NEWS RELEASE

Assessment Notices are Being Mailed

The St. Louis County Assessorís Department is in the process of mailing assessment notices to property owners for the assessment year 2004 payable in 2005. Most of these notices will show valuation increases since the real estate market continues to remain strong throughout the county. According to Minnesota Statutes, notices must be sent to all property owners each year including those where the value has not changed from the previous assessment.

The Assessorís values and classifications determine the distribution of each property ownerís responsibility for meeting the property tax portion of the budgets approved by the County Board, School Boards, City Councils, and Town Boards. These budgets are developed by elected officials, and property owners can comment on them at the Truth in Taxation Hearings held in November and December.

Minnesota property tax laws require the Assessor to appraise properties at their market value. Each year, the assessment level for every taxing jurisdiction in the County is reviewed both by the Assessor and the Minnesota Department of Revenue through an Assessment/Sales Ratio Study. For example, a property with an Assessorís estimated market value of $75,000 that sells for $100,000 has a sales ratio of 75%. Recent sales information shows that the assessment level in many areas of the County has fallen below the minimum acceptable level of 90% as set by the Minnesota Department of Revenue. As a result, the Assessor has no choice other than to raise market values either by a complete reappraisal of the jurisdiction which occurs at least once every five years or by applying an across the board percentage increase to all property in the jurisdiction.

The following jurisdictions were reappraised by the County Assessors Department for the 2004 Assessment payable in 2005: Brookston, Colvin, Ely (1/4), Hermantown, Iron Junction, Leiding, McKinley, Pequaywan, and Unorganized Townships: 53-16, 54-13, 54-14, 54-15, 55-14, 55-15, 56-14, 56-15, 56-17, 57-14, 57-16, 58-14, 59-16, 60-19, 60-20, 62-21, 63-14, 63-19, 63-21, 64-13, 64-21, 65-13, 65-21, 66-20. Local assessors employed by cities and townships have also appraised one fifth of the properties in their jurisdictions. Besides these reappraisals, percentage increases have been applied to properties in the following areas: Alborn, Alden, Angora, Arrowhead, Aurora, Balkan, Beatty, City of Biwabik, Breitung, Brevator, Buhl, Canosia, Cotton, Crane Lake, Culver, Duluth Township, Fayal, Fine Lakes, City of Floodwood, Floodwood Township, Fredenberg, Grand Lake, Gnesen, Great Scott, Hoyt Lakes, Industrial, Kelsey, Lakewood, Midway, Ness, New Independence, Normanna, Northland, Northstar, Portage, Proctor, Rice Lake, Solway, Stoney Brook, Tower, Vermilion Lake Township, White, Winton, and Unorganized Townships: 52-21, 53-15, 55-21, 61-12, 61-13, 61-14, 62-17, 63-14, 63-15, 63-17, 64-12, 67-18, 67-19, 68-18, 68-19, 69-19.

Though market values continue to rise, taxable values will not rise as fast as the valuations, due to the limited market value law passed by the state legislature. Under this program, taxable value increases for payable 2005 are limited to the greater of 15 percent above last yearís taxable value or 25 percent of the difference between last yearís taxable value and this yearís estimated market value. In practice this phases in the impact of rising property valuations over a period of several years. Value increases due to new construction do not receive the benefit of limited market value treatment. This program is scheduled to end with taxes payable in 2008.

Property owners with questions about their new assessments are encouraged to contact their Assessor for an explanation on how the value of their property was determined. The County Assessorís Department has offices in Duluth 726-2304, Virginia 749-7147, and Ely 365-8206. Long distance callers in St. Louis County may call toll-free 800-450-9777. The formal appeal process, Local Boards of Appeal, and the County Board of Appeal and Equalization, will begin in early April. The Assessment Notices mailed to property owners provide the dates, times, and locations for these appeal meetings.

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