Somebody asked a few dozen posts ago about appealing taxes. Here's
some info.
Steve Brandt
Star Tribune
Paper: STAR TRIBUNE (Mpls.-St. Paul) Newspaper of the Twin Cities
Headline: TAKING ON THE ASSESSOR // Knowing how to fight City Hall is
the trick
Date: 04/18/93
Section: BUSINESS
Page: 01D
Edition: METRO
Byline: Steve Brandt; Staff Writer
Graphic: CHART;ILLUSTRATION
Length: 20.3
Subject: taxation;real estate;government;article
Slug: ASSE18
There's still a holiday hangover on your credit card bill. Form
1040 says pay up. Now your mailbox holds the news that the tax
assessor has jacked up the value of your home.
Most people grumble and learn to live with higher assessments.
But this is one time when it might pay to fight City Hall. In fact,
your assessment notice tells where and when to appeal. But knowing
how can save you thousands of dollars.
First, let's be clear about what you're attempting to do.
The assessor is estimating how much your home would sell for in
an arm's length transaction between a willing buyer and seller, as
of the previous Jan. 1. This year's assessment will be one factor
in the taxes you pay next year.
To change that assessment, you need to pinpoint sales of other
homes that prove your assessment is too high. The key to doing so,
assessors say, is to cite examples of homes that are as similar to
and geographically close to yours as possible. You also want to
identify comparable homes sold as recently as possible.
Few homeowners have a good feel for housing values unless
they've recently been in the market, said Mike Livingston, who
supervises residential assessments for Minneapolis..
He recommends that homeowners test their assessments by
checking sale prices for their neighborhood listed in the Star
Tribune's Saturday Homes section. Someone with a home assessed at
$70,000 might drive by nearby homes listed in the $65,000 to $75,000
range.
"If the property's considerably nicer than theirs and it sold
for what their property is valued at, then their property is
probably valued too high," Livingston said.
But appearances may deceive. The neighboring house that looks
like yours may be 200 square feet smaller. Or it may have a 1940s
kitchen while yours was remodelled last year.
That's why the assessor's office in your municipality is a good
place to start your challenge. The office has detailed information
on the houses that at least on the outside look like yours. The
assessor's office also can informally resolve an assessment dispute.
"The preponderance of cases will be resolved by talking to the
assessor first," said Robert Hanscom, Hennepin County's appraisal
manager. Moreover, discussing issues with the assessor can
strengthen a case presented to members of a municipal or county
appeals board, he said.
Talking to the assessor also can clarify what challenging your
assessment is not about. It's not about your ability to pay taxes
or whether your taxes are too high. The assessor's sole job is to
estimate market value. Homeowners will be "wasting their time
talking about tax rates," said Jude Okney, who listened to property
owner appeals for seven years on Hennepin County's Board of
Equalization.
Much the same goes for local and county boards of review, which
may change an assessment if the assessor won't. Take along
statistics, not arguments, assessors say. It also helps to take
photographs of deficiencies in your property - such as foundation
cracks - and photos of homes that are comparable to your property
and were assessed for less.
How a homeowner fares in an appeal depends in part on the
attitudes of local board members, who often are familiar with local
real estate conditions. The Minneapolis Board of Review heard 133
residential assessment cases last year. Ninety-eight assessments
were lowered and 32 were maintained. But three were increased.
That's one danger of appealing. A board may decide to raise a
property's assessment if it's undervalued. "A frivolous appeal
could be quite damaging," Hanscom said.
Property owners who aren't satisfied with the decisions of
local review boards can appeal to the county level. Last year in
Hennepin County 12 of 40 homestead assessments were cut. The
biggest was a $53,600 reduction on a $350,000 home in Orono.
The home front
How to get your property assessment changed
Your property tax notice arrives in the mail. Your home has leaped
in value - nice news, maybe, except your taxes also jumped.
Realistically, you think the value is too high. What can you do?
1. Check your facts:
- Make sure the statement is correct.
- Look at the price of homes for sale in your neighborhood.
2. Visit your local assessor:
- Review similar properties in your area.
- Try to resolve the dispute informally.
3. Appeal:
There are two routes you can take.
The local route:
Try first with local officials. This process is typically used
for less expensive homes.
Local board of review:
Who: Usually members of city council of town board.
When: April or May
How: Appear in person, or send a letter or a representative.
County board of equalization:
Who: County commissioners or appointees.
When: Second half of June.
How: In person, letter or representative.
The express route:
You also can go straight to the state level. The deadline isn't
until the May after you receive your notice of valuation,
which allows plenty of time to prepare your case, plus you can
avoid the rush of homeowners trying to appeal through their
local boards.
Minnesota Tax Court:
When: by May 15 of the year after you receive your notice of
valuation.
Small claims division:
- Homestead or any property under $100,000.
- Decision final - no appeal.
- Attorney not necessary.
Regular division:
- Any property; all those over $100,000; all those using the
"express route."
- Can appeal to state Supreme Court.
- Attorney typically used.
