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City of Hopkins - Assessing 101- HopkinsASSESSING 101 Hopkins, MN 7/15/2008 What does an Assessor do? • Assessors classify property by type (e.g., commercial, agricultural, residential) and determine the value for property tax purposes. • MN State Statute 273.11 Valuation of Property. "all property shall be valued at its market va I u e" What is Market Value? • Minnesota Statute, section 272.03, subdivision 8 states in part that: • "I Market value' means the usual selling price at the place where the property to which the term is applied shall be at the time of assessment; being the price which could be obtained at a private sale or auction sale; /f/t is determined by the assessor that the price from the auction sale represents an arm's length transaction. The price obtained at a forced sale shall not be considered." What is an "Arms Length Transaction "? • An arms length transaction is one where both the seller and purchaser act independently of each other and have no relationship to each other. It is a transaction which is freely arrived at in the open market and unaffected by abnormal pressure or by the absence of normal competitive negotiation. Revaluation • Process in which we go out into the neighborhoods and view the properties. • Must view 20% of the city each year • Gather data, and get first hand account of how properties compare to each other. • This is usually June through August. Hennepin County Assessor's Office (30) PRINTED: 7/15/2008 Site Rating. Neighbhood 15 View Good LI Avg ( 2 Poor ( 3 Arch Appeal Excelnt (1 Good (2 Avg (3 Min (4 Substd (5 Neighborhood Ext Walls Heating High Efficiency Roof Type i 0 0 Elec. Service Foundation Room Count Obsolete 5 Kit Eating Area Kitchen Floor! Floor Cover Floor Cover Baths Secondary Garage Placement X 'Wood ( 1 Ca ; •et ( 2 Other 3 Site Adjustment Flat Charges Inspection! Date - History X Quality. X Rate Adjustment Style 1 Stories E 175 Framing Con Blk (1 ,None 2x6 2 2 x 4 (3 X Yes (1 Other (4 No ( 0 Real Estate Data Card 24- 117 -22 -13 -0021 201 - 6TH AVE N Stone (1 Hot Wate Brick (2 ForceAir 2 X Stucco ( J Elec 3 OM ®`. Kitchen Rat ng Excelnt 1 Wood (4 Gravi 4 Good (2 ®Metal (5 X Other (5 Exce Avg 3 Coin (6 Year Instld 1990 Good (= Min 4 Other (7 Standrd Substd ansard ( 1 Gambrel (2 Hip ( 3 Gable ( 4 Fla Dorme (5 ft. Roof Cover Slate /Tile ( 1 j Wood ( 2 Asphalt ( 3 PandG 4 Casement ( Dbl Hung 2 X Gliders ( 3 Awning 4 Other Window Quality Good ( Avg L Poor Q L-7) X 2 IX X X Yes No Stanrd Substnrd 2 Concrete Cone Blk (2 Wood (3 Other (4 % /10 (0-15 9 Window Style Basement Fin Area %/10 C H ht( 0 -9 • BsmtQuality 5 % of Base 5 Bsmnt Fireplace Qlty (1 - Walkout X 4 20 None (0) X Hardwd ( Softwd ( 2 Bsm nt Baths Deluxe Ful 3/4 1/2 Bath Floor Kit Cab Quality Room Count Porches Pool Building Size Ceramic Lino Other Bath Rating 5 Total Rms Bedrooms Fami Kitchen Other Substd 4 4 Marble Glzd Tile ( 2 Wood 3 Lino (4 X Carpet (5" Other ( 6 Deluxe ( 1 3/4 Glzd Tile( 2 1/2 Formica (3 1 X Other (4 Kit Cab Material Formica ( 3 Metal ( 4 Central. Air Other 5 1 - Excellnt(1 ; Good 2 IDishwshr Oven/Cktop 1 Microwave Refri - Kit Remodeled X Avg (3 ;Poor ( 4 Kitchen Equipmnt Approx Yr Clg Hgh 'Plaster 1 Sheetrock( Hardwd Softwd 2 Painted 3 Other Deluxe Basement Kit Countertop Full Ceramic Lino Othe ( 2 X Paneling 3 Softwd Wood (1 r 2 Carpet (2 X (Deluxe Glzd Tile(3 1 Full Other (4 3/4 1/2 Bath is Fir Bath Rating -5 Total Rms Bedrooms X Family Livi Dining Kitchen X Other 1 Interior Primary Garage Plaster Shtrock (2 1 X Paneling ( 5) 3 Othe 4 Hardwd Ceramic Lino 1 Other Qlty L -L) 4 None 0 1 1 2 Painted 3 Other 4 X Bath' Floor Bath Floor Bath Rating Fireplace 2nd •1 Fireplace Quality Room; Count First (1 -7 ) Second None i X Total Rms Bedrooms Other 3 1 5 Glazed 1t 1 -5 Screened 1 Qlty (1 -5J 1 1 Open 1 Qlty (1 -5) Deck / Patio Ql 1 5 ExtWa FlrArea s # of Cars It 1 -5 - 7 Ext W alls(I -7 FlrArea # of Cars 1 1 -5 Attached Detached Tuckunder 88 4 5 832 3 • Placement Attached I X Detached Tuckunder 4 Qlty ( None 0 X Overall Conditio n 7 ,Excelnt ( 1 (Good ( 2 A vg ( 3 :Fair ( 4 Poor 5 X Age / Depreciation Act A:e Eff A•e Func % Econ % Year Land 1900 1975 Last;Int Insp ar 2006 Left Tag Yes _ (_ I No (0 X Yes ( 1 No 0 X 10 / 2 / 2007 11 / 22 / 2006 9 / 12 / 2007 G.B.Area lst Fir 2nd Fir Frontage Depth Area Irrglr Shape Eff Front. On Lake On Bay Lake Rating Landscape Wooded Extra $ Manual Partial Yes (1) No 0 37 2 37 Comments. Keypunched 08EMV L $140,000 B $206,000 T $346,000 Sale Date 7 / 2007 Price $365,000 Code W 2090 1226 864 45 130 13935 65 Sketch by Apex IV'"' 20.0' 32.0' P F I TT 32.0' 14.0' 12.0' 33.0' 20.0' 1.75/B 1 .75/0 44.0' 1/0 0.0' GLP 2.0' 0.0/ 8.0' 0.0' 1/0 New Construction • Check on any permits that were pulled in the previous year • Determine how the work being done will affect the value of the property. • Usually done September through November Anal sis • Analyze the sales data • Develop a rough draft of our next year's property values, including land values • These numbers continually get adjusted based on the new data that we receive • Usually done October through December Final • Finalize our values for the year • 'Assessment date "is January 2nd • Usually done in January Valuation Notices • Valuation notices are mailed to the property owners in March, notifying them of the new Estimated Market Value for their property. • If the property owner disagrees with the valuation they should call the assessor and discuss how and why he arrived at that EMV. Appeal • Gives owners different avenues to appeal their value • Gives appraisers the opportunity to hear the concerns of the homeowners and gather the most current data. • March through first week of June. Inspection • If the assessor has not viewed the interior of the property for many years he will want to do so before making any valuation changes. • This is done to ensure that the valuation is based on the most current and accurate data Open Book Meeting • This is a very informal face to face meeting with the assessor, usually held in the Raspberry room in early May. • The property owner and the assessor discuss the property value. • A phone call accomplishes the same goals as attending the Open Book. • There is no need to attend this meeting to preserve your right for further appeals. Open Book Meeting • After discussing the value with the assessor if the property owner feels the value is still incorrect, the next avenue of appeal is the County Board. Hennepin County Board of Appeals • Hennepin county assigns an assessor to do an independent appraisal of the property. • An assessor will come out and inspect the property and will determine the EMV. That will be Hennepin county's recommendation to the county board. • It may be lower, the same, or it can be higher than the local assessor's EMV. Hennepin County Board of Appeals • If the property owner disagrees with the EMV, they can continue with their appeal to the county board. • If the county appraiser determines a different EMV and the homeowner agrees with the new EMV that will become the EMV for the current assessment • The board consists of 7 people with a real estate background • They determine an EMV based on presentations from the homeowner and the county assessor's office. Tax Court • Regular Division — Property valued over $300,000 • Attorney is recommended • Appealable to Supreme Court • Can be used for all property types Tax Court • Small Claims Division — Property valued at less than $300,000 • Attorney is not necessary • Decision is final • Non - appealable Sales verification • Happens throughout the year and gives us the most current data on recent sales, which gives us the best indication of the market. • The assessor investigates any sales that are outside of the norm. • Check Multiple Listing Service • Call Property buyer /seller Assessing Phone Numbers • Michael Smerdon (Assessor) — 952 - 548 -6311 (Hopkins Office) — 612 - 348 -3046 (County Office) • Robin Robertson (Homestead Clerk) — 952 - 548 -6310 • Hopkins City Hall — 952 -935 -8474