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2 - Wright County Local Board Presentation4/18/2024 1 2024 ASSESSMENT OVERVIEW What is the role of the Assessor? To Value and Classify Property Property Value is based on market data including sale prices, cost to construct and income produced. Property Classification is based on the use of the property. (May or may not match current zoning) The combination of property value and property classification 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. 2 1 2 4/18/2024 2 Minnesota Property Tax System 3 2024 Assessment Summary For all taxable property types, Wright County had an increase in market value of 2.15% for the 2024 Assessment including new construction. The current assessment meets or exceeds standards for uniform assessment in all jurisdictions as established by the International Association of Assessment Officers. 4 $14.897 $15.969 $16.921 $18.080 $21.939 $25.667 $26.218 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 30.00 2018 2019 2020 2021 2022 2023 2024 *Values from MN DOR Mini Summary Report which excludes: exempt, personal property, and state assessed values. County EMV (in billions) 3 4 4/18/2024 3 2024 Assessment Summary Sales Ratio Study Period: October 1st, 2022 – September 30 th, 2023 Wright County Valuation Change Net Change excluding New Construction Gross Change including New Construction Property Type - 1.49%+.41%Residential + 9.42%+ 10.42%Seasonal Residential + 0.23%+ 0.43%Agricultural / Rural + 7.05%+ 9.21%Commercial + 4.92%+ 8.92%Industrial + 8.93%+ 22.55%Apartments + 25.91%+ 25.91%Manufactured Home Parks + 0.16%+ 2.15%Total Valuation 5 2024 Assessment Summary 6 Agricultural $3,601,547,473 12.80% Apartments & MH Parks $865,224,900 3.08% Commercial $1,496,639,900 5.32% Exempt $1,918,830,100 6.82% Industrial $764,067,000 2.72% Residential $18,319,991,574 65.11% Seasonal Residential $1,170,384,700 4.16% 2024 Assessment EMV Breakdown by Property Type Agricultural Apartments & MH Parks Commercial Exempt Industrial Residential Seasonal Residential 5 6 4/18/2024 4 2024 Assessment Summary New HomesParcelsPlatsYear 1,031712462023 1,1201,370532022 1,4131,982662021 1,223643532020 863821502019 913797432018 Wright County Growth: Parcels and New Construction 7 271.09 294.48 317.68 405.25 582.51 610.58 510.17 100 200 300 400 500 600 700 2018 2019 2020 2021 2022 2023 2024Value (in millions)Value of Total New Construction Property Taxation Timeline 10/1/2022 thru 9/30/2023 January 2nd, 2024 Assessment Date March Valuation Notices Mailed April - May Local Boards of Appeal and Equalization Open Book Appeals June County Board of Appeal and Equalization June State Board of Equalization June July August 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, 2025 1st Half Taxes Due October 15th, 2025 2nd Half Taxes Due - excluding Agricultural property November 15th, 2025 2nd Half Taxes Due on Agricultural property2025Assessment Year 2024 - Payable Year 2025 20242022 2023Sales study period for the 2023 Assessment. Sales are verified, analyzed, and compared to the 2022 Assessed Values.AssessorTaxpayer ServicesLocal TaxingAuthoritiesDevelop Preliminary Budgets at Local, County and School District Levels for 2024 8 7 8 4/18/2024 5 The Homestead Market Value Exclusion Changes to the Homestead Market Value Exclusion for 2024 Assessment The Homestead Market Value Exclusion reduces the taxable market value for properties qualifying for homestead. Legislation in 2023 increased the maximum valuation in which a property could receive a benefit from the homestead exclusion from $413,800 to $517,200. Properties valued at $517,200 or higher do not receive the exclusion. 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 $95,000 $76,000 receive the maximum benefit of a 40% reduction in taxable value. (Maximum Exclusion = $38,000 $30,400) Properties valued between $95,000 $76,000 and $517,200 $413,800 have their exclusion calculated by taking the maximum exclusion ($38,000) ($30,400)and reducing it by 9% of the market value over $95,000 $76,000. 9 Review the 2024 Assessment for property taxes due and payable in 2025 Sales Study Period October 1st, 2022 – September 30 th, 2023 Review data provided by Property Owner’s and the Assessor to determine if a change to value or classification is warranted. Prior to making a change, a physical inspection of the property should be conducted by the Assessor to ensure the property data is accurate. If access is denied, an adjustment can not be made by the LBAE. Changes to the value or classification of an individual parcel can be made based on the factual information provided during the meeting. The Purpose of the Local Board 10 9 10 4/18/2024 6 The Local Board shall consider all appeals and the factual evidence provided. They may then choose to do one of the following: 1. Vote to change the property value or classification based on factual evidence provided by the property owner. 2. Vote “No Change” on the property. The property owner retains the ability to appeal at the County Board of Appeal and Equalization or file in Tax Court. 3. Recess the meeting to a later date if a decision can’t be made. Remember that changes made should be justified by facts as they have the effect of shifting the tax burden onto other property owners in the district. Making Changes at the Local Board 11 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 “Further, any changes made by the board must meet statutory guidelines.” 1 1 Source: Minnesota Department of Revenue Board of Appeal and Equalization Handbook; updated December 2021 Local Board Fine Print 12 11 12 4/18/2024 7 Property Owner Appeal Options Contact the Assessor’s Office 763-682-7367 Most concerns are resolved at this level. Open Book Districts: Appeal options are open all the way up to the County Board of Appeal and Equalization meeting in June. Local Board of Appeal and Equalization Districts: Appeals must be heard at the local level in order to continue with appeal options at the County Board level. Deadline to appeal is the date of the Local Board of Appeal and Equalization meeting. County Board of Appeal and Equalization: June 17th, 2024 Appointments required by June 10th, 2024 Tax Court Petition filing deadline is April 30th in the year in which the taxes are payable. There is no need to appeal at any other level prior to filing in Tax Court. 13 Receiving Property Notifications via eNotice 14 Wright County offers the opportunity to receive Notifications of Value, Truth in Taxation Notifications and Property Tax Statements from the convenience of your phone, computer, or mobile device. It only takes a minute to sign up and it is free. Currently over 1,200 property owners have signed up for this free service. 13 14 4/18/2024 8 Property Owner Resources Wright County Assessor’s Office 763-682-7367 https://www.co.wright.mn.us/134/Assessor 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 763-682-7578 https://www.co.wright.mn.us/170/Finance-Taxpayer-Services 3650 Braddock Ave NE, Suite 1400 Buffalo, MN 55313 15 15