lower than is should be during times of inflation and higher than it should be in times
of deflation. The following chali illustrates the relationship between assessed values and
actual sale prices and how the assessor's market values have been following the
changes in the open market.
Median Assessed Value as it Relates to Median SalePrice
(assessfJ1eht year based on closed sales from the prior Oct-Sep and for tax payabiethefollo~vingyear)
. $228,~OlY' ~"'S2,p,~.~0
..'i&.,S225,000
'\~'.400 .
.. '.
~
J""
,,>
-~""
.<1199,900 . .
$184,300-..
. ".. , ..r.... ,"-." ,..... . ."'-'. ".,- '-.- ".", . .~.
2005 2007 2008 2009 2010
Assessment Yea r
0 ____ Median Assessor's Estimated Market Value
As you can see, there is a point in time where the relationship between the assessor's
values and the sales prices intersect. It is at that point in time that the market took a large
downward turn and the following year, in response to that market condition, the
assessor's values were reduced to reflect that trend.
0
5
Anoka County City of Andover
2009 Assessnlent Statistics
.0 As of January 2, 2009, there were 11,285* parcels in the City, This total includes:
10,456 residential & apaiiment parcels (92,65%)
126 commercial and industrial parcels (1.12%)
198 agricultural parcels (1.75%)
505 other (4.47%)
Parcel Distribution by Property Type
Agricultural
1.75%
.0 ~ Commercial Industrial .
1.12%
Residential ~~
92.65%
*Un-audited numbers - spring mini-abstract is not yet available.
0
7
Anoka County City of Andover
0 Reassessment
State Statute reads: "AU real property subject to taxation shaU 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: "AU property shaU be
valued at its market value." It further states that "151 estimating and determining
such value, the Assessor shall not adopt a lower or different standard of value
because the same is to serve as a basis for taxation, nor shall the assessor adopt
as a criterion of value the price for which such property would sell at auction or at
a forced sale, or in the aggregate with all the property in the town or district; but
the assessor shall value each article or description of property by itself, and at
such sum or price as the assessor believes the same to be fairly worth in money."
The Statute says all property shall be valued at market value, not may be valued at
market value. This means that no factors other than market factors should affect the
Assessor's value and the subsequent action by the Board of Appeal and Equalization.
Authority of the Local Board of Appeal and Equalization
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
0 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 to all Boards of Appeal or Boards of Equalization.
The 2003 Legislature enacted State Statute 274.014 which requires that there be at least
one member at each meeting of a Local Board of Appeal and Equalization who has
attended an appeals and equalization course developed
or approved by the
Commissioner of Revenue within the last four years.
Section 274.01 states the county assessor shall fix a date for each Board of Appeal and
Equalization to meet for the purpose of reviewing the assessment of property in its
respective town or city. The county assessor is required to serve written notice to the
clerk of each of such bodies on or before February 15th of each year, These meetings
are required to be held between April 1st and May 31st; and the clerk of the Board of
0 Appeal and Equalization is required to give published and posted notice at least ten days
before the date set for the first meeting.
9
Anoka County City of Andover
It is the primary duty of each Board of Appeal and Equalization to examine the
0 assessment record to see that all taxable property in the assessment district has been
properly placed upon the list and valued by the asseSSQl", In case any property, either
real or personal, has been omitted; the Board has the duty of making the assessment.
The complaints and objections of persons who feel aggrieved with any assessments for
the current year should be considered very carefully by the Board, Such assessments
must be reviewed in detail and the Board has the authority to make corrections it deems
to be just. The Board may recess from day to day until all cases have been heard. If
complaints are received after the adjournment of the Board of Appeal and Equalization
they must be handled at 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.
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.
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
0 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.
Market Value Statistics
After thorough studies of the sales in the market place are conducted, we establish the
assessed value of all real property. During the 2008 study period, we recorded 5,026 sales
countywide (down 0.16% from the 2007 study period). Of these sales only 2,030 were
considered "arms-length" transactions (both counts include all property types).
In accordance with the results of these sales studies, certain areas of the city and certain
styles and grades of homes may have adjusted values either lower or higher than the previous
0 . year's value. The new values reflect market trends during the period of October 2007 thru
September 2008,
11
Anoka County City
of Andover
0 Market \/alue Effect of New Improvements
The next example is a more detailed breakdown of changes for the 2009 assessment as
compared to the 2008 assessment.
Listed below are the changes in estimated market value both pre new improvements and post
new improvements.
The following chart and graph illustrate the effect that new improvements had on overall value
changes. As the chart and graph shows, without the added value for new improvements the
values would have decreased on average 11.6%.
NET CHANGE IN ESTIMATED MARKET VALUE FOR TAXABLE PROPERTIES
2008 Pay 2009 2009 Pay 2010
2009 Pay 2010
Gross 2009 Pay 2010 % of Change 2009 Pay 2010
Gross
Estimated EMV Not Including New
Estimated 2009 Pay 2010
Market Before New New Improvement
Market Gross
Property Type Value. Improvements Imrovements Value
Value % of Change
Residential $2,794,157,700,00 $2,473,041,000 -11.5%
$17,459,800 $2,490,500,800 -10,9%
Commercial Industrial $124,587,700.00 $119,439,800 -4.1% $4,064,300
$123,504,100 -0,9%
0 Agricultural $95,175,700 $72,042,500 -24.3% $22,700
$72,065,200 -24,3%
Apartment $17,367,600 $16,635,400 -4.2% $41,400
$16,676,800 -4,0%
Total $3,031,288,700 $2,681,158,700 -11.6% $21,546,800
$2,702,746,900 -10.8%
!t.~)>~';"~"
". .
.. .
.:;..:.:>::,..:::... '. ... ..':'~.. ~. Commercial Industrial
;'t~\~r]f~!,u~ ....
:,:'~~~~1ft~;~~~(.,,>,.>",,<,",,'~" ,,"'c, . ,.,;."~"..~~L,,.."..c,X>.>.. . . -". --',,-.k~",,;';;.:-;;-;'-;~'~
;,,~_>,":_;;;_<:y.';;;<'i:;,-_c~ ';"'-'1 ;-;:';;'''~_:~;/'i; -~ J Residential
... ...'......, -""," '.
.......... .... ..
'-<i>si.,-,>,,i
. . .. . - ,'-' ->/- '-,~",,_,,"',h"'.'- ='_~"'-;::'_.<:,",o.i"
-'/-~-~""-
... ....... - .." ...~..~._-...., :;,'
, '" f;)i~~~i\.f;)"';"'~ ~"'~"'~. ..)f;)",~",gr .. ~",~~~'.. 'f;)"'?"'~ ..... ~"''''~~;<;~~~~~.
...... f;)~;~~:
..
~"'~ ..9><:)~ . ~"'~ ~<)~... . ~<)'i! ~?~ ~<)~ . ~<)~ . ..rS>~
<::s .. 'l) . <:i '\ . <::s '" . . "... . '\.. . <::s
.....", .,,'" c,'" c,'" ..'1-' ..,'" ",,'\0' . ",'\0' .;,'
0 [excluding exempt, forfeit, utility, manufactured homes and personal property]
13
Anoka County
City of AI1dover
0 Residential Appraisal System
Per State Statute, each property must be physically inspected and individually appraised
once every five years. . For this individual appraisal, or in the event of an assessed value
appeal, we use two standard appraisal methods to determine and verify the estimated market
value of our residential properties:
1. First, an appraiser inspects each property to
verify data. If we are unable to view the interior of
a home on the first visit, a tag is left requesting a
return telephone call from the owner to schedule
this inspection. Interior inspections are necessary
to confirm
our data on the plans and
specifications of new homes and to determine
depreciation factors in older homes.
2. To calculate the estimated market value from the
property data we use a Computer Assisted Mass
Appraisal (CAMA) system based on a reconstruction
less depreciation method of appraisal. The cost
variables and land schedules are developed through an
j analysis of stratified sales within the city. This method
uses the "Principle of Substitution" and calculates what
:0 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.
0
15
Anoka County City ()f Andover
Aggregate Ratio: This is the total market value of all sale properties divided by the
0 total sale prices, It, along with tile mean ratio, gives an idea of our assessment
level. Within the city, we constantly tlY to achieve an aggregate and mean ratio of
94% to 95% to give us a lllargrn to account for a fluctuating market and still
maintain ratios within state mandated guidelines, Also referred to as the
Weighted Mean.
Mean Ratio: The mean is the average ratio. We use this ratio not only to watch our
assessment level, but also to analyze property values by development, type of
dwelling and value range. These studies enable us to track market trends in
neighborhoods, popular housing types and classes of property.
Coefficient of Dispersion (COD): The COD measures the accuracy of the
assessment. It is possible to have a median ratio of 93% with 300 sales, two
ratios at 93%, 149 at 80% and 149 at 103%. Although this is an excellent median
ratio, there is obviously a great inequality in the assessment. The COD indicates
the spread of the ratios from the mean or median ratio.
The goal of a good assessment is a COD of 10 to 20. A COD under 10 is
considered excellent and anything over 20 will mean an assessment review by the
Department of Revenue.
Price Related Differential (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 agreater
.0 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 2009 pay 2010 market
values and October 2007thru September 2008 sales. These are the ratios that our
office uses for countywide equalization, checking assessment accuracy, and
predicting trends in the market.
2009 Anoka County
Residential Sales Ratio
Statistics
Median Ratio 94.3
Aggregate Ratio 93.9
Mean Ratio 94.7
Coefficient of Dispersion on Median 6.7
0 Price Related Differential 101
1'1
Anoka County City of Andover
0
2009 Andover Residential Ratio by Zones
ADO 1-0 2.5 ACRE EXECUTIVE 4 93.0 12.1
AD01-1 ANDOVER LAKE 0 NA NA
AD01-2 2.5 ACRE AVERAGE NO S/W 15 93.8 5.4
AD01-3 ABOVE AVERAGE S&W 59 93.0 5.8
ADO 1-4 AVERAGE S&W 38 94.6 4.3
ADO 1-5 70 & 80nS - NO SEWER & WATER 23 92.9 7.0
0 AD01-6 NICER TOWNHOMES 8 92.4 5.5
ADO 1-8 LARGE TRACT 8-15 ACRE 2 93.4 1.4
ADO 1-8AG ANDOVER AG 0 NA NA
AD01-9 BELOW AVE NO S/W 19 90.8 6.7
AD02-1 ANDOVER - CROOKED LAKE 0 NA NA
AD02-2 ANDOVER-TOWNHOMES 17 84.9 7.2
AD02-3 WOODLAND ESTATES 5 92.9 6.2
ADRV-1 ANDOVER RIVER 1 90.2 0.0
0
19
Anoka County City of Andover
0 ADDENDA
0
0
21
Anoka County City of Andover
270.12 STATE BOARD OF EQUALIZATION; DUTIES.
Subdivision 1 ,Commissioner of revenue constitutes board.
o The commissioner of revenue shall constitute the State Board of Equalization. The board may
adjourn from day to day and employ necessary clerical assistance,
Subd, 2,Meeting dates; duties.
The board shall meet annually between April 15 and June 30 at the office of the commissioner
of revenue and examine and compare the returns of the assessment of the property in the
several counties, and equalize the same so that all the taxable property in the state shall be
assessed at its market value, subject to the following rules: (1) The board shall add to the
aggregate valuation of the real property of every county, which the board believes to be valued
below its market value in money, such percent as will bring the same to its market value in
money; (2) The board shall deduct from the aggregate valuation of the real property of every
county, which the board believes to be valued above its market value in money, such percent
as will reduce the same to its market value in money; (3) If the board believes the valuation for
a part of a class determined by a range of market value under clause (8) or otherwise, a class,
or classes of the real property of any town or district in any county, or the valuation for a part of
a class, a class, or classes of the real property of any county not in towns or cities, should be
raised or reduced, without raising or reducing the other real property of such county, or without
. raising or reducing it in the same ratio, the board may add to, or take from, the valuation of a
, part of a class, a class, or classes in anyone or more of such towns or cities, or of the property
not in towns or cities, such percent as the board believes will raise or reduce the same to its
market value in money; (4) The board shall add to the aggregate valuation of any part of a
class, a class, or classes of personal property of any county, town, or city, which the board
believes to be valued below the market value thereof, such percent as will raise the same to its
market value in money; (5) The board shall take from the aggregate valuation of any part of a
class, a class, or classes of personal property in any county, town or city, which the board
believes to be valued above the market value thereof, such percent as will reduce the same to
its market value in money; (6) The board shall not reduce the aggregate valuation of all the
O property of the state, as returned by the several county auditors, more than one percent on the
whole valuation thereof; (7) When it would be of assistance in equalizing values the board may
require any county auditor to furnish statements showing assessments of real and personal
property of any individuals, firms, or corporations within the county. The board shall consider
and equalize such assessments and may increase the assessment of individuals, firms, or
corporations above the amount returned by the county board of equalization when it shall
appear to be undervalued, first giving notice to such persons of the intention of the board so to
do, which notice shall fix a time and place of hearing. The board shall not decrease any such
assessment below the valuation placed by the county board of equalization;
(8) In equalizing values pursuant to this section, the board shall utilize a 12-month
assessment/sales ratio study conducted by the Department of Revenue containing only
sales that are filed in the county auditor's office under section 272.115, by November 1
of the previous year and that occurred between October 1 of the year immediately
preceding the previous year and September 30 of the previous year. The
assessment/sales ratio study may separate the values of residential property into market
value categories. The board may adjust the market value categories and the number of
categories as necessary to create an adequate sample size for each market value
category. The board may determine the adequate sample size. To the extent practicable,
the methodology used in preparing the assessment/sales ratio study must be consistent
with the most recent Standard on Assessment Sales Ratio Studies published by the
Assessment Standards Committee of the International Association of Assessing
Officers. The board may determine the geographic area used in preparing the study to
accurately equalize values. A sales ratio study separating residential property into
market value categories may not be used as the basis for a petition under chapter 278.
The sales prices used in the study must be discounted for terms of financing. The board
shall use the median ratio as the statistical measure of the level of assessment for any
particular category of property; and (9) The board shall receive from each county the
O. estimated market values on the assessment date falling within the study period for all parcels
by magnetic tape or other medium as prescribed by the commissioner of revenue.
Subd. 3,Jurisdictions in two or more counties.
23
Anoka County City of Andover
273.11 VALUATION OF PROPERTY.
0 Subdivision 1. Generally. Except as provided in this section or section 273.17, subdivision 1 ,
all propeliy 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 deterrnining 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. 1a. Limited market value. In the case of all property classified as agricultural homestead
or nonhomestead, residential homestead or nonhomestead, timber, or noncommercial seasonal
,0 residential recreational, the assessor shall compare the value with the taxable portion of the value
determined in the preceding assessment.For assessment years 2004, 2005, and 2006, the
amount of the increase shall not exceed the greater of (1) 15 percent of the value in the preceding
assessment, or (2) 25 percent of the difference between the current assessment and the
preceding assessment. For assessment year 2007, the amount of the increase shall not exceed
the greater of (1) 15 percent of the value in the preceding assessment, or (2) 33 percent of the
difference between the current assessment and the preceding assessment. For assessment year
2008, the amount of the increase shall not exceed the greater of (1) 15 percent of the value in the
preceding assessment, or (2) 50 percent of the difference between the current assessment and
the preceding assessment. This limitation shall not apply to increases in value due to
improvements. For purposes of this subdivision, the term "assessment" means the value prior to
any exclusion under subdivision 16.The provisions of this subdivision shall be in effect through
assessment year 2008 as provided in this subdivision. For purposes of the assessment/sales ratio
study conducted under section 127A.48, and the computation of state aids paid under chapters
122A, 123A, 123B, 124D, 125A, 126C, 127A, and 477A, market values and net tax capacities
determined under this subdivision and subdivision 16, shall be used.
Subd. 2.[Repealed, 1979 c 303 art 2 s 38]
Subd. 3.[Repealed,1975 c 437 art 8 s 10]
Subd. 4.[Repealed, 1976 c 345 s 3]
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.
0 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
25
Anoka County City of Andover
through December 31, 1992, or a public agency,A "limited equity cooperative apartment" is a
0 dwelling unit owned by a limited equity cooperative,"Occupancy entitling cooperative share or
membership" is the ownership interest in a cooperative organization Wllich 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 propeliy shall be subject to additional propeliy 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
0 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 govemment, or by a nonprofit organization, or preserved under the terms of a
temporary or perpetual easement by the federal or state government, must be valued by
assessors at their wetland value. 'Wetland value" in this subdivision means the market value of
wetlands in any potential use in which the wetland character is not permanently altered. Wetland
value shall not reflect potential uses of the wetland that would violate the terms of any existing
conservation easement, or anyone-time payment received by the wetland owner under the terms
of a state or federal conservation easement. Wetland value shall reflect any potential income
consistent with a property's wetland character, including but not limited to lease payments for
hunting or other recreational uses. The commissioner of revenue shall issue a bulletin advising
assessors of the provisions of this section by October 1, 1991.For purposes of this subdivision,
"wetlands" means lands transitional between terrestrial and aquatic systems where the water table
is usually at or near the surface or the land is covered by shallow water. For purposes of this
definition, wetlands must have the following three attributes:(1) have a predominance of hydric
soils;(2) are inundated or saturated by surface or ground water at a frequency and duration
sufficient to support a prevalence of hydrophytic vegetation typically adapted for life in saturated
soil conditions; and(3) under normal circumstances support a prevalence of such vegetation.
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 317A, which
qualifies for tax exempt status under 501 (c)(3), or (ii) a "city" as defined in section 462C.02,
0 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
2'1
Anoka County City of Andover
improved with a permanent structure, shall be assessed as provided in this subdivision. The
0 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, CaNer, 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 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
0 following the final approval of the plat: one-seventh of the difference between the property's
unplatted market value as determined under paragraph (a) and the market value based upon the
highest and best use of the land as platted property shall be added in each of the seven
subsequent assessment years.(c) Any increase in market value after the first assessment year
following the plat's final approval shall be added to the property's market value in the next
assessment year. Notwithstanding paragraph (b), if construction begins before the expiration of
the seven years in paragraph (b), that lot shall be eligible for revaluation in the next assessment
year. The market value of a platted lot determined under this subdivision shall not exceed the
value of that lot based upon the highest and best use of the property as platted land.
Subd. 15. Vacant hospitals. In valuing a hospital, as defined in section 144.50, subdivision 2,
i that is located outside of a metropolitan county, as defined in section 473.121, subdivision 4, and
that on the date of sale is vacal"!t and not used for hospital purposes or for any other purpose, the
assessor's estimated market value for taxes levied in the year of the sale shall be no greater than
the sales price of the property, including both the land and the buildings, as adjusted for terms of
financing. If the sale is made later than December 15, the market value as determined under this
subdivision shall be used for taxes levied in the following year. This subdivision applies only if the
sales price of the property was determined under an arm's-length transaction.
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,OOO.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
0 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
29
Anoka County City of Andover
structure was not completely destroyed. The qualifying value on property destroyed by a natural
0 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
Jvalue 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 eXc:;lusion. No seller of real property shall sell or offer for
sale property that, for purposes of property taxation, has an exclusion from market value for home
improvements under subdivision 16, without disclosing to the buyer the existence of the excluded
valuation and informing the buyer that the exclusion will end upon the sale of the property and that
the property's estimated market value for property tax purposes will increase accordingly.
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
0 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
0 owner, if unknown by the assessor, Applications must be received prior to July 1 of any year in
order to be effective for taxes payable in the following year. For purposes of this subdivision,
"population" has the same meaning given in Minnesota Statutes, section 477 A.011 , subdivision 3.
31
Anoka County City of Andover
0 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 tile assessor for the valuation
reduction under this subdivision betvveen January 1 and June 30 of any year, the reduction
applies for taxes payable in the following year. If a properly 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
$1 O,OOO.(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 8 810; Ex1967 c 32 art 783; 1969 c 574 81; 1969 c 990 81;'1971 c 42781;
1971 c489 81; 1971 c 831 8 1; 1973 c 582 8 3; 1973 c 650 art 23 81-4; 1974 c 556 814; 1975 c
437 art 8 8 4-6; 1976 c 2 8 93; 1976 c 345 81; 1977 c 423 art 484; 1978 c 7868 10,11; 1979 c
303 art 2 87; 1Sp1981 c 1 art 283,4; 1Sp1981 c 4 art 2 8 50; 1982 c 424861,62; 1982 c 523 art
1982; art 2181; 1983 c 222 87; 1983 c 342 art 2 8 5-7;'1984 c 502 art 3 86; 1Sp1985 c 14 art 4
0 835; 1986 c 444; 1Sp1986 c 1 art 4812; 1987 c 268 art 5 8 1; art 7832; 1987 c 384 art 38 10;
1988 c 719 art 5 884; 1989 c 329 art 13820; 1989 c 356813; 1990 c 480 art 785; 1990 c 604
art 389; 1991 c 291 art 1 8 12; 1991 c 354 art 1087,8; 1992 c 511 art 2811,12; 1992 c 556 8
2,3; 1992 c 5978 14; 1993 c 375 art 5 88-13; art 8 814; art 11 83; art 1289; 1994 c 416 art 1 8
13; 1994 c 587 art 5 8 3-5; 1995 C 1 82; 1995 c 264 art 1689; 1996 c 471 art 3 85; 1997 c 231
art 2810,11,52; art 882; 1997 c 251816; 1998 c 397 art 11 83; 1999 c 243 art 5 86,7; 1Sp2001
c 5 art 3 8 23-26; 1Sp2002 c 1 8 14; 2003 c 127 art 5 815; 1Sp2003 c 21 art 483; 2005 c 151 art
286; art 5816; 1Sp2005 c 3 art 188-10; 2006 c 259 art 4811
0
33
Anoka County City of Andover
213.13 CLASSIFICATION OF PROPERTY.
0 Subdivision 1, How classified. All real and personal propeliy subject to a general propeliy 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 98J
Subd. 2a,[Repealed, 18p1985 c 14 ali4 s 98J
8ubd. 3,[Repealed, 1Sp1985 c 14 art 4 s 98J
Subd. 4,[Repealed, 1 Sp1985 c 14art 4 s 98J
Subd, 5,[Repealed, Ex1971 c 31 art 22 s 5J
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, 1Sp1985 c 14 art 4 s 98]
Subd. 7c,[Repealed, 1Sp1985 c 14 art 4 s 98]
Subd, 7d,[Repealed, 1Sp1985 c 14 art 4 s 98]
Subd, 8.[Repealed, Ex1967 c 32 art 4 s 3]
Subd. 8a,[Repealed, 1Sp1985 c 14 art 4 s 98]
Subd, 9,[Repealed, 1988 c 719 art 5 s 81]
Subd. 10.[Repealed, 1Sp1985 c 14 art 4 s 98]
Subd. 11.[Repealed, 1Sp1985 c 14 art 4 s 98]
Subd. 12.[Repealed, 1Sp1985 c 14 art 4 s 98]
Subd. 13.[Repealed, 1974 c 313 s 1]
Subd. 14.[Repealed, 1984 c 593 s 46]
Subd. 14a.[Repealed, 1 Sp1985 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]
0 Subd. 15b.[Repealed, 1983 c 342 art 2 s 30]
Subd. 16.[Repealed, 1 Sp 1985 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. 21 a. 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 1a. In the case of a duplex or triplex in which
one of the units is used for homestead purposes, the entire property is deemed to be used for homestead
purposes, The market value of class 1 a property must be determined based upon the value of the house,
garage, and land. The first $500,000 of market value of class 1a property has a net class rate of one percent
of its market value; and the market value of class 1 a property that exceeds $500,000 has a class rate of 1.25
percent of its market value.(b) Class 1 b property includes homestead real estate or homestead
manufactured homes used for the purposes of a homestead by(1) any person who is blind as defined in
section 256D.35, or the blind person and the blind person's spouse; or(2) any person, hereinafter referred to
0 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
35
Anoka County City of Andover
pasture, timber, waste, unusable wild land, or land included in state or federal farm programs. Agricultural
0 classification for propel-ty 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 the fish breeding occurs on land zoned for agricultural use;(3) the
commercial boarding of horses if the boarding is done in conjunction with raising or cultivating agricultural
products as defined in clause (1);(4) property which is owned and 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
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
0 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 mac:le
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
0 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
37
Anoka County City of Andover
they are located will be designated class 1c or 4c as othervvise provided, The remainder of the cabins or
0 units and a proportionate share of the land on which they are located will be designated as class 3a, The
owner of propeliy desiring designation as class 1 c or 4c propeliy must provide guest registers or other
records demonstrating that the units for which class 1 c or 4c designation is sought were not occupied for
more than 250 days in the year preceding the assessment if so requested, The pOliion 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 cor 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 seNice 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 seNice 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
0 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
6;(7) a leased or privately owned noncommercial aircraft storage hangar not exempt under section 272.01.
subdivision 2, and the land on which it is located, provided that:(i) the land is on an airport owned or
operated by a city, town, county, Metropolitan Airports Commission, or group thereof; and(ii) the land lease,
or any ordinance or signed agreement restricting the use of the leased premise, prohibits commercial activity
performed at the hangar. If a hangar classified under this clause is sold after June 30, 2000, a bill of sale
must be filed by the new owner with the assessor of the county where the property is located within 60 days
of the sale;(8) a privately owned noncommercial aircraft storage hangar not exempt under section 272.01,
subdivision 2, and the land on which it is located, provided that:(i) the land abuts a public airport; and(ii) the
owner of the aircraft storage hangar provides the assessor with a signed agreement restricting the use of the
premises, prohibiting commercial use or activity perfonned 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
0 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 propeliy, (iii) commercial-use seasonal residential recreational property has a class rate of one
39
Anoka County City of Andover
s 45-56; 1986 c 444; 1Sp1986 c 1 art 4 s 18-21; 1987 c 268 art 5 s 4; art 6 s 18,20-23; 1987 c 291 s 208-
0 209; 1987 c 384 art 1 s 25; 1988 c 719 art 5 s 13-19; 1989 c 277 art 2 s 28,29; 1989 c 304 s 137; 1Sp1989 c
1 art 2 s 1-8,11; 1990 c 480 alt 7 s 7; 1990 c 604 art 3 s 16-19; 1991 c 249 s 31; 1991 c 291 art 1 s 20-25;
1992 c 363 art 1 s 12; 1992 c 511 art 2 s 17,18; art 4 s 4,5; 1993 c 224 aft 1 s 27; 1993 c 375 aft 3 s 16; aIt 5
s 23-26; 1994 c 416 aIt 1 s 18,19; 1994 c 483 s 1; 1994 c 587 an' 5 s 10,11; 1995 c 264 art 3 s 9,10; 1996 c
471 aft 3 s 10-12; 1997 c 231 alt 1 s 6-10; art 2 s 20,21; 3Sp1997 c 3 s 28; 1998 c 254 art 1 s 74; 1998 c
389 an' 2 s 8-12; 1999 c 243 an 5 s 15-20; 1999 c 248 s 18; 1999 c 249 s 22; 2000 c 490 alt 5 s 12,13;
1Sp2001 c 5 art 3 s 32-36; 2002 c 377 a.rt 4 s 16,17; art 10 s 6; 2003 c 127 alt 2 s 13,14; aIt 5 s 17; 2003 c
128 an3 s 45; 1Sp2003 c 21 art 4 s 4; 2005 c 151 an3 s 12; 1Sp2005 c 3 ad1 s 15,16; 2006 c 259 art 4 s
13; an'5 s 1,2
273.20 ASSESSOR MAY ENTER DWELLINGS, BUILDINGS,
OR
STRUCTURES.
Any officer authorized by law to assess property for taxation may, when necessary to the
proper performance of duties, enter any dwelling-house, building, or structure, and view the
same and the property therein. Any officer authorized by law to assess property for ad valorem
tax purposes shall have reasonable access to land and structures as necessary for the proper
performance of their duties. A property owner may refuse to allow an assessor to inspect their
property. This refusal by the property owner must be either verbal or expressly stated in a
letter to the county assessor. If the assessor is denied access to view a property, the
assessor is authorized to estimate the property's estimated market value by making
assumptions believed appropriate concerning the property's finish and condition.
History: (1997) RL s 814; 1986 c 444; 1999 c 243 art 5 s 24
:0
0
41
Anoka County City of Andover
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
0 be paid, and the term of office of each member. At least one member of the special board of review must be
an appraiser, realtm, or other person familiar with property valuations in the assessment district.
Subd, 3. local board duties transferred to county. The town board of any town or the governing body
of any home rule chalier or statutory city may transfer its powers and duties under subdivision 1 to the
county board, and no longer pelform the function of a local board, Before the town board or the governing
body of a city transfers the powers and duties to the county board, the town board or city's governing body
shall give public notice of the meeting at which the proposal for transfer is to be considered, The public notice
shall follow the procedure contained in section 13D,04. subdivision 2. A transfer of duties as permitted under
this subdivision must be communicated to the county assessor, in writing, before December 1 of any year to
be effective for the following year's assessment. This transfer of duties to the county may either be
permanent or for a specified number of years, provided that the transfer cannot be for less than three years.
Its length must be stated in writing, A town or city may renew its option to transfer. The option to transfer
duties under this subdivision is only available to a tQwn or city whose assessment is done by the county,
History: (2034) RL s 847; 1941 c 402 s 1; 1945 c 402 s 1; 1949 c 543 s 1; Ex1967 c 32 art 8 s 3; 1971 c 434
s 3; 1971 c 564 s 6; 1973 c 123 art 5 s 7; 1973 c 150 s 1; 1973 c 582 s 3; 1975 c 339 s 5; 1977 c 434 s 11;
1986 c 444; 1987 c 229 art 4 s 1; 1987 c 268 art 7 s 37; 1988 c 719 art 7 s 8; 1990 c 480 art 7 s 14; 1995 c
264 art 3 s 13; 1997 c 231 art 2 s 23; 1998 c 254 art 1 s 77; 1999 c 243 art 5 s 25; 1Sp2001 c 5 art 7 s 21;
2003 c 127 art 5 s 22; 1Sp2005 c 3 art 1 s 18
'0
0
43
Anoka County
City of Andover
0 Appraisal TerminoBogy
ClASSIF~CATION The class tl1at 8 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 1110st probable use of the land, which
would 1110st Iil<ely be determined by the zoning classification,
CLASSIFICATION RATES The class rate assigned to a particular classification of property.
Classification rates are established by the state legislature. Class rates are the same upon
the same class of property throughout Minnesota.
COEFFICIENT OF DISPERSION Average deviation of a group of numbers from the median,
expressed as a percentage of the median.
COEFFICIENT OF VARIATION Standard deviation expressed as a percentage of the mean.
COMPARABLES (COMPARABLE SALES) Recently sold properties that are similar in
important respects to a property being appraised to assist in estimating the value of a specific
property.
COST APPROACH That approach in appraisal analysis which is based on the proposition
that the informed purchaser would pay no more than the cost of producing a substitute
property with the same utility as the subject property. It is particularly applicable when the
property being appraised involves relatively new improvements which represent the highest
0 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 estima~e of this depreciation
is usually computed as a dollar amount of the cost-to-cure.
. INCURABLE DEPRECIATION Elements of physical deterioration or functional
obsolescence which either cannot be corrected; or, if possible to correct, cannot be
corrected except at a cost in excess of their contribution to the value of the property.
PHYSICAL DEPRECIATION A reduction in utility resulting from an impairment of
0 physical condition. For purposes of appraisal analysis, it is most common and
convenient to divide physical deterioration into curable and incurable components,
45
Anoka County City of Andover
HIGHEST AND BEST USE That reasonable and probable use that will support the highest
0 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 analys~s, 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.
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.
0 LEGAL DESCRIPTION A statement containing a designation by which land is identified
according to a system set up by law or approved by law.
LIMITED MARKET VALUE A limitation which is imposed on how much the taxable value of
certain classes of property (agricultural homestead or nonhomestead, residential homestead
or non homestead, noncommercial seasonal recreational residential) can increase over the
preceding year's value. This limit does not apply to an increase in your value due to
improvement made to the property.
MARKET APPROACH Traditionally, an appraisal procedure in which the market value
estimate is predicated upon prices paid in actual market transactions and current listings, the
former fixing the lower limit of value in a static or advancing market (price wise), and fixing
the higher limit of value in a declining market; and the latter fixing the higher limit in any
market. It is a process of analyzing sales of similar recently sold properties in order to derive
an indication of the most probable sales price of the property being appraised. The reliability
of this technique is dependent upon (a) the availability of comparable sales data, (b) the
verification of the sales data, (c) the degree of comparability or extent of adjustment
necessary for time differences; and (d) the absence of non-typical conditions affecting the
. sale price.
MASS APPRAISING A method used in revaluation of a community for tax purposes. As the
term implies, it is a method of appraising a large number of properties at one time by
adopting standard techniques, and giving due consideration to the appraisal process so that
uniformity or equality of values may be achieved between all properties,
0 MEAN ASSESSMENT RATiO Total of ratios divided by number of properties.
47
Anoka County City of Andover
0 MED!AN RATIO The value of the middle item where an odd number of items are arranged
(arrayed) accmding to size, or the arithmetic average of Ule two central items if there is an
even number of items, !t is a positional average and is not affected by the size of extreme
values,
SALES WEiGHTED AGGREGATE R.ATIO Total of assessment values divided by total of
selling price,
SAMPLE SUFFICIENCY GAUGE Square root of half the range divided by tile number of
properties.
SPECIAL ASSESSMENT A charge made by government against real estate to defray the
cost of making a public improvement adjacent to the property which, while of general
community benefit, is of special benefit to the property so assessed.
S)ANDARD 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, Le., flat, rolling, mountainous, etc.
0 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.
VALUE EXEMPTION FOR CERTAIN IMPROVEMENTS (THIS OLD HOUSE) Qualifying
homes, 35 years or older, were previously eligible to receive a temporary exemption on all or
a portion of the assessor's estimated value for certain newly constructed improvements with
an assessed value of $1,000 or more if a building permit was issued by June 30, 1999.
Legislative action in 1999 amended this law effective July 1, 1999 that to qualify for
exemption of improvements from the property tax, the property must be 45 years of age or
older at the time the improvements commence and the property must be receiving the
homestead classification. The minimum assessed value must be $5,000 for eligible
improvement. This includes properties classified as residential homestead (including
duplexes and triplexes), blind/paraplegic veteran/disabled homestead and agricultural
homestead. In addition,' the owner must have taken out a building permit and file an
application for the exemption with the assessor. This law has since expired and only
improvements made prior to January 2, 2003 have been grandfathered in and are still
enrolled in the program.
0
49
Anoka County City of Andover
~ The County Board of Appeal and Equ21ization follows the local Board of Appeal and
0 Equalization in the assessment appeals process,
@) Their role is to ensure equalizat10n arnong individual assessment districts and classes of
propeliy.
i\) 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
thElIl one dwelling unit.
0 . 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 S1. Paul. However, the Tax Court is a circuit
court and can hold hearings at any other place within the state so that taxpayers may appear with
as little inconvenience and expense to the taxpayer as possible. Appeals of property located in
Anoka County are heard at the Anoka County Courthouse, with trials scheduled to begin on
Thursdays. Three judges make up the Tax Court. Each may hear and decide cases
independently.. However, a case may be tried before the entire court under certain circumstances.
The petitioner must file in tax court on or before April 30 of the year in which the tax is payable.
The following page is a sample Valuation Notice.
0
51
Anoka County City of Andover
0 2009 NOTiCE OF VALUATION AND CLASSIFICATION - BAC!{
ApP$2iling the value Oi' classification of y.;wr property D$fir.itiol1s
Informal appeal optlOI1S - Contact your assessor Estimat~d Market Value - His v,duB is ,,.,rattne
If YOJ rave C; Jesbns cr disagre9 Wdl :he classifica':o~ 0: ESD Tided n'arket assessor e3(.Il~tEos }:cw propert:1.~~;ol1ld Iil\el:l sell for
va'ua for you' property for 2009, ~Iease conh~t your assesso"s off:~e first to on 1118 cpan n~2.rket.
d:scuss your conCECns. Cfen you' issues can b9 resolved at :his level. Value of New Improvements - Tlis i, ihe
Contact infcrmabn for your assessor's o'fice is 01 t'a ot'e- de of this aS~8.3SC:r'S .;.stima:8 cf lle ".:alua (if n&'8 or
noke, previou:3ly unassess21j in~prov&n9ntj you heve
SC/Ille jurisdict'ols choose:o h:Jld open book meetings to a'bw property n',de to your prcperti'. These improvements are
owr.ers to discuss tilE;r concerns with the assessor, If 'his is an option not eligible for limited market value.
available to you, the meeting tine(s) and 'ocation(d) wil' ~9 .ndicated on the Limited Market Value - 3ecau~e this ;rovi~ion
other s'de of this r.otice. r8sul~ed in Jnfair tax shifts and d:d ret r.ecess:;:ily
Keep property taxes froD1.~creasir.g, ,.n'ited rr.ar~et
Formal appeal options value was not rens'Iied after its expiratio~ fcllowirg
If your quesfons or corce:ns are not resolved afer neeting w:th your tne 2D03 assessment
assessor, you have two iormal appeal options: Green Acres - App!:es to productive agricul:ural
pro;;erty tnat is facing increa~ing values due to
Option 1 - The Boards of Appeal and Equalization cevelopment pressures not reiated to the
You IT'ay appear before the Boards of Appeal and Equafzation 'n person, agncultural %Iue of the land. The assessor arrives
9.\ ttis lower valu~ by lookin!; at what comparable
through a letter, cr through a re;)[esen:ative authorized by you. The meeting ag~culturalland is 1lellin!; :or in areas where ~,ere is
times ard Iccations are on tile other side of this notice. You must have r.o development pressure. Tr,a taxes on the higher
presented your case to the Local Board of Appeal and Equalization value are deferred until :he p;oper~J is sold,
BEFORE appealing 10 the County Board of Appeal and Equalization. transferred, v,ilhdrawn, or no lar,ger quali'iss fo' the
Step 1 - Local Board of Appeal and Equalization program.
If you believe your value or dassifcation is inccr~ec~ you may br"ng your Plat Deferment - For land tr,al has Jeen recently
case 10 the Local 30ard of Appeal and Equa!:zat'on, Please con:act your platted :div~ded into indi"jd~allots) but not yet
0 aS58SSor's office for more informauon. If your ciy or bwnshin no longer has ilrpro'ied w'l'l a sir Jcture, the ir.creased market
a Local Board of Appeal and Equalization (as 'r.dica:ed on the other s'de of value due to platting is ;;hased in overtilre.lf
this n01ce) you may appeal directly to :he County Board of Appeal and ccnslrudion begins, or if the 'at 'S sold belore
Equalization. expjration 01 pha&e-in ps'iod, the 'o! w:1I be assessed
Step 2 - Countv Board of Appeal and Equalization at full rrarket value in the next assessment.
If the Local Board of Appeal and Equ~l!zation d'd not resolve your concerns, JOBZ - Qualir,1ng bJsinesses \~ithi1 a JOD
you rray 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 Oppcrtuni~J Busir.ess Zone I'la)/ be el'gibJe faT a
assessor's office to get on the agenda cr fcr IT ore inforrlauon. partial pror.eriy tax exciusion,
Ols, Vets Homestead Market Value ExclusiOI\-
Option 2- Minnesota Tax Court Qua!'fying veterans may be eligible for a \ralua:ion
exclusrcn en their hemestead property.
Depending on fhe ly~e of appeal, you may take your case to either the This Old House Exclusion - This program expired
Small Claims Division or the Regular Division ofTax Court. You have until w'th tne 2Q03 aS59Ssmenl. However, ~'operty n'ay
April 30, 2010, fo fie an appeal with the Sma:! Claims Division or the still be receiving the value exclusion under this
Regular Division of Tax Court fcr your 2009 valua:ion and c1assificaJon_ program. It appi'ed only to nomestead p"Oper~f 45
For more information, contact the M'nr,esota Tax Court: years of age or cider and vatued at leS5 than
$400,000, lir,provements l.'1at increased the
Phone: 651-296-2806 or 1-800,627-3529 estimated market value by $5,000 or more were
website: w\wl.taxcourt.state.mr..us eligib'e to have some of :he value deferred for a
maximum of 10 years. After l.'lis time, the deferred
value 1s phased' n.
Notice Concerning Properly Classification - Changes made dunng the Taxable Market Value - This is me va;ue tilat your
2008 Legislative Sess:cn may have affected the classification of your property,
althcugh tilis may not result in a change in rax rates cr homestead benefits. pro~erty taxes are actually ba1lsd on, after all
For add'Fanal informafon concerning property's c1assi'ication, contact your reductions, exclusions, exemptions, ar.d defe1'als.
county assessor's office cr the Department of Revenue website at Your 2009 value, along ....ith the class rale and the
www.taxes.state.mn.us. ~dgels of }'our local government, viill delermine how
rr.uch you wiil pay in taxes in 2010.
For ?llore infOJ1narfOil Oil appeals$ dleckollrrlw DepartmeJ:; ofRe-.'eT:lle11'ebsite: hrrp://taxes.stafe,JJ1i1.lIS
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53
0 May 5, 2009
Andover Board of Review
Honorable Mayor and City Council
City of Andover
1685 Crosstown Blvd. NW
Andover, MN 55304
Re: Reconvened Andover local Board of Appeal and Equalization for property taxes
As I said in my April 25, 2009 letter to the board I object to my 2009 properties
valuations as being too high (see 4-23-09 letter for pin numbers) The AG user valuation
for class a &C tillable land was raised from $1500.00 per acre in 2007 to $2752.00 per
acre in 2009. This is an unrealistic increase of 83.5%.
The county assessors office referred to an E-mail from Mr. Larry Austin of the Minnesota
Department of Revenue saying the base valuation for tillable and the percentage for
Anoka County is set by the department and is non appealable to the local or County
Board of Appeal. I asked the county assessors office for the Minnesota statues that the
Minnesota Department of Revenue based these statements of theirs on. I received no
specific statues from them that gave authorization to the department of Revenue to do
0 this. So I believe the local Andover Board of Appeal has the right to adjust the $2752.00
class C tillable valuation placed on my property.
I have light sandy soil classified as class C tillable by the assessors office yet it has the
same $2752.00 valuation placed on it as the better class B tillable soil in the county. This
is neither just or correct. The county recognized a difference between the class B tillable
as being a poorer soil than class A when it adjusted the price from $3200.00 per acre for
the Class A tillable to $2752.00 for class B & C but it failed to recognize a valuation
difference between the class C and B soil.
Thus I am asking the Andover local Board of Appeal to consider adjusting the $2752.00
valuation placed on my class C tillable soil to a lesser value than the class B valuation of
$2752.00. I can only grow 60 to 80 bushel corn on my sandy soil verses the 150 to 200
bushel corn that can be grown on the heavier soil. Therefore I am asking the Board to
consider adjusting the value of my tillable soil to a more realistic valuation which would
be in the $1600.00 to $1800.00 range per acre. I also ask the Board to adjust the
$5000.00 per acre valuation placed on my tillable peat soil to the same as my other
tillable, as there is no basis to value it differently. Thank you.
Sincerely,
w~fi~
0 Winslow Holasek
James Dickinson
orom: James Dickinson
ent: Thursday, April 30, 2009 12:55 PM
To: dan. klint@co.anoka.mn.us
Subject: FW: City Board of Appeal and Equalization
Dan,
I question your response made below. The interpretation of the statutue was requested of the City Assessor, who is the
the Anoka County Assessor, by an agreement that you drafted (attached). Doesn't the County Attorney's office advise
the County Assessor on legal matters? I doubt that Anoka County wants City Attorney Offices to advise the County
Assessor!. What is beeing asked for is an interpretation by the County Assessor of the statute and how it applys to green
acres property!
The Andover Board of Review was looking for a legal interpretation as it related to the Assessment Services provided by
our contract with the Anoka County Assessor who you advise, so I don't understand how you are are determining that you
would be advising the Andover Board of Review. I advised the Andover Board of Review that they could act upon the
market value of the green acres property and not the tax value, I hope that you would advise the County Assessor.
Respectfully,
Jim Dickinson
City Administrator
City of Andover
763-767-5110 - office
012-328-4721 - cell
>>> Dan Klint 04/29/2009 3:01 PM >>>
I'm writing in response to your question as to whether the Andover City Board of Appeal and Equalization can consider an application
by an owner for a market value adjustment to the agricultural value of property classified under Minn. Stat. S273 .111. The Anoka
County Attorney's Office does not represent or provide legal advice to the Andover City Board Of Appeal and Equalization. It would
be The Andover City Board of Appeal and Equalization's legal counsel (usually the city attorney) who would make the determination
as to what could be considered at the local board review process.
Because the Anoka County Attorney's Office does not represent the Andover City Board of Appeal and Equalization, it would be
improper for me to provide an opinion or give direction to the local board as to what it could or could not consider at its meetings.
Dan Klint
Assistant Anoka County Attorney
2100 3rd A venue North
Anoka, Minnesota 55303
(763) 323-5668
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