Market value is one of the three main components used in determining property taxes:
• The market value established for your property determines your fair share of the total property tax burden, regardless of what the total tax burden is.
• Minnesota state law determines how the total tax will be distributed among the various types of property in the state, such as apartment, commercial and industrial, and residential property.
• The amount of money that is needed to fund local services determines the actual dollar amount of property tax you will pay.
Of course, the actual calculation of your property tax is a little more complicated. Changes in the county's property tax base, special property classifications, state mandates, and other statutory requirements, like fiscal disparities and tax increment financing will affect the actual dollar amount of property tax that you pay.
Every property in the County is visited and reviewed in person at least once every five years during a quintile review required by state statute. In addition, properties that have been issued a building permit will be reviewed during the year and it's new construction value will be calculated and added to the following January 2 assessment.
Appraisers collect all items on property that have an impact on market value, such as size, age, quality, condition, basement finish, bathrooms, and extra features such as fireplaces, walkouts, etc. Land characteristics and size are also gathered.
Under Minnesota Statute 273.08, appraisers are responsible to review every parcel under their jurisdiction at least once every five years to make sure that the information used to establish market value is accurate and current.
Your appraiser may post a yellow note to your door indicating that a representative of the Assessor's Office had been there; and they may request more information. While your appraiser is there he or she will verify all exterior data for accuracy.
It is our goal to compile the best data to assure an equitable assessment that will be fair to all property owners. This is why it is so important that we review all properties in each district.
This property information is entered into a computerized mass appraisal system, which aids the assessor in establishing market value. Sales information is also collected each year. Sales information is used to update the rates that are used to compute market value.
The result is an estimated market value for each parcel of taxable property in the County. The estimated market value established for your property should be close (within 90 - 105 percent) to its probable selling price if placed on the open market.
Each year, the assessor studies actual sales of property in Carver County. Sales in a 12-month time period before the January 2 assessment date (from October 1 to September 30) are reviewed to find out what properties have sold for on the open market. These sales are used as a guide to help estimate what similar properties would likely sell for if they were placed on the market.
The State Board of Equalization requires the overall "level of assessment" to be between 90 and 105 percent of market value. Carver County consistently meet the Department of Revenue's requirement.