ITS TAX SEASON AGAIN:

Most of us are familiar with income tax season, as tax returns are due by the 15th of April each year. However, for people who own a house or other real estate, there is another tax that becomes relevant this time of year: Property tax.
Thanks to the pandemic, people have been overpaying for houses. While this may not seem to matter to you if you already owned your house before it started, it does. The increased market value of houses could raise your property tax 20 to 30 percent this year!
Property taxes for 2023 are due in 2022 and based on a study of sales prices between Oct. 1, 2020 and Sept. 30, 2021. To defend yourself against excessive property tax increases, you should know the following things:
• The assessor establishes the value of your property for tax purposes, and
• The tax rate is set by local governments which levy a property tax, such as the county, cities, school boards, the Metropolitan Council, and other special boards and commissions.
• While there is little you can do about your tax rate other than to vote at the next election for local politicians who will lower your taxes (and government services at the same time), you can appeal the assessed valuation of your property if you feel it is unfair.
The keys to an effective appeal of your assessed valuation are as follows:
• Using logic will get you better results than yelling and screaming at the assessor.
• You need to provide evidence that your property is worth less than the assessed value.
• Start the process as soon as you get your tax bill, which comes in March.
Also be aware:
• You have the right to ask the assessor what comparable properties were used to determine the value of your property.
• If your house needs repair, the cost of any needed repairs can be used as an example of why its assessed value is too high. The best way to gather evidence of this is to have it professionally inspected. However, during the pandemic, the assessor may accept photos or videos taken by you personally in lieu of a formal inspection. It doesn’t hurt to ask!
• Kitchen and bathroom fixtures which are severely outdated, even if fully functional, can be used as examples of overvaluation. For example, if your kitchen or bath is all in Eisenhower pink or 1970s avocado, it could need updating for you to get a good sale price on your home.
• Features of your house may appear usable but be functionally obsolete. For example, if the Fire Marshal determines that your fireplace doesn’t meet safety standards, it doesn’t have the same value as if you could use it safely.
• Merely painting your basement walls doesn’t make it a finished basement. There must be plaster/wallboard on the walls for it to be officially considered a finished basement.
Other sources of evidence for your house’s value include getting a Realtor to do a market analysis (usually free), or having your house formally appraised by a member of the Appraisal Institute in Saint Paul. It is best to ask for an appraiser who is familiar with your neighborhood. They may claim it doesn’t matter, but neighborhoods have nuances that are best understood by people with specific experience there. A bank appraisal might work if it was done in the last six months, but it also could be ignored because a bank is motivated to appraise your property for lending purposes, whereas tax authorities have a different motive.
The protocol for appealing your valuation is as follows:
• When you receive your valuation notice, there will be information about a public hearing you can attend in your city to begin your appeal. In Minneapolis, this is called the Local Board of Appeal and Equalization. Be sure to get the date, time, and place right!
• If you disagree with the Local Board of Appeal and Equalization, you can bring your case to the County Board of Appeal and Equalization.
•If you still get no satisfaction, you can file a case with the Minnesota Tax Court. This makes sense if the tax on the disputed amount exceeds the filing fee. Be sure to have all your evidence with you, as the decision of the Tax Court is final.
Thanks for this information to my roommate who works as a tax assessor for a private firm which contracts with a few western suburbs of Minneapolis, and to the websites of the Minneapolis Assessor’s Office and the Minnesota Tax Court.