Terms Listed on Your Notice of Valuation
Estimated Market Value
Estimated Market Value is the most probable sale price in terms of money in a competitive and open market, assuming that the buyer and seller are acting prudently and knowledgeably allowing sufficient time for sale and assuming that the transaction is not affected by undue pressures." What this simply means is what you could sell your property for in today's real estate market.
Classification of your property
Classification of your property is mandated by state law and is based on the primary or most likely use of your property.
Value of New Improvements
Value of New Improvements is the value placed on the property because of additions, remodeling and other changes that the assessor estimated add value to the property.
Limited Market Value
Limited Market Value applies to residential, agricultural, timber and seasonal residential recreational property (M.S 273.11, Subdivision 1a). Assessors are still required to estimate the market value of these properties, however, in some cases the law requires the use of a limited market value for purposes of determining the property tax bill. Under current law the limited value will be less than the market value if the market value has increased by more than 10% over the previous year. Value increases due to improvements to the property are excluded from the 10% limit.
Value Exemption for Certain Improvements
Value Exemption for Certain Improvements (This Old House) is the amount of the New Improvement Value excluded from taxation on homestead property 45 years of age or older (M.S 273.11, Subdivision 16). Not all improvements qualify. No new applications accepted as this program is being phased out for existing applicants.
Taxable Market Value
Taxable Market Value is the net valuation that will be used for the calculation of your following years tax bill. It is the final value after all qualifying reductions have been made.