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1 <br />Anoka County <br />City of Lino Lakes <br />We are aware that due to the time frames we are required to work within it sometimes appears as <br />though the assessor's estimated market value does not represent the market. It seems lower than it <br />should be during times of inflation and higher than it should be in times of deflation. The following <br />chart illustrates the relationship between assessed values and actual sale prices; and how the <br />assessor's market values have been following the changes as they occur in the open market. <br />Note: The Median Assessor's Estimated Market Value represents the homes that are in the sales study. <br />$235,000 <br />$230,000 <br />$225,000 <br />$220,000 <br />$215,000 <br />$210,000 <br />$205,000 <br />$200,0 <br />$195,000 <br />$190,000 <br />$185,000 <br />$180,000 <br />$175,000 <br />$170,000 <br />$165,000 <br />Median Assessed Value as it Relates to Median Sale Price <br />2004 2005 2006 2007 2008 2009 2010 2011 2012 20;31111r <br />01 2014 <br />Tax Payable Year -' <br />Median Sale Price Median Assessor's Estimated Market Value <br />As you can see, there is a point in time where the relationship between the assessor's values and the <br />sales prices intersect. It is at that point in time that the market took a large downward turn. The <br />following year, in response to that market condition, the assessor's values were reduced to reflect that <br />trend. And we have responded by adjusting assessed values each year based on the prior year <br />trends. It's interesting to note the upward shift for the 2012 assessment. It is somewhat deceiving in <br />that the trend in sales prices was actually down, but due to the segment of the market with the most <br />arm's - length transactions, the median sale price did go up for that year. <br />One last important point to make note of is that the assessment process is completed before the <br />budgeting process begins. Assessors do not adjust values in order to increase revenue. There is little <br />correlation between changes in assessments due to market changes and how the resulting real estate <br />tax changes. When we adjust assessments due to market conditions, all properties are adjusted. <br />The only time that an adjustment in an assessor's estimated market value will have an impact on the <br />increase or decrease in tax is if the change in value is due to value added for new construction or <br />value removed due to demolition /destruction of an improvement. <br />5 <br />