What impact does the new assessment have on my property taxes?
The probable property tax impact of the new assessment is not addressed through this notification or the local board of appeals process.
Tax impact information is published in November of each year on a notice of proposed property tax, also known as the truth-in-taxation statement. At that time, the responsibility of elected officials in establishing the property tax levies is made clear. (NOTE: This latter notice provides property owners with an estimate of how much their property tax bill will either increase or decrease due to spending or other factors. It also provides the date, time and places for scheduled hearings where one may go and speak on budgets and future taxes.)
The Local Board of Appeal and Equalization duties are:
To determine whether or not all taxable property in the township or city has been properly valued and classified by the assessor for taxation purposes.
To hear all complaints and objections made in person, by letter, or through a representative of the owner.
To review the assessments in detail and take action as they deem fair and appropriate in light of the general property tax laws, procedures and practices as well as the facts presented.
The Assessor’s role at the Local Board of Appeal and Equalization Meetings is to:
Provide assessment information, answer questions, support valuations and classifications through the presentation of sales data and factual information, and explain the application of pertinent property tax laws and programs and recommend changes if applicable. (NOTE: The assessor is not considered a board member and cannot vote in matters requiring action.)
Local Board of Appeal and Equalization Meetings are:
Held annually by townships and cities between April 1st and May 31st.
Provided in an attempt to address the grievances of property owners who choose to appeal their current assessment year’s valuation and/or classification.
Conducted fairly and objectively according to the laws of the state.
Vital in the appeals process and contribute to the attainment and preservation of assessment equalization.
I received my Notice of Valuation and Classification for Taxes payable in the following year in the mail, what is it?
It is used to inform taxpayers about general assessment information, changes in their valuation and tax classification, and qualifying factors regarding the scheduled appeal and equalization meetings as well as the Minnesota Tax Court option.
The Notice clearly identifies the following property information:
- Property ID
- Property information (Legal Description)
The following items are provided for the current and prior year’s assessment:
- Property Classification
- Estimated Market Value
- Value of New Improvements (Construction)
- Limited Market Value
- “Green Acres” Value (for the townships that have green acres implemented)
- Plat Deferral
- “This Old House” Exclusion
- Taxable Market Value
- It also includes the dates, places and times set for the Open Book Meetings, the Local Board of Appeal and Equalization, and the County Board of Appeal and Equalization.
*** RV HMSTD or RV NON-H - this classification is Rural Vacant Land. This classification includes your land that is not actively farmed and usually is meadow, woods and/or waste.
Whose burden is it to contest a property assessment?
The property owner. In Minnesota, the assumption is that the assessor has properly valued and classified all property in the township or city.
It is the property owner’s responsibility to present market and/or factual evidence to the local board in order to disprove the assessment and support a value or classification that is different than that opined by the assessor.
What actions can be taken by the Local Board of Appeal and Equalization?
The Local Board of Appeal and Equalization has the authority to take action on certain matters such as:
- Reduce the value of a property
- Increase the value of a property
- Add property to the assessment list
- Add improvements to the assessment list
- Change the classification of the property
What actions CANNOT be taken by the Local Board of Appeal and Equalization?
There are several conditions cited in law that restrict or limit the local board’s scope of authority such as:
- Consider prior year assessments
- Order percentage increases or decreases for an entire class of property
- Reduce the overall assessment of a township/city by more than 1%
- Exempt property
- Make changes benefiting a property owner who refuses entry to the assessor
When do I receive notification of the decision made by the Local Board of Appeal and Equalization?
You will be notified by mail of the Local Board’s decision. This notification is generally sent by the Sibley County Assessor’s Office within 10 days after the adjournment of the Local Board of Appeal and Equalization meeting.
Local Board of Appeal and Equalization Training:
Legislation enacted in the 2003 session requires that, at each meeting of a Local Board of Appeal and Equalization (beginning with the 2006 local boards), there be at least one voting member who has, within the last four years, attended an appeals and equalization course developed or approved by the Commissioner of Revenue.
The appeals and equalization course details the responsibilities, procedures and requirements of Local Boards of Appeal and Equalization. The legislation also requires the Commissioner of Revenue to develop a handbook to be reviewed during the course. The contents of the handbook include:
- the role of the local board in the assessment process;
- the legal and policy reasons for fair and impartial appeal and equalization hearings;
- local board meeting procedures that foster fair and impartial assessment reviews and other best practices recommendations;
- quorum requirements for local boards; and
- explanations of alternate methods of appeal.