2026-04-23 WS, LBAE, & CC Packet

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Understanding the Minnesota Assessment Process Mass Appraisal Defined Property values for Minnesota real estate tax purposes are determined by mass appraisal. Mass appraisal is the practice of determining individual values based on statistical analysis of a group of sales for a large area. The values are determined as of a specific date and are based on arms-length transactions that occurred during a specified sales period. Market Value Defined As in private appraisal, Market Value is defined as: The most probable price that a property should bring in a competitive and open market under all condition’s requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by any undue stimulus. Implicit in this definition are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: buyer and seller are typically motivated both parties are well informed or well advised, and acting in what they consider their own best interests a reasonable time is allowed for exposure in the open market payment is made in terms of cash in U.S. dollars or in comparable terms of financial arrangements the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale (a foreclosure sale or a short sale \[a sale to avoid foreclosure\] is not considered an arms- length transaction) Assessment Process Timeline In Minnesota it is the duty of the Assessor to value and classify property. This is done annually nd as of the assessment date of January 2. Each year's assessment is based on arms-length transactions (sales that meet the criteria of an open market transaction) that occurred from stth October. 1 to September 30 (see below). When the assessment is completed the local taxing jurisdictions begin their budgeting process for the following year. They use the total assessment to determine their tax base and develop their tax rates. All aspects of the assessment, including but not limited to the assessment date, sales period and property tax classification, are dictated by state statute and under the oversight of the Minnesota Department of Revenue. The following chart shows the dates of sales period, assessment dates & tax year: SALES PERIODASSESSMENT DATETAX YEAR January 2, 2024 October 1, 2022 to September 30, 20232025 October 1, 2023 to September 30, 2024January 2, 20252026 October 1, 2024 to September 30, 2025January 2, 20262027 6