HomeMy WebLinkAboutCity Council Packet 05-02-2000 BOEAgenda
City of Plymouth
Board of Review Meeting
Tuesday, May 2, 2000
7:00 p.m.
Council Chambers
Call to Order
2. City Assessor's Report
3. Public Comment
4. Adjourn
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2000
REVIEW
CITY OF PLYMOUTH
MAY 2, 2000
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MEMO
CITY OF PLYMOUTH
3400 PLYMOUTH BOULEVARD, PLYMOUTH, MN 55447
DATE: May 2, 2000
TO: Plymouth Board of Review
FROM: Nancy Bye, City Assessor
SUBJECT: 2000 BOARD OF REVIEW
Attached for your review, is a report on the 2000 Assessment. The report introduces you
to the statistical measurement and general information the assessing staff utilizes in
determining values for the annual, January 2 Assessment. This will hopefully make your
job as a member of the Board of Review easier to understand.
The purpose of the Local Board of Review is to hear testimony from property owners on
their objections to the Assessor's 2000 estimated market value or property classification.
This may be done in three ways: (1) in person, (2) in writing, or (3) by the property
owner's representative.
The Board of Review is not empowered to adjust taxes, but only deal with the 2000
estimated market value or classification questions.
At the conclusion of the meeting the Board of Review will recess, and will reconvene on
May 16, 2000 at 7:00 p.m. Decisions on all appeals will be made at that time based on
staff reports and information submitted.
Please read through the information and feel free to contact me with any questions or
comments you may have before the Board convenes. Extension #5351
E-mail NBye@ci.plymouth.mn.us
TABLE OF CONTENTS
DESCRIPTION PAGE#
LOCAL BOARD OF REVIEW AUTHORITY 1
2000 BOARD OF REVIEW SUMMARY 2
INTRODUCTION TO THE 2000 ASSESSMENT 4
INTRODUCTION TO PLYMOUTH ASSESSING DIVISION 8
2000 ASSESSMENT STATISTICS 9
ASSESSMENT TERMINOLOGY 10
2000 SALES RATIO STUDY 16
DISTRIBUTION OF MARKET VALUE 17
SINGLE FAMILY HOUSING BREAKDOWN 18
2000 ASSESSMENT SALES STATISTICS 19
RESIDENTIAL VALUE DISTRIBUTION 20
APPEAL PROCESS 21
LAKESHORE STUDY 22
ADDENDUM 23
I LOCAL BOARD OF REVIEW AUTHORITY
Minnesota Statutes, Section 274.01, provides that the council of each city shall be or
appoint a Board of Review. The Plymouth City Charter requires that the City Council act
as the Board of Review.
Assessments of property are made to provide the means for the measuring of the relative
share of each taxpayer in the meeting of the costs of local government. It is the duty of the
Assessor to assess all real and personal property except that which is exempt or taxable
under some special method of taxation. If the burden of local government is to be fairly
and justly shared among the owners of all property of value, it is necessary that all taxable
property be listed on the tax rolls and that all assessments be made accordingly.
The authority of the local board extends over the individual assessments of real and
personal property. The board does not have the power to increase or decrease by
percentage all of the assessments in the district of a given class of property. Changes in
aggregate assessments by classes are made by the County Board of Equalization.
Although the local board has the authority to increase or reduce individual assessments, the
total of such adjustments must not reduce the aggregate assessment made by the Assessor
by more than one percent of aggregate. If the total of such assessments does lower the
aggregate assessment made by the Assessor by more than one percent, none of the
adjustments will be allowed. This limitation does not apply, however, to the correction of
clerical errors or to the removal of duplicate assessments.
In reviewing the individual assessments, the board may find instances of under valuation.
Before the Board can raise the market value of property, it must notify the owner. The
law does not prescribe any particular form of notice except that the person whose property
is to be increased in assessment must be notified of the intent of the board to make the
increase. The Local Board of Review meetings assure the property owner an opportunity
to contest the valuation that has been placed on his/her property or to contest or protest any
other matter relating to the taxability of his/her property except the tax. The board is
required to review the matter and make any corrections that it deems just.
A new piece of legislation was added in the 1999 legislative session and affects the Local
Board of Review.
Effective May 26, 1999 for taxes payable in 2000 and thereafter:
Chapter 243,Article 5, Section 24
Allows property owners to refuse to allow an assessor to inspect their property. The
refusal must be verbal or in writing. The assessor may then estimate a property's
value by making assumptions believed appropriate concerning the property's finish
and condition. If the assessor is refused entry, the local board of review may not
adjust the market value or classification in a way that would benefit the property.
2000 BOARD OF REVIEW SUMMARY
This past year there were changes in estimated market value of most properties located in
the city of Plymouth. Some of these value changes range from general city wide increases
to substantial increases due to locational market activity. Average percentage increases in
valuation are as follows:
Property Type
Residential
Residential Lakeshore
Condominiums
Townhomes
Apartments
Commercial/Industrial
Value Percent Change
9%
11%
10%
10%
14%
5%
Exceptions to the above market value changes would include new construction, quartile
areas, reappraisals, and/or other market adjustments.
The condominium and townhouse market, after being flat for a number of years, continues
to be a rapidly appreciating market. This is based on the aging baby boomers and the
demand for maintenance free living.
On March 20, 2000 estimated market value notices were mailed to all Plymouth property
owners.
State law provides that the assessment shall be an annual assessment with all property in
the taxing jurisdiction re -valued to its market value every January 2"d. The City of
Plymouth continued to have a high quantity of building permits for new construction and
remodeling projects. This does not include the 5,600 quartile parcels that had to be
reviewed and reappraised.
With the ongoing conversion of our computerized system for property appraisal, certain
workloads shifted. A computerized mass appraisal system requires extensive time
verifying the accuracy of the converted data as well as sketching to scale each property into
the new system. Our computerization of the assessing function of Plymouth continues to
be one of the most progressive and sophisticated systems that exists in the State of
Minnesota. The excellence and quality of the 2000 assessment is a direct result of this
computerization.
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The assessment just completed for 2000 represents mar v hours of staff research and time.
We feel confident the 2000 assessment is fair and well equalized throughout the City of
Plymouth.
Respectfully submitted
Assessing Department Staff
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INTRODUCTION TO THE 2000 ASSESSMENT
The 2000 Assessment affects all the property owners of Plymouth. As required by
current state law, the Assessor is required to reassess all property every year.
State Statute reads: "All real property subject to taxation shall be listed and assessed
every year with reference to its value on January 2 preceding the assessment." This has
been done and the owners of property in Plymouth have been notified of any change.
Minnesota State Statute 273.11 reads: "All property shall be valued at its market value. It
further states that "in estimating and determining such value, the Assessor shall not adopt a
lower or different standard of value because the same is to serve as a basis for taxation,
nor shall he adopt as a criterion of value the price for which such property would sell, or
in the aggregate with all the property in the town or district but he shall value each article
or description of property by itself, and at such sum or price as he believes the same to be
fairly worth in money." The statute says all property shall be valued at market value.
This means that no factors other than market (such as economics, personalities or politics)
shall affect the Assessor's value and the subsequent action by the Board of Review.
Market value has been defined many different ways. Simply stated, it is "the highest
price estimated in terms of cash which a property will bring if exposed for sale on the open
market by a seller who is willing but not obligated to sell, allowing a reasonable time to
find a purchaser who is willing but not obligated to buy, both with knowledge of all the
uses to which it is adapted and for which it is capable of being used."
The real estate tax is an ad valorem tax which is based on the value of property and not on
the ability of the property owner to pay. The values placed on all real estate in Plymouth
are based on the amount of land and the improvements upon the land, while no
consideration is given to who owns the land.
The 2000 Assessment (not the 2000 taxes) reflects an increase of 12% overall valuation
over the 1999 assessment (including new construction, quartile adjustments, and/or market
adjustments). This can be demonstrated as follows:
1999 TOTAL CITY VALUE
2000 TOTAL CITY VALUE
PRELIMINARY)
2000
PERCENTAGE
4,863,051,500 5,421,722,500
Total Value Increase: 588,671,000 12%
Value of New Construction: 147,805,300 3%
Appreciation of Existing Property: 440,865,700 9%
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TOTAL PERCENT VALUE GROWTH OF PLYMOUTH
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2000 ASSESSMENT INTRODUCTION
During this past year, our staff has concentrated on collecting field data on field property
cards. Once collected the data was entered into and calculated by the computer system.
The output is then analyzed for accuracy and parity.
Those areas of the city that equal 25% of all existing properties have been physically
reviewed during 1999 and represent over 5,600 parcels, excluding 2,620 building permits.
This is commonly referred to as the "Quartile". In the areas of re -inspection, new items
that previously were not on our records were added, or where applicable, deleted. 66% of
all homes reviewed were internally inspected. A preliminary sales study was analyzed,
prior to placing a final value on each property inspected.
Plymouth's preliminary residential median ratio entering the 2000 assessment was 85.3 %.
This is determined by Hennepin County comparing the January 2, 1999 estimated market
values to sales occurring from October 1, 1998 through September 30 of 1999. The
average residential increase for the January 2, 2000 assessment was 12%. This was
determined by comparing the January 2, 2000 estimated market values to the same sales,
thus establishing the 2000 estimated market values at a median sales ratio of 94.1 and a
mean ratio of 93.9 with a coefficient of dispersion of 6.7. In accordance with the results
of this sales study, certain areas of the city, certain styles of houses and certain sizes of
houses were adjusted in value, either lower or higher than the original value, to more
properly reflect actual market values. This past year the appreciation on existing homes
was in the double digits.
The average mean sale price of existing housing stock in the City in 1999 was $231,300,
this does not include townhouses or condos. This is extracted from the Hennepin County
Ratio Study of all arms -length transactions involving single family homes.
Lakeshore in Plymouth was adjusted according to the sale activity on each individual lake.
The average lakeshore property received an increase of approximately 11 %. The average
sale price of existing lakeshore property in 1999 was $481,400.
Various townhouse and condominium complexes were adjusted according to market
activity as well as studies to determine if the number of bedrooms per unit affected the
sales prices. The average increase to the townhouses and condominiums was
approximately 10%. The sale activity of condominiums and townhouses was brisk in
1999. The market was strong on existing townhouses ranging from $75,000 to $170,000
and existing condominiums ranging in sale price from $75,000 to $125,000.
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Commercial/Industrial property values increased an average of 5 % from 1999 to 2000.
This increase was due to several factors: market sales, increasing rents and profits to
owners, and economic recovery which is currently the longest expansion in history; has
created demand for new construction. The one year property growth does not represent
the rate of inflation of the Consumer Price Index.
Apartment property for the 2000 assessment increased an average of 14% from 1999 to
2000. The factors contributing to this increase were the market activity, increase in rents
and the very low vacancy rates; less than 2% in Plymouth.
The value we place on the property is accomplished only after we have conducted thorough
studies in the market place. Costs of replacement are checked with builders in the area, as
well as cost manuals that are available, which are put together by experts in the field of
building and appraising. Sales of property are constantly analyzed to see what is
happening in the market place. The assessors/appraisers do not create value, they only
Imeasure its movements.
Assessing property values equitably is partly science, partly judgment, partly
communication skills, and largely a mystery to many property owners. Add to that the fact
that property construction, financing and ownership are more complex today than ever
before and the task becomes more difficult.
Training cannot tell us how to find the "perfect" value of a property, but training can
consistently produce the same estimate of value for identical property by different
assessors. That, after all, is a working definition of equalization.
The following pages contain information that hopefully will inform you and make your job
as a member of the Board of Review a more productive one.
Plymouth Assessing Department {
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City Assessor
Nancy D. Bye CAE
Senior Appraiser Commercial Appraiser
Jan Olsson RES Earl Zent CAE
Appraiser Appraiser Appraiser
Bev Moos CMS Joan McCormick CMA Paul KingsburyCMA
Part-time
Appraiser
Joann Lowrie CMA
Assessment
Technician
Cindy Bowman
Accounting
Clerk
Joyce Kirkham
2000 ASSESSMENT STATISTICS
22,068TotalCityParcelCount (01-02-99)
Total City Parcel Count (01-02-00) 22,176
Parcel Count Per Appraiser 2000 Assessment 4,435
Assessor's Industry Standard per Appraiser 3,000
1999 Total Estimated Market Value 4,863,051,500
2000 Total Estimated Market Value (Preliminary) 5,421,722,500
1998 to 1999 Total City Valuation Growth 8.9%
1999 to 2000 Total City Valuation Growth 12%
1998 Total Building Permits 2,185
1999 Total Building Permits 2,620
1997 Plymouth's Average Home Sale Price 192,800
1998 Plymouth's Average Home Sale Price 206,300
1999 Plymouth's Average Home Sale Price 231,300
Does not include townhouses or condos)
1999 "Median" Sales Ratio (Assessment Level) 93.9%
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2000 "Median" Sales Ratio (Assessment Level) 94.1%
2000 Hennepin County Median Sales Ratio 94.4%
1999 Coefficient of Dispersion (Assessment Accuracy) 6.2%
2000 Coefficient of Dispersion (Assessment Accuracy) 6.7%
1,8001998ApproximateNumberofSales (including new construction)
1999 Approximate Number of Sales (including new construction) 1,950
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ASSESSMENT TERMINOLOGY
AD VALOREM TAX - A tax varying with the value of a good or commodity; a real estate
tax based on the value of the property.
APPRAISAL - An estimate or opinion of value. The act or process of estimating value.
The resulting opinion of value derived from the appraisal may be informal, transmitted
orally; or it may be formal, presented in written form. Usually it is a written statement
setting forth an opinion of the value of an adequately described property as of a specified
date, supported by the presentation and analysis of relevant data.
APPRAISER - One who estimates value; specifically, one who possesses the necessary
qualification, ability and experience to execute or direct the appraisal of real property.
CAPITALIZATION - The process of converting into present value (or obtaining the
present worth of) a series of anticipated future periodic installments of net income. In real
estate appraising, it usually takes the form of discounting.
CAPITALIZATION RATE - The sum of a discount and a capital recapture rate. It is
applied to any income stream with a finite term over which the invested principal is to be
returned to the investor lender.
CITY MARKET VALUE RATE - Established in 1996 (payable 1997 taxes) as a direct
computation against the market value to offset the purchase of open space for nature areas
and trails.
CLASS RATE - Statutory percentage applied to the estimated value of a parcel based on
the parcel's classification. Formerly known as tax capacity rate or percentage.
CLASSFICATION OF PROPERTY - The classification of property after the valuation is
complete to identify the property as residential, commercial, homestead, non -homestead,
etc. Each class refers to a different statutory assessment rate. It is based on the use as of
the assessment date.
COEFFICIENT OF DISPERSION: (Assessment Accuracy) - In statistics, the measure of
absolute dispersion to an appropriate average. A measure of relative dispersion.
Sometimes referred to as an "index of assessment inequality". Under 10% is in the
excellent range.
COST APPROACH - That approach in appraisal analysis which is based on the
proposition that the informed purchaser would pay no more than the cost of producing a
substitute property with the same utility as the subject property. It is particularly
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ASSESSMENT TERMINOLOGY (continued)
applicable when the property being appraised involves relatively new improvements which
represent the highest and best use of the land or when relatively unique or specialized
improvements are located on the site and for which there exist no comparable properties on
the market.
DEPRECIATION - A loss of utility and hence value from any cause. An effect caused by
deterioration and/or obsolescence. There are several types of depreciation.
PHYSICAL DEPRECIATION - A reduction in utility resulting from an
impairment of physical condition. For purposes of appraisal analysis, it is most
common and convenient to divide physical deterioration into curable and incurable
components.
PHYSICAL CURABLE DEPRECIATION - Physical deterioration which the
prudent buyer would anticipate correcting upon purchase of the property. The cost
of effecting the correction or cure would be no more than the anticipated addition
to utility, and hence ultimately to value, associated with the cure.
PHYSICAL INCURABLE DEPRECIATION - Physical deterioration which in
terms of market conditions as of the date of the appraisal is not feasible or
economically justified to correct. The cost of correcting the condition or effecting
a cure is estimated to be greater than the anticipated increase in utility, and hence
ultimately in value, of the property that will result from correcting or curing the
condition.
FUNCTIONAL DEPRECIATION - Impairment of functional capacity or
efficiency. Functional obsolescence reflects the loss in value brought about by
such factors as over capacity, inadequacy and changes in the art, that affect the
property item itself or its relation with other items comprising a larger property.
The inability of a structure to perform adequately the function for which it is
currently employed.
ECONOMIC OBSOLESCENCE - Impairment of desirability or useful life arising
from factors external to the property, such as economic forces of environmental
changes which affect supply -demand relationships in the market. Loss in the use
and value of a property arising from the factors of economic obsolescence is to be
distinguished from loss in value from physical deterioration and functional
obsolescence, both of which are inherent in the property. Also, referred to as
Location or Environmental Obsolescence.
ASSESSMENT TERMINOLOGY (continued)
EDUCATION HOMESTEAD CREDIT - The new education homestead credit reduces
school district taxes on residential homesteads and on the house, garage and one acre of
land for farm homesteads. The funds go directly to the state determined general education
fund of each school district.
ESTIMATED MARKET VALUE - The value which the Assessor has estimated the
property to be worth.
EQUALIZATION - The adjustment of assessed valuation of real property in a particular
area to establish a more equitable division of the total tax burden within the area.
FISCAL DISPARITIES - Program which provides for the sharing of 40 percent of the
growth of the commercial/industrial tax base in the seven county metro area since 1971.
A percentage of the property tax on each commercial/industrial parcel is calculated at the
seven county uniform rate.
GEOCODE NUMBER - A geographically related parcel numbering system. The numer
contains thirteen digits made up of section, township, range, quarter -quarter and parcel.
The first seven digits, based on the public land survey, geographically locate the section
in which the property is located. The next two digits will designate in which quarter -
quarter the property is located. The ten through thirteen digits indicate the parcel within
the quarter -quarter. The parcels will be numbered consecutively beginning with 0001.
When a division is made, the next consecutive available number(s) will be assigned, and
the old number(s) will be retained for historical data.
GROSS TAX CAPCITY - A parcel's estimated market value multiplied by the gross class
rate for that type of property. Formerly known as assessed value.
HIGHEST AND BEST USE - That reasonable and probable use that will support the
highest present value, as defined, as of the effective date of an appraisal.
HOMESTEAD AND AGRICULTURAL CREDIT AID (HACA) - Replaces homestead
credit and agricultural credit. The State gives this aid directly to the local units of
government.
HOMESTEAD FULL YEAR - Property is granted a lower assessed value if the owner
lives in and owns the property as of January 2. If a person owns and occupied their home
up until December 1, they receive a mid year homestead which carries the full homestead
benefits payable the following year. For example, the January 2, 1999, classification
affects the taxes payable in 2000.
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ASSESSEMENT TERMINOLOGY (continued)
NON -HOMESTEAD - Residential property that does not qualify for a full year or half
year homestead. The tax capacity is higher, hence a higher tax.
INCOME APPROACH - That procedure in appraisal analysis which converts anticipated
benefits (dollar income or amenities) to be derived from the ownership of property into a
value estimate. The income approach is widely applied in appraising income-producing
properties. Anticipated future income and/or reversions are discounted to a present worth
figure through the capitalization process.
LEGAL DESCRIPTION - The formal way to describe a parcel of property typically
metes and bounds, lot and block or government survey.
MASS APPRAISAL - A method used in valuation of a jurisdiction for tax purposes. As
the term implies, it is a method of appraising a large number of properties at one time by
adopting standard techniques, and giving due consideration to the appraisal process so that
uniform or equality of values may be achieved between all properties.
METES AND BOUNDS - A description of a parcel of land by reference to the courses
bearings, that is, the angles east or west of due north or due south) and distances (usually
in feet or chains) of each straight line which forms its boundary, with one of the corners
tied to an established point; that is the bearing and distance from an established point;
such as a section corner or to the intersection of the center lines of two roads, etc.
If one part of the boundary is on a curve, this part is described by showing the number of
degrees of the central angle subtended by the curve (arc), the length of the radius, and the
length along the curve.
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LIMITED MARKET VALUE - The Legislature in its 1993 session passed a law imposing
a limit on how much an assessor's estimate of market value is permitted to increase from
one year to the next. Under the law, assessors are required to continue to estimate the
market value of all properties. However, the law requires the use of a limited market
value for purposes of determining property tax bills. Approximately 10,489 parcels in the
City qualify for a limited value. These properties are taxed on their limited market value,
not their estimated value. $83,817,3000 of estimated market value is not being taxed due
to the limited taxation law.
LOCAL TAX RATE - Rate of tax applied to the tax capacity of property to calculate the
tax due. Formerly known as tax capacity rate, mill rate.
MARKET VALUE - The most probable price in terms of money which a property will
bring in a competitive and open market under all conditions requisite to a fair sale, the
buyer and seller, each acting prudently, knowledgeably and assuming the price is not
affected by undue stimulus.
MASS APPRAISAL - A method used in valuation of a jurisdiction for tax purposes. As
the term implies, it is a method of appraising a large number of properties at one time by
adopting standard techniques, and giving due consideration to the appraisal process so that
uniform or equality of values may be achieved between all properties.
METES AND BOUNDS - A description of a parcel of land by reference to the courses
bearings, that is, the angles east or west of due north or due south) and distances (usually
in feet or chains) of each straight line which forms its boundary, with one of the corners
tied to an established point; that is the bearing and distance from an established point;
such as a section corner or to the intersection of the center lines of two roads, etc.
If one part of the boundary is on a curve, this part is described by showing the number of
degrees of the central angle subtended by the curve (arc), the length of the radius, and the
length along the curve.
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ASSESSMENT TERMINOLOGY (continued)
PARCEL - A piece of land, with or without improvements, in one ownership.
PRICE RELATED DIFFERENTIAL: (Assessment Difference) - A statistic used to
measure the assessment differences that may exist between higher priced properties vs.
lower priced properties. 100 points is ideal. Within 10 points of 100 is considered
excellent.
PROPERTY TAX REFUND - All homeowners with household income below $61,930
OR where the property taxes increased more than 12% over last year, may be eligible for
a property tax refund.
SALES COMPARISON APPROACH - Traditionally, an appraisal procedure in which
the market value estimate is predicated upon prices in actual market of value in a static or
advancing market (price wise), and fixing the higher limit of value in a declining market;
and the latter fixing the higher limit on any market. It is a process of analyzing sales of
similar recently sold properties in order to derive an indication of the most probable sales
price of the property being appraised. The reliability of this technique is dependent upon
a) the availability of comparable sales data, (b) the verification of the sales data, (c) the
degree of comparability or extent of adjustment necessary for time differences and (d) the
absence of non -typical conditions affecting the sale price.
SALES RATIO (Assessment Level) - The ratio derived by dividing a property's sale price
into the Assessor's estimated market value.
SALES RATIO ANALYSIS - Study of the relationship between the Assessor's values,
sales prices and the deviations resulting from differences between the two. The purpose
of such an analysis is to determine the efficiency, equity, quality and fairness of assessing
activities of a particular neighborhood or jurisdiction.
SCHOOL MARKET VALUE RATE - Established in 1995 (payable 1996) as a direct
computation against the market value after the passing of school bond referendums.
SPECIAL ASSESSMENT - Street, sewer, water, curb, or other infrastructure costs that
are incurred by a city/township and assigned to benefiting properties.
THIS OLD HOUSE" - The Legislature, in its 1999 session, passed a law to alter the
current exemption to property taxation on older homes. The property must now be 45
years of age or older (Article 5, Section 13 of the Omnibus Bill). The law is designed to
provide owners of older and deteriorated homes with an incentive to restore or renovate
their homes. In turn, is hoped that this will ultimately lead to the preservation of aging
homes in rural communities.
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ASSESSMENT TERMINOLOGY (continued)
To qualify for the exemption of improvements from the property tax, the property must be
45 years of age or older at the time the improvements commence and it must be
receiving the homestead classification or will be receiving the homestead classification by
December Vt of the year the improvement is made.
Only the improvements made to the residence and garage, or the construction of a new
garage qualify for the exemption. An application must be made to the Assessor's Office
for the exemption.
Improvements such as swimming pools and yard improvements are not included. Only
improvements which contribute to increase the value by $5,000 or more may be eligible
for the exemption. If more than 50 per cent of the square footage of the house or fifty
percent of the value is increased, it shall constitute a new home and not qualify.
Properties valued to $450,000 may qualify. To qualify for exemption, the homeowner
must have obtained a building permit. There is no limit to the total numbers of building
permits to be considered, only the total dollar amount of each improvement.
The total qualifying value is dependent upon the age of the residence. Houses that are
less than 45 years of age, do not qualify. The qualifying value of houses that are at least
45 years of age, but less than 70 years, is limited to one-half of the value of the
improvement up to a maximum exemption of $25,000. Houses that are 70 years of age,
or older, are eligible to have the actual of any improvements excluded, up to a maximum
of $50,000. The valuation of the improvement shall be calculated and determined by the
Assessor and shall be based on the increase in market value of the year period and once
the value of the improvement is established by the Assessor, it remains frozen during the
ten year period of exclusion; however, the inflationary trend for the total value of the
property, including that portion attributable to the addition, will be eligible for taxation.
Under the law beginning April 1, 1994, owners must disclose to prospective buyers
1 whether any improvements made to the home are exempt from property tax. Owners are
also required to notify buyers that the exemption will terminate when the property is sold.
The exemption for the value of the improvement remains in effect for 10 years beginning
with the initial assessment year in which the improvements contributed to the value of the
house or garage.
The following pages discuss the methodology and our 2000 Sales Ratio Study. We are
fortunate in Plymouth to have a very active market with numerous sales to be able to
accurately measure our assessment.
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2000 SALES RATIO STUDY
Equalizing is done in today's procedures through ratio studies. These studies compare the
Assessor's value with that same property's actual sale price. This comparison gives us
ratio indicators that are recognized by the County and the State Commissioner of
Revenue. The ratio indicators must reach acceptable levels or they will trigger corrective
action for general across-the-board adjustments by the County Assessor or the
Commissioner of Revenue. These general corrections are essentially a "shotgun blast"
type correction that affects the adequate and inadequate values alike, and although they
correct equalization across jurisdiction lines, they do just the opposite within a jurisdiction
by increasing inequity. In Plymouth, this type of correction was received on Industrial
properties for the 1998 assessment, (-5% to building value). Fortunately it has never
been done to residential properties.
The 2000 sales study recently completed by our staff and Hennepin County places our
overall median ratio at 94.1 %. Hennepin County's average median ratio is 94.4 % which
puts Plymouth below the average and dictates that jurisdictions at or above the median
carry a slightly greater share of the load. We want to be the leader in most other areas,
however, in equalization ratio studies we certainly don't want to be at or near the top.
The Commissioner of Revenue and the Hennepin County Assessor have mandated that
any jurisdiction falling below a 90.0% plateau will be forced into corrective action, and
then everyone suffers.
Our coefficient of dispersion in this year's study is 6.7 %. This is comparable to other
jurisdictions of our size in Hennepin County. (Anything under 10 is considered
excellent.) This is a direct result of our computerization of the appraisal process and
demonstrates our ability to administer fair and equalized valuations at both ends of the
value spectrum.
Our price related differential is currently at 100.3 This shows our ability to treat higher
priced homes as equally as the lower priced homes. 100 is consideredep rfect.
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DISTRIBUTION OF ESTIMATED MARKET VALUE BY PROPERTY
TYPE
2000
Residential
Commercial/Industrial
Apartments
TOTAL EMV
Percentage
69.00%
25.00%
6.00%
011I1I11
3,766,855,700
1,353,144,700
301,722,100
5,421,722,500
17
1999
3,380,692,600
1,213,697,200
260,254,700
4,854,644,500
MEMO
CITY OF PLYMOUTH
3400 PLYMOUTH BOULEVARD, PLYMOUTH, MN 55447
DATE: April 17, 2000
TO: Assessing Staff
FROM: Nancy Bye, City Assessor
SUBJECT: SINGLE FAMILY LIVING UNIT COUNT BREAKDOWN
TOTAL CITY)
The following is a listing of the type and the number of living units for each that is on the
tax rolls for assessment year January 2, 2000.
2000 ASMT
TYPE OF DWELLING OF UNI
Apartment Units 5,462
Single Family Homes 15,006
Condominiums 2,223
Townhomes 2,427
Permalease 51
Mobile Homes 61
Farm Houses 24
Seasonal Res. (Cabins) 7
Co -Op Units 56
TOTAL LIVING UNITS: 25,317
2000 Assessment represents an increase of 387 living units over January 2, 1999.
Total number of homesteads (1/2/00) 19,299.
18
MEMO
CITY OF PLYMOUTH
3400 PLYMOUTH BOULEVARD, PLYMOUTH, MN 55447
DATE: February 18, 2000
TO: Nancy Bye, City Assessor
FROM: Jan Olsson, Senior Appraiser
SUBJECT: 2000 ASESSMENT - HENNEPIN COUNTY STUDY
SALES STATISTICS
OVERALL SALES RATIO
2000 Estimated Market Values were used on all sales)
STYLE OF SALES AVG. SALE PRICE MEAN RATIO
Ramblers 121 196,500 946
Splits 236 192,300 939
Two Stories 278 283,200 958
Rambler - Cluster
Homes 14 218,400 970
Splits - Cluster
Homes 10 183,700 988
Two Stories - Cluster
Homes 10 217,300 970
Condominiums 253 103,900 943
Townhomes 114 144,800 942
TOTAL 1,036
The above figures are based on the sale of existing homes that meet the state criteria for arm's length
transactions.
Approximate Number Homes Sold Including New Construction 1,950
Average Sale Price of Single Family Homes $231,300
cc: Appraisal Staff
19
m
50
40
o z
w
30
w
CL
20
10
0
PLYMOUTH RESIDENTIAL PROPERTY VALUE DISTRIBUTION 1998-2000
1998 1999 2000
YEAR
0 UNDER $50,000
50,0014100,000
100,0014200,000'
200,001-$300,000
300,001-$400,000
400,0014500,000
OVER $500,001
MARKET VALUE APPEAL PROCESS
NOTICE OF MARKET VALUE
DISCUSS WITH ASSESSOR'S OFFICE
LOCAL BOARD OF REVIEW
DENY APPEAL
COUNTY BOARD
OF EQUALIZATION
CHANGE
VALUE
STATE TAX COURT
21
ABATEMENT PROCESS
ADMINISTRATIVE
REVIEW)
APPROVE APPEAL
DENY APPEAL
2000 RESIDENTIAL LAKE SHORE SALES STUDY
1999 SALES)
NUMBER NAME 1 YEAR AVERAGE AVERAGE
OF OF OF LOT SALE
PARCELS LAKE SALES VALUE PRICE
115 Bass 8 103,000 TO 505,100
198,000
37 Gleason 3 90,000 TO 640,800
220,000
48 Hadley 4 110,000 TO 383,750
165,000
33 Lost 2 80,000 TO 291,000
110,000
141 Medicine 4 125,000 TO 348,000
190,000
43 Mooney 2 110,000 TO 573,750
310,000
53 Parkers 2 70,000 TO 259,000
110,000
8 Pike 0 0 0
60 Schmidt 4 109,000 TO 394,700
130,000
530 29
Parcels Sales
Hennepin County Sales Study of all Residential Lake Shore Sales in Plymouth for the
2000 Assessment included:
TOTAL SALES: 15 MEAN RATIO: 86.1 Preliminary Ratio
After increases MEAN RATIO: 94.7
Lakeshore properties were given a city wide average increase, then attention was paid to
the location of the lakes, the similarity of the lakes, and the market activity in the last year
in the various neighborhoods surrounding each lake to determine if further adjustments
were necessary.
22
ADDENDUM
23
MEMO
CITY OF PLYMOUTH
3400 PLYMOUTH BOULEVARD, PLYMOUTH, MN 55447
DATE: February 24, 2000
TO: Nancy D. Bye, City Assessor
FROM: Jan Olsson, Senior Appraiser
SUBJECT: 2000 PROPERTY TAX SUMMARY
The 2000 tax extension rates have recently been released from Hennepin County. Tax
statements are scheduled to be mailed the first week in March. To better prepare
ourselves to respond to citizen inquiries, we have updated our charts, graphs, and
comparison data (attached).
Market values on most residential properties were increased approximately 4% affecting
2000 taxes (excluding quartile areas). Commercial/Industrial properties were
increased approximately 6% and apartments increased approximately 12% in value.
The last few years there have been additional property taxes levied due to the passing of
school bond referendums, school market value, city market value and solid waste market
value. There has also been the introduction of the education homestead credit.
Effective in 1995 (payable 1996) the school market value rate was established as a direct
computation against the market value of individual properties after the passing of school
bond referendums. This money goes directly to the school districts.
The city referendum market rate was established in 1996 (payable 1997) as a direct
computation against the estimated market value of individual properties to offset the
purchase of open space to be preserved for nature areas and trails, and an additional levy
was approved in 1998 (Payable 1999) for the Activity Center/Field House.
The county solid waste fee is this year at a rate of .01847%. This fee is calculated
directly against the market value of each parcel.
The education homestead credit reduces school district taxes on residential homesteads
and on the house, garage and one acre of land for farm homesteads. The rate is uniform
within a school district. The maximum credit is $390 and cannot be greater than the total
school district tax. The funds go entirely to the state determined general education fund
of each school district.
New this year is the Agricultural Education Homestead and Non-Homstead credit. This
creates a new education agricultural credit equal to 54%, in the case of agricultural
homestead credit, or 50%, in the case of agricultural non -homestead property, of the
general education tax on the property. The credit does not apply to the house, garage, and
one acre of agricultual homestead property.
The following is an example of how to calculate 2000 Payable taxes using an average
home value in the Wayzata School District. This calculation does not involve the
Agricultural Education Credit.
Market Value for 1999 Pay 2000
Classification:
n
n
I
Tax Capacity Calculation
76,000 @ 1 %
130,300 @ 1.65%
Total Tax Capacity
Tax Extension Rate
Base Tax
Market Rate Calculations
School Market Rate
City Market Rate
Solid Waste Rate
Composite Market Value Rate
Subtotal
206,300
Residential Homestead
760
2,150
206,300 @.20917% = $431.52
2069300 @.01337% = $ 27.58
206,300 @.01847% = $ 38.10
Education Homestead Credit
Tax Capacity $2,910 x 29.044% EHC Rate =$ 845.18
Maximum Credit Allowed
2000 Payable Tax
2,910
117 72x0/
390.00
3,373.35
Even though the legislative changes have made property tax calculations more t
cumbersome, it is interesting to note, the tax extension rates have decreased.
Our contribution share to the fiscal disparities pool for Commercial/Industrial properties '
increased slightly from 33.5494% last year to 33.6855% this year. The seven county area
wide rate has decreased from 157.373% in 1999 to 146.134% for 2000.
1
cc: Dwight Johnson, City Manager
Laurie Ahrens, Assistant City Manager
Dale Hahn, Finance Director
Assessing Division
i
PROPERTY TAX COMPARISON
Payable 1990 Through 2000
270
Hopkins School District
284
Wayzata School District
Payable Market Property Tax Tax Market Property Tax Tax
Year Value Taxes to Value Rate Value Taxes to Value Rate
1990 83,500 909 1.09 91.798 134,100 2,332 1.74 99.548
1991 84,900 1,084 1.28 106.494 137,400 2,415 1.76 103.120
1992 84,900 1,147 1.35 117.262 137,400 2,415 1.78 114.512
1993 85,900 1.252 1.46 125.434 138,400 2,563 1.85 125.160
1994 88,600 1,344 1.50 127.734 148,300 2,697 1.50 120.060
1995 97,000 1,634 1.60 133.978 155,000 2,840 1.80 119.316
1996 100,600 1,679 1.67 129.524 161,600 3,285 2.03 118.453
1997 103,300 1,592 1.54 117.515 166,200 3,214 1.93 107.842
1998 113,300 1,666 1.47 120.735 169,500 3,003 1.77 111.676
1999 115,600 1,593 1.40 123.151 1 1 172,900 2,972 1.72 118.030
2000 120,200 1,587 1.32 119.609 179,800 2,819 1.57 112.239
The same value of $ 179,800 in Watershed 3 would have
taxes of $2,832.
281 279
Robbinsdale School District Osseo School District
Payable Market Property Tax Tax Market Property Tax Tax
Year Value Taxes to Value Rate Value Taxes to Rate
Value
1990 97,100 1,316 1.36 104.297 167,600 3,603 2.15 107.628
1991 99,300 1,415 1.42 108.377 171,800 3,761 2.19 111.480
1992 99,300 1,452 1.46 114.682 171,800 3,652 2.13 121.725
1993 100,300 1,570 1.56 122.058 172,800 3,425 1.98 125.199
1994 104,000 1,697 1.60 124.794 189,600 3,907 2.00 127.179
1995 107,700 1,808 1.60 126.099 198,000 4,181 2.10 129.044
1996 111,400 1,856 1.67 123.104 205,300 4,529 2.21 125.497
1997 119,500 2,000 1.67 119.388 208,700 4,292 2.06 118.297
1998 132,600 2,090 1.58 125.022 218,400 4,185 1.92 116.058
1999 141,900 2,129 1.50 111.926 1 1 220,700 3,391 1.54 118.547
2000 147,600 2,075 1.41 111.541 1 1 229,500 3,896 1.70 116.333
Taxes include both the tax extension rate, school, city and solid waste market value rates where applicable as well as the new
education tax credit. The properties used in this study are four houses of various market values (one from each of the four
school districts within the city of Plymouth). For purposes of comparability, all subject houses are classified residential
homestead, are maintained in average condition and have not been improved with any additions. All estimated market values
were increases during the years for inflation, quartile and/or market adjustments.
1996 was the first year Plymouth had School Market Value Rates due to the passing of school referendums.
1997 is the first year Plymouth had City Market Value Rates.
1998 was the first year Education Tax Credits were introduced.
JLO 2/23/00
TAX CAPACITY RATE BREAK DOWN
Payable 1996-2000
City of Plymouth
281/Robbinsdale
School 64.762
F1234/U Wayzata
65.350 47.716
School
1996 1997 1998 1999 2000
County
Tax Tax Tax Tax Tax
City
Extension Extension Extension Extension Extension
Special
Rates % Rates % Rates % Rates % Rates %
School 60.111 52.211 52.004 53.820 49.190
County 37.270 35.515 38.386 40.994 39.655
City 14.394 13.745 14.081 14.890 14.958
Special 6.135 5.894 6.718 7.788 7.916
Taxing
District
HRA 0.543 0.477 487 0.538 0.520
TOTAL 118.453% 107.842% 111.676% 118.030% 112.239
281/Robbinsdale
School 64.762
284/3 Wayzata
65.350 47.716
School 60.111 52.211 52.004 53.820 49.190
County 37.270 35.515 38.386 40.994 39.655
City 14.394 13.745 14.081 14.890 14.958
Special 7.668 7.213 7.378 8.61 8.441
Taxing
District
District
HRA 0.543 0.477 0.487 0.538
HRA 0.543 0.477 0.487 0.538 0.520
TOTAL 119.986% 109.161 % 112.336% 118.855 112.764
281/Robbinsdale
School 64.762 63.757 65.350 47.716 48.492
County 37.270 35.515 38.386 40.994 39.655
City 14.394 13.745 14.081 14.890 14.958
Special 6.135 5.894 6.718 7.788 7.916
Taxing
District
HRA 0.543 0.477 0.487 0.538 0.520
TOTAL 123.104% 119.388% 125.022% 111.926 111.541
279/Osseo
School 67.155 62.666 56.386 54.337 53.284
County 37.270 35.515 38.385 40.994 39.655
City 14.394 13.745 14.081 14.890 14.958
Special 6.135 5.894 6.718 7.788 7.916
Taxing
5.894 6.718 7.788 7.916
Taxing
District
District
HRA 0.543 0.477 0.487 0.538 0.520
TOTAL 125.497% 118.297% 116.058% 118.547 116.333
School Market Value Rates, City Market Value Rates, Solid Waste Market Value Rates
and the Education Credit are not figured into the Tax Capacity Rate Breakdown.
270/Hopkins
School 71.182 61.884 61.063 58.941 56.560
County 32.270 35.515 38.385 40.994 39.655
City 14.394 13.745 14.081 14.890 14.958
Special 6.135 5.894 6.718 7.788 7.916
Taxing
District
HRA 0.543 0.477 0.487 0.538 0.520
TOTAL 129.524% 117.515% 120.735% 123.151 119.609
School Market Value Rates, City Market Value Rates, Solid Waste Market Value Rates
and the Education Credit are not figured into the Tax Capacity Rate Breakdown.
Tax Capacity/Fiscal Disparities
Commercial/Industrial Properties
Payable 1994 through 2000
Payable Gross Tax Gross Tax Tax Capacity Tax Capacity Tax Net City Tax
Tax Ca aci Capacity C & I Contributed Contributed to o Tax Ca aci Ca aci
Year cityWide to Fiscal Fiscal Increment Received
Disparities Disparity District from Fiscal
Disparities
1994 68,048,541 31,806,785 38.9075 12,375,225) 3,844,131) 4,452,858 56,282,043
1995 71,428,665 29,514,299 26.9563 8,459,244) 4,673,782) 3,881,684 62,177,323
1996 77,156,793 31,138,288 34.4726 11,263,724) 3,793,659) 4,358,889 66,458,279
1997 86,922,255 36,280,559 31.9684 12,105,683) 2,948,704) 4,466,905 76,334,773
1998 87,684,254 37,039,960 31.8616 12,252,465) 1,069,496) 4,237,677 78,599,968
1999 87,399,593 37,028,766 34.2138 12,857,716) 309,875) 4,102,011 78,334,013
2000 93,992,198 40,805,964 33.6855 14,189,577) 379,690) 4,664,481 84,087,392
M M M M M M M M M M M M M M M M M M r
City of Plymouth
2000
Distribution of Tax Dollar
Robbinsdale School District 281
Tax Extension Rates
TOTAL 126.968%
Pie Chart does include market value rates.
Taxing Districts
V%
13%HRA
ksnr,
City of Plymouth School District
49%
31 % Hennepin County
TAX EXTENSION RATE
School District 61.499
Hennepin County 39.655
City of Plymouth 15.974
Miscellaneous 09.320
HRA 00.520
TOTAL 126.968%
Pie Chart does include market value rates.
Taxing Districts
V%
13%HRA
ksnr,
City of Plymouth School District
49%
31 % Hennepin County
City of Plymouth
2000
Distribution of Tax Dollar
Osseo School District 279
Tax Extension Rates
TAX EXTENSION RATE
School District 64.890
Hennepin County 39.655
City of Plymouth 15.890
Miscellaneous 09.203
HRA 00.520
TOTAL 130.158
Pie Chart does include additional market value rates
Taxing Districts
p
p
12%
City of Plymouth V, g School District
Hennepin County 5T/o
31%
City of Plymouth
2000
Distribution of Tax Dollar
Hopkins School District 270
Tax Extension Rates
TAX EXTENSION RATE
School District 67.120
Hennepin County 39.655
City of Plymouth 16.037
Miscellaneous 09.407
HRA 00.520
TOTAL 132.719%
Pie Chart does include additional market value rates
City of Plymouth
2000
Distribution of Tax Dollar
Wayzata School District 284
Tax Extension Rates
TOTAL 129.762%
Pie Chart does include additional market value rates
Taxing Districts
7% U70 HRA
12"/o0
f.
City of Plymouth
School District
Hennepin County JU
p
0
31%
TAX EXTENSION RATE
School District 64.398
Hennepin County 39.655
City of Plymouth 15.930
Miscellaneous 09.259
HRA 00.520
TOTAL 129.762%
Pie Chart does include additional market value rates
Taxing Districts
7% U70 HRA
12"/o0
f.
City of Plymouth
School District
Hennepin County JU
p
0
31%
25,000
2000 PAYABLE TAXES
397 270
WAYZATA WAYZATA ROBBINSDALE OSSEO HOPKINS
DIST. #284 /0 DIST. #284 /3 DIST. #281 DIST. #279 DIST. #270
1999 TAX EXT RATE: 1.12239 TAX EXT RATE: 1.12764 TAX EXT RATE: 1.11541 TAX EXT RATE: 1.16333 TAX EXT RATE: 1.19609
ESTIMATED MV RATES: .0024101 MV RATES: .0024101 MV RATES: .0020290 MV RATES: .0019836 MV RATES: .0016265
MARKET ED HMSTD CR: .29044 ED HMSTD CR: .29044 ED HMSTD CR: .29311 ED HMSTD CR: .30152 ED HMSTD CR: .31588
1-1- .-. uucr uuer AIn11 WAACT WMCT WON_HMST HMST NON-HMST
25,000 268 397 270 399 256 385 265 399 275 399
30,000 322 476 323 478 308 462 318 478 330 479
35,000 376 556 377 558 359 539 371 558 385 559
40,000 429 635 431 638 410 617 424 638 441 639
45,000 483 715 485 717 461 694 477 717 496 719
50,000 536 794 539 797 513 771 530 797 551 799
60,000 644 953 647 957 615 925 636 957 661 959
65,000 697 1,032 701 1,036 666 1,002 689 1,036 716 1,039
70,000 751 1,112 755 1,116 718 1,079 742 1,116 771 1,119
75,000 805 1,191 809 1,196 769 1,156 795 1,196 826 1,198
80,000 880 1,291 884 1,296 842 1,253 871 1,296 857 1,300
85,000 961 1,395 965 1,401 920 1,355 952 1,402 938 1,407
90,000 1,041 1,500 1,047 1,506 998 1,458 1,033 1,508 1,019 1,514
95,000 1,122 1,604 1,128 1,611 1,075 1,560 1,114 1,614 1,099 1,620
100,000 1,203 1,709 1,209 1,716 1,153 1,662 1,195 1,720 1,180 1,727
105,000 1,283 1,814 1,290 1,821 1,231 1,764 1,384 1,826 1,262 1,834
110,000 1,364 1,918 1,371 1,926 1,307 1,866 1,365 1,932 1,369 1,941
115,000 1,462 2,023 1,470 2,031 1,409 1,968 1,471 2,038 1,476 2,048
120,000 1,567 2,128 1,575 2,136 1,511 2,071 1,577 2,144 1,583 2,154
125,000 1,672 2,232 1,680 2,241 1,613 2,173 1,683 2,249 1,689 2,261
130,000 1,776 2,337 1,785 2,346 1,715 2,275 1,789 2,355 1,796 2,368
135,000 1,881 2,442 1,890 2,452 1,817 2,377 1,894 2,461 1,903 2,475
140,000 1,986 2,546 1,995 2,557 1,920 2,479 2,000 2,567 2,010 2,582
145,000 2,090 2,651 2,100 2,662 2,022 2,581 2,106 2,673 2,117 2,688
150,000 2,195 2,756 2,205 2,767 2,124 2,684 2,212 2,779 2,223 2,795
155,000 2,300 2,860 2,310 2,872 2,226 2,786 2,318 2,885 2,330 2,902
160,000 2,404 2,965 2,416 2,977 2,328 2,888 2,424 2,991 2,437 3,009
165,000 2,509 3,070 2,521 3,082 2,430 2,990 2,530 3,097 2,544 3,116
170,000 2,614 3,174 2,626 3,187 2,533 3,092 2,636 3,202 2,651 3,222
175,000 2,718 3,279 2,731 3,292 2,635 3,194 2,742 3,308 2,757 3,329
180,000 2,823 3,383 2,836 3,397 2,737 3,297 2,847 3,414 2,864 3,436
185,000 2,928 3,488 2,941 3,502 2,839 3,399 2,953 3,520 2,971 3,543
190,000 3,032 3,593 3,046 3,607 2,941 3,501 3,059 3,626 3,078 3,650
195,000 3,137 3,697 3,151 3,712 3,043 3,603 3,165 3,732 3,185 3,757
200,000 3,241 3,802 3,256 3,818 3,146 3,705 3,271 3,838 3,292 3,863
210,000 3,451 4,011 3,466 4,028 3,350 3,910 3,483 4,050 3,505 4,077
225,000 3,765 4,325 3,782 4,343 3,656 4,216 3,800 4,367 3,826 4,397
250,000 4,288 4,849 4,307 4,868 4,167 4,727 4,330 4,897 4,360 4,931
260,000 4,497 5,058 4,517 5,079 4,372 4,931 4,542 5,109 4,573 5,145
275,000 4,811 5,372 4,832 5,394 4,678 5,238 4,859 5,426 4,894 5,465
300,000 5,334 5,895 5,358 5,919 5,189 5,749 5,389 5,956 5,428 6,000
350,000 6,381 6,941 6,409 6,970 6,211 6,770 6,448 7,015 6,496 7,068
400,000 7,427 7,988 7,459 8,021 7,232 7,792 7,507 8,074 7,564 8,136
450,000 8,474 9,034 8,510 9,072 8,254 8,813 8,566 9,132 8,632 9,204
400,000 7,427 7,988 7,459 8,021 7,232 7,792 7,507 8,074 7,564 8,136
450,000 8,474 9,034 8,510 9,072 8,254 8,813 8,566 9,132 8,632 9,204
600,000 11,613 12,174 11,663 12,224 11,319 11,878 11,742 12,309 11,836 12,408
650,000 12,660 13,220 12,713 13,275 12,341 12,900 12,801 13,368 12,904 13,476
2000
CITY OF PLYMOUTH
Tax Chart Does Not Include
Ag Education Credit
Finance DepVClericaVwksheets/SSchultz/HMSTDTAX2000
RESIDENTIAL
IST $76,000 @.0100
OVER $76,000 @.0165
NON -HOMESTEAD
IST $76,000 @.0120
OVER $76,000 @.0165
LAND -RESIDENTIAL - NON HOMESTEAD
ENTIRE VALUE @.0165
LAND -COMMERCIAL
IST $150,000 @.0240
OVER $150,000 @.0340
MV RATES = CITY & SCHOOL MV RATE
SOLID WASTE FEE
School
TAX RATES FOR PAYABLE 2000
A" Property Type HL PROPERTY
City of Plymouth
District
Commercial and Industrial Effective Tax Rates
School Sewer 1st $150,000 Over $150,000 &
District District PREFERRED CLASS Non -Qualifying
270 1 3.2477% 4.5331
279 3 & 4 3.2313% 4.4950%
281 1 & 4 3.1596% 4.3915%
284 4 3.2088% 4.4453%
284 1 &2 W.S. #3 3.2171%
Apartment Effective Tax Rates
NOTE:
Vacant commercial\industrial land (LC, LI) have same tax rate as improved properties.
All the school districts have additional market value rates included in tax
rate. Solid waste management fee is included in all rates (applied against market
value).
taxrchart\00peieet. WKl
School SEWER A" Property Type HL PROPERTY
District District TYPE
270 1 3.033% 1.359%
279 3 & 4 2.990% 1.362%
281 1 & 4 2.709% 1.318%
284 4 2.935% 1.363%
4.4572%
School SEWER A" Property Type HL PROPERTY
District District TYPE
270 1 3.033% 1.359%
279 3 & 4 2.990% 1.362%
281 1 & 4 2.709% 1.318%
284 4 2.935% 1.363%
284 1 &2 W.S. #3 2.947% 1.369%
II
2000 PLYMOUTH Real Estate Taxes on Commercial and Industrial Property
Example rate Is for School District 284, Sewer District # 4 & Watershed District # 0.
Tax Rates
Local Rate 112.2390%
Fiscal Disparities or Area Wide Rate 146.1340%
Market Value Rates (School & City) 0.2225%
County Solid Waste Fee 0.0185%
City Percentage of Fiscal Disparity 33.6855%
Procedures for calculation of tax capacity and tax.
Estimated Market Value (EMV) X 3.40% = Tax Capacity
Tax Capacity Tax Capacity Estimated Market Value
x 0.663145 x 0.336855 x 0.0024101
Local Tax Capacity = Area Wide or Fiscal Disparity Rate = Market & Solid Waste Fee Tax
x 1.12239 x 1.46134
Local Tax Capacity = Fiscal Disparity Tax
Local Tax + Fiscal Disparity Tax + Market Value Tax + Solid Waste Fee = Total Tax Payable
Total Tax / EMV = Effective Tax Rate
EXAMPLE: Commercial or Industrial Building with an EMV of $1,000,000
1,000,000 EMV x 3.40% = $34,000 Tax Capacity
34,000 Tax Capacity $34,000 Tax Capacity $1,000,000 Estimated Market Value
x 66.3145% x 33.6855% x 0.0024101 Market Rates & Waste Fee
22,547 Local Tax Cap. =' $11,453 Area Wide Tax Cap. _ $2,410
x 112.2390% Local Tax Rate x 146.1340% Area Wide Tax Rate
25,306 Local Tax = $16,737 Fiscal Disparity Tax
25,306 Local Tax + $16,737 Area Wide + $2,410 Market & Waste Fee = $44,453 Total Payable Tax
Total Tax Effective Tax Rate 4.4453%
Note: Commercial & Industrial property owners may qualify for a reduced tax capacity rate on the first
150,000 of market value
Qualifying Property: 1st $150,000 EMV x 2.40%
Remainder EMV x 3.40%
Tax Capacity
1 \wrkshts\ezent\taxchart100chart
u
I
Multifamily Report
Guest CcmtributorMarg Bujokl- Vice President, 1)iret-tor ul'Researt•lt, Muxyield Research Inc.
The Twin Cities multifamily market continues to
experience low vacancy rates, rising rents and a limit-
ed supply of properties available for sale.
Approximately 1,182 new units are scheduled to
come on-line in 1999 and nearly double that number
between 2000 and 2001. Several projects that were
originally expected to open in 1999 were pushed back
due to approvals and other development changes.
Thus, the limited amount of new product coming on-
line has resulted in vacancy rates that continue to
remain well below market equilibrium (5%). As of
the end of 1st Quarter 1999, Apartment Search report-
ed an overall vacancy rate of 1.6 percent in the Twin
Cities Metropolitan Area. Rents increased by nearly
6 percent over the same period last year and are up an
average of $9.29 from the end of 1998. The average
rent was $665 as of the end of 1 st Quarter.
Last year, the Griffin Apartment Market Report pro-
jected an overall vacancy rate for the Twin Cities in
1999 of 1.7 percent. The graph shows the consistent
2,500
2,000
1,500
1,000
500
0
Units Projected to Come On -Line
Twin Cities Metropolitan Area
1997 1998 1999
Source: Maxfield Research Inc.
year
2000
8
7
6
5
L
4
3
N
0
Vacancies and Rents 1990-2000
Twin Cities Metropolitan Area
Average Rent m
1
Proiected
Vacancy Rate
800
700
600
500
400
300
200
100
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
year
Source: Maxfield Research Inc.
decline in vacancy rates since 1990 with slight
increases projected as new product hits the market.
However, with insufficient construction of rental units
to meet demand, rents are likely to continue increas-
ing at a strong pace.
With very few properties for sale, sellers are experi-
encing difficulties placing 1031 monies, and both
local and national investors are anxious to acquire.
However, many national investors continue to experi-
ence difficulty in purchasing in the Twin Cities
because of the small size of many rental properties
under 200 units). Property owners are receiving
numerous unsolicited offers and those who decide to
capture their equity by selling have had multiple
offers from which to choose.
Over the next few months, expect more of the same:
continued strong absorption of new product, limited
new construction and rising rents.
Jltin, i, tl)e Director of Researcb at ilk field Research Inc.- a real
estate research company that provides contprebensive market research
to et broad range of clients inroh-ed in the real estate inclustrt Maty
bas cauhccted numerous market studies for nudtifiunill, clients
rental, condominium, tou•nbomes) and single familf, housing cu•
trell as projects involring retail and commercial assessments for pri-
vate developers and municipalities.
Vome resale values, rose
fit highest rate in decade
nhad among highest rates of gain
11ith a 3% quarterly rise and 12% annualized
You probably didn't notice it last
summer. But your personal financial
ance sheet as a homeowner would
1 e reflected it: Themarketresalevalue1
ouses across the country rose at the
hi hest quarterly rate this decade during
t three months that ended Sept. 30,
ording to new federal data.
n scattered areas, the jumps in values
and presumably in owners' equity —
je astounding. In the District of Colum -
for instance, the third-quarter value
n on the typical single-family house
was 5.9 percent, or a 23.9 percent annual -
i rate. In Massachusetts, the quarterly
on the typical house was 4 percent, or
ercent on an annualized basis.
In Minnesota, New Hampshire and
to rado the gain was 3 percent quarter -
r 12 percent annualized —1 percent
onth. Michigan (up 2.6 percent in
the quarter), New York (up 2.5 percent),
New Jersey and Wisconsin (up 2.1 per
f) and Connecticut (up 2 percent)
rtethe other top hot spots.
To put this in context, Consider these
two facts: First, such housing inflation,
Ita are extraordinary because the over-
rate of inflation nationwide, as meas
ed by the. Department of Labor's Con-
sumer Price Index (CPI), was just 2.6
rcent for the entire 12 -month period
ded in October: Home value inflation:
many parts of the United States is far
outpacing inflation in just about every
Niher economic sector.
Second, quarterly statistical data tend
be more volatile and subject to big
moves up or down, compared with an-
alized data. For a more accurate im-
ssion of housing appreciation, take a
k at the year-to-year performance in
major markets nationwide.
The data all come from the Office of
eral Housing Enterprise Oversight. Idle agency uses a "repeat -sale" method-
ology that tracks a sample of nearly 12
million properties with multiple sale or
financing transactions.
WMeasured over the past 12 months,
e typical U.S. home.has appreciated
5.9 percent. The District of Columbia
13.1 percent), Massachusetts (upp7percent), Minnesota and New
ampshire (both up 10 percent) were
overperformers all year long, not just the
ird quarter. Following them are Colo
do, Michigan, New York, Georgia, Cali-
rnia, South Carolina, Wisconsin, New
Jersey, Texas and Connecticut.
Slightly below the 5.9 percent nation -
average — but still racking up appre-
ation at least twice the rate of overall
inflation — were homes in Nebraska,
Arizona, Vermont and Washington.
The nation's housing
Kenneth Harney
In Ohio, Virginia, Kentucky, Oklaho-
ma, Illinois, Rhode Island, North Caroli-
na, Tennessee, Maryland and Florida,
homeowners' appreciation yields during
the year were more than one and a half
times the national inflation rate.
Only one state — economically
stressed Hawaii — saw its -home values
decline (minus 4.6 percent for the year,
minus 3.5 percent for the past quarter).
New Mexico, -Alaska, Nevada and Utah
lagged behind the national CPI rate dur-
ing the past 12 months.
For homeowners and new buyers who
prefer a.longer perspective on property
investment returns, here are the top hous-
ing -value markets for the past five years:
Leading the pack are two states that have
rebounded dramatically—Michigan (42.7
percent average appreciation) and Col-
orado (up 38.6 percent) in the '90s after
challenging years in the '80s. Next comes
Utah, where the appreciation rate cooled
in the past year but has racked up a strong
36.5 percent over the last five years.
Tied for fourth place are Minnesota
and Massachusetts (both with 34.8 per-
cent gains). Next comes Oregon (up 34.3
percent), Georgia (up 31.8 percent), New
Hampshire (29.7 percent), Arizona (28.9
percent), South Carolina (28.5 percent),
and Nebraska and Kansas (27.9 percent).
During the past 60 months, the only
state where the typical homeowner has
experienced a net loss in property value
is Hawaii, where homes have declined
an average 15.1 percent. The rest of the
country is firmly in positive territory —
the national average gain has been 23.9
percent — during the past five years.
Looking ahead to the next few years,
is it possible to identify emerging high -
gain markets? Probably the best statisti-
cal predictor of near -future winners are
markets that have underperformed the
national index for years, but have heated
up for local economic reasons during
the past 12 to 24 months. Some good
bets for that list: the East — District of
Columbia, New Jersey, New York, Con-
necticut — along with Texas.
Distributed by the Washington Post
Writers Group. Kenneth Harney is a
nationally syndicated columnist on real
estate and the author of two books on
real estate investing. He can be contact-
ed at the Washington Post Writers
Group, 1150 15th St. NW., Washington,
DC 20071-9200.
2 Bedrooms - 2 Baths
4 -Season Porch - Pcdio
Dont Mow - Or Shovel
Home Owners Assoc.
Detached Townhomes
MAPLE GROVE
RUSH CREEK"
FROM THE $150'5
1-94 North to 95th Street (Co. Rd. 30),
go West 2 miles to model on the left.
612-416-3649
WOODBURY
WOODBURY CROSSING"
COTTAGES FROM THE $150'5
1-94 to Rada Dr., go South to Afton Rd., East to Timber -
wood Rd., tum right to Oak Ridge Tr., Right to models.
651-714-0514
APPLE VALLEY
PRAIRIE CROSSING"
CRAFTSMAN FROM THE $150'5
1-494 to Cedar Ave. (77) South to Co. Rd. 42, go East
2 miles to Dundee Ave, turn right to model.
612-322-5683
FINAL
PLYMOUTH PHASE
CORNERSTONE VILLAS"
FROM THE $140's
1-494 to Hwy. 55 go West to Co. Rd. 101,
go South 1/4 mile to Sale Center on Left.
612-478-3992
NEW MODELS
SHOREVIEW NOW OPEN
THE VILLAGE AT RICE CREEK"
FROM $116,900
1-35W to Co. Rd. J go East to Naples St.
then turn right to Sales Center,
651-784-5686
Many financing options to meet
e, your needs.
d R Based on$ sale price of
m ;140 ,000 E3650 down & cbsing
HOME MORTGAGE a $136,350,6
ed Ir A FHA
to
Ist %y,, "W1 rronthly payment of $881.11 W $56.81 Mortgage ITIS plus tares
and assodaoon due APR 8111
f S 116 900 S' 000 down 8 ckw costs AmttMedonasaepriceo , ng
Fnanced 1 YR FHA ARM 1113, 900 6 5% interest rate, rural
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The
Published monthly except
combined issues for May -
June, July -August and
November -December.
Minneapolis Area
Association of REALTORS®,
5750 Lincoln Drive,
Minneapolis, MN 55436
Telephone: 612.933.9020
Fax: 612.933.9021
Web page: mplsrealtor.com
Minnesota
Association of REALTORS®,
5750 Lincoln Drive
Minneapolis, MN 55436 .
Telephone: 612.935.8313
Fax: 612.935.3815
Subscription rate: Members:
12 a year paid with dues.
Others: $30 a year.
USPS 351160
ISSN 1054-9684
Periodicals postage paid at
Minneapolis, Minnesota and
additional mailing offices.
POSTMASTER: Send
address change to:
The REALTOR®,
P.O. Box 9570,
Minneapolis, MN 55440-9570
Minneapolis Area
Association of REALTORS®
Fran Davis
President
Budd Batterson, GRI
President-elect
Jon Perkins, GRI
Secretary
Robin Peterson, GRI
Treasurer
Mark D. Allen
Chief Executive Officer
MINNfiAY01_IS
RL ALT,OR S'
Pur x PMurswnu foja
Electronic KeyBoxes in the Twin Cities marketplace
he metropolitan area associa-
tions of REALTORS® are con-
tinuing to discuss the Electronic
KeyBox option for our marketplace. The
leadership of the St. Paul Area, South-
ern Twin Cities and North Metro
Associations have already approved
implementing the product. They along
with Supra were pushing for a Febru-
ary 2000 implementation.
In December the Minneapolis Area
Association of REALTORS® approved a
motion to not implement Electronic
KeyBoxes in the Twin Cities market-
place in February 2000. The Directors
agreed the Electronic KeyBox option
should continue to be evaluated for a
possible implementation at a later date.
There were three primary reasons the
Directors voted against a February
implementation. February is typically a
time when the market is beginning to
get busy. In addition, with the launch
of Broker Reciprocity, agents and
brokers attention would already be
occupied with a new product in our
marketplace.
The Directors were also concerned that
members did not fully understand the
Electronic KeyBox product, how it
worked and how it would impact their
business. The lack of product knowl-
edge would increase the amount of
problems agents would experience
once the product was implemented in
the market.
Finally, there were concerns the
contract, as proposed by Supra, was
not negotiated in the best way to
meet the needs of agents and brokers
in the Twin Cities.
The leadership of MAAR, in coopera-
tion with the other Twin Cities
REALTORS® will continue to investi-
gate the Supra Electronic KeyBox
option.
tlt;
Listings Processed 2,439 I 2,259 7.4
Pending Sales 2,755 2,355 14.511
Current Listings
Closed Sales
Closed Sales
Dollar Volume
Average Price
Median Price
12,098 10,210 15.6
3,962 3,572 9.8,
n
v
4,431 3,979 10.2
582,810,200 584,379,200_ 3
147,100 163,600 11.2
125,0001 135,000 8.0
Yeah to Date aj,'4
1998 1999'_ change`'
n..:
65,270 59,886 8.3
nV
52,986 49,656 6.3 v
50,594 49,800
56,067 55,560
7,413,801,430
143,500
122,500
7,991,119,200
158,200 110.2
134,0001 9.4
Residential only: single family, condo, townhouse, twinhome.
All property types: single family, condo, townhouse, twinhome, duplex, mobile home, farms/hobby farm, investment and lots/acreage.
Based on data from the Regional Multiple Listing Service.
2 • The REALTOR® " February, 2000
fl
11
f,`
kR
T,HE :TWJN CITIES
i
ome, near....fr''-e"nzy
Closed sales f or 1st qTter uh 9 9%Al Q
art
y Neal Gendler "' It's an early indicator that the
tarJWbune Staff Writer "The outlook is gre*
Irn
Twin Cities may experience its • ' ofT
ea iom pgrcertt.m
Sellers, they should fifth consecutive year of exceed-
Welcome
xceed
Welcome to this spring s real- ingly strong sales. Home sales x { ear a o} 4
state market: too many buyers ' the marked Buyers records were broken in 1996, g
or too few houses, multiple of- should be prepared to 1997 and 1998, and 1999's closed f quarter median sale prices
fers driving up prices and react quickly...:' sale total of 49,800 homes was .2f
oases selling in just hours. slightly below the all-time high Ss35
We're selling houses as soon of 50,594 sales in 1998. (tears in thousands)
Fran Davis, president of thetheyarelisted," said'Fran Da- Demand remains fueled by a
vis, president of the Minneapolis Minneapolis Area Association of
very strong economy, high con 99.4
ea Association of Realtors. Realtors
sumer confidence, single -digit V.
The 2000 real estate market is •••••• ............................. • •• • interest rates and an apartment -
starting to mirror the torrid mar- vacancy rate below 2 percent.
ket of 1999. Davis said, "The out- House sales got off to a fast = -1
nook is great for sellers .. Buy- start this year. Closed sales for HOUSES continues on Ali: y y 98 199 100
Wrs should be prepared to react the first quarter of 2000 are up — Some agents say this year's *` p1e Listing servicequicklywhentheyfindtheira1- 9.9 percent over the same period buyers appear to be less s r x
most -perfect house. last year. panicky than last years.
woria vi:ny xnow more at
aechnology•A1.4 g,
vhat`ca v
i
r 1.'
r .r R y L t
Ike i6day r k ,
F `
APui is, 2000'
NEW SPARE, -R.
f,`
kR
T,HE :TWJN CITIES
i
ome, near....fr''-e"nzy
Closed sales f or 1st qTter uh 9 9%Al Q
art
y Neal Gendler "' It's an early indicator that the
tarJWbune Staff Writer "The outlook is gre*
Irn
Twin Cities may experience its • ' ofT
ea iom pgrcertt.m
Sellers, they should fifth consecutive year of exceed-
Welcome
xceed
Welcome to this spring s real- ingly strong sales. Home sales x { ear a o} 4
state market: too many buyers ' the marked Buyers records were broken in 1996, g
or too few houses, multiple of- should be prepared to 1997 and 1998, and 1999's closed f quarter median sale prices
fers driving up prices and react quickly...:' sale total of 49,800 homes was .2f
oases selling in just hours. slightly below the all-time high Ss35
We're selling houses as soon of 50,594 sales in 1998. (tears in thousands)
Fran Davis, president of thetheyarelisted," said'Fran Da- Demand remains fueled by a
vis, president of the Minneapolis Minneapolis Area Association of
very strong economy, high con 99.4
ea Association of Realtors. Realtors
sumer confidence, single -digit V.
The 2000 real estate market is •••••• ............................. • •• • interest rates and an apartment -
starting to mirror the torrid mar- vacancy rate below 2 percent.
ket of 1999. Davis said, "The out- House sales got off to a fast = -1
nook is great for sellers .. Buy- start this year. Closed sales for HOUSES continues on Ali: y y 98 199 100
Wrs should be prepared to react the first quarter of 2000 are up — Some agents say this year's *` p1e Listing servicequicklywhentheyfindtheira1- 9.9 percent over the same period buyers appear to be less s r x
most -perfect house. last year. panicky than last years.
WEDNESDAY, APRIL 19.2000'- a STARTRIBUNE•PAGEAII
1
Sts Trbm prow bre David 11—smr
Dartal EAdak 14 Wad hank Sualso a t among the packing born In the
Longfellow maaYpYood house they recently sold. They got far offam
W Ws alp! Mit or Mowing the bouw, "which was fabubus,' Susko UK
MOUSES $061 Al
Frenzy in 1999
was `trying' for Ne of200f o9
public, Realtors,i)<
pertef a 1999, rd a w esfi a : .
co-owner says
Interest on We lnnchmaragedYear' flu,mi, rate loan .averaged8.12pereent natlm87 leme.. k iemparcJwith8.tl7 pcme 1
yewearlier. UemanIt Is an high Chet a y
tdAO
ppt
fK'ryGd98t 17
d
thhif that Is .. -priced and 11;
tr
good condition is sewing e.- se taa••a;Rrgoelaylg6alM.g 9nnlw.•
Longfellow neighborhood when just seems persistent'
Frank Susko put his three -bed- Last month ended with 12,730
room p, World War 1 house on listinggs on the market, off 2 per -
the market for $129,900 on a re- cent from 13,014 in March 1999,
cent Friday. It was shown im according to data from the Re-
Sundsy.Thatevemng,hegolfour gimud Multiple Listing Service.
offers and sold for $140,000. New listings processed in March
We thought we'd gel a couple totaled 6,282, down 2.2 percent
thousand under list; Sulu, said from 6,4261n March 1999 — and
Tuesday. He and partner ,e.1 Inst spring's inventory was down
Faklns expected one m two offers sharply from 1998.
the following week. "We didn't Davis said prospective sellers,
peel four th e uighthours ... aware of the tight market, are
which was fabulous; Ssko said. reluctant to list until they have
Another free ometh ng to buy. This causes a
chtcken-ando F."
py
oblem.
Many agents used the word las[ month a 5,286 aigood pur-
frenay'tolabel last spring a real chsse agreements were down 1.9
estate activity and Davis Bald the percent hum 5,389 a year earlier.
Word applies again this year. For Um yuarter, uch 'sales
She's the sales manager at Cold- - pending' were up ody I percent.
well Barker Burner's Minneapolis One way to encourage sellers
Lakes office. is the growing use of offers with
But some say this year's buy- the closing date left open or sub-
ers seem less panicky. 'A year ject to Ne seller Boding a sult-
ago, people dould buy something able home by some agreed uponwithahall -moon on the door, date, agents said
joked Coldwell Banker Burnet Denyes said he expects -the
agent Jimm Fogel.'Now, it's not year[oend with Galea sBgbtlyquiteasmofafrenryitit's hortoflast year. Activity begamtpratedntakingoffInmidMuch, he said,
lipamn Supght.and'—feel the market is hitWg
WhenFogeds agent, held the its stride nuw
Sunday open house, he had 6010
70 parties Look at the house. Rising prices
Fogel said he arrived about 10 When demand exceeds supply,
mutes before the starting lime, prices rise. last year, the median
and wuld not Bgure out why price — the midpoint — set a
there was no parking anywhererecord of $138,000 in tuly. s the
on the street. "It was like a MamMari arket cooled toward fall, the
novie: When I opened my car median fell. last mo tltl it was
door. all We other car doors $133,000, down from $13'1.500 in
opened; there must have been 20 Febmary. However, it 4s up 3.3
People ready to conic in,' he percent from $128,700 in March
said 1999. For the But quarter of 2000, irerFathat day, Fogel held en the For was $135,000, up 7
open house an St. Louis Park ala percent from $126,200 in the
169,900 listing that by night 1999 period.
brought three offers and a sale Tho 4,082 asidential sales
above $ItlO,UW. dosed last mm r) were 21.2 per.
Vve been at this 23 year and cent more Wan 3,307 sale. fn
1'veoeversecridds1dndufinven- March 1399. Davis said that .-
tory shortage for this length of crease probably contributed to a
tame,' he said. 'Phis has been 23.7 percent rise in sale. value:
going on for a year and a half.' $624.1 mWaois compared with
One reason Is a shorrgc of $504.7 million a year earbe,
banes for move-up buyers. An-
other u Uiat younger people are Tt18 tUtrfe
doingw weB. "1'm selling houses Mathis said Edina Realty exec -
to people in Wear late 20s and utives expect another year and a
early 30s at prices their jiarents halfofgreatdcmand.
v • could afford There . just a Denyes said come demand I.
in of money.' soaked up by new construction,
Lynn Mathis, president of the which is "Rourisl'ing in our end
Southem Twin Cities Association oftown.'
f Realtors, called the nwrket Through March, home build -
fast. Mathis, with Edina Hcalty, tog an We'fwln Citieswas roaring
said Realtors must monitor list. at a record -selling pace, with res-
ings and rush buyers over for iJemial construction Im"111 up
showangs.'My pen'"oPin'no from the list arts, of 1999.
is ware nut selling what much Builders are concerned about di.
more —d e.ute. Iwcause ware minivhing availability of land,
spe cling w )such tame trying lu .using tut prices m soar. Higher
get that uyu to dial house be- new -home .its affect existing. ore-cb dyelse does.- home sales, but It's not simple to
Dwight Denyes, w -owner of correlate, Mathis said.
Re/Max Associates Plus, prowl- 'The tighter f[ gets for the
nent in Anoka County, said he new-conswction buyer, the
hopes last springg's henry won't more they tend to come back to
be repeated. 'Th t market was ezuting' housing, Mathis said
j.1 very, very trying fon the public But some people want to build, and for We Realtor.; he said. and location, style orbuilderout.
You had People writing loffera weigh price. Denyes said con -
on] four
on-
on]four or five homes before stmcUon he to even out the
tri they couldlaM one.' supplyand demand equation' by
Inventory shortage creating inventory.
We still have a shortafe of
inveruory,' De. es said. (hat
A Great Plan
That's Easy On The
FREE lnq Guise wArryMe,e n Muve,wa a (115) a Wa< . , fwycu D\nwl Cu,<
1u kxnnip Alun FREE•FREEna Mk Nw, Ramra Cua.,I D• C.—,,
IIr
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You called. OWe answered.'"
COMMI
Minnetonka (163) 473-2640 • Apple Valley (952) 432-1313 • R.,.rll
e BURNSVILLE, MN • BROOKLYN PARK, MN • ST. 1
12301 Dupont Ave. So. 7007 Lakeland Avenue North 3201 C
PHONE: PHONE: PI
612-890.9300 612-560-1948 615-•
3iour.M+m4WesMn. r.00.•usi.«I••a.•amr.Mtr+ «urni,rVr.a«1,ytmr.yArymao..ap,s,r.,y r:....s,q
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7
1
0
Homeowners
will see increase
in market value
By Colleen Timmer
Sun Newspapers
According to information from the city
of Minnetonka, property owners in Min-
netonka, Plymouth and Hopkins can ex-
pect to see their up -coming market -value
notices reflecting a trend in the metro
area.
That trend, according to Minnetonka
City Assessor Richard Toy, is an increas-
ing number of house sales and higher
prices for these houses. This increase will
show up in the 2000 market -value no-
tices and will apply to property taxes
payable in 2001.
Toy stressed that this trend is taking
place throughout the metro area and that
other cities, not just those in the north-
west area, will see these increases as
well.
The driving force behind this is the
economy," Toy said. "What people will be
seeing is an overall increase in the'prop-
erty tax base."
Toy said it is not only single-family
resident homes, but also apartments,
commercial and industrial that have in-
creased in market value as well.
According to Toy, although market
values have increased significantly, this
does not necessarily mean a correspond-
ing increase in property taxes.
One reason for this, Toy explained is
because apartments, commercial and in-
dustrial are taxed at a higher rate than
homes. This higher tax rate should even
out the tax burden, not increase taxes
significantly for homeowners.
Toy said another reason taxes should
remain relatively constant is that many -
homes will qualify for a limited market
value.
According to Toy, limited market value
is a concept derived by the Legislature
that limits the amount of increase that
can be added to a home's market value,
generally to an 8.5 -percent increase.
For example, say a house last year
was worth $100,000 and this year was
raised to $130,000," Toy said, "The limit-
ed market value says only $108,500 is
taxable market."
Homeowners should receive their
market value notices by the beginning of
Manch, .1,:,, , ,,. ....,.- %t <..j•. i.,
wEIvE c
There's no tel
tell you the 1
Norwest Safe I
your most valt
with the con
and conven
O 2000 Norwest Bank Minnesota, NA
NO
Moi
Satu