Item 1. 2022 Otsego Local Board of Appeal Equaliztion Report2022 ASSESSMENT
OVERVIEW
Item 1.
Review the 2022 Assessment for property taxes due and payable in 2023
Changes to the value or classification of an individual parcel can be made
based on the factual information provided during the meeting.
A quorum must be present with at least one “Training Certified” member as
described under Minnesota statutes, section 274.014
MN State law requires the assessor to value property at 100% of market value.
The assessor’s estimate of market value is prima facie valid correct. The
burden of proof is on the property owner to prove that the assessor’s value is in
error. MN Statutes, section 271.06
The Purpose of the Local Board
“The goal of the Board of Appeal and Equalization should be to attempt to address
property owners’ issues efficiently, fairly and objectively.”
“Always keep in mind that any changes made by the board must be substantiated
by facts.”
“Any value reductions must be justified because they have the effect of shifting the
tax burden to other property in the jurisdiction.”
“Further, any changes made by the board must meet statutory guidelines.”
Source: Minnesota Department of Revenue Board of Appeal and Equalization Handbook; updated December 2021
The Purpose of the Local Board
What is the role of the Assessor?
To Value and Classify Property
Value = based on market data collected and analyzed including sales, cost and
income.
Classification = based on the use of the property. (May or may not match
current zoning)
The results of the analysis by the assessor determines the portion of property
taxes each property owner will pay.
Minnesota Assessor’s are licensed and follow strict legislative requirements
and direction provided by the Minnesota Department of Revenue and State
Legislation.
2022 Assessment Recap
Sales Ratio Study Period:
October 1st, 2020 –September 30th, 2021
Property Type # Qualified Sales Valuation
Increase
Median Ratio
after adjustments
Residential / Seasonal Rec 2,281 19.78%94.30%
Agricultural 67 10.96%92.70%
Green Acres .004%
Rural Preserve .008%
Commercial 23 5.44%94.40%
Industrial 9 10.79%95.52%
Apartment 3 15.16%94.52%
2022 Assessment Summary
For all taxable property types, Wright County had an
increase in market value of 20.63% for the 2022 Assessment.
2022 Assessment Market Value Countywide: $21,813,134,800
2022 Net New Construction: $585,213,300
The current assessment meets or exceeds standards for uniform assessment
in all jurisdictions as established by the International Association of
Assessment Officers.
10/1/2020
thru
9/30/2021
January 2nd, 2022 Assessment Date
March Valuation Notices Mailed
April - May Local Boards of Appeal and Equalization
Open Book Appeals
June State Board of Equalization
June County Board of Appeal and Equalization
September Truth in Taxation Levy Certififications
November Truth in Taxation Notifications Mailed
December Final Budget Hearings; Final Levy Certifications
January Tax Rates are calculated
March Property Tax Statements Mailed
May 15th, 2023 1st Half Taxes Due
October 15th, 2023 2nd Half Taxes Due - excluding Agricultural property
November 15th, 2023 2nd Half Taxes Due on Agricultural property2023Assessment Year 2022 - Payable Year 2023
20222020 2021Sales study period for the 2022 Assessment.
Sales are verified, analyzed, and compared to the 2021
Assessed Values.AssessorAuditorProperty Taxation Timeline
Market Appreciation –Impact on Market Value.
“Question, I paid $300,000 for my home last
year and now you’re saying it’s worth $360,000.
How is that possible?”
The assessment date is January 2 of each year.
The market appreciated 20% in your area in the past year.
A purchase price of $300,000 in January of 2021 would
indicate a value of close to $360,000 as of January of 2022.
A purchase price of $330,000 in July of 2021 would also
indicate a value of close to $360,000 as of January of 2022.
$300,000
$330,000
$360,000
$270,000
$280,000
$290,000
$300,000
$310,000
$320,000
$330,000
$340,000
$350,000
$360,000
$370,000
Jan-21 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-22
The Current Market is not unique to Wright County
The Homestead Market Value Exclusion
Why is the Homestead Market Value Exclusion decreasing as the Estimated Market
Value increases?
•Under current law, this exclusion reduces the taxable market value for properties
qualifying for homestead valued below $413,800.
•This benefit applies to residential homesteads and the house, garage and one acre of land
for agricultural homesteads.
•The formula set by state law phases out this benefit as the estimated market value
increases:
•Properties with a total estimated market value of $76,000 receive the maximum
benefit of a 40% reduction in taxable value. (Maximum Exclusion = $30,400)
•Properties valued between $76,000 and $413,800 have their exclusion calculated by
taking the maximum exclusion ($30,400) and reducing it by 9% of the market value
over $76,000.
•Properties valued at $413,800 or more do not receive the exclusion.
Does this mean my taxes will go up 20%?
The impact on the property taxes payable in 2023 will depend on the local
budgets and levies set by elected officials in the fall of 2022.
2021 EMV: $100,000
2021 EMV: $100,000 2021 EMV: $100,000
2021 EMV: $100,000
Consider a city or township that consists of four identical residential properties.
The taxing authorities in this district have determined they require a total of $1,000 to
operate which will be billed to the property owners in 2022.
2022 Property Tax Bill: $250 2022 Property Tax Bill: $250
2022 Property Tax Bill: $2502022 Property Tax Bill: $250
Does this mean my taxes will go up 20%?
The impact on the property taxes payable in 2023 will depend on the local
budgets and levies set by elected officials in the fall of 2022.
2021 EMV: $120,000
2021 EMV: $120,000 2021 EMV: $120,000
2021 EMV: $120,000
During the sale study period for the 2022 Assessment, market values appreciated by 20%.
The taxing authorities determine that they still require $1,000 to operate which is billed to
the property owners in 2023.
2022 Property Tax Bill: $250 2022 Property Tax Bill: $250
2022 Property Tax Bill: $2502022 Property Tax Bill: $250
Property Owner Appeal Options
Contact the Assessor’s Office
Open Book:
April 14th
Wright County Assessor’s Office
or
Anytime before June 6th, 2022
Local Board of Appeal and Equalization Meetings
Appeals must be heard at this level in order to continue to the County Board.
County Board of Appeal and Equalization
June 13th, 2022
Appts required by June 6th, 2022
Tax Court
No need to appeal at any other level.
Petitions must be filed by April 30th of the year in which the taxes are payable.
Property Owner Resources
Wright County Assessor’s Office
https://www.co.wright.mn.us/134/Assessor
763-682-7367
3650 Braddock Ave NE
Suite 1700
Buffalo, MN 55313
Minnesota Department of Revenue
Property Tax Information: https://www.revenue.state.mn.us/property-tax-information
Understanding Property Tax: https://www.revenue.state.mn.us/understanding-property-tax
Estimated Market Value: https://www.revenue.state.mn.us/estimated-market-value
Board of Appeal and Equalization Handbook
https://www.revenue.state.mn.us/sites/default/files/2021-
12/baetraining_handbook%20122021.pdf
Property Tax Refund
https://www.revenue.state.mn.us/property-tax-refund
Wright County Taxpayer Services
https://www.co.wright.mn.us/170/Finance-Taxpayer-Services
763-682-7578
3650 Braddock Ave NE
Suite 1400
Buffalo, MN 55313
An Equal Opportunity Employer
Assessor’s Office
3650 Braddock Ave NE
Suite 1700
Buffalo, MN 55313
Ph: (763) 682-7367
Fax: (763) 684-4553
www.co.wright.mn.us
2022 City of Otsego Assessment
Residential land and building assessed values (less new construction) increased
approximately 18.89% throughout Otsego. The property value increases are the result of
385 “qualified” sales used in the residential sales ratio study. (Assessed value divided by
sale price equals sales ratio). The unadjusted sales ratio for the City of Otsego came in at
86.55% before State Time Adjustment and value changes were made. After the changes
were made the final ratio is 94.05%.
Median appraised value for 2021 $290,081 Median sale price paid in 2021 $301,343
Median appraised value for 2022 $328,710 Median sale price paid in 2022 $349,429
Commercial & industrial values increased by approximately 15.99%
Agricultural land values changed as follows:
Ag land outside the sewer district remains at $14,000/Ac
Ag land inside the sewer district remains at $25,000/Ac
Exception-Ag land in commercial areas along Co Rd 19 remains at $30,000/Ac.
Exception-Ag along Parrish Ave and along Hwy101 remains at $25,000/Ac.
Agricultural values increased approximately 4.01%
Total dollar value of new construction for 2021(residential): $155,408,800
Total dollar value of new construction for 2021(comm / Ind): $ 7,477,900
Total dollar value of new construction for 2021(agricultural): $ 87,300
Total dollar value of new construction for 2021(apartments): $ 21,463,800
Total $184,437,800
History of Otsego City yearly value total:
Year 2019 2020 2021 2022
Value $1,978,985,400 $2,204,869,200 $2,438,667,100 $3,050,490,500
% Change +9.9%+11.4%+10.6%+25.4%
Sincerely,
Mike Vanderlinden and Jaimee Jensen
Wright County Assessor’s Office
Otsego City 2021 Assessment Value Distribution
Classification Value Per Class Percent of Total Value
Residential $2,078,708,450 85%
Commercial $191,406,000 8%
Agricultural $138,582,150 6%
Apartments $29,970,500 1%
Total Value $2,438,667,100
Otsego City 2022 Assessment Value Distribution
Classification Value Per Class Percent of Total Value
Residential $2,626,786,350 86%
Commercial $217,632,100 7%
Agricultural $144,226,550 5%
Apartments $61,845,500 2%
Total Value $3,050,490,500
86%
7%
5%2%
Residential
Commercial
Agricultural
Apartments
85%
8%
6%1%
Residential
Commercial
Agricultural
Apartments
MOD. TWO STORY
16 Total sales
Range of Time Adjusted Sales….……….…………………………………….$312,500 to $650,000
Median Estimated Market Value……………………………………………..$362,724
Median Time Adjusted Sale……………………………………………………..$375,500
SPLIT ENTRY
38 Total sales
Range of Time Adjusted Sales…………………………….………….$229,000 to $435,000
Median Estimated Market Value…………………………………….$335,451
Median Time Adjusted Sale……………….…………………………..$302,000
ONE STORY
40 Total sales
Range of Time Adjusted Sales…………………………….$225,000 to $685,000
Median Estimated Market Value…………………………$444,564
Median Time Adjusted Sale………………………………..$422,000
THREE/FOUR LEVEL SPLIT
22 Total sales
Range of Time Adjusted Sales.………………………………….$272,202 to $467,000
Median Estimated Market Value…….………..……………….$387,761
Median Time Adjusted Sale….…………………………………..$345,135
TWO STORY
74 Total sales
Range of Time Adjusted Sales…………………………………….$315,000 to $639,000
Median Estimated Market Value……..………………………..$403,977
Median Time Adjusted Sale..……………………………………..$425,500
TOWNHOMES
156 Total Sales
Range of Time Adjusted sales…………………………………..$151,000 to $525,900
Median Estimated Market Value……………………………….$218,651
Median Time Adjusted Value………………..………………….$222,000