4.0. SR 04-28-2003City ~
River
TO:
FROM:
DATE:
SUBJECT:
MEMORANDUM
Mayor and City Council
Sandra Peine, City Clerk
April 28, 2003
Board of Review
ITEM #4
The Board of Review meeting will be held at the Sherburne County Government Center.
Attached is information taken from the Minnesota League of Cities Handbook. The
information explains the board of review process and the role of the Council.
The Councils main role during the Board of Review meeting is to hear and settle the
complaints of individual property owners regarding the valuations of their property.
CHAPTER 22
A.G. Op. 474d (Aug. 28, 1961). Local governments in Minnesota may not exempt any land from taxation for
the purpose of attracting or keeping industry.
K. Equalization procedures
Once the assessors have completed their work, the city, county, and state
levels of government review and modify the assessments with limitations.
During this review, two kinds of corrections are possible: the governing body
may check the assessor's lists for accuracy, hear individual complaints and
make any necessary adjustments; and, the governing body may equalize the
ratio of market to assessed market values. The first function is the sole
concern of the city board of review, while the county and state boards devote
more time to the latter task.
When the entire procedure is complete, the county auditor puts the valuations
in the records to use when making up the tax rate figures. Only when all three
levels of government have reviewed and equalized the assessments, do they
become the official assessed values.
Minn. Stat. § 274.01, subd. l(a).
Minn. Stat. § 274.01, subd. 2.
Minn. Stat. § 274.01, subd. 3.
Minn. Stat. § 274.01, subd. l(a),
(d).
Minn. Stat. § 274.01, subd. l(a).
1. City board of review
The city council serves as the board of review in cities unless the power is
delegated to a special board of review or to the county, as described below.
The city council may appoint a special board of review. It may delegate to the
board all of the powers and duties the council would have if it acted as the
board of review. The members of the special board of review serve at the
direction and discretion of the council. The council determines the number of
members, the compensation and expense payments, and the term of office. At
least one member of the board must be an appraiser, realtor, or other person
familiar with property valuations in the assessment district.
Instead of performing the duties of a board of review itself or delegating it to
a special board of review, any city council of a city for which the county does
the assessing, may transfer its local board of review or equalization power
and duties to the county board.
The board of review meets in the city clerk's office. The city assessor and the
county assessor must attend this meeting with their assessment books and
papers. These officials may take part in the proceedings, but may not vote.
The meeting date of the board of review must be between April 1 and May
31, and is fixed by the county assessor on or before April 1 of each year by
giving written notice to the city clerk. After receiving the notice, the clerk
must give published and posted notice of the meeting at least 10 days before
the date of the meeting.
22-8 HANDBOOK FOR MINNESOTA CITIES
CHAPTER 22
Minn. Stm. § 274.01, subd. l(f).
Minn. Stat. § 274.01, subd. l(b).
Minn. Stat. § 274.(11, subd. l(e).
Minn. Stat. § 274.01, subd. l(c).
Minn. Stat. § 274.01, subd. l(f).
Minn. Stat. § 274.13.
A majority of the members may take action at the board of review meeting,
and may adjourn the meeting from day to day for a period of 20 days until
they complete their work. After 20 days, the board has no authority and any
action it takes is invalid unless the commissioner of revenue has granted an
extension.
In fulfilling its role, the board of review has three main functions:
· It must review the assessor's list, making sure all taxable property in the
city has been properly placed on the list.
· It must review the assessor's valuations, striving to standardize the ratio
between market value and adjusted market value for each individual
piece of property. To accomplish this, the board may raise or lower
valuations on individual properties, but it cannot increase valuations
without notifying the property owner and giving that person an
opportunity to be heard.
· The board must hear and settle the complaints of individual property
owners regarding the valuations on their property.
If a person fails to appear in person or through counsel or written
communication before the board of review after receiving notice of intent to
raise the assessment, or ifa person fails to apply for a review of the
assessment, that person may not appear before the county board of
equalization for a review of the assessment. An exception is when the
assessment takes place after the meeting of the board of review, or when
aggrieved individuals can establish that they did not receive notice at least
five days before the local board of review meeting.
The local board of review may not reduce the total or aggregate amount of
the county assessor's assessment by more than one percent. This means the
board must often compensate for reductions in assessed values by making
comparable increases in assessments against other parcels of property.
All complaints about an assessment or classification made after the meeting
of the board must be heard and determined by the county board of
equalization.
2. County board of equalization
The county board of equalization consists of either the county auditor and the
county commissioners, or a special board of equalization appointed by the
auditor and the board of county commissioners. The statutes establish
meeting dates.
HANDBOOK FOR MINNESOTA CITIES 22-9
CHAPTER 22
Although the county board of equalization may decrease and, after notice to
the taxpayer, increase individual valuations, its primary task is to equalize the
ratio between market value and assessed market value in the various districts.
The county board of equalization's main purpose is to secure uniformity of
assessed value from district to district, with only occasional attention to
uniformity between taxpayers within any one district. The board may not
reduce the aggregate valuations of either real or personal property in the
county below the amounts the assessors have determined, but it may increase
these amounts.
Minn. Stat. § 375 192.
Minn. Stat. § 270.11, subds. 1, 6.
,gee also, Minn. Stat. § 274.13.
subd. 1 (a).
Upon the property owner's application, the board may change a property's
homestead classification or reduce its market value, reducing or refunding
any taxes the person has already paid.
3. State board of equalization
The commissioner of revenue acts as the state board of equalization. The
commissioner's primary assessment task is to ensure uniformity of valuations
between counties. The commissioner may adjust valuations between districts
and between classes of property. The commissioner may raise or lower
individual assessments, but may increase individual assessments only after
the taxpayer has received notice and has had an opportunity to be heard. The
commissioner may not reduce the aggregate value of all property in the state
by more than 1 percent below the total the county boards of equalization have
reported. The commissioner may order a reassessment of property in any
district.
Minn. Stat. § 271.01.
Minn. Stat. § 271.21.
4. Appeals to tax court
The tax court is the final authority for the hearing and determination of all
questions under the property tax laws of the state, except for an appeal to the
Supreme Court. The tax court has jurisdiction in cases dealing with property
taxes only after the taxpayer has appealed the valuation or assessment to the
town or city board of review and to the county board of equalization, except
for those taxpayers whose original assessments came from the commissioner
of revenue. The tax court has no jurisdiction involving an order of the state
board of equalization unless a taxpayer contests the valuation of the property.
The tax court must hold hearings at any place in the state so taxpayers may
appear before the court with as little inconvenience and expense to the
taxpayer as possible.
The small claims division of the tax court has jurisdiction in any case
concerning the valuation, assessment, or taxation of residential property the
taxpayer has homesteaded, and of non-homesteaded property if the estimated
market value is less than $100,000. The small claims division also hears
cases concerning the tax laws in which the amount in controversy does not
exceed $5,000, including penalties and interest.
22-10 HANDBOOK FOR MINNESOTA CITIES