Taxpayer Services
Frequently Asked Questions
1) Why did my market value go up when I didn't do anything to my property?
2) What will happen to my market value if I improve my property?
3) Will my market value go up if I repair my property?
4) Why is my estimated market value different than the taxable market value?
5) What can I do if I think the market value is too high?
6) A house in my neighborhood sold recently. How can I find out the sale price? How can I find out the sale price of homes similar to mine?
7) Am I supposed to receive a homestead card every year?
8) Are senior citizen's taxes frozen?
9) What are the metro special taxing districts?
10) What is "Tax Increment" tax?
11) What is "Fiscal Disparity" tax?
12) Can the tax due on my tax statement be higher than the amount on my proposed tax notice?
13) Is there any way I can appeal my property taxes?
1) Why did my market value go up when I didn't do anything to my property?
The estimated market value of your property is just that - it is an estimate of what your property would sell for. It is based on sales of similar properties, so depending on the market your value can change even if nothing was done to the property. The assessor is responsible for establishing the estimated market value and classification of property. If you do not feel that your market value is accurate, or if you would like to know how your market value was determined, you will need to speak to an assessor/appraiser.
2) What will happen to my market value if I improve my property?
Generally speaking, improvements that increase the market value of a property will increase the assessor's estimated market value. The following are typical improvements that will increase the estimated market value of your property: added rooms or garages, substantial modernization of kitchens or baths, central air conditioning, fireplaces, extensive remodeling.
3) Will my market value go up if I repair my property?
Good maintenance will help retain the market value of your property. Generally, your estimated market value will not be increased for individual minor repairs such as those that follow. However, a combination of several of these items could result in an increase in your estimated market value: replacing water heater, repairing or replacing roof, repairing porches or steps, repairing original siding, painting/decorating, replacing plumbing or electrical fixtures.
4) Why is my estimated market value different than the taxable market value?
Laws have been passed that reduce or defer the amount of market value that you pay property taxes on newly platted vacant land exclusion, deferred value under "green acres," and "This Old House" exclusion. For additional information of these exclusion or deferment programs, call at 651-430-6110.
5) What can I do if I think the market value is too high?
What should I do if I feel my market value or classification is incorrect? There are two avenues of appeal that property owners may take to challenge their assessments. The first route is referred to as the three-step appeal process and the second route is known as the one-step appeal process. The three-step appeal: 1. Property owners who have questions or concerns regarding the market value or classification of their property are encouraged to contact the property appraiser responsible for their area. In most cases, an interior inspection of the property will be necessary. We have found that a large number of property owner concerns can be resolved after speaking to an appraiser. 2. If your questions or concerns are not resolved after talking with your appraiser, you may appear before the Local Board of Appeal and Equalization or attend the Open Book meeting in your community. These meetings are held in April or May. Reference your valuation notice or call your appraiser to find out the time and place of the meeting held in your community. Your appeal can be made in person, through a letter or through a representative authorized by you. 3. If property owners are not satisfied with the action taken at the Local Board of Appeal and Equalization, they may appear (in person, through a designated representative, or by sending a written request) before a second board, called the County Board of Appeal and Equalization. In order to be put on the agenda for the County Board of Appeal and Equalization, contact the Assessor's Office at 651-430-6110. The County Board is made up of elected county commissioners, the county auditor/treasurer, and/or appointed officials. Property owners who appeal their assessments at this level must have first appeared before the Local Board of Appeal and Equalization if they choose to have their grievances acted upon by this Board. If property owners still feel aggrieved as a result of the action taken by this Board, they may file a petition in Minnesota Tax Court (i.e., small claims or regular division depending upon property type and estimated market value). All appeals must be filed on or before April 30 of the year the tax becomes payable. The one-step appeal process bypasses both the Local Board of Appeal and the County Board of Appeal and Equalization. It involves making an appeal directly to the regular division of Minnesota Tax Court. The same filing requirements and deadlines apply to all property owners who choose this route. The Minnesota Tax Court is located at Minnesota Judicial Center, Suite 245, 25 Rev. Dr. Martin Luther King, Jr. Blvd., St. Paul, Minnesota 55155. The phone number is 651-296-2806.
6) A house in my neighborhood sold recently. How can I find out the sale price? How can I find out the sale price of homes similar to mine?
A Certificate of Real Estate Value (CRV) is filed whenever a property is sold. These are on file in the Assessor's Office and are available for the public to come in and view.
7) Am I supposed to receive a homestead card every year?
No. That law was changed several years ago (the last year that cards were sent to everyone was 1993). You are, however, required to notify the assessor within 30 days if the property is sold or if you are no longer occupying the property as your homestead.
8) Are senior citizen's taxes frozen?
The senior citizen tax freeze that existed in the mid-1970s was replaced by the property tax refund program. However, you may be able to defer a portion of the property tax on your homestead if you are a qualifying senior citizen. To be eligible, you must be at least 65 years old, with a household income of $60,000 or less, and have lived in your home for at least 15 years. Senior citizens that participate in this program will only have to pay a tax equal to 3 percent of their net income. The State of Minnesota will pay the remaining tax as a low-interest loan. The unpaid tax along with accumulated interest will become a lien on the property. This lien must be satisfied upon the sale of the property. Participants who apply for property tax refunds or rebates will not receive the refunds or rebates as cash payments. Instead, the refunds or rebates will be applied to the deferred property tax total. To receive a fact sheet and application, call 651-296-0335 or 1-800-652-9094, extension 6-0335.
9) What are the metro special taxing districts?
The metropolitan special taxing districts consist of the Metropolitan Council, Metropolitan Council Transit Operations, and the Metropolitan Mosquito Control District. The other special taxing districts consist of watershed districts, the Washington County Housing and Redevelopment Authority and, the County Regional Rail Authority.
10) What is "Tax Increment" tax?
A number of Tax Increment Financing (TIF) districts have been created within Washington County. Basically, TIF is a program which allows the increased property taxes generated by a development to pay for development costs. Tax Increment is not an additional tax. Tax Increment does not affect the calculation of the tax amount; rather, it affects the distribution of the tax. The tax due is calculated the same as for a property that is not in a TIF district, but money that would normally go to the county, city, school, and special taxing districts is instead diverted to the TIF district.
11) What is "Fiscal Disparity" tax?
Fiscal Disparity is a program that provides for tax base sharing throughout the seven-county metro area. The way it works is that a percentage of the value of each commercial/individual parcel in the seven-county area is taxed at a uniform rate. That portion of the tax is listed on the tax statement as fiscal disparity tax. The remainder of the value is taxed at the local tax rate. Fiscal Disparity tax is not an additional tax; rather, commercial/industrial property is taxed at two different rates. The fiscal disparity is distributed to all taxing districts in the seven-county metro area based on a formula.
12) Can the tax due on my tax statement be higher than the amount on my proposed tax notice?
Yes, for the following reasons: The proposed tax notice does not include special assessments. The proposed tax notice states that upcoming referendums could result in increasing the tax amounts. Property owners who occupy their property by Dec. 1 are granted homestead benefit for the following year. However, this decreases the tax base available to the taxing districts and can cause the tax rate to increase, even though the taxing districts are not receiving any more money.
13) Is there any way I can appeal my property taxes?
Local Boards of Review and County Boards of Equalization are held each spring to confirm market values. Public budget ("Truth in Taxation") hearings are held in November/December each year to review the amount of taxes being levied by the taxing districts. It is important for citizens to attend these meetings.
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