Market value for property tax purposes is the likely price a property would sell for on the open market. Market value is defined in Minnesota Statute 272.03, subd 8.
Assessors must estimate the market value of each property in the county as of every Jan. 2.
State law requires that the value and classification of real estate be established as of Jan. 2 each year. The County’s Assessing Services Department works throughout the year to estimate the market value of each property for the following Jan. 2.
To determine the market value, Assessing Services does the following:
Any property that had a building permit issued is viewed and its new value estimated for January 2nd following the construction. In addition, every property in the County is visited in person at least once every five years.
List all items that have an impact on market value, such as size, age, quality, basement finish and extra features, such as fireplaces, walkout basements, etc.
Data is entered into a mass appraisal system. Actual sales are entered to reflect market trends, and the computer calculates the property’s value.
Each year, the assessor studies actual sales of property in each community. Sales in a 12-month time period before the Jan. 2 assessment date (from Oct. 1 to Sept. 30) are reviewed to find out 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.
The State Board of Equalization requires the overall ‘level of assessment’ to be between 90–105 percent of market value. Dakota County consistently meets the State Board’s requirement.