Market Value Notice: 2008
Your market value notice applies to property taxes payable in 2009.
Minnetonka’s homes maintain market value
Despite currently dire reports of falling home prices, Minnetonka’s single-family homes as a whole maintained their market values for the value notice period. The median sales price in Minnetonka for 2006 was $332,500 and in 2007 it was $337,500. However, the majority of condos and townhomes experienced an overall decrease in market value for the value notice period. It’s important to remember that individual properties may vary significantly, and conditions for the next value period will likely change.
Property tax assessment in Minnesota is a complicated process strictly governed by state law. Although the city of Minnetonka administers the assessment, the city’s work is overseen by Hennepin County and the State Department of Revenue. The state-mandated schedule requires that the values on your property, as reflected in the market value notice that you will receive in the mail this month, are based upon an analysis of real estate market trends during 2007. The values cannot reflect changes in market conditions since the end of last year. Changes this year will be reflected in the 2009 notices.
- How is market value determined?
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The Minnetonka Assessing Division maintains records for every property in the city. Adjustments are made to the market values of most properties, based on actual real estate sales from the past year for comparable properties. Approximately one-fifth of the properties are physically inspected each year, and adjustments to these are made based on the results of that inspection. Market value adjustments are also made for building additions, remodeling and other improvements.
- What if I don’t agree with my property’s market value?
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If you have questions or concerns about your property’s market value notice or the assessment process, please call the Minnetonka assessing staff at 952.939.8200. The staff can review property records and sales information with you.
Based on this discussion and review, the appraiser may or may not make a change to your market value. If not, you have the right to appeal.
- How does the appeal process work?
The value subject to appeal is the estimated market value, not the limited market value. Two avenues of appeal are available. Property owners may appeal directly to the State Tax Court. More common, however, is an appeal through the local Board of Review, and if desired, then to the Hennepin County Board of Equalization.
The Minnetonka City Council convenes each year as the local Board of Review and has local real estate professionals serve as its advisors. To make an appeal to the local board, you should first discuss your property’s market value with the Minnetonka assessing staff. After that, you may make an appeal to the local Board of Review by March 26 simply by asking that your property be listed for appeal. However, it is important to know that the local and county boards have the authority to raise or lower an appealed market value.
Please see the appeals process page for full details.
What do these numbers mean?
In early March, Minnetonka property owners will receive their 2008 market value notices. Four value amounts will appear on the notices:
- Estimated Market Value
- The assessor’s estimate of the total market value of the property, or what the property would likely sell for on the open market during the year ending September 2007.
- Limited Market Value
- This “caps” the value on properties where the 2008 value increased significantly over 2007. State law provides for value increases to be capped at 15 percent. The value of new improvements is excluded from the cap. Four percent of residential property is still subject to the limited market value law, as it continues to be phased out.
- Qualifying Improvement Value
- This figure shows that portion of the value of improvements made to an older home under the former “This Old House” law. This program expired with the 2003 assessment. However, property may still be receiving the value exclusion under this program.
- Market Value Subject to Taxation
- This is the net taxable value of the property. For many homeowners, this amount will be the same as the limited market value, not the estimated market value.
