2018 Board of Equalization hears questions about how assessed values are calculated

 

The Clearwater County Board of Commissioners held the 2018 Board of Equalization meeting for Clearwater County on June 12, 2018 after the regular Board meeting was adjourned. An oath of office was conducted confirming the Commissioners present would uphold the Laws of the United States and the State of Minnesota Board of Equalization to the best of their ability. 

Assessor Jamie Freeman and Deputy Assessor Eric Beier were at the meeting. Ms. Freeman presented the “Assessor's Overview”, stating that Minnesota Statutes dictate that all property shall be valued at its market value, a value determined by the assessor as the price the property would likely sell for on the open market. The Assessor is required by law to view each property at least once every five years. 

For 2018 tillable, pasture rice and other pasture all increased in assessed value by 6%, and some other land types saw a lesser increase, except for productive woods, which saw no increase in assessed value. 

In opposition to the increase in land values, land owner Ray Zajac presented a “Request for Documentation” regarding how land values are calculated in the State of Minnesota. “More specifically, the written instructions from the Minnesota Century Code and Minnesota Tax Code.”

The methods that are used have increased his land parcels at a rate of 30 percent on his 2018 tax statement, in spite of the Assessor's Overview showing just 6%. He believes a wrong method of calculating values is being used, leaving the averages to assess lower valued land at a higher value, while higher valued land is decreased in value in order to compile an “average land value”. 

“This is not fair,” he stated several times. While his complaint is not so much the amount of tax, but the methods how it is calculated, making poorer property raise in assessed value. 

“It depends on the Sales Ratio Study,” the Assessor said. She admitted that the assessed market value is “a guess”. 

“Some are less, some more. We work for mediums.” 

“This is just not fair,” Ray repeated. 

“You can go to the State Board,” the Assessor said, and a way for him to do so was established with exchange of email information. He can make a formal appeal to the Minnesota Department of Revenue she said. “They can raise or lower the value.”

Commissioner Dan Stenseng said, “We are administers of the law of Minnesota. There is no perfect system.” 

“This is what we have to work with,” said Commissioner Dean Newland. The only other option is a change in the law.

A motion to give him the method of valuation, and that there is no change on his valuation was passed with three in favor, and Commissioner Neal Illies opposed. 

There are rules for measuring compliance with the market value requirement, one which states the Assessor's values (sales ratios) must fall between 90% and 105% of market, or there is a need to lower or raise property values in accordance with the market. Six sales is considered a valid sample going back three years at times. 

The State Board Recommendations for 2018 showed no recommendations. In 2018, residential, seasonal residential recreational, and agricultural property classes showed additional new construction from 2017.

There are some follow-up issues for the 2019 assessment. 

“I plan to develop an office Lakeshore Policy in 2019 for the 2020 assessment. Eric will continue to work toward te Accredited Minnesota Assessor license,” Ms. Freeman said.  

Commissioners present at the meeting: Daniel Stenseng, Dean Newland, Neal Illies and Arlen Syverson.