Market Value Notice: 2010
Your market value notice applies to property taxes payable in 2011.
Minnetonka’s home values continue to decline
As with most locations in the metro area and across the nation, Minnetonka’s real estate has continued to experience a decline in market values which began in 2008. Following a decline of around four percent last year, the Minnetonka single-family home declined between five and six percent in market value in 2009 from the prior year. Similarly, condominium and townhomes have continued to experience more significant declines. Commercial property values have also fallen again for the second year. It’s important to remember that individual properties may vary greatly, and some may experience increases in value while others decrease.
Market values based on 2009 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 2009. The values cannot reflect changes in market conditions since the end of last year. Changes this year will be reflected in the 2011 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?
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The value subject to appeal is the taxable 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 Appeal and Equalization, and if desired, then to the Hennepin County Board of Equalization.
The Minnetonka City Council convenes each year as the local Board of Appeal and Equalization 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 Appeal and Equalization 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.
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 2010 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 2009.
- 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 value that your property taxes are actually based on, after all reductions, exemptions and deferrals are taken out.
