Posted: 6/20/06
Land values continue to rise in county
By Jane Palen
Managing Editor
Agricultural land values in the county continue to increase steadily, while woods and waste land have seen exponential growth over the past 10 years.
The figures were discussed by the Houston County Board and assessor Tom Dybing at the annual Board of Equalization meeting held on Tuesday, June 13.
In 1996, an acre of woods was valued at $300. In 2006, the same land is valued at $2,200, an increase of 633 percent. The largest leap in value occurred between 2004 and 2005 when the land went from $1,400 per acre to $1,900.
Wasteland, defined as land which is not suitable for agricultural use, was valued at $30 per acre in 1996. By the year 2000 value of waste land was up to $700 per acre, This year, that land is being valued at $2,200 per acre, an increase of 7,230 percent over 10 years.
The values attached to certain types of property are based on the sale of similar property in the county. The steep increases in woods and waste land came about because those types of properties were selling for much more than their assessed values, primarily to people who intended to use the land for recreational rather than farming purposes. In 2000, a Green Acres program was established which sets a separate value for those types of properties when they are part of an agricultural parcel. Currently, that value is $500 an acre.
County assessor Tom Dybing explained that the program was developed so that farmers donít have to pay tax on the inflated value of their farm, which could create a financial hardship and affect their ability to farm.
Agricultural land has increased substantially in the past 10 years as well. In 1996, land described as 100 percent CER, representing the best ag land in the county, was valued at $1,700 per acre. That land is now valued at $2,900 per acre, an increase of 71 percent. CER stands for crop equivalency rating.
In 1996, ag land at 70 percent CER, the county average, was assessed at $1,190 per acre. It dropped to $980 per acre in 1999, then climbed steadily and is now valued at $2,030 an acre, also a 71 percent increase.
A building site with water, sewer and one acre of land was valued at $16,000 in 1996, and today has a value of $38,000, an increase of 137 percent over 10 years.
From October 1, 2004 through September 30, 2005, there were 14 agricultural sales in the county with the median selling ratio of 82.7 percent. That means that on the average, land was assessed at 82.7 percent of its selling price.
New home permits down
Other interesting figures brought forth at the Board of Equalization included the number of permits issued for new homes in the county.
In 2004, 105 new home permits were issued in the county. The average value of a new home was $201,130.
Last year, 82 new home permits were issued and the average value of a new home in the county was $216,300. Four permits were issued for twindominiums at an average value of $113, 100.
La Crescent led the county with 15 permits issued for new homes in the city, and Caledonia was close with 10 permits.
In the townships, Caledonia and La Crescent townships each issued 6 permits in 2005. The average value of a new home in La Crescent township was $334,600 and the value of a new home in Caledonia Township was $220,100.
School referendums have effect
School levy referendums have influenced what some Houston County residents pay in taxes. In Spring Grove, the school levy portion of taxes on a house valued at $100,000 increased from $220 to $410. For homes located in Houston County that are part of the Mabel-Canton School District, the portion of taxes that go to the school levy increased from $111 to $336.
In Caledonia, the taxes for the school levy decreased slightly, from $177 to $176 per $100,000 of value.
Assessor Dybing said that the turnout for local Boards of Equalization was low this year.
Caledonia Argus
314 West Lincoln St.
P.O. Box 227
Caledonia, MN 55921-0227
507/724-3475
E-Mail: editor.argus@ecm-inc.com