Property tax appeals season is now open

Ah yes, one of the perks to owning your own piece of property is getting to pay taxes on it each year.

Both the property tax statement - which is edged in a lovely shade of purple this year - and the canary-yellow property valuation and classification statement have arrived in the mailboxes of Carlton County property owners over the last few months.

Every year the Carlton County Assessor's office receives a flood of calls from concerned property owners wondering what the information on the statements mean.

The most common question people ask is why their property increased or decreased in value, according to Carlton County Assessor Kyle Holmes.

Part of the assessor's job is to locate the properties to be taxed, estimate the market value (how much the property would sell for in today's market) and assign it to a class according to its use, for example agricultural class.

"Cloquet has the largest district of properties in Carlton County," said Holmes.

There were 6,836 total parcels of property in Cloquet in 2015-2016. Many of those are land only. Of those, 4,650 parcels were improved and about 600-700 were commercial properties.

Cloquet had 159 "good property sales" in 2015-2016, as compared to 2014-2015 when there were 126 "good" sales.

"Good sales are comprised of properties sold at a good open market sale at a fair market value ... as opposed to homes that had been sold as foreclosures, bank sales, estate sales or sold under-value to friends or family members (these types of sales are rejected automatically by the state)," explained Holmes.

Thompson Township had 64 good sales, Barnum 23 and Twin Lakes 10.

Scanlon had 14 good sales in 2014-2015 which was higher than in the past. That resulted in a 12 percent increase in property taxes for all Scanlon residents.

On the yellow property valuation and classification statements, one side is the payable 2017, the value for the current year's taxes, which cannot be appealed. The other side is the proposed payable 2018, the property value that will help determine the property taxes for next year and can be appealed until June 13, 2017 in districts that have open book meetings, or unorganized districts. If the property owner lives in a district that holds a Local Board of Appeal and Equalization (LBAE) meeting, they must attend that meeting first in order to maintain the right to appeal through June 13, 2017. Refer to the yellow valuation notice for the particular dates specific to the individual jurisdiction.

ASSESSING PROPERTIES

There are two ways properties are assessed. Every five years appraisers visit each property in an area and evaluate what they see, such as the quality and condition of the home. They take photographs of the property and buildings to keep on file for several years. (After hard copy photographs became outdated, the assessor's office sent them to the Carlton County Historical Society.)

The most important consideration is the square footage, according to Holmes. The appraiser also looks at how many bedrooms are in the home as well as how many fireplaces or if there is central air conditioning. The appraisers leave a business card or a door hanger at each property they visit.

When possible, the appraiser walks through the inside of the home, looking for any improvements to keep the value assessment as accurate as possible. This is usually only possible in about one third of the homes the appraisers look at. If they can't see inside, Holmes said, they assume the inside condition matches the outside condition and quality of the home.

For example, if the home exterior looks run down and in need of a new roof and a paint job, the appraiser will assume the inside is in the same general condition.

If the homeowner makes obvious improvements to the home such as new paint, siding, roof or windows, the appraiser will assume the inside of the home is of similar quality and condition.

During the other years - between visits - the appraisers use the number of good sales to rate property values. The state set the dates of Oct. 1 through Sept. 30 to look at property sales.

"If the ratio of sales-price-versus-assessed-value trends are low, typically a value increase is put on the entire jurisdiction," Holmes said. "Likewise, in recent years when the recession hit, the sales-price-versus-assessed-value trends were high and a reduction in the assessed values was done to the entire jurisdiction."

HOW TO APPEAL

The yellow notice also contains information on how to appeal if an owner feels the assessed value is wrong.

If the property information is not correct, the homeowner disagrees with the value or has other questions about the notice, contact the assessor first to discuss any questions or concerns, according to the valuation notice.

The assessor's office fields roughly 150-200 calls just from Cloquet residents every year. About half of those appeal the value on their statement and the majority of them are changed.

Holmes encouraged anyone with questions or concerns about the property valuation on the yellow form to call the assessor's office at the Carlton County Courthouse at 218-384-9142 to speak to an appraiser.

"Nine times out of 10 questions and concerns and adjustments can be made before going through the more formal appeals process," Holmes said.

There will be an open book meeting for Cloquet residents only from 9 a.m. to 3 p.m. May 1-2 at the assessor's office in the courthouse. Residents are encouraged to call first and set up an appointment for an interior inspection of their property, but are welcome to drop in anytime on those two days also.

Thompson Township/Esko residents will have a Board of Review meeting at 10 a.m. Wednesday, May 3, at Thompson Town Hall, 25 East Harney Road. The Carlton County Assessor and appraisers will be available on that day to immediately accompany the property owner to the property in question. Thompson Township residents can also call the assessor's office at the Carlton County Courthouse in advance with any questions or to set up an interior inspection if an appraiser has not recently been through the property.

Residents of other towns and cities need to contact their township board for property value appeals.

After May 2, any appeals for property value will be done through the County Board of Appeal and Equalization Meeting at 3:30 p.m. June 13 at the Carlton County Transportation Building.

"Again, if you live in a district that holds a LBAE, per statute, you must have attended that meeting first to maintain your right to appeal at the June 13, 2017 meeting," stressed Holmes. "Property owners must call and make an appointment in advance for this meeting, unless they reside in an unorganized township, then they can appear without notice."

After June 13, the opportunity for appeals for 2018 property values is done.

THE HOW OF PROPERTY TAXES

The property tax statement shows the 2016 and 2017 estimated market value of the owner's property in the top right of the statement. The 2017 estimated market value on the tax statement matches the 2017 value on the yellow valuation notice.

The largest part of the property tax goes to Carlton County to keep it operating.

After that, taxes depend on the city or township the property is located, or if the property is homestead (if the owner lives in the home the majority of the year, it is considered homesteaded in Minnesota).

There are three reasons why property taxes can vary from year to year.

The market value of a property may change, usually due to improvements. The market value of other properties in the taxing district may change, shifting taxes from one property to another. For example, if a new building is constructed, that will increase the tax base in the area, which means another property to share the taxes with, potentially causing taxes to drop for surrounding properties. Changes in the state laws and/or spending each year also contribute to tax totals.

In addition to Carlton County, other taxing districts are the local school district and the city or township.

Each district determines the services - such as repairs or maintenance made to streets, parks etc., fire and police protection - they expect to be provided in the coming year.

The districts estimate the costs of the services and determine how much will come out of the property taxes.

School taxes depend on what is going on with the schools in that district. Cloquet residents saw an increase on their taxes several years ago due to the construction of the new middle school. This year the school district portion has leveled out with minimal changes, depending on the individual property value.

For Cloquet, Perch Lake and Scanlon residents, the Line 10A special taxing district is the Cloquet Area Fire District. That tax is not voted on by residents, but decided by the CAFD Board.

Lines 13A/B apply to Cloquet residents only: The Solid Waste Management Fee (SWMF) WLSSD is $25, and line B SWMF-residential $18, is a set fee charged to everyone in Cloquet.

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Breakout box: GOT QUESTIONS?

Anyone with questions or concerns about the property valuation on the yellow form should call the Carlton County Assessor's office at the 218-384-9142.

There will be an open book meeting for Cloquet residents only from 9 a.m. to 3 p.m. May 1-2 at the assessor's office in the Carlton County Courthouse. Thompson Township/Esko residents will have a board of review at 10 a.m. Wednesday, May 3, at Thompson Town Hall, 25 East Harney Road.

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