The progression of collecting Minnesota property taxes actually begins almost two years before your payments are due. The process starts with the January 2 statutory assessment date each year and extends through the next calendar year until the property taxes have been paid in May and October. For example, for taxes payable in 2009, the cycle begins on January 2, 2008, and doesn’t end until the final payments are made in October 2009.

There are several factors that impact your property taxes, such as how much your local governments decide to spend on services and infrastructure, your property’s estimated market value and how your property is classified/used (residential homestead, non-homestead, commercial property, cabin, apartment, etc.). Local assessors determine your market value and the classification/use of your property. It is their job to determine if changes in the real estate market or improvements to your property require a change in market value or use.

If you, the owner, disagree with the assessor’s valuation or designated use (displayed on your valuation notice mailed in March), you have the right to appeal. Ask yourself, is my property valued at a level different from similar properties in my area? Is my property valued at an amount higher than I could sell my property? Is my property’s use incorrectly classified? If you answered yes to any of these questions and you want to pursue the appeal process, the best first step is to meet with the local assessor.

To prepare for a meeting with the assessor, do your research first. Verify information about your property, such as: dimensions, condition and age. Review tax records to determine the value of similar properties in your area, review sales data to find out what similar properties in the area are selling for, seek out a second appraisal, and bring photos of your property and others in the neighborhood for comparison. Remember that the property’s taxes are not the actual issue in an appeal process, but rather your market value or property use. Keep your materials related to those items. During the meeting with the assessor, ask him or her to explain the criteria used when classifying and estimating your property. Often issues can be resolved at the meeting with the assessor. If you and the assessor are unable to reach an agreement, there are more formal methods of appeal.

The next level of appeal is the Local Board of Appeal and Equalization. They are usually members of the city or township council. Their meeting date is posted on your Notice of Valuation and is usually in April or May. It is a good idea to schedule your appearance before the Board. You must present factual evidence in a clear and thorough manner to the Board in order to convince them to change your assessment or property classification. The Board has most likely never seen your property before so be prepared to answer questions from the Board members.

If you are not satisfied with the decision of the local board, you can appeal to the County Board of Appeal & Equalization; the next level in the appeal process. It is written in state statute that you must present your case to the local board before presenting to the County Board of Appeal and Equalization, unless the cities and towns have transferred their powers to the County Board, then you begin your appeal at the county level.

The County Board meets in June and it is recommended that you also schedule your appearance before the County Board. Again, present your case using your documentation. At both the local and county board meetings, the assessor or an assistant will be there to answer questions. If you are not satisfied with the County Board’s decision, there is one more stop in the appeal process: the Minnesota Tax Court.

The last stop (besides the Supreme Court) can also be your first stop if you want to by-pass the Boards of Appeal & Equalization. You have until April 30th of the year the tax is payable to appeal your assessment to the Tax Court. For example, you have to appeal your 2008 valuation and use by April 30, 2009.

Even though the Tax Court is located in the Minnesota Judicial Center in St. Paul, the judges will travel throughout Minnesota to conduct trials. There are two divisions of Tax Court, small claims and the regular division. The small claims division hears cases on homesteads (regardless of value) and other property types where the market value is under $300,000. The proceedings are less formal, and decisions are final and cannot be appealed further. The regular division hears cases for any type of property. Proceedings are formal and an attorney is recommended. Decisions made by the regular division may be appealed to the Minnesota Supreme Court.

Hopefully this outline of the appeal process helps you decide if this is the right avenue for you to pursue after viewing your assessment this spring. If you have questions on the appeal process, please contact Sheila Lange at slange@cbburnet.com or (651) 683-8209