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Understanding the Minnesota Assessment Process <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 <br />group of sales fora large area. The values are determined as of a specific date and are based <br />on arms -length transactions that occurred during a specified sales period. <br />Market Value Defined <br />As in private appraisal, Market Value is defined as: <br />The most probable price that propertyshould bring in a competitive and open <br />market under all condition's requisite to a fair sale, the buyer and seller each acting <br />prudently and knowledgeably, and assuming the price is not affected by any <br />undue stimulus. Implicit in this definition are the consummation of a sale as of a <br />specified date and the passing of title from seller to buyer under conditions <br />whereby. <br />• buyer and seller are typicallyniAcled <br />• both parties are well informed or well advised, and acting in what <br />they 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 comparable <br />terms of financial arrangements <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 />Assessment Process Timeline <br />In Minnesota it is the duty of the Assessor to value and classify property. This is done annually <br />as of the assessment date of January 2nd. Each year's assessment is based on arms -length <br />transactions (sales that meet the criteria of an open market transaction) that occurred from <br />October. 1st to September 30t" (see below). When the assessment is completed the local taxing <br />jurisdictions begin their budgeting process for the following year. They use the total assessment <br />to determine their tax base and develop their tax rates. All aspects of the assessment, <br />including but not limited to the assessment date, sales period and property tax classification, <br />are dictated by state statute and under the oversight of the Minnesota Department of <br />Revenue. <br />The following chart shows the dates of sales period, assessment dates & tax year: <br />October 1, 2022 to September 30, 2023 <br />October 1, 2023 to September 30, 2024 <br />January 2, 2024 2025 <br />January 2, 2025 2026 <br />October 1, 2024 to September 30, 2025 January 2, 2026 2027 <br />11 <br />