2010 property valuation update
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2010 Property Valuation Update. Marvin Anderson City Assessor April 5, 2010. What is Estimated Market Value. A snapshot of the value of a property as of January 2, of each year. Main items that attribute to value Size of buildingStyle of building Quality and condition of building

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2010 Property Valuation Update

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2010 property valuation update

2010 Property Valuation Update

Marvin Anderson

City Assessor

April 5, 2010


What is estimated market value

What is Estimated Market Value

  • A snapshot of the value of a property as of January 2, of each year.

  • Main items that attribute to value

    • Size of buildingStyle of building

    • Quality and condition of building

  • Other factors that attribute to value

    • Lower level finishExtra bathrooms

    • FireplacesPorches, patios, decks

    • Location


The assessor sets value by

The Assessor Sets Value By

  • Comparing properties to similar properties which have sold

  • Following the trends of the sales on different properties to make sure they are equalized

    • Style

    • Size

    • Age


Who is involved in the process

Who is involved in the Process?

  • State

    • Legislature sets the rules of the property tax system.

  • Local Taxing Jurisdictions

    • Sets budgets

  • Assessor

    • Sets value, which calculates the Distribution of the tax you pay.


Ratio studies what defines market value

Ratio Studies What Defines Market Value?

Market Value is the most probable price expressed in terms of money that a property would bring if exposed for sale in the open market in an arm’s length transaction between a willing seller and a willing buyer, both of whom are knowledgeable concerning all the issues to which it is adapted and for which it is capable of being used.


What is a ratio study

What is a Ratio Study?

Estimated Market Value/Sale Price

Sales That Occur During Set Time Period

Measure Median Ratio


Ratio studies 2010 assessment

Ratio Studies2010 Assessment

  • Rejected Sales

    • Sales to avoid foreclosure – Short Sales

      • Can be used if deemed open market

    • Sales involving legal action – divorces, bankruptcies, foreclosures

      • Can be used if deemed open market

    • Deed in Lieu of Foreclosure

    • Sheriff’s Sale

    • Bank sales


Sales comparable time line

Sales Comparable Time Line

  • 2009 Assessment Value

    • Sale period October 1, 2007 to September 30, 2008

  • 2010 Assessment Value

    • Sale period October 1, 2008 to September 30, 2009

This time period for ratio studies is set by State Statute and is used throughout the State.


Assessment timeline

Assessment Timeline

Oct 1st

2006

Sept 30

2007

Oct 1st

2007

Sept 30

2008

Oct 1st

2008

Sept 30

2009

Oct 1st

2009

Sept 30

20010

January 2nd

2008

January 2nd

2009

January 2nd

2010

Assessment Date


Ratio studies

Ratio Studies

  • Monitored by the Department of Revenue.

    • Ratio median must meet acceptable levels.

      • 90 percent to 105 percent.

      • Hennepin County set target percentage at 95 percent


Ratio studies1

Ratio Studies

Department of Revenue will take corrective action if ratio is not in acceptable range.

Percent change to all properties.

While this corrects equalization across jurisdictional lines, it does the opposite with a jurisdiction by increasing inequity.


2010 property valuation update

Assessment Review Areas


Median residential sale price change for 2008 2009

Median Residential Sale Price Change for 2008 - 2009

Includes all sales

Source: Regional Multiple Listing Service


Median residential sale price change for 2008 20091

Median Residential Sale Price Change for 2008 - 2009

Traditional sales only

Source: Regional Multiple Listing Service


Final 2009 valuation changes

Final 2009 Valuation Changes

Source: Brooklyn Park Assessor’s Office


Residential value history

Residential Value History

Source: Brooklyn Park Assessor’s Office


Brooklyn park market value history

Brooklyn Park Market Value History

Source: Brooklyn Park Assessor’s Office


2010 property valuation update

The Tax Equation

From the perspective of the individual taxpayer:

Tax = Value X Rate

From the perspective of the Tax Authority:

Tax Revenue = Tax Base X Rate


2010 property valuation update

True or False?

An increase in theincome tax base

will result in higherincome tax revenue

for the taxing authority.

True


2010 property valuation update

True or False?

An increase in thesales tax base

will result in highersales tax revenue

for the taxing authority.

True


2010 property valuation update

True or False?

An increase in the property tax base

will result in higherproperty tax revenue

for the taxing authority.

False


2010 property valuation update

The Sales or Income Tax Equation

Tax Revenue

=

Rate

X

Tax Base

Government levies a Rate defined in statute

Market activity determines Tax Base

Result is Tax Revenue


2010 property valuation update

The Property Tax Equation

Rate = Tax Revenue / Tax Base

Government levies Tax Revenue by Resolution

Market activity determines Tax Base

Result is the Rate


Brooklyn park estimated market value taxes payable 2010 preliminary 2011

Brooklyn ParkEstimated Market ValueTaxes Payable 2010-Preliminary 2011

Preliminary 2010

$5,468,972,700

Final 2009

$6,086,199,900


Brooklyn park net tax capacity taxes payable 2010 preliminary 2011

Brooklyn ParkNet Tax CapacityTaxes Payable 2010-Preliminary 2011

Final 2009

$73,292,004

Preliminary 2010

$66,392,405


Informational meeting

Informational Meeting

April 13 City Hall Council Chambers 7:00 pm


City of brooklyn park

City of Brooklyn Park

  • Valuation notices mailed March 25

    • Please call Assessor’s Office with any questions

  • Board of Appeal and Equalization to be held April 19, 2010 7:00 pm in the Council Chambers


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