Market Value Notice: 2009
Your market value notice applies to property taxes payable in 2010.
Minnetonka’s home values decline slightly
While the real estate market has experienced a significant decline in a number of locations in the metro area and across the nation, Minnetonka’s single-family homes only experienced a slight decline in market values as a whole in 2008. The median sales price in Minnetonka for 2007 was $337,500 and in 2008 it was $335,000. Condo and townhome values continued to experience a relatively larger downturn. Commercial property prices as a whole fell for the first time since 2002, but at a lesser rate than residential properties. It’s important to remember that individual properties may vary greatly, and conditions for the next value period will likely change.
Market values based on 2008 data
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 2008. The values cannot reflect changes in market conditions since the end of last year. Changes this year will be reflected in the 2010 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 952.939.8220. 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 Courtt. 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 25 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.
Remember, if you have questions or concerns about your property’s market value or about the assessment process, please call the Minnetonka assessing staff at 952.939.8220.
What do these numbers mean?
In early March, Minnetonka property owners will receive their 2009 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 2008.
- Veterans Exclusion
- Qualifying disabled veterans may be eligible for a valuation exclusion on their homestead property, which would reduce the amount subject to taxation.
- 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.
- Taxable Market Value
- 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.
