Market value for property tax purposes is the likely price a property would sell for on the open market.
Value and classification of real estate must be established as of Jan. 2 each year. Assessing Services 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:
View property
- Any property that had a building permit issued is viewed and its new value estimated for Jan. 2 following the construction. In addition, every property in the County is viewed at least once every five years.
Gather data
- 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.
Compute value
- Data is entered into a mass appraisal system. Actual sales are entered to reflect market trends, and the computer calculates the property’s value.
Analyze sales
- Each year, the assessor studies actual sales of property in each community. Sales in a 12-month 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.