As explained in the companion article, Should You Challenge Your Property Tax Assessment in Minnesota?, you may investigate your tax assessment and determine that the tax assessor has placed too high a taxable value on your home. If that has happened, your property tax bill will be unfairly high. This article will describe how you may be able to lower that taxable value – and reap big tax savings in Minnesota.
What You Need to Challenge the Taxable Value of Your Home in Minnesota
To successfully challenge the taxable value, you’ll need to establish at least one of the following facts:
- The tax assessor relied on information that is incorrect or incomplete. For example, the assessor may have assumed that your home contains 2,250 square feet of space when it actually has only 1,750 square feet.
- The tax assessor set the taxable value of your home that is higher than the taxable values of similar homes in your community.
- The tax assessor assumed that the current market value of your home is higher than it actually is.
If you’re convinced that any of these facts is true, consider the following strategy for trying to get your taxable value reduced.
Confer With the Tax Assessor
If you have convincing evidence that the tax assessor has overvalued your home, he or she may agree to change the value. If that happens, you won’t need to pursue an administrative appeal. You can get contact information for your tax assessor from the Minnesota Property Tax Directory.
Most tax assessors are hard-working officials who take pride in their work, and do their best to treat homeowners fairly. It’s best to phone ahead for an appointment with the tax assessor or an assistant. Before your meeting, make extra copies of your evidence, such as tax assessor reports, related to the value of your home. When you meet, assume that the tax assessor is acting in good faith and is willing to consider your evidence. There’s no need for you to be argumentative or to complain about how property taxes have become burdensome. Just stick to evidence that warrants a lower taxable value for your home.
The tax assessor may change the taxable value on the spot but, more likely, will need a few days or weeks to look into the issue.
Pursue An Appeal
If you can’t reach agreement with the tax assessor, you can appeal the valuation. Here’s where to appeal and useful evidence for doing so.
Where to Appeal
You can appeal your home valuation to your local and county Boards of Appeal and Equalization or directly to the Minnesota Tax Court. Or you may choose both options; in that case, you’ll start with the local Board. The local (city or town) Board meets on a specified date in April or May as listed on your Notice of Valuation. Call or write your city or town clerk to schedule your appearance. You can appeal further to the county Board. Some cities and towns don’t have a local board. If that’s your situation, your first appeal will be to the county Board.
The county Board meets in June. You’ll find the exact date on your Notice of Valuation. Call or write the county assessor or auditor to schedule your appearance.
If you appeal at either the local or county level, there will be a hearing where your evidence will be considered.
Useful Evidence for Your Appeal
In pursuing your appeal, several types of evidence may be useful, including:
- a recent appraisal of your home
- a contractor’s report showing repair work needed on your home and how much the work will cost
- documents showing actual sales prices in your neighborhood, and
- photographs of homes similar to yours, together with a list of their sales prices or taxable values.
At the hearing, you’ll probably have just five or ten minutes to present your case, so be succinct. Bring extra copies of your documentary evidence so that each hearing officer has a copy. Try to include a chart showing comparative sales prices and taxable values. You may want to arrive early so that you observe – and learn from – other people’s hearings.
Consider Going to Court
If you’re not satisfied with the decision of your county Board, you can appeal to the Minnesota Tax Court. Or, as noted earlier, you can appeal directly to the Tax Court and not bother with a local or county appeal. In either event, you’ll need to file your Tax Court Appeal by April 30 of the year the tax becomes payable. For example, to appeal your 2014 valuation, file with the Tax Court by April 30, 2015. You’ll probably need to hire a lawyer to advise or represent you if you plan to go to court.
To find an experienced real estate lawyer in Minnesota, check out Nolo’s Lawyer Directory.
Learn More About Tax Appeals in Minnesota
For more information on tax appeals in Minnesota, look at Appealing the Value or Classification of Your Property and Preparing an Appeal to Your Local and County Boards of Appeal and Equalization. Both of these excellent articles have been posted by the Minnesota Department of Revenue.