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How often are properties appraised by the Assessor's
office?
Under State law, 20% of the properties should
be viewed and reassessed each year or at least once
every five years. Values can be changed on an annual
basis (based upon changing market conditions), however,
an inspection and appraisal review should be conducted
every fifth year. All new construction is to be valued
each year.
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What if I think my property is over assessed?
Come in and talk to the Assessor. We welcome an opportunity
to explain the assessment and listen to valid reasons
why you feel your property value is too high. Assessment
records are public information, and you can also
compare your assessment with any other properties
you choose. If you still disagree with the assessment,
there are formal appeals you may take.
What is a
Special Assessment?
A special assessment is an improvement,
which directly benefits the property. Common assessments
include streets, sidewalks, streetlights, and sewers.
The amount is based on how much the property benefits
from the improvement and the cost of the project.
The property’s market is not used to determine
the amount of the special assessment.
How does the
Assessor determine the Estimated Market Value?
A
mass appraisal process is used for Estimating Market
Values. Information from all sales that occur within
the county is collected and closely analyzed by the
Assessor's Office. The Assessor's Office then adjusts
market values by comparing properties that sold within
a given area with properties that have not sold within
that same area.
Does the Estimated Market Value increase
at the same rate on all properties?
No, it does not.
There are differences between individual properties
and between cities or townships. In one area the
sales may indicate a large increase in value and
in another area there may be very little or no change
in value. Also, different types of property within
the same area may show different value changes. There
are numerous factors to be considered in each property
which will cause value changes to differ. Some of
the factors that can affect value are location, condition,
size, quality, basement finish, garages and many
other factors.
Can the Estimated Market Value change
even if the appraiser has not been inside my property?
Yes. The assessor keeps records on the physical characteristics
of each property in the county. Even though the assessor
may have been unable to go through your property,
the Estimated Market Value will be reviewed based
on existing records and sales of similar property.
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How is my market value calculated?
Sales of real
estate properties are used as a guide in determining the Assessor’s
market values. These sales are analyzed to determine
which factors contribute to the value. These factors
are then put into a model or formula to apply to
all properties. The values are then tested to make
sure that the quality of the assessment meets statistical
requirements.
Does an increase in Estimated Market
Value always mean in increase in property tax?
Not
necessarily. Many factors go into determining how
much property taxes change from year to year. The
items include spending habits of local governments,
school bonds for either building or operating expenses,
changes made by the legislature in the state property
tax system, the amount of new construction within
the county and a change in property value or classification.
A change in any of these can result in tax increases or decreases.
Do I have to allow the Assessor into my home?
Even
though Minnesota Statute 273.20 authorizes Assessors
to enter dwellings to conduct their appraisals, the
same law recognizes a property owner’s right
to privacy. If you wish to deny an appraiser access,
you must notify him either verbally or in writing.
Minnesota Statutes recognize that we then make our best
estimate of the property’s market value by
having first-hand knowledge of the property’s
finish and condition. No appeal board may change
a market value without an interior inspection.
What
can I do if I think the Estimated Market Value is
too high?
You are encouraged to first contact your
Assessor’s Office and discuss the assessment
with the appraiser for your property. You have the
right to appeal the estimated market value. The methods
of appeal are detailed on the back page of your
estimated market valuation notice, also known as your
Valuation and Classification notice, that is mailed
to all property owners in March or April.
What is a Property
Identification Number (PIN)?
It is a unique number
assigned to each piece of real estate in Dodge County.
The PIN, also known as Parcel Number or Parcel Identification
Number, is printed on the Property Tax Statement,
the Valuation Notice, Proposed Tax Statement, and
various other documents related to real estate taxation
or assessment.
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How does the Assessor determine the
value of my property?
The Assessor visits your property
to record the existence and character of improvements
that contribute to its market value. The Assessor
collects sales information on all types of property,
and studies characteristics such as location, size
of the parcel, improvements and amenities that affect
what buyers would pay for your property. Annual sales
studies are used to analyze market conditions to
determine how the Assessor's Estimated Market Value
compares to actual property sales. Local sales will
impact local values. The Minnesota Department of
Revenue requires that the median ratio of the Estimated
Market Value over the adjusted sales price of all
sold properties within each classification and each
jurisdiction fall within a range of 90% to 105%.
What will happen to my assessment if I improve my
property?
Generally speaking, improvements that would
increase the sale price of a property will increase
the assessment. The following examples are typical
items that may increase the assessed value of your
property:
- added rooms
- an added
garage
- substantial modernization of the
kitchen
- improvements to the bathroom
- central
air conditioning
- fireplaces
- basement
or lower level finishing
- extensive remodeling
- replacing
old siding or windows
- replacing
roof
Normal maintenance, such as periodically painting
or replacing worn flooring, will help retain the
market value of your property, but generally it will
not affect your assessment.
Will the Assessor's Office
notify me of my property value?
After the assessment
is completed, notices are mailed to the property
owners. This notice will state the following:
- Current
Estimated Market Value from January 2nd and the prior
assessment year.
- Limited market value
for the current and prior assessment year. Limited
market is an amount set by the legislature annually
that limits the amount your taxable market value
can increase from year to year.
- Classification
of the property for the current and prior assessment
year.
- Taxable market value for the current
and prior assessment year. Taxable market value may
differ from the estimated market value due to special
valuation exclusions allowed by law.
- Information
for appealing the estimated market value or classification
if you feel an error has been made on your property
record.
It is very important that the property owner
review this notice. The values and classification
stated on the notice will be used to calculate the
owner's share of the taxes payable in the following
year.
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How will my taxes change as a result of the
new assessment?
Taxing jurisdictions, such as the
county, schools, cities and townships, adopt budgets
after public hearings. This determines the tax levy,
which is used to calculate the rate of taxation required
to raise the money budgeted. The taxes you pay are
proportionate to the value and classification of
your property compared to other properties in your
taxing district. An increase or reduction in your
Estimated Market Value does not directly correlate
to an increase or reduction in property tax for the
following year. Your market value and classification
determine your share of the tax burden with the tax
levy determining the actual dollar amount that you
will pay.
Why has my value gone up?
The Assessor
has not created the value. People make value by their
transactions in the market place. Property values
are based on market values which fluctuate with general
economic conditions such as interest rates, inflation
rates, supply and demand and changes in tax laws.
By Minnesota state law, as properties values change
in the market place, those changes must be reflected
in the Assessor's Estimated Market Value.
Why does
my market value change if I have made no improvements
to my property?
Trends in the real estate market
due to local economic conditions, interest rates,
and supply and demand influence the value of property.
The Assessor’s Office studies the real estate
market each year. When properties sell for more each
year, the Assessor is required to adjust the values
accordingly. Estimated Market Values can also be
decreased if the real estate market shows sale prices
are going down.
How are your Real Estate taxes determined?
Taxing jurisdictions such as the county, schools,
cities, and townships, adopt their levy after public
hearings. The levies are certified to the Finance
Director who then calculates the tax rates. The
taxes you pay are proportionate to your Estimated
Market Value and use classification of your property
as observed by the Assessor’s Office. Similar
properties with their differing amenities and sales
prices are used as a comparison with other properties
that have not sold, to estimate their value.
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