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Anoka County City of Lino Lakes <br />Understanding Assessment and Tax Calculation <br />Assessment Process Timeline <br />In Minnesota it is the duty of the Assessor to value and classify property. This is done annually as of <br />the assessment date of January 2nd. Each year's assessment is based on arms - length transactions <br />(sales that meet the criteria of an open market transaction, see market value definition below) that <br />occurred the previous October thru September. When the assessment is complete the local taxing <br />jurisdictions begin their budgeting process for the following year. They use the total assessment to <br />determine their tax base and develop their tax rates (formerly referred to as mill rates). All aspects of <br />the assessment, including but not limited to the assessment date, sales period for each assessment <br />and property tax classification are dictated by state statute and under the oversight of the Minnesota <br />Department of Revenue. <br />Market Value Defined <br />As in private appraisal, Market Value is defined as: <br />The most probable price that a property should bring in a competitive and open market <br />under all conditions requisite to a fair sale, the buyer and seller each acting prudently <br />and knowledgeably, and assuming the price is not affected by any undue stimulus. <br />Implicit in this definition are the consummation of a sale as of a specified date and the <br />passing of title from seller to buyer under conditions whereby: <br />buyer and seller are typically motivated: <br />both parties are well informed or well advised, and acting in what they <br />consider their own best interests; <br />a reasonable time is allowed for exposure in the open market; <br />payment is made in terms of cash in U.S. dollars or in terms of financial <br />arrangements comparable thereto; <br />the price represents the normal consideration for the property sold <br />unaffected by special or creative financing or sales concessions <br />granted by anyone associated with the sale (a foreclosure sale or a <br />short sale [a sale to avoid foreclosure] is not considered an arms - <br />length transaction). <br />Mass Appraisal Defined <br />Property values for Minnesota real estate tax purposes are determined by mass appraisal. Mass <br />appraisal is the practice of determining individual values based on statistical analysis of a group of <br />sales for a large area. The values are determined as of a specific date and are based on arms - length <br />transactions that occurred during a specified sales period. <br />3 <br />