For many people, real property makes up a large part of their portfolios. The assessment made every year by the Minnesota Revenue affects the value of the real property and the property owner’s annual tax bill. After property values are assessed or estimated, counties send the owners a Notice of Valuation and Classification stating their tax obligation based on the assessed value of property. Sometimes the government gets it wrong. But they don’t have to have the final word, because you have the right as the property owner to appeal their decision.
How Is My Tax Assessment Calculated?
Your tax bill may be affected by:
- How much your local governments spend on services;
- The estimated market value of your property; and
- How your property is used, which determines its classification.
It’s important to note that the actual amount of taxes you owe is not set by the assessor, just the valuation of your property. Disagreements with the amount of taxes you must pay is an issue for local government.
The assessor considers factors like the location of the property, any improvements to the land, and type of improvements when setting the fair market value. Then, your property is compared to the sales price of similar properties in the area to come up with a reasonable estimate.
As for classifications, different property types have different classification rates. The state legislature determines the classification rates. Property may be classified as a home, apartment, cabin, or farm business.
The Assessors Got It Wrong!
You have the right to appeal if you feel your assessment:
- overvalued or undervalued your property;
- is not in sync with similar local properties; or
- gave your property the wrong classification.
Do a little research before you confront anyone about your property assessment. Also, ask for an inspection of your property if one has not been done in some time.
How Can I Appeal?
If, after conducting your own investigation, you still feel the assessment is wrong, contact your local county assessor’s office. State your case that the market value or classification is wrong.
If they let the assessment stand, there are other steps you can take:
- File a formal appeal with your local Board of Appeal and Equalization.
- If that doesn’t work, appeal to the County Board of Appeal and Equalization.
- Still in disagreement? File an appeal with the Minnesota Tax Court.
At every level of the appeal process you may appear in person, send a letter, or have a someone represent you.
How We Can Help.
Making sure your property is valued and classified correctly is important to you. Consult with an experienced attorney to make your appeal run more smoothly.
Call Virtus Law at 612.888.1000 or send us an email at info@virtuslaw.com. Our main office is in Minneapolis, Minnesota. We also assist clients in Edina, Mendota Heights, Red Wing, and surrounding communities.