Appeal Process - Mille Lacs County Assessor's Office

Appeal Process
Mille Lacs County Assessor's Office

In March of each year, at least 10 days prior to the scheduled Local Board of Appeal and Equalization in the township/city in which your property is located, you will receive a "Notice of Valuation and Classification" from the County Assessor notifying you of the market value and classification of your property for the current assessment year. The property taxes you will pay the following year will be based on this value and classification. Terms Listed on Your Notice of Valuation *Estimated Market Value* "is the most probable sale price in terms of money in a competitive and open market, assuming that the buyer and seller are acting prudently and knowledgeably allowing sufficient time for sale and assuming that the transaction is not affected by undue pressures." What this simply means is what you could sell your property for in today's real estate market. State law requires assessors to value property at 100% of market value. *Classification* of your property is mandated by state law and is based on the primary or most likely use of your property. *Value of New Improvements* is the value placed on the property because of additions, remodeling and other changes that the assessor estimated to have added value to the property. This can include value of improvements which have previously been omitted from valuation. *Limited Market Value* applies to residential, agricultural, timber, and (non-commercial) seasonal residential recreational property (M.S. 273.11, Subd. 1a). Assessors are still required to estimate the market value of these properties; however, in some cases the law requires the use of a limited market value for purposes of determining the property tax bill. The limited value will be less than the market value if the market value is greater than the previous year’s limited market value by a set percentage established by the state legislature. Value increases due to improvements to the property are excluded from the % limit. (This has been phased out effective January 2, 2009.) *This Old House Exclusion* is the amount of the new improvement value excluded from taxation on homestead property 45 years of age or older (M.S. 273.11, Subd. 16). Only improvements made before January 2, 2003 and picked up during the 2003 assessment qualify for this exclusion. Values that have been deferred for 10 years began to be phased in with the 2004 assessment. *Green Acres* is a program which applies to agricultural property that is facing increasing values due to development pressures not related to the agricultural value of land. The assessor arrives at this lower value by looking at what comparable agricultural land is selling for in areas where there is no development pressure. The taxes are deferred until the property is sold, changes ownership, or no longer qualifies for the program. *Taxable Market Value* is the net value that your property taxes are actually based on, after all reductions, limitations, exclusions, and deferrals. Your taxable market value, along with the class rate and the budgets of your local government, will determine how much you will pay in taxes in the following year. If, after receiving your Notice of Valuation, you disagree with or have questions about your estimated market value, there are several ways to appeal your value: *First:* Collect any information you have to show why you believe your value or classification is incorrect (e.g., a recent appraisal of your property, recent sales of similar property, etc.). *Second:* Contact the Assessor's Office, ask the assessor to review the information used to determine the value of your property, and share any information that you have gathered. *Third:* If your concern is not resolved, set up an appointment with the Assessor's Office to attend the Local Board of Appeal and Equalization identified on your value notice. If you are unable to attend the meeting, you may send someone to represent you or send a letter to the County Assessor addressing your concerns. *Fourth:* If you have remaining concerns after the Local Board of Appeal and Equalization, you may call the Assessor's Office for an appointment to address the County Board of Appeal and Equalization. Again, a letter may represent your appeal. *Finally:* If, after all the local appeals, your concerns are not resolved, you may petition the Minnesota Tax Court. Tax petitions must be filed prior to April 30th of the year the taxes are payable. Tax Court Appeals *Step #1:* Get the form from the Court Administrator, or by calling 651-296-2806. *Step #2:* Complete the form and make four (4) copies. You will also need five (5) copies of your property tax statement. One copy of the tax statement must be attached to each petition form. *Step #3:* Serve the papers. Deliver two (2) copies to the Assessor's Office, and one (1) each to the County Attorney and County Auditor-Treasurer. Have the originals of each petition date-stamped by each of the offices being served. Finally file the original petition with the Court Administrator. (There will be a filing fee.) *Step #4:* District Court will assign a court file number and will notify you of your file number. Within one (1) year the Tax Court will schedule a trial and notify you of the date. More information can be found at: http://www.taxcourt.state.mn.us. For further assistance, please contact the Assessor’s Office at 635 2nd St SE, Milaca, MN, 56353 or call (320) 983-8311 or (888) 280-8311.

In March of each year, at least 10 days prior to the scheduled Local Board of Appeal and Equalization in the township/city in which your property is located, you will receive a "Notice of Valuation and Classification" from the County Assessor notifying you of the market value and classification of your property for the current assessment year. The property taxes you will pay the following year will be based on this value and classification.

Terms Listed on Your Notice of Valuation

Estimated Market Value "is the most probable sale price in terms of money in a competitive and open market, assuming that the buyer and seller are acting prudently and knowledgeably allowing sufficient time for sale and assuming that the transaction is not affected by undue pressures." What this simply means is what you could sell your property for in today's real estate market. State law requires assessors to value property at 100% of market value.

Classification of your property is mandated by state law and is based on the primary or most likely use of your property.

Value of New Improvements is the value placed on the property because of additions, remodeling and other changes that the assessor estimated to have added value to the property. This can include value of improvements which have previously been omitted from valuation.

Limited Market Value applies to residential, agricultural, timber, and (non-commercial) seasonal residential recreational property (M.S. 273.11, Subd. 1a). Assessors are still required to estimate the market value of these properties; however, in some cases the law requires the use of a limited market value for purposes of determining the property tax bill. The limited value will be less than the market value if the market value is greater than the previous year’s limited market value by a set percentage established by the state legislature. Value increases due to improvements to the property are excluded from the % limit. (This has been phased out effective January 2, 2009.)

This Old House Exclusion is the amount of the new improvement value excluded from taxation on homestead property 45 years of age or older (M.S. 273.11, Subd. 16). Only improvements made before January 2, 2003 and picked up during the 2003 assessment qualify for this exclusion. Values that have been deferred for 10 years began to be phased in with the 2004 assessment.

Green Acres is a program which applies to agricultural property that is facing increasing values due to development pressures not related to the agricultural value of land. The assessor arrives at this lower value by looking at what comparable agricultural land is selling for in areas where there is no development pressure. The taxes are deferred until the property is sold, changes ownership, or no longer qualifies for the program.

Taxable Market Value is the net value that your property taxes are actually based on, after all reductions, limitations, exclusions, and deferrals. Your taxable market value, along with the class rate and the budgets of your local government, will determine how much you will pay in taxes in the following year.

If, after receiving your Notice of Valuation, you disagree with or have questions about your estimated market value, there are several ways to appeal your value:

First: Collect any information you have to show why you believe your value or classification is incorrect (e.g., a recent appraisal of your property, recent sales of similar property, etc.).

Second: Contact the Assessor's Office, ask the assessor to review the information used to determine the value of your property, and share any information that you have gathered.

Third: If your concern is not resolved, set up an appointment with the Assessor's Office to attend the Local Board of Appeal and Equalization identified on your value notice. If you are unable to attend the meeting, you may send someone to represent you or send a letter to the County Assessor addressing your concerns.

Fourth: If you have remaining concerns after the Local Board of Appeal and Equalization, you may call the Assessor's Office for an appointment to address the County Board of Appeal and Equalization. Again, a letter may represent your appeal.

Finally: If, after all the local appeals, your concerns are not resolved, you may petition the Minnesota Tax Court. Tax petitions must be filed prior to April 30th of the year the taxes are payable.

Tax Court Appeals

Step #1: Get the form from the Court Administrator, or by calling 651-296-2806.

Step #2: Complete the form and make four (4) copies. You will also need five (5) copies of your property tax statement. One copy of the tax statement must be attached to each petition form.

Step #3: Serve the papers.

Deliver two (2) copies to the Assessor's Office, and one (1) each to the County Attorney and County Auditor-Treasurer. Have the originals of each petition date-stamped by each of the offices being served.

Finally file the original petition with the Court Administrator. (There will be a filing fee.)

Step #4: District Court will assign a court file number and will notify you of your file number. Within one (1) year the Tax Court will schedule a trial and notify you of the date.

More information can be found at: http://www.taxcourt.state.mn.us.

For further assistance, please contact the Assessor’s Office
at 635 2nd St SE, Milaca, MN, 56353 or call (320) 983-8311 or (888) 280-8311.