Assessing FAQ

The most frequently asked questions about the Assessing Department and its operations are answered below. For additional information, contact the Assessor's Office at 952-826-0365.

APPRAISER'S CREDENTIALS:

Who are City appraisers and what are their credentials?

Appraisers employed by the City of Edina Assessing Department are professionals with stringent training and experience requirements set by the State Board of Assessors. The State Board of Assessors administers licensure of appraisers. The City of Edina Assessing Department staff appraisers are:

• Adrienne Garcia
• Bev Moos
• Shelagh Stoerzinger
• Nat Stulc

The City of Edina insists on additional training in the areas of management, organization and customer service.

What is market value?

Minnesota Statute 272.03 defines "market value" as "the usual selling price at the place where the property … is … at the time of assessment." It is "the price that could be obtained at a private sale or an auction sale, if the assessor determines the price from an auction sale represents an arms-length transaction. The price obtained at a forced sale shall not be considered."

In other words, market value is the price that would prevail under competitive open-market conditions.

The law specifically requires that assessors view each parcel of real estate to appraise its market value. Property values change continuously with changing market conditions. In addition to market changes, numerous physical changes affect the value of land and building. Such changes may include draining and clearing the land, redevelopment, improving adjacent public streets and installing utilities, and adding to or remodeling buildings. All factors are considered in estimating the value of a property. This requires physical inspection of all property subject to assessment.

The Assessor also determines the classification, or use, of each parcel. For instance, property may be residential homestead (owner-occupied), residential non-homestead, apartment, industrial, commercial, etc. Each classification is taxed at a different percentage of market value.

How is market value determined?

View Property:

Value and classification of real estate must be established on Jan. 2 each year. The Edina City Assessing Department works throughout the year to estimate the market value of each property for the following Jan. 2. Approximately every fifth year, a City Appraiser will view the property. Any property that had a building permit issued in a given year is viewed and its new value calculated for Jan. 2 following the construction.

Quintile Review:

Under Minnesota Statute 273.08, the Assessor is responsible to review every parcel under his/her jurisdiction at least once every five years to make sure that the information used to establish market values is accurate and up to date.

Each year, if your district is scheduled for review, you will be mailed a notice letting you know that appraisers will be working in your neighborhood in the upcoming weeks. When the appraiser gets to your neighborhood, he or she will knock on your door to let you know why he or she is there. He or she will ask to inspect the interior of your home and to walk around the exterior in order to make sure the information on your property is up to date and accurate. In addition, he or she will be happy to answer any questions you may have at that time.

If you are not home when the appraiser initially stops by, he or she will post a yellow note to your door indicating that a representative of the Assessor's Office had been there and asking you to call to set up an appointment for an interior inspection of your home. While he or she is there, though, he or she will walk around your home to verify all exterior data for accuracy.

It is our goal to assure an equitable assessment that will benefit all property owners - that is why it is so important that we review all properties in each district.

Gather Information:

The appraiser gathers information on all characteristics of the property that affect market value, such as size, age, quality, basement finish, and extra features, such as fireplaces, walkout basements, etc.

Compute Value:

The characteristics collected by the appraisers are entered into a computerized appraisal system. Information on actual sales are verified and updated to reflect market trends, values are calculated based on sales comparisons. The market value estimated by the appraiser in this way should be very close to the amount the property would sell for, if placed on the open market. The State Board of Equalization requires the overall level of assessment to be between 90-105 percent of market value. The City of Edina and Hennepin County consistently meet the State Board’s requirement.

Analyze Sales:

Each year the assessor's office analyzes actual sales of property in the City of Edina. Sales in a 12-month time period preceding the Jan. 2 assessment date, (from Oct. 1 to Sept. 30) are reviewed to determine what properties have sold for on the open market. These sales are used as a guide to help determine what similar properties would likely sell for if they were placed on the market.

Mail Notices:

The City of Edina Assessing Department mails a Value Notice to each property owner around the end of February every year. The assessment on Jan. 2 forms the basis for the following year’s tax.

‘Tax Capacity Value’ is determined by multiplying the market value of the property by the statutory percentage rates (also called class rates) for the specific classification(s)/use(s) on the property. Minnesota has many class rates and those rates can be changed only by the State Legislature. Call the Assessing Department for a list of the current class rates.

The "tax capacity rate" is determined annually by the County Treasurer/Auditor. This rate is multiplied by the ‘tax capacity value’ to arrive at the property tax.

The "tax capacity rate" is a result of dividing the property tax levies submitted by the taxing authorities (school district, county, city/township, metropolitan authorities, etc.), by the overall/total tax capacity value for that taxing jurisdiction.

A separate tax capacity rate applies to commercial/industrial/utility property because of fiscal disparities (tax sharing program in the seven county metropolitan area).

APPEAL QUESTION:

If after receiving your market value notice, you believe your property value or classification is incorrect, there are several methods of appeal:

First, collect any information you have to show why you believe your estimated market value or classification is incorrect, such as a recent appraisal of your property, recent sales of similar properties, etc.

Then, contact the City of Edina Assessor's Office. This step must be accomplished according to the timeline set forth in the market value notice.

If your concern is not resolved:

Complete an application to attend the local Board of Appeal and Equalization meeting identified on your value notice. Staff will help you with this process. You must start with your local board.

If your concern still is not resolved at the local level, you may then proceed to the County Board of Appeal and Equalization meeting.

Then, if your concern is still not resolved, you may petition the Minnesota Tax Court.

Tax Petitions may be filed after you receive your value notice and before April 30 of the year the taxes are payable.

For more information, call the Minnesota Tax Court, 651-296-2806.