Kanabec County Assessor’s Office

2022 Assessment Notice of Valuation & Classification for Taxes Payable in 2023

In the coming days property owners will be receiving their Notice of Valuation & Classification for the 2022 assessment/pay 2023 tax year.  As has been the practice, this notice is included in the same envelope as the payable 2022 property tax statement.  In light of the current market conditions the Assessor’s Office is attempting to take a proactive approach to ensure taxpayers are aware of what to expect when reviewing the notices.

Property Valuations & Classification
The state of Minnesota requires us to value properties at their market value, as of January 2nd each year.  Market value equates to what your property should sell for on the open market.  
The overall valuation of your property is based upon multiple things: land values, improvement values, new construction and/or renovations, correction of inaccurate/incomplete property information uncovered during quintile inspections, changes made for equalization purposes, construction costs, property depreciation, and local market activity.  One important factor to note is that a property’s market value can change year to year due to market conditions even if no physical changes have been made to the property.  Additionally, there is no limit to the amount of value a property can change. 

The classification of your property is based upon the use of your property.  Typical classifications include Residential, Agricultural, Rural Vacant Land, Commercial, and Apartment.  Occupancy will also determine the homestead status of a property once the use is determined.  Each classification is taxed at a different percentage of market value which is set by the State Legislature.

Increase in value
The real estate market greatly influences the assessed value of all types of property.  Over the past year the real estate market in Kanabec County (similar to the majority of the state) has seen significant gains, greater than experienced in recent history.  Aggressive residential and land markets have resulted in average increases around 18-25% depending upon property location and other factors, based upon time adjusted real estate sales.  The current sales study (qualified sales from October 1, 2020 through September 20, 2021) of residential properties resulted in a countywide median between 72-73% and the agricultural/rural vacant land median between 66-67%.  Some factors contributing to these increases include historically low interest rates, the supply of homes available for sale were at record low levels, and the demand for homes increased.  

We cannot stress this enough - just because your market value increases it does not necessarily mean property taxes will go up the same percentage.  Value and classification are just one part of the formula in calculating what your taxes will ultimately be.  Whether property values go up or down, each local unit of government will levy for what is needed, not more and no less.  Rising values do not raise tax revenue for the jurisdictions, the tax burden (levy) is simply redistributed.  The County Assessor’s Office does not determine property taxes, their job is to reflect the current condition of the real estate market.

Mass appraisal is based upon many sales resulting in a ‘most likely’ price for each property.  While reviewing your Notice of Valuation & Classification please take a moment to consider the recent market trends and whether your notice accurately reflects what your property should be able to capture on the open market.  If you have questions please contact our office, many times once a value is reviewed and changes are explained a property owner is satisfied.  After discussing, if you still feel aggrieved, be sure to review the backside of your notice to better understand the appeal process.  Additionally, the appeal meeting information is located on the bottom of the front page.  If your jurisdiction holds a Local Board of Appeal & Equalization (LBAE) meeting you must first appeal at that level to be able to appeal at the County Board level.  

We do expect our office to be extremely busy once notices go out and will address calls as timely as possible.  Please be patient and respectful with our staff as they attempt to answer your questions.  We do our very best to ensure the most fair and equitable assessment is conducted every year while adhering to the property tax laws.