Caledonia Argus

Most property in county shows increase in value

Posted: 4/9/02

In spite of what is considered a slowing down of the economy, market values of real estate continue to increase. The lower interest rates on mortgages in decades and a poor return on financial investments have turned investors to the real estate market. This is reflected in the valuation increases that have occurred in Houston County over the last few years. Property owners will see these changes in value when they receive their ìNotice of Your Propertyís Estimated Market Value and Property Classî this week.

The equalization notice is the first step in the property tax cycle. The notice informs the taxpayer of the estimated market value and the use of the property. This value is determined by the market between buyers and sellers and/or a change in the condition of the property since last year. The value of a property on January 2, 2002 is determined by a sales study conducted by the Assessorís Office from October 1, 2000 to September 30, 2001. Based on the statistical analysis of the sales study, a valuation could increase or decrease depending on the market trend. Local Board of Appeal & Equalization meetings in your local taxing jurisdiction provide the property owner with the opportunity to receive information about the sales study and how it affected the value of their property. If the property owner has concerns or feels the need for clarification of value or classification, please call or come into the Assessorís Office prior to the local Boards of Review. In the office setting, the staff has more time and resources available to answer your questions or concerns.

The most significant increases have taken place in the agricultural sector. Farm acres with a 100 CER(Crop Equivalent Rating) rating, which is the very best land that could be found in Houston County, is valued at $2,000 per acre. The average CER rating for all of Houston County is 70 CER which generates a value of $1,400. Woodland is valued at $1,200; waste is at $1,100; and building sites are at $30,000. The ìGreen Acreî value of $300 is the same as last year.

The values that Houston County has in place for this assessment is similar to the values carried by Fillmore and Winona Counties.

Residential values have seen a steady increase over the last few years. Valuation changes occurred in Spring Grove City, a 5% increase; La Crescent City, 7% increase; La Crescent Township and Hokah Township, a 12% increase each; Eitzen City, 13% increase. Brownsville City and Hokah City had minor changes in the land values. Caledonia City and Houston City remained the same. The residential properties in the rural townships increased in value due to an increase in building sites. Commercial properties in La Crescent City and Township went up by 5%.

New home construction in the county is down slightly from previous years. The number of new homes starts was 67 in 2001, down from 71 the previous year. The average valuation was $158,500. We also had 5 Twindominiums consisting of 10 individual living units started last year at an average valuation of $111,300.

Last year was a year of the greatest reform in the Property Tax system in the State of Minnesota. It had basically had no impact on the way a property is valued. The new legislation brought about the greatest change in how a property is taxed in relationship to its value. For most property owners it may have meant a reduction in their property tax.

But there are property owners that will have increased property taxes due to the legislative changes.

If a property owner has any questions on the legislative changes, the value and classification of their property, the ìGreen Acresî program, or Special Ag homesteads please call (507) 725-5801 or stop by the Assessorís Office in the Courthouse in Caledonia.

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