BOR 04/22/2013
City of Fridley
Board of Equalization Meeting
Fridley, Minnesota
April 22, 2013
Mary M. Smith, City Assessor
Patrick D. Maghrak, Residential Appraiser
1
City of Fridley
Table of Contents
Assessment Calendar ................................................................................................................... 3
Assessment And ValuationTimeline .............................................................................................. 4
The 2013 Assessment ................................................................................................................... 5
Quintile Map................................................................................................................................... 6
Reassessment ............................................................................................................................... 7
Market Value ................................................................................................................................. 7
Authority of the Local Board of Appeal and Equalization .......................................................... 8-10
Market Values .............................................................................................................................. 11
CREV Breakdown…………………………………………………………………………………….12
Monthly Sales During the Sales Study……………………………………………………………13
2012-2013 Market Value Comparison ......................................................................................... 14
Residential Appraisal System ...................................................................................................... 15
Sales Studies ............................................................................................................................... 15
Sales Statistics Defined ............................................................................................................... 16
Current Sales Study Statistics ..................................................................................................... 17
2013 Anoka County Ratio Study ................................................................................................. 17
2013 Fridley Residential Ratio by Zone ....................................................................................... 18
Appeals Procedure ................................................................................................................. 19-20
Sample Market Value Notice……….……………………………………………………………….21
2
City of Fridley
Assessment Calendar
2013
2013 Market Values for Property Established
STAFF
January 2
Final Day to Deliver Assessment Records to County
February 1
Final Day to File for an Exemption from Taxation
Mary
February 1
Smith
Final day to file for 1b with Commissioner of Revenue
City AssessorMarch 1
2013 Valuation Notices Mailed
March 18
Local Board of Appeal and Equalization
Patrick D.
April 22
Maghrak
Final Day to File a Tax Court Petition for 2012 Assessment
Residential April 30
Appraiser
First Half Payable 2013 Taxes Due
May 15
Final Date for Manufactured homes assessed as personal
May 26
property to establish homestead
State Board of Equalization
May 31
County Board of Appeal and Equalization (6:00 PM)
June 17
2013 Assessment Finalized
July 1
Date by which taxable property becomes exempt
July 1
Final Day to File for 2012 Property Tax Refund
August 15
Final Day to Pay the First Half Manufactured Home Taxes
August 31
2013 Abstract to the Department of Revenue
September 1
Second Half Pay 2013 Taxes Due
October 15
Anticipated Day to Mail 2014 Proposed Tax Notices
November 15
Last Day to Establish Homestead for 2013
December 1
Final Day to File Homestead Application for 2013
December 15
3
City of Fridley
Assessment and Valuation Timeline Roll 2013/Pay2014
October 1, 2011 through September 30, 2012
stth
Sales are analyzed and then qualified for the sales ratio study. Qualified sales will
be used to determine the changes needed to reach the target level of assessment.
April 30, 2012 through September 30, 2012
thth
Inspection of 20% of the city and property data cards updated to reflect current
condition and any new construction.
October 1, 2012 through December 30, 2012
stth
Inspection of prior years permit work that was not complete and inspection of new
permit work for the current year.
Ratio reports are run to determine the current level of assessment and the
percentage changes needed in the land and improvements to meet the target level
of assessment.
January 2, 2013
nd
The estimated value is effective as of this date.
March 15, 2013
th
Tax Statement and Value Notices sent. Staff fields calls from owners at this point as
the first step in the appeal process.
April 22, 2013
nd
The Local Board of Appeal and Equalization meets to hear owner appeals of
valuation or classification.
June 17, 2013
th
The County Board of Appeal and Equalization meets to hear owner appeals
unresolved at the local level.
July 1, 2013
st
The 2013 valuation and classification are certified.
November 15, 2013
th
Truth in Taxation notices is sent. Staff fields calls from owners and directs them to
the appropriate taxing authority.
4
City of Fridley
The 2013 Assessment
The 2013 assessment should be a reflection of the 2012 market conditions. Sales of
property are constantly analyzed to chart the activity of the market place. The
Assessing staff does not create value; they only measure its movement.
Assessing property values equitably is part science, part judgment and part
communication skill. Training as an assessor cannot tell us how to find the "perfect"
value of a property, but it does help us consistently produce the same estimate of
value for identical properties. That after all, is the working definition of equalization.
As of January 2, 2013, there were 10,357 parcel/accounts in the city. This total
includes:
8628 residential parcels
629 non-taxable parcels
531 commercial and industrial parcels
175 apartment/nursing home parcels
326 manufactured home accounts
16 personal property accounts
20 railroad parcels
30 tax forfeit
2 utility parcels
Current state law mandates that all property must be re-assessed each year and
physically reviewed once every five years. We also inspect all properties with new
construction each year. During 2012 we reviewed nearly 1,846 existing properties.
A map illustrating the areas we recently reviewed and those areas to be visited in the
future is presented on the following page. The area in purple is under review this
year while the area shaded in blue was the subject of last year’s review.
5
City of Fridley
6
City of Fridley
Reassessment
State Statute reads: "All real property subject to taxation shall be listed and
reassessed every year with reference to its value on January 2nd
preceding the assessment." This has been done, and the owners of property
in Anoka have been notified of any value change. Minnesota Statute 273.11
"."
reads: All property shall be valued at its market value It further states
"
that In estimating and determining such value, the Assessor shall not
adopt a lower or different standard of value because the same is to serve
as a basis for taxation, nor shall the assessor adopt as a criterion of value
the price for which such property would sell at auction or at a forced sale,
or in the aggregate with all the property in the town or district; but the
assessor shall value each article or description of property by itself, and at
such sum or price as the assessor believes the same to be fairly worth in
"
money. The Statute says all property shall be valued at market value, not may
be valued at market value. This means that no factors other than market factors
should affect the Assessor's value and the subsequent action by the Board of
Equalization.
Market Value
Market valuedefined
has been many different ways. One way used by many
appraisers is the following:
The most probable price that a property should bring in a competitive and open
market under all conditions requisite to a fair sale, the buyer and seller each
acting prudently and knowledgeably, and assuming the price is not affected by
any undue stimulus. Implicit in this definition are the consummation of a sale as
of a specified date and the passing of title from seller to buyer under conditions
whereby:
(1) Buyer and seller are typically motivated:
(2) Both parties are well informed or well advised, and acting in what they
consider their own best interests;
(3) A reasonable time is allowed for exposure in the open market;
(4) Payment is made in terms of cash in U.S. dollars or in terms of financial
arrangements comparable thereto;
(5) The price represents the normal consideration for the property sold
unaffected by special or creative financing or sales concessions granted
by anyone associated with the sale.
7
City of Fridley
Authority of the Local Board of Equalization
Assessments of property are made to provide the means for the measuring of
relative share
the of each taxpayer in the meeting of the costs of local
government. It is the duty of the Assessor to assess all real and personal
property except that which is exempt or taxable under some special method of
taxation. If the burden of local government is to be fairly and justly shared
among the owners of all property of value, it is necessary that all taxable
property is listed on the tax rolls and that all assessments are 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.
council of each city shall
Minnesota Statutes Section 274.01 provides that the
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 (beginning with the 2006 local boards) who has attended an
appeals and equalization course developed or approved by the Commissioner
of Revenue within the last four years.
Section 274.01 states the county assessor shall fix a date for each Board of
Appeal and Equalization to meet for the purpose of reviewing the assessment of
property in its respective town or city. The county assessor is required to serve
written notice to the clerk of each of such bodies on or before February 15th of
each year.
These meetings are required to be held between April 1st and May 31st; and the
clerk of the Board of Appeal and Equalization is required to give published and
posted notice at least ten days before the date set for the first meeting.
The Board of Appeal and Equalization of any city, unless a longer period is
approved by the Commissioner of Revenue, must complete its work and
adjourn within twenty days (20) from the time of convening specified in the
notice of the clerk. No action taken subsequent to such date shall be
valid.
A request for additional time in order to complete the work of the Board of
Appeal and Equalization must be addressed to the Commissioner of Revenue in
writing. The Commissioner's approval is necessary to legalize any procedure
subsequent to the expiration of the twenty day period. The Commissioner of
8
City of Fridley
Revenue will not, however, extend the time for local Boards of Appeal and
Equalization to meet beyond the time when the County Board of Equalization
meets, which is the final two weeks of June.
The authority of the local Board extends over the individual assessments of real
and personal property. The Board does not have the power to increase or
decrease by percentage all of the assessments in the district of a given class of
Changes in aggregate assessments
property. by classes are made by the
County Board of Equalization.
Although the Local Board of Appeal and Equalization has the authority to
increase or reduce individual assessments, the total of such adjustments must
not reduce the aggregate assessment made by the Assessor by more than one
percent of said aggregate assessment. If the total of such adjustments does
lower the aggregate assessment made by the Assessor by more than one
percent, none of the adjustments will be allowed. This limitation does not apply,
however, to the correction of clerical errors or to the removal of duplicate
assessments.
The Local Board of Appeal and Equalization does not have the authority in
any year to reopen former assessments on which taxes are due and
payable. The Board considers only the assessments that are in process in
the current year. Adjustment can be made only by the process of
abatement or by legal action.
In reviewing the individual assessments, the Board may find instances of
undervaluation
. Before the Board can raise the market value of property it
must notify the owner. The law does not prescribe any particular form of notice
except that the person whose property is to be increased in value must be
notified of the intent of the Board to make the increase. The Local Board of
Appeal and Equalization meetings assure a property owner an opportunity to
contest any other matter relating to the taxability of their property. The Board is
required to review the matter and make any corrections that it deems just.
When a Local Board of Appeal and Equalization convenes, it is necessary that a
majority of the members be in attendance
in order that any valid action may
be taken. The local assessor is required by law to be present with his/her
assessment books and papers. He/she is required also to take part in the
proceedings but has no vote. In addition to the local assessor, the county
assessor or one of his/her assistants is required to attend. The Board should
proceed immediately to review the assessments of property. The Board should
ask the local assessor and county assessor to present any tables that have
been prepared, making comparisons of the current assessments in the district.
The county assessor is required to have maps and tables relating particularly to
land values for the guidance of Boards of Appeal and Equalization.
Comparisons should be presented of assessments of types of property with
previous years and with other assessment districts in the same county.
It is the primary duty of each Board of Appeal and Equalization to examine the
assessment record to see that all taxable property in the assessment district has
been properly placed upon the list and valued by the assessor. In case any
property, either real or personal, has been omitted; the Board has the duty of
making the assessment.
9
City of Fridley
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 on
property owner cannot appear before a higher board
the staff level; as a
unless he or she has first appeared at the lower board levels
.
Pursuant to Minnesota Statute 274.01: The Board may not make an individual
market value adjustment or classification change that would benefit the property
in cases where the owner or other person having control over the property will
not permit the assessor to inspect the property and the interior of any buildings
or structures.
A non-resident may file written objections to his/her assessment with the county
assessor prior to the meeting of the Board of Appeal and Equalization. Such
objections must be presented to the Board
for consideration while it is in
session.
Before adjourning, the Board of Appeal and Equalization should cause the
record of the official proceedings to be prepared. The law requires that the
proceedings be listed on a separate form which is appended to the assessment
book. The assessments of omitted property must be listed in detail and all
assessments that have been increased or decreased should be shown as
the record
prescribed in the form. After the proceedings have been completed,
should be signed
and dated by the members of the Board of Appeal and
Equalization. It is the duty of the county assessor to enter changes by Boards of
Appeal and Equalization in the assessment book of each district.
The Local Board of Appeal and Equalization has the opportunity of making a
great contribution to the equality of all assessments of property in a district. No
other agency in the assessment process has the knowledge of the property
within a district that is possessed jointly by the individual members of a Board of
Appeal and Equalization. The County or State Board of Equalization cannot
give the detailed attention to individual assessments that is possible in the
session of the Local Board. The faithful performance of duty by the Local Board
of Appeal and Equalization will make a direct contribution to the attainment of
equality in meeting the costs of providing the essential services of local
government.
The 2013 assessment should be a reflection of the 2012 market conditions. Sales of
property are constantly analyzed to chart the activity of the market place.
10
City of Fridley
Market Values
After thorough studies of the sales in the market place are conducted, we establish the
assessed value of all real property. During the 2012 study period, we recorded 329 sales,
of which we considered 107 to be "arms-length" sales.
In accordance with the results of these sales studies, downward adjustments were made to
nearly all areas of the city with certain styles and grades of homes having larger decreases
than others. This will more properly reflect current market trends.
This decrease is due in large part to the continuing influence of lender owned properties
in the market place. Lender owned homes and short sales are still a majority of the
market and the downward influence on the traditional market is still being felt.
The 2013 assessment that is up for your review has a total unaudited assessed value of
$1,903,470,100 excluding exempt and forfeit property. It reflects an approximate
valuation decrease of 5.34% compared to the 2012 assessment.
The slower rate of decline for the 2013 assessment versus the 2012 is consistent with
metro sales trends indicating a leveling out of the market. The study period, Oct 2011
through September 2012 witnessed a sharp decline in inventory near 25% and an
increase in closed sales of over 17.5%.
The market is now considered in balance by most practitioners with a supply of homes
less than 6 months. Interest rates are still favorable and underwriting appears to be less
of a peril for the majority of borrowers. As of May 2012, Condominium financing
alternatives became much better after changes at HUD made qualification for
developments much more attainable.
As of 04/08/2013 there are 66 homes listed for sale within North Star MLS, 12 are in the
$100,000 and under range, 41 are in the $100,000 to $200,000 range and 13 offerings
over $200,000. There are 35 pending sales with 6 in the $100,000 and under range, 27
in the $100,000 to $200,000 range and 2 in the $200,000 to $300,000 range.
Sales in the first 6 months of the 2013 assessment study period have been strong. There
have been 138 sales with 38 in the under $100,000 range, 91 in the $100,000 to
$200,000 range, 8 sales in the $200,000 to $300,000 range and 1 sale over $300,000.
When compared with the first 6 months of the 2012 assessment, the average selling
price is up 8.2%, the average market time is down 33.1% and sellers are getting 98.25%
of the listing price compared with 97% in the prior period.
Commercial &
YearResidentialTotal% Chg
Industrial
2013$1,260,184,100$643,286,000$1,903,470,100-5.34%
2012$1,337,533,900$673,302,700$2,010,836,600-10.12%
11
City of Fridley
CREV BREAKDOWN FOR ROLL 2013 STUDY
Total Residential % of
Sales 329 Total
Qualified Sales 107 32.5%
Unqualified Sales 222 67.5%
% of
REJECTION CODES AND REASONS Total
#1 Old Sale Outside 21-month Study Period 0 0.0%
#2 Relative Sale, Related Business 12 5.4%
#3 Government or Exempt Party Sale 5 2.3%
#4 Partial Interest Sale 5 2.3%
#5 Use Change 0 0.0%
#6 Unusual Financing, Non-Cash Financing 1 0.5%
#7 Physical Change After Assessment Date 16 7.2%
#8 Deed Correction 0 0.0%
#9 Trade, Gift, Estate Sale Not Exposed to Market 30 13.5%
#10 Prior Interest Sale, Lease with Option to Buy 0 0.0%
#11 DOR Unique Code 0 0.0%
#12 DOR Unique Code 0 0.0%
#13 DOR Unique Code 0 0.0%
#14 CD Payoff, Mortgage Assumption 1 0.5%
Foreclosure, Short Sale, Forced Sale, Legal
#15 Action 22 9.9%
#16 Assessor Value for Sale Year Not Available 0 0.0%
#17 Excessive Non-Real Property 0 0.0%
#18 Rewrite Terms / Default on CD 0 0.0%
#19 Relocation, Employee Transfer 5 2.3%
#20 Leaseback Sale for more than 6 months 0 0.0%
Bank/HUD sales & Lending Inst. sales not
#21 exposed 122 55.0%
Less than Min. Down payment on CD & over 1
#22 year 1 0.5%
#23 Sale under Minimum Amount $3,000 / $10,000 0 0.0%
#24 Sale of Properties in More than One County 0 0.0%
#25 AG Preserve 0 0.0%
#26 Not Typical Market Sale 2 0.9%
#27 Court Ordered Value 0 0.0%
#28 Nursing Home / Mobile Park 0 0.0%
#29 Allocated Sale Price 0 0.0%
#30 Assessor Value Restricted by Plat Law 0 0.0%
#31 Assemblage 0 0.0%
12
City of Fridley
MONTHLY SALES DURING SALES
STUDY
Month / Quarter Total Sales Qualified Unqualified
October 35 15 20
November 27 8 19
December 22 9 13
4th Quarter 2011 84 32 52
January 18 2 16
February 24 3 21
March 29 11 18
1st Quarter 2012 71 16 55
April 25 4 21
May 43 14 29
June 28 10 18
2nd Quarter 2012 96 28 68
July 23 12 11
August 26 8 18
September 29 11 18
3rd Quarter 2012 78 31 47
Annual Totals 329 107 222
Monthly Sales During Sales Study
120
October
110
November
100
December
90
January
80
70
February
Sales
60
March
50
April
40
May
30
June
20
July
10
August
0
1
September
Months
13
City of Fridley
2012-2013 Market Value Comparison
2012 ASSESSMENT
PERCENT OF TOTAL MARKET VALUE
APARTMENTS
APARTMENTS
10%
COMMERCIAL
INDUSTRIAL
COMERCIAL
OTHER
INDUSTRIAL
RESIDENTIAL
37%
RESIDENTIAL
52%
OTHER
1%
2013 ASSESSMENT
PERCENT OF TOTAL MARKET VALUE
APARTMENTS
APARTMENTS
9.5%
COMMERCIAL
INDUSTRIAL
COMERCIAL
OTHER
INDUSTRIAL
RESIDENTIAL
33.5%
RESIDENTIAL
56%
OTHER
1%
14
City of Fridley
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 notice 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
analysis of stratified sales within the city. This method uses
the "Principle of Substitution" and calculates what a buyer
would have to pay to replace each home today less age
dependent depreciation.
3. A comparative market analysis is used to verify
these estimates. The properties used for these studies are those that most recently
have sold and by computer analysis, are most comparable to the subject property
taking into consideration construction quality, location, size, style, etc. The main
point in doing a market analysis is to make sure that you are comparing "apples with
apples". This will make the comparable properties "equivalent to" the subject
property and establish a probable sale price of the subject.
These three steps give us the information to verify our assessed value or to adjust it if necessary.
Sales Studies
According to State Law, it is the assessor's job to appraise all real property at market
value for property tax purposes. As a method of checks and balances, the
Department of Revenue uses statistics and ratios relating to assessed market value
and current sale prices to confirm that the law is upheld. Assessors use similar
statistics and sales ratios to identify market trends in developing market values.
A sales ratio is obtained by comparing the assessor's market value to the adjusted
sales price of each property sold in an arms-length transaction within a fixed period.
An "arms-length" transaction is one that is generated after a property has had
sufficient time on the open market, between both an informed buyer and seller with
no undue pressure on either party. The median or mid-point ratios are calculated
and stratified by property classification
.
15
City of Fridley
100%
The only perfect assessment would have a 100% ratio for every sale. This is of course, is
impossible. Because we are not able to predict major events that may cause significant
shifts in the market, the state allows a 15% margin of error.
The Department of Revenue adjusts the median ratio by the percentage of growth from the
previous year's abstract value of the same class of property within the same jurisdiction.
This adjusted median ratio must fall between 90% and 105%. Any deviation will warrant a
state mandated jurisdiction-wide adjustment of at least 5%. To avoid this increase, the
Anoka County Assessor requests a median sales ratio of 94.5%.
In Anoka County, we have the ability to stratify the ratios by style, age, quality of
construction, size, land zone and value. This assists us in appraising all of our properties
closer to our goal ratio.
Sales Statistics Defined
In addition to the median ratio, we have the ability to develop other statistics to test
the accuracy of the assessment. Some of these are used at the state and county
level also. The primary statistics used are:
Aggregate Ratio
: This is the total market value of all sale properties divided by the
total sale prices. It, along with the mean ratio, gives an idea of our assessment
level. Within the city, we constantly try to achieve an aggregate and mean ratio
of 94% to 95% to give us a margin to account for a fluctuating market and still
maintain ratios within state mandated guidelines.
Mean Ratio
: The mean is the average ratio. We use this ratio not only to watch our
assessment level, but also to analyze property values by development, type of
dwelling and value range. These studies enable us to track market trends in
neighborhoods, popular housing types and classes of property.
Coefficient of Dispersion (COD)
: The COD measures the accuracy of the assessment. It
is possible to have a median ratio of 93% with 300 sales, two ratios at 93%, 149 at 80%
and 149 at 103%. Although this is an excellent median ratio, there is obviously a great
inequality in the assessment. The COD indicates the spread of the ratios from the mean
or median ratio. The goal of a good assessment is a COD of 10 to 20. A COD under 10
is considered excellent and anything over 20 will mean an assessment review by the
Department of Revenue.
Price Related Differential (PRD)
: This statistic measures the equality between the
assessments of high and low valued property. A PRD over 100 indicates a regressive
assessment, or the lower valued properties are assessed at a greater degree than the
higher. A PRD of less than 100 indicates a progressive assessment or the opposite. A
perfect PRD of 100 means that both higher and lower valued properties are assessed
exactly equal.
16
City of Fridley
Current Sales Study Statistics
The following statistics are based upon ratios calculated using 2012 pay 2013 market values
and October 2011 - September 2012 sales. These are the ratios that our office uses for
citywide equalization, checking assessment accuracy, and predicting trends in the market.
Statistic 2012
Median Ratio: 94.30
Aggregate Ratio: 94.25
Mean Ratio: 95.07
COD: 6.6
PRD: 101
2013 Anoka County Ratio Study
MunicipalitySalesMedian RatioCoefficient
County of Anoka 2004 94.5 7.7
Andover 224 94.3 5.8
Anoka 87 94.9 8.8
Blaine 456 94.3 7.7
Circle Pines 45 94.3 7.5
Columbia Heights 125 94.6 11.2
Coon Rapids 314 94.8 6.6
Fridley 107 94.3 6.6
Ham Lake 102 94.5 9.5
Ramsey 128 94.7 6.9
Spring Lake Park 27 95.5 7.7
17
City of Fridley
2013 Fridley Residential Ratio by Zones
NumberMedianCoefficient
NeighborhoodNeighborhoodOfSalesOf
CodeDescriptionSalesRatioDispersion
694.68.76
FR01FRIDLEY LAND ZONE 1
1093.885.76
FR02FRIDLEY LAND ZONE 2
293.917.74
FR03FRIDLEY LAND ZONE 3
3293.766.92
FR04FRIDLEY LAND ZONE 4
2493.706.67
FR05FRIDLEY LAND ZONE 5
894.285.10
FR06FRIDLEY LAND ZONE 6
795.323.71
FR07FRIDLEY LAND ZONE 7
296.78 N/A
FR01-9FRIDLEY LAND ZONE 9 WATER
0N/AN/A
FR21TOWNHOUSE LAND ZONE 1
0NA NA
FR22TOWNHOUSE LAND ZONE 2
0N/A N/A
FR23TOWNHOUSE LAND ZONE 3
0N/AN/A
FR24TOWNHOUSE LAND ZONE 4
199.85NA
FR25TOWNHOUSE LAND ZONE 5
293.404.07
FR26CONDO LAND ZONE 6
0N/AN/A
FR27TOWNHOUSE LAND ZONE 7
3101.545.26
FR28TOWNHOUSE LAND ZONE 8
494.594.68
FR29DOUBLES LAND ZONE 9
18
City of Fridley
Appeals Procedure
Each spring Anoka County sends out a property tax bill. Three factors that affect the tax bill are:
1. The amount your local governments (town, city, county, etc.) spend to provide services to
your community,
taxable market value
2. The of your property, and
classification
3. The of your property (how it is used).
The assessor determines the final two factors. You may appeal the value or classification of your
property.
Informal Appeal
•
Property owners are encouraged to call the appraiser or assessor whenever they have
questions or concerns about their market value, classification of the property, or the
assessment process.
•
Almost all questions can be answered during this informal appeal process.
•
When taxpayers call questioning their market value, every effort is made to make an
appointment to inspect properties that were not previously inspected.
•
If the data on the property is correct, the appraiser is able to show the property owner
other sales in the market that support the estimated market value.
•
If errors are found during the inspection, or other factors indicate a value reduction is
warranted, the appraiser can easily make the changes at this time.
Local Board of Equalization
•
The Local Board of Equalization includes the mayor and city council members.
•
The Board meets during April and early May.
•
Taxpayers can make their appeal in person or by letter.
•
The assessor is present to answer any questions and present evidence supporting their
value.
County Board of Appeal and Equalization
In order to appeal to the County Board of Appeal and Equalization, a property owner must first
appeal to the Local Board of Appeal and Equalization.
•
The County Board of Appeal and Equalization follows the Local Board of Appeal and
Equalization in the assessment appeals process.
•
Their role is to ensure equalization among individual assessment districts and classes of
property.
19
City of Fridley
•
th
The County board meets in June. In 2013 it will commence on June 17 at 6:00 pm.
•
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.
Small Claims Division of the Tax Court
The only hears appeals involving one of the following
situations:
The taxes, interest and penalties do not exceed $5,000.
The entire parcel is classified as a residential homestead and the parcel contains no more
than one dwelling unit.
The entire property is classified as an agricultural homestead.
Appeals involving the denial of a current year application for homestead classification of the
property.
The proceedings of the small claims division are less formal and property owners often
represent themselves. There is no official record of the proceedings. Decisions made by the
small claims division are final and cannot be appealed further. Small claims decisions
do not set precedent.
Regular Division of the Tax Court
The will hear all appeals, including those within the
jurisdiction of the small claims division. Decisions made here can be appealed to a higher
court.
The principal office for the Tax Court is located in St. Paul. However, the Tax Court is a circuit
court and can hold hearings at any other place within the state so that taxpayers may appear
with as little inconvenience and expense to the taxpayer as 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.
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City of Fridley
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