Glossary of Assessment Terms
Annual Market Valuation Notice:
During the year of assessment, the assessor's office notifies property owners of the new market value of their property. This notice must be mailed to the property owner, so as to be received by the property owner at least ten days before the local board of appeal and equalization meeting and must include information about the market value appeal process, in addition to the following information:
For land that has been recently platted (divided into individual lots) but not yet improved with a structure, the increased market value due to platting is added over a phase-in period. If construction begins before the expiration of the phase-in period, the lot will be assessed at full market value in the next assessment.
The statutory classification (M.S. 273.13) that has been assigned to your property based upon your use of the property. A change in classification of your property can have a significant impact on the real estate tax payable.
Sales Ratio Analysis:
This term refers to the process the assessor uses to measure market conditions by comparing the assessor's estimated market value with the sales prices. The Department of Revenue also uses the sales ratio analysis to measure assessor's performance.
Taxable Market Value (TMV):
This is the value that your property taxes are actually based on, after all reductions, limitations, exemptions and deferrals.
This Old House Exclusion (TOH):
This is a value exclusion for certain improvements. This is the amount of the new improvement value excluded from taxation on homestead property 45 years of age or older (M.S. 273.11, Subd. 16). Improvements that increase the estimated market value by $5,000 or more may have some of the value excluded from taxation. Only improvements made before January 2, 2003, and assessed for the 2003 assessment will qualify for this exclusion. Value that has been deferred for 10 years began phasing in with the 2004 assessment.
Value of New Improvements:
This is the assessor's estimate of the value of new or previously un-assessed improvements you have made to your property.