$OVRLQWKLVLVVXH S V Meet the 2012 Dan Franklin U o ScholarshipWinner l M u Lost in the Darkness m M e E Meet Kelly Schroeder 34 R Global Assessment Trends: N 48$/ Egypt u m E Words from President Baker 2 b e 0 r Revisit with James Ingemunson 1 129 What’s new with the: 2 YES Tax Court Committee 2IÀFLDO3XEOLFDWLRQRIWKH0LQQHVRWD$VVRFLDWLRQRI$VVHVVLQJ2IÀFHUV 3OXVPXFKPRUH ZZZPQPDDRRUJE Zebra Mussels! Invasive Species in Minnesota
The St. Paul Union Depot: Renovated
State Assessed Property Part 2: Wind Energy Production Tax 9ROXPH1XPEHU 6XPPHU Article to suggest, letter to the editor, or any other correspondence for EQUAL EYES?
Send to: Equal Eyes Features Managing Editor 14 2012 Summer Seminars: A Review 612 N Broadway Crookston, MN 56716 CLICK ME! 17 Meet the 2012 Dan Franklin Winner I’M INTERACTIVE! [email protected] 24 Property Tax Working Group Update
27 Lost in the Darkness
28 State Assessed Property: Wind Energy Tax
34 Global Assessment Trends: Egypt
36 Invasive Species in Minnesota 44 St. Paul Union Depot: Renovated
44 36 Departments
3 Boards, Directors, Chairs, and Representatives
6 In The Know
Presidential Perspective 34 8 9 Commissioner’s Comments
10 International Items
11 MAAP Update
12 Let’s Get Acquainted: Kelly Schroeder
18 Out of the Past
19 Meet the New SAMA & AMA Designees 43 20 State Board of Assessors Minutes Cover Photo: Zebra Mussels The Chair’s Corner Image Courtesy of the MN DNR 25 Used by Permission 39 Transitions
Visit 42 Revisiting the Retirees the MAAO website at: 43 Classif-Eyeds www.mnmaao.org 48 What’s New on the MAAO Website
The statements made or opinions expressed by authors in A Letter From the Editor Equal Eyes do not necessarily represent a policy position of 50 WKH0LQQHVRWD$VVRFLDWLRQRI$VVHVVLQJ2I¿FHUV
2 Equal Eyes | Summer 2012 (48$/(<(6 Editorial Board
James Haley, AMA Lori Thingvold, AMA Polk County Wright County Managing Editor, Chair Associate Editor
Solomon Akanki, AMA Corey Erickson, AMA Nancy Gunderson, SAMA Scott County Ramsey County City of Moorhead
Julie Gustafson, SAMA Jake Pidde, CMA Michael Stalberger, SAMA City of Maple Grove City of Plymouth Blue Earth County
Summer 2012 | Equal Eyes 3 MAAO Executive Board
First Vice President President Second Vice President John Keefe, SAMA Stephen Baker, SAMA, CAE Marvin Anderson, SAMA Chisago County Assessor Ramsey County Assessor Brooklyn Park City Assessor 313 N Main St, Room 246 90 West Plato Blvd, Suite 400 5200 85th Ave N Center City, MN 55012 St. Paul, MN 55117 Brooklyn Park, MN 55443 651.213.8555 Fax 651.213.8551 651.266.2005 Fax 651.266.2001 763.493.8173 Fax 763.493.8391 [email protected] [email protected] [email protected]
)LQDQFH2I¿FHU Past President Bill Peterson, SAMA, CAE Cheryl Wall, SAMA Dakota County Assessor Wilkin County Assessor 1590 Hwy 55, County Admin Center PO Box 167 Hastings, MN 55033 Breckenridge, MN 56520 651.438.4208 Fax 651.438.4469 218.643.7162 Fax 218.643.7169 [email protected] [email protected]
MAAO Region Directors
Region 1 Region 2 Region 3 Ryan Rasmusson, SAMA Dave Armstrong, SAMA Greg Kramber, SAMA Freeborn County Assessor Le Sueur County Assessor Wright County Assessor 507.377.5176 507.357.8215 763.682.7365 [email protected] [email protected] [email protected]
Region 4 Region 5 Region 6 Kyle Holmes, SAMA Gale Bondhus, SAMA Bob Anderson, SAMA Carlton County Deputy Assessor Cottonwood County Assessor Meeker County Assessor 218.384.9148 507.831.2458 320.693.5205 [email protected] [email protected] [email protected]
Region 7 Region 8 Region 9 Bob Hansen, SAMA Joseph Skerik, AMA Angie Johnson, SAMA Hubbard County Assessor Beltrami Chief Deputy County Assessor Carver County Assessor 218.732.2236 218.333.4146 952.361.1961 [email protected] [email protected] [email protected]
'HSDUWPHQWRI5HYHQXH3URSHUW\7D[&RPSOLDQFH2I¿FHUV and the Areas They Represent Lloyd McCormick 612.791.4957 Appraisal Supervisor
Gary Amundson Brad Averbeck Larry Austin 218.575.3183 218.439.3673 651.556.6098 Anoka, Benton, Carver, Becker, Clay, Clearwater, Hubbard, Aitkin, Beltrami, Carlton, Cass, Chisago, Hennepin, Isanti, Kittson, Mahnomen, Marshall, Cook, Crow Wing, Itasca, Mille Lacs, Morrison, Sherburne, Norman, Otter Tail, Pennington, Polk, Kanabec, Koochiching, Lake, Stearns, Wright Red Lake, Roseau, Todd, Wadena Lake of the Woods, Pine, St. Louis
Steve Hurni Sherri Kitchenmaster Tom Nash Tom Reineke 320.632.3949 651.230.8387 507.359.7022 651.230.5819 Big Stone, Chippewa, Douglas, Brown, Cottonwood, Jackson, Blue Earth, Dodge, Faribault, Dakota, Goodhue, Olmsted, Grant, Kandiyohi, McLeod, Meeker, Lac qui Parle, Lincoln, Lyon, Martin, Fillmore, Freeborn, Houston, Ramsey, Scott, Washington, Pope, Renville, Stevens, Swift, Murray, Nobles, Pipestone, Redwood, Le Sueur, Mower, Nicollet, Sibley, Rice (and complex properties) Traverse, Wilkin Rock, Watonwan, Yellow Medicnine Steele, Wabasha, Waseca, Winona (and compliance investigations)
4 Equal Eyes | Summer 2012 Committee Chairs/Coordinators/Secretary/Treasurer
Agricultural Chair Membership Coordinator Scholarship Coordinator Jeanne Henderson, CMAS Jan Olsson, SAMA, RES Tina Diedrich-Von Eschen, SAMA 13880 Business Center Dr 3400 Plymouth Blvd 705 Courthouse Square Room 37 Elk River, MN 55330 Plymouth, MN 55447 St. Cloud, MN 56303 763.241.2876 Fax 763.241.7195 763.509.5355 Fax 763.509.5060 320.656.3690 Fax 320.656.3977
CAMA / GIS Chair Nominating Chair Secretary/Treasurer Randy Lahr, SAMA Michelle Moen, SAMA Nancy Wojcik, SAMA 705 Courthouse Sq #37 555 18th Ave SW 6301 Shingle Creek Parkway St. Cloud, MN 56303 Cambridge, MN 55008 Brooklyn Center, MN 55430 320.656.6559 Fax 320.656.3997 763.689.2752 Fax 763.689.8226 763.569.3357 Fax 763.569.3494
Conference Coordinator Online Administrator Silent Auction Paul Knutson, SAMA, RES Lori Schwendemann, SAMA Jane Grossinger, SAMA 320 NW 3rd St, Ste 4 600 6th Street 33872 MN HWY 15 Faribault, MN 55021-6100 Madison, MN 56256 Kimball, MN 55353 507.332.6102 Fax 507.332.5999 320.598. 3187 Fax 507.304.4075 320.398.6705
Asst. Conf. Coordinator PVC Coordinator Site Selection Chair Tami Paulson, CMA Dan Whitman, SAMA Luis Rosario, SAMA 151 4th Street SE Security Bldg 201 Lake Ave #326 90 West Plato Blvd Rochester, MN 55904 Fairmont, MN 56031 St. Paul, MN 55107 507.328.7668 Fax 507.328.7964 507.238.3210 Fax 507.238.4601 651.266.2137 Fax 651.266.2001
Education Chair Strategic Planning Chair Summer Seminar Coordinator Bob Wilson, SAMA, CAE, ASA Cheryl Wall, SAMA Kim Jensen, SAMA, CAE 4801 W 50th St PO Box 167 A-2103 Government Center Edina, MN 55424 Breckenridge, MN 56520 Minneapolis, MN 55487 952.826.0426 Fax 952.826.0389 218.643.7162 Fax 218.643.7169 612.348.6106 Fax 612.348.8751
Information Systems Chair Rules and Resolutions Chair Tax Court & Valuations Chair Teresa Mitchell, SAMA, CAE Steve Sinell, SAMA Cory Bultema, SAMA 1590 Hwy 55, County Admin Center 8080 Mitchell Road 5005 Minnetonka Blvd Hastings, MN 55033 Eden Prairie, MN 55344 St. Louis Park, MN 55416 651.438.4216 Fax 651.438.4469 952.949.8510 952.924.2536 Fax 952.924.2170
Legislative Chair Sales Ratio Chair Weeklong Course Chair William Effertz, SAMA John Keefe, SAMA David Armstrong, SAMA PO Box 890, 630 Florence Ave 313 N Main St 88 South Park Avenue Owatonna, MN 55060 Center City, MN 55012 Le Center, MN 56057 507.444.7445 Fax 507.444.7446 651.213.8555 Fax 651.213.8551 507.357.8215 Fax 507.357.6375
Long Range Planning Chair Scholarship Chair Weeklong Course Coordinators William Effertz, SAMA Cheryl Wall, SAMA Bob Wilson, SAMA, CAE, ASA PO Box 890, 630 Florence Ave PO Box 167 4801 W 50th St Owatonna, MN 55060 Breckenridge, MN 56520 Edina, MN 55424 507.444.7445 Fax 507.444.7446 218.643.7162 Fax 218.643.7169 952.826.0426 Fax 952.826.0389
Tina Diedrich-VonEschen, SAMA 705 Courthouse Sq Room 37 St. Cloud, MN 56303 320.656.3690 Fax 320.656.3997
Summer 2012 | Equal Eyes 5 In the know
In The Know &Ăůů/ƐƐƵĞĞĂĚůŝŶĞ͗^ĞƉƚĞŵďĞƌϭ͕ϮϬϭϮ
Appraisal Principles July 23-26 St. Cloud
Appraisal Procedures Aug. 6-9 St. Cloud
Basic Income Approach Aug. 13-17 Plymouth
Mass Appraisal Basics Oct. 1-5 St. Cloud
IAAO Assessment Admin Oct. 15-19 Plymouth
USPAP + 15 hours course Oct. 23-24 St. Cloud For more information or to register for an upcoming class, visit MAAO.org
Your Opinion Matters
Sharing your best practices and efforts in the assessing industry matters! The MAAO Bulletin Board has been reinvented and now provides members with a dynamic discussion interaction. Check it out today! Here’s how:
You must be logged as a Regular or Associate member to use this, it is a great benefit to membership.
Before your 1st time using MAAO Matters – go to your ‘My Profile’ and click the tab ‘My Contact Preferences’ and scroll to the bottom and under Bulletin Board Image, click your Image. So when you’re using the new MAAO Matters, members can put faces with names. If you don’t have a photo in your Profile, go to the Profile tab and click edit to upload a photo.
You are ready to join the Discussion! 6 Equal Eyes | Summer 2012 ANNOUNCING The 2012 Equal Eyes Photo Contest Minnesota’s Picturesque Parks
MAAO Members: Submit your original photographs for CASH Prizes 1st Prize $100 2nd Prize $50 3rd Prize $50
Contest Rules
Must be an original photo in highest resolution setting taken at a Minnesota park (local or state). Each photo should include an explanation of when and where it was taken and any facts you would like to include. The winning photos will be chosen by the Editorial Committee and announced in a future issue of Equal Eyes. E-MAIL PHOTOS TO: [email protected] no later than Sept. 1, 2012
SummerSSummere 22012012 | EqualEEqqual EEyEyesyes 7 Presidential Perspective Assessment Goes Paperless
Written by Stephen Baker, SAMA Ramsey County Assessor MAAO President 2011-2012
Best wishes to everyone. I hope you had a throughout the state afforded by adding these and submit their application online. This will productive and enjoyable time at Summer additional search criteria. mean there will be no need for our staff to Seminars in St Cloud. I look forward to process any paper for these applications. In seeing you all again next year. Put next year’s The world continues to grow more and more addition, we will be programming conditions Summer Seminars - May 22nd and 23rd -on technologically savvy, and our customers for application rejection into the form itself, your 2013 calendar now. continue to be from younger generations who making it impossible for the applicant to expect eCommerce. So assessors too must VXEPLWWKHDSSOLFDWLRQLIFHUWDLQ¿HOGVDUH Remember to place our MAAO Fall look increasingly to technology to interact QRW¿OOHGRXW7KLVVKRXOGOHVVHQPXFKRIWKH Conference on your calendars for September with our residents, and to help us with our day- painstaking work associated with discovering 23rd through the 26th. We will be at Breezy to-day business activities. At the forefront of and rejecting an incomplete Homestead Point this year – a very well-received this technological expansion, for Ramsey application. location by members in 2009. We will have County at least, will be implementation of a special Ten-Year recap of the history of the online forms and applications for some of Homestead applicants will also benefit Minnesota Cup. This service will be presided the various tax-exemptions, exclusions, from the streamlined process. A paperless over by Mr. John Hagen, Director of Property and deferment programs for which we are application means that an applicant can Tax at MN DOR and our 2012 winner. Mr. responsible. ¿OHIRU+RPHVWHDGIURPWKHLURZQKRPH Hagen informs me that you need not be instead of having to mail the paper copy or present to win, that in fact not being present As of spring 2012, Ramsey County has EULQJLWLQWRRXURI¿FH7KH\ZLOOEHDEOH improves your chance of being memorialized begun working with a vendor (LincWare) to save the completed form or email it to on the Cup. So take your chances. to set up an online application system for themselves or partner/spouse. In addition, DOO+RPHVWHDG¿OLQJV:HEHJDQZLWKWKH we are looking to improve the design of This year at Summer Seminars, Department Minnesota Department of Revenue’s e-CRV the application so that it’s easier to read of Revenue staff Drew Imes and Jim Biggs online form as a model. Our goal is to and be more self-explanatory than its paper gave us a great overview of eCRV. Those LQFUHDVHWKHHI¿FLHQF\DQGHDVHLQZKLFK predecessor. These things will hopefully that attended or have worked with the eCRV the application process is completed. We are PDNH¿OLQJIRU+RPHVWHDGDQHDVLHUPRUH system can tell you what a great product it combining all the present homestead forms pleasant experience. ZLOOEHZKHQWKHEXONRIDOOVDOHVDUHÀRZLQJ into one smart form. Intelligence will be through the system. I want to encourage all built into the form, coupled with information All in all, the implementation of online assessors to embrace eCRV by beginning to supplied by the applicant, and will create forms and applications will help to shape test the system now, and by developing a plan a homestead application form with the the future of the work we do here, and offers to go live on eCRV in 2012. I believe you will FRUUHFW¿HOGVIRUWKHRZQHUVKLSRFFXSDQF\ many other possibilities going forward. We ¿QG-LP%LJJVDQGKLVVWDIIWHUUL¿FWRZRUN situation existing on that property. These hope that implementing online forms will with; they are extremely competent and they forms will be entirely legible, complete and allow us to improve customer interaction and are anxious to deliver a product that serves may be emailed. They also could have bar service, automate our homestead application all users of eCRV in the fashion they expect. codes imbedded into them for processing or processes, allow systems to communicate, scanning or could be received electronically simplify processing, and foster collaboration The MAAO Executive Board passed – eliminating most data entry. between governmental entities. For now, a resolution at the May 2012 meeting we’re just excited as we move towards our that supports the implementation of an 7KH+RPHVWHDGDSSOLFDWLRQZDVDORJLFDO¿UVW UROORXWRIRXU¿UVWH+RPHVWHDGDSSOLFDWLRQ enhancement to eCRV that would allow users venture into online forms for us, because of later this summer. Our dream is to eventually (assessors) to search the growing statewide the high volume of these applications we have a homestead module built into eCRV, database of sales information by land use process yearly. Ramsey County contains making this an automated process that begins code and also potentially by gross building over 122,000 residential properties. This DWWKHUHDOHVWDWHFORVLQJDQGÀRZVDOOWKHZD\ area and building age. In the coming months has typically meant that we deal with a few to the assessor and on to the state. we will have discussions to establish the thousand Homestead applications per year. standards for this information, but I know 7KXVHI¿FLHQF\LQSURFHVVLQJDOORIWKHVH So let’s make MAAO a green organization all of you can see the power in this type of applications is highly desirable. Our online and all begin to make serious inroads into search capability. These enhancements will DSSOLFDWLRQZLOOLQFUHDVHRXUHI¿FLHQF\E\ paperless processes. require that counties supply this additional eliminating most of the paperwork. The information, but with upload/download inefficiencies associated with the current Thank you all for allowing me to serve as functionality coming, this task should be paper applications should greatly diminish. President of this great organization. easily manageable, and any additional effort will be repaid many times over by When fully implemented, Homestead Stephen the improved access to sales information DSSOLFDQWVZLOOEHDEOHWRFRPSOHWHO\¿OORXW
8 Equal Eyes | Summer 2012 Commissioner’s Comments
Looking at Tax Changes; Both Large & Small
Written by Myron Frans Minnesota Commissioner of Revenue
I was pleased to discuss our state property Reform” (near the bottom of the home is working and how tax reform proposals tax system with you during MAAO’s page). You can also sign up to receive would affect it. Summer Seminar in May. I enjoyed email updates by clicking the “Subscribe” meeting many of you, hearing your link on the tax reform page. These changes build on the department’s concerns firsthand and discussing tax ongoing efforts to provide better, more reform. The governor will present his full plan to HI¿FLHQWVHUYLFH2WKHUH[DPSOHVLQFOXGH the Legislature during the 2013 session. the eCRV system and recent launch of our Governor Mark Dayton has asked the Meanwhile, we are also focusing on how redesigned website. Department of Revenue to plan a tax WKHGHSDUWPHQWFDQZRUNPRUHHI¿FLHQWO\ reform package. We are also responding and provide better service. On the new website, we expanded our to his challenge to give the best service, email updates and made it easier to at the best price, to taxpayers and others Upgrading service, systems we serve. subscribe. Just click the icon from anywhere on our website to see a list of The department’s Property Tax Division topics or use the “Subscribe” links that These efforts not only complement each has been realigned to improve service SRLQWRXWVSHFL¿FRIIHULQJV other, but they also relate to another of the to local governments. There are new governor’s key priorities, creating jobs in supervisors in the Information/Education, Minnesota. State Assessed Property and Auditor/ We look forward to working with you as Treasurer units. we modernize our property tax system and the department’s processes that support it Building a better tax system Please let us know if you have any ideas to The division is expanding its Information help. You can contact me at myron.frans@ For the last eight months, I have been Management unit and looking at ways to state.mn.us or Property Tax Division discussing tax reform with residents, modernize how we collect and track data Director John Hagen at john.hagen@ businesses, policy experts and public from counties. This effort will include an state.mn.us. RI¿FLDOVDFURVV0LQQHVRWD “extranet,” a secure area for submitting or sharing property tax data and other I have heard a wide range of opinions on information with the department. how we can change our state tax system so it is fairer, simpler and supports economic Using an extranet, we can substantially growth. I often hear that property taxes reduce or eliminate paper submissions and in Minnesota are high, and too complex. manual data entry. Much of the information counties send to the department could As I noted in my MAAO presentation, be handled through onscreen forms, our system has grown more unbalanced rather than using paper forms or email in recent years. State and local property attachments. taxes now make up the biggest share of tax revenue in Minnesota. This will make it easier for you to submit forms, reports and property tax data. Data And we have 55 unique classes and tiers will be collected at the parcel, sub-record of property, more than any other state. or jurisdictional level – rather than in Does that make our system fairer, or just aggregate form as we mostly do now – and more complicated for those who pay – and VWRUHGLQDXQL¿HGGDWDEDVH collect – property taxes? This “data warehouse” approach will help For more information on our tax reform us catch mistakes earlier in the process, activities, visit our website at www. analyze data more quickly, and use it in revenue.state.mn.us and click on “Tax new ways to help examine how our system
Summer 2012 | Equal Eyes 9 International Items
Co-Written By: Bill Peterson, CAE, SAMA Dakota County Assessor Jan Olsson, RES, SAMA Plymouth City Assessor (Ret)
IAAO Elections Update New Materials at the IAAO Library KEY REASONS TO BECOME AN IAAO MEMBER Tom May is rumored to be running for The IAAO Library has new materials Education: Cost effective education IAAO Executive Board. It’s important that available to members from the effect of cell programs help you meet the challenges we support Tom! Elections will be held phone towers on house prices to teardowns of an increasingly complex career. November 1 through 30 of this year. All and hedonic land value function estimation IAAO offers a range of educational eligible members as of November 1, 2012 using non-sample information. All of this opportunities for the beginner to will receive a paper ballot in the mail as material is available FREE to members. seasoned professional. Textbooks are well as have the opportunity to place their Accreditation known for their depth and quality of vote on-line through the web site. Make information. sure you vote! Be recognized for your IAAO educational Hardship Scholarship achievements by becoming an Accredited Professional Designations: Receive Member. To qualify the following criteria certification that recognizes IAAO would like to remind everyone of must be met: IAAO member in good professionalism, and competency in the hardship Scholarship funds available standing with a minimum of 5 years matters regarding property appraisal and to members. This funding goes toward in the assessing profession; Successful assessment for property tax purposes. the renewal of membership. IAAO also completion of 180 hours of IAAO courses, provides opportunities for scholarship workshops and seminars; including 101, Peer Networking: Meet other assessment funding through the IAAO Financial 102 and 400; and successful completion of professionals to share common ideas, Assistance Program. Contact Angela a 14 hour USPAP (IAAO Workshop 151 or concerns and interests. Tap the IAAO Blazevic, AAS, Director of Administration equivalent). brain trust with IAAO’s new on-line at [email protected] or go online to the IAAO at Summer Seminars networking forum “AssessorNET”. IAAO website for more information. Also the Member Recognition Committee will All the Minnesota IAAO Representatives; Publications: Fair & Equitable and be accepting and reviewing nominations Bill Peterson, Stephen Baker, Tom May Journal of Property Tax Administration for the IAAO Awards Program. These and I hope you all had the opportunity to IAAO’s monthly and quarterly nominations are based on members who stop by the IAAO booth at MAAO Summer publications bring you up-to-the-minute volunteer and demonstrate their leadership Seminars and see what IAAO has to offer perspectives and research on today’s within IAAO. and if you have never been a member of assessment issues. USPAP Now Available! IAAO, entered the drawing for a FREE one year membership. Another drawing Members-only Access and Discounts: USPAP 2012 -2013 is available on the for one year of FREE membership will be Receive special rates on publications, IAAO website. The download is available held at the MAAO Annual Fall Conference; text books, technical standards, FREE to IAAO members. The download stop by and see us. seminars, and conference registration. is being distributed by IAAO with the Utilize special sections and resources permission of, and under license from, the The lucky winner of a free IAAO on the IAAO Website including access Appraisal Institute. membership at Summer Seminars was to the library through memberlink and IAAO Technical Assistance James Haley. Congratulations James, the the Glossary for Property Appraisal and IAAO State Representatives hope you Assessment. IAAO provides technical assistance at the enjoy your prize. request of the head of an agency. This Leadership Opportunities: Become and assistance involves appraisal process author in one of IAAO’s Publications. Help and techniques, general assessment Shape industry policies by volunteering administration, mapping, reappraisal for a committee, or consider running for program, personnel, public relations, Join IAAO Now! IAAO Executive Board. quality assurance, record maintenance, audit and tax policy. For further information ,$$2RUJ IAAO has a 91% member retention rate. on the scope and cost of the services, please 7KDWVSHDNVYROXPHVWRWKHEHQH¿WVRI contact IAAO Headquarters. membership!
10 Equal Eyes | Summer 2012 MAAP Update MAAPMAAP Update UPDATE
Please join us for our MAAP Officers Annual Summer Workshop th th Melissa Janzen, President August 16 and 17 Wright County 763-682-7369 Holiday Inn Hotel & Suites [email protected]
Krista Krupa, Vice President Owatonna, MN City of Willmar 320-214-5165 [email protected] ĂƌŶϭϬ ,͛ƐďLJĂƚƚĞŶĚŝŶŐďŽƚŚĚĂLJƐ ŽƐƚĨŽƌƚŚĞǁŽƌŬƐŚŽƉŝƐũƵƐƚΨϳϱ Shayla Strack, Secretary/Treasurer Morrison County ĚƵĐĂƚŝŽŶďĞŝŶŐƉƌĞƐĞŶƚĞĚďLJƚŚĞ 320-632-0102 [email protected] DŝŶŶĞƐŽƚĂKZ Jason Vaith, Past President City of Brooklyn Center dŽƉŝĐƐŝŶĐůƵĚĞ͗ 320-569-3310 [email protected] x Assessment overview Christie Fox, Executive Board x Special Ag/Trust Homesteads Blue Earth County 507-304-4238 x Exclusions [email protected] x LBAE x Sales Ratios x Resources for assessment Professionals x Public Relations x Special Programs Review
x 2012Legislative Session
INTERESTED IN JOINING MAAP?? ANNUAL MEMBERSHIP IS ONLY $10 CONTACT A MAAP OFFICER
Summer 2012 | NEEDSEqual Eyes UPDATING 11 Let’s Get Acquainted Kelly Schroeder
Researched and Written by Julie Gustafson, SAMA City of Maple Grove Editorial Committee Member
I doubt there are many in our field that .HOO\DVLGHIURPWKHRI¿FHFOHUNVKHKDVWKH enjoy leisurely rides wherever the road takes can say they became a County Assessor in least amount of assessing experience. Right them. When the weather is nice and she their twenties. Well, Kelly Schroeder can. QRZVKHIHHOVDELWOLNHD¿VKRXWRIZDWHU doesn’t have daycare duty, Kelly will take Be it by chance or careful planning, some *RQHLVWKHFRPIRUWDQGEHQH¿WVRIZRUNLQJ her bike to work. In addition to enjoying people have the uncanny ability to position in her home town. Yet, she welcomes the the great outdoors, she saves $8 a day by themselves well for opportunity. new challenges that await her. Kelly did doing so. Kelly is currently training for the mention, however, that she looks forward to Mora half marathon to be held this August, Kelly’s climb to success began in December the day that she knows, without giving it a and hopes to run a full marathon for her 30th of 2004 when she graduated from college. second thought, where “old Jimmy’s farm” birthday. Although she hasn’t quite decided Kelly attended Winona State University is located or the grocery store used to be. where yet, she’s thinking about Grandma’s and graduated with a degree in accounting. marathon next June. Always striving to do Upon graduating, Kelly took a job with When more and better. a traditional accounting firm. Shortly asked how thereafter, she took a position in the Isanti she would If you’ve ever watched “On the Road with &RXQW\$XGLWRU¶V2I¿FH6KHZRUNHGDVWKH describe Jason Davis” you know that many people Deputy Auditor until the fall of 2006 when a herself, have a passion for collecting things. A recent clerical position opened up in the Assessor’s Kelly first show featured a woman who has covered Office. Kelly knew there were some words were every inch of every wall in her home with impending retirements in the Assessor’s “type A” doll heads, and a man that collected tens Office and jumped at the opportunity personality. of thousands of baseball caps. Although for future advancement. She applied for She went on Kelly has a ways to go before joining the the position and got it. Kelly’s foresight to elaborate ranks of such ambitious collectors, she does certainly paid off: she began working in that she is have a passion for collecting license plates. WKH$VVHVVRU¶V2I¿FHDVDQ$GPLQLVWUDWLYH always on Currently she has over 200 license plates on Assistant in November, 2006 and was the move, striving to do more and better. display in her home. Any license plate will promoted to Deputy County Assessor in Kelly also categorized herself as a “nerd”; do. If she gets too many of the same kind, October, 2008. Kelly worked for the Isanti comparing herself to other assessors, whose she puts her creative juices to work cutting &RXQW\$VVHVVRU¶V2I¿FHXQWLOVKHODQGHG names shall remain anonymous, with a them up and fashioning them into wall décor. her current position as Pine County Assessor penchant for numbers and spreadsheets. So, if you have any old license plates you in March of this year. would like to get rid of, Kelly would be more Kelly grew up on a pig farm, and was than happy to take them off your hands. Pine County is located in east central very active in 4-H and other agricultural Minnesota midway between the Twin Cities organizations such as the East Central Pork According to Kelly, getting to work and and the Twin Ports. It covers 1,411 square Producers. She has been married to her interact with people is one of the most miles with 23 square miles of water. Pine husband, Aaron, for six years. They have satisfying aspects of her job. Although County is home to three state forests and two children: Brooke, age two and Otto, she likes working with numbers, she loves two state parks, encompasses a portion born March 24th of this year; just 17 days working with people. Kelly needs personal of the Mille Lacs Indian Reservation after Kelly started her job as Pine County interaction, even if the people she deals with including Grand Casino Hinckley, and Assessor! They also have two dogs: Cletus, aren’t always happy. You can immediately has a population of approximately 28,000. an 85 lb. Bassett Hound, and Toby, a 150 lb. tell this by the sunshine that radiates from It has 33 townships, one having only 40 English Mastiff. her voice when she speaks to you. registered voters, and 14 cities with a fairly equal mix of seasonal recreational, exempt, Kelly enjoys the outdoors and spending When asked about any unusual or memorable agricultural, and residential properties. time with her family. Given the age of her situations encountered on the job, Kelly children, I imagine she has her hands full, said “In this job there are just so many…” 7KH3LQH&RXQW\$VVHVVRU¶V2I¿FHFRQVLVWV \HWVKHVWLOO¿QGVVRPHWLPHIRUKHUVHOI However, the one that makes her laugh of the County Assessor, Deputy County Kelly enjoys swimming, riding motorcycle, the most occurred when she took a new $VVHVVRUWKUHHDSSUDLVHUVDQGRQHRI¿FH and running. She was a swimmer in high appraiser in Isanti County out to a “not so clerk. They also utilize one sub-contractor VFKRRODQGLVVFXEDFHUWL¿HG.HOO\KDV nice” area for an appointment. One she did and three local assessors. According to her own motorcycle. She and her husband not care to go to by herself. An odd smell
12 Equal Eyes | Summer 2012 Let’s Get Acquainted, continued permeated the home as they conducted their One of the biggest challenges Kelly faces on In addition, Kelly said she can’t wait until inspection. Upon entering the bathroom, the job is taxpayer’s, including her family’s, her children get older so she can take them what was deemed to be a vase by the new misconception that assessor’s raise values to traveling. Growing up on a farm, Kelly appraiser, fell out from behind the door. A raise taxes. If she could change anything didn’t get to do much traveling and there quick glance at this “vase” told Kelly it was in the assessment field it would be to are a lot of places she still wants to see. For time to leave. Once they were back in their simplify the agricultural homestead process. instance, she would love to visit Washington car, the new appraiser stated she was glad Although determining an agricultural D.C. and take in the history of our great they didn’t break the homeowner’s vase. homestead can be challenging, Kelly is country and tour the White House. Being Unbeknown to the new appraiser, the odd very thankful for the agricultural homestead VFXEDFHUWL¿HGVKHZRXOGDOVROLNHWRYLVLWWKH smell was marijuana and the vase was a ÀRZFKDUW Caribbean and, perhaps one day, the Great bong. Kelly also recalled the time she came Barrier Reef. upon a naked man in his detached garage at Looking to the future, Kelly hopes to start 1:00 P.M. He told her that is how he liked working on her IAAO designation and We wish Kelly best of luck in her new job to start his day. I’m not sure if he meant in becoming more familiar with Pine County. as Pine County Assessor and in all of her the garage, in the raw, or both. Always striving to do more and better. many pursuits!
MAAO Snapshot Personal Assessment Experience (in years) As Surveyed in 2011
25%
20%
15%
10%
5%
1 - 5 6 - 10 11 - 15 16 - 20 21 - 25 26 - 30 31+ 14% 23% 18% 10% 18% 6% 11%
Summer 2012 | Equal Eyes 13 FEATURE Summer Seminars 2012
Written by James Haley, AMA Polk County Equal Eyes Managing Editor
The 2012 Summer Seminars were held May 22nd through May 24th, 2012. The event was again at the St. Cloud Holiday Inn. The hotel always does a good job hosting our group and this year was no different. With plenty of meeting space, a convenient location, and a friendly staff, this hotel is likely to be the meeting place of choice for years to come.
The theme of the event was “Preparing for the Future”. President Stephen Baker chose this theme because “All RIRXURI¿FHVDUHXQGHUJRLQJFKDQJHV our business changes, old friends retire, new friends join our profession, our one constant is change. How do we prepare?”
The week opened on Tuesday, May 22nd with a meeting of the Executive Council. The Commissioner of Revenue General Session
Aside from normal business, there were several discussions and decisions of note made. First, it was decided that MAAO would submit an Amicus Brief (a VWDWHPHQWRIVXSSRUWIRUDVSHFL¿FSRLQW of view) for a 278.14 “Mistakenly Billed Taxes” tax court appeal. Next, the board discussed the possibility of including use codes in the eCRV database to allow for VSHFL¿FVDOHVVHDUFKHVDJDLQVWVWDWHZLGH data. It was also concluded that term limits would not be placed on MAAO committee chair members.
7KHRI¿FLDOHYHQWRSHQHGRQ:HGQHVGD\ May 23rd. The morning began with a welcome from President Baker. Following that was the Commissioner of Revenue General Session. Next, State Board of Assessors Representative Steve Sinell gave an update on that body. Minnesota’s Commissioner of Revenue Myron Frans spoke on Property Tax Reform and gave an LQIRUPDWLYHDQGSURS¿OOHGSUHVHQWDWLRQ Department of Revenue staff Jim Biggs and Drew Imes presented the latest 6WHYH&DUOVRQ%HFNHU&RXQW\ZLQVWKH5HJLRQ,,3ULQW5DIÀH information on the eCRV and promoted its use statewide.
14 Equal Eyes | Summer 2012 Summer Seminars Review, continued Day two opened on Thursday, May 24th. After breakfast, the second round of seminars was held. There were six options for attendees to choose from. The most popular of these was “The Ag Market: What You Need to Know”, taught by Greg Thomas and Denny Schmidt. This course had 75 registrants. Others were: “Elements of Retail Valuation” (44 registrants), “Sales Ratio Topics for Assessment” (30 registrants), “Tax Court Update & Practical Applications” (26 registrants), “Highest and Best Use – Residential” (30 registrants), and “Evaluating Residential Construction, day two” (66 registrants).
Overall, the event went well. St. Cloud always does a good job hosting our group and the Grands Pam Lundgren Receives Recognition of Service at Mulligans was a great choice for our evening event. As always, After the Commissioner’s Session, lunch excellent choice for our banquet. The food we look forward to next year’s Summer was held. There, Stephen Baker gave an was excellent and space was perfect for our Seminars! Next up: Fall Conference at award for Recognition of Service to Pam group. The silent auction was held and Breezy Point! Lundgren for her years of service to MAAO SUL]HVIURPWKH¿UVWGD\ZHUHJLYHQZD\ and the State of Minnesota. After that, President Baker announced the winner of the 2012 Dan Franklin Scholarship. This year’s award was presented to Nathan Thorvilson, a senior at St. Cloud State University. Finally, the Region II print ZDVUDIÀHGRIIWRWKLV\HDU¶VZLQQHU%HFNHU County Assessor, Steve Carlson.
$IWHUOXQFKWKH¿UVWURXQGRIVHPLQDUVZDV held. There were seven courses offered on day one. The most popular of which was “Evaluating Residential Construction”, taught by James Canestaro. This course had 66 registrants. Other seminars offered on day one were: “Elements of Hotel Valuation” (36 registrants), “Using Excel to Analyze Market Value by Parcel File Data” (20 registrants), “I’m the Assessor, Now what?” (19 registrants), “Trends, Costs and Design Features in Agriculture” (53 registrants), “Highest and Best Use – Commercial” (21 registrants), and “Effective Age: Estimating Depreciation on Residential Properties” (60 registrants).
The day wrapped up with a social hour and dinner at The Grands at Mulligans. This venue was new this year and was an The Evening Banquet at “The Grands”
Summer 2012 | Equal Eyes 15 Breezy Point September 23 - 26
16 EqualEqual EyesEyess | SummerSuS mmmer 22012012 Fall Conference 2012 FEATURE Nathan Thorvilson Winner of the 2012 Dan Franklin Scholarship
Written by Tina Diedrich-Von Eschen, SAMA Senior Appraiser, Stearns County
MAAO President Baker was pleased to SUHVHQW1DWKDQZLWKDFHUWL¿FDWHDWWKLV\HDU¶V Summer Seminar luncheon acknowledging his award of a $500 scholarship in January.
Nathan is a senior at St. Cloud State University majoring in Real Estate (with an Appraisal emphasis) and Finance with an anticipated graduation date of December 15th, 2012. In addition to other volunteering, but most notably, Nathan is involved with SCSU’s Real Estate Association with which he has acted as Networking Coordinator and will be President of for fall of 2012.
Currently Nathan is the owner of High Bridge Homes, LLC. He purchased, rehabbed & currently manages a duplex in St. Paul. He performs all property maintenance in addition to representing the company in transactions and researching future investments. Nathan also serves on the Board of Directors and the Loan Committee of Community Neighborhood Housing
Past Dan Franklin Services with which he is involved with the educational scholarships in memory of Collegiate Scholarship counseling homeowners with foreclosure, Dan Franklin who passed away in 1997. Recipients credit repair, teaching home buying courses, Dan was always a promoter of assessor 2012 Nathan Thorvilson QHJRWLDWLQJORDQPRGL¿FDWLRQVDQGPRUH education and served diligently on the 2011 Andrew Totzke MAAO Education Committee. Since its Nathan is currently doing an internship with inception there have been 18 Dan Franklin Dalton Scott Dakota County over the summer. MAAO Collegiate Scholarships and 25 Dan Franklin 2010 None wishes this ambitious young man all the Week Long Scholarships awarded. 2009 Aimee Larson best in his future endeavors and hopes he Lacey Schumacher continues with his interest in assessment. While there have been some adjustments 2008 Angie Spitzley made along the way, MAAO is proud to Anthony Schlutze What’s the history behind the Dan Franklin continue this scholarship offering in his 2007 Justin Massman scholarship you may ask? In the early memory. For more information regarding Karl Lindquist 1980’s the Minnesota Chapter of IAAO and scholarships or to make a donation please 2006 Katie Cripe MAAO merged. When this merger occurred visit the Scholarship page under Education Kelly Jacobsson the Minnesota Chapter of IAAO had some on the MAAO website. 2005 Ryan Theis funds which were given to MAAO which 2004 Tamara Jo Sawatzke were earmarked for education scholarships. In 1998, prior to any formal methodology 2003 Kari Kamrath IRUGLVWULEXWLRQWKH¿UVWVFKRODUVKLSIRUD 2002 Laura Weber weeklong course was awarded. 2001 Shayne Bender 2000 Tina Diedrich Following this award MAAO established 1999 Craig Theis a scholarship committee which developed
Summer 2012 | Equal Eyes 17 Out of the Past
Written by Corey Erickson, AMA Ramsey County Editorial Committee Member
5 Years Ago – 2007 ł Julie Roisen became the new County ł 0HO+LQW] was appointed Supervisor Assessor of Blue Earth County, and of the Virginia Office of the St. Louis ł Commissioner of Revenue Ward Patti Ecker, Nancy Lemay and County Assessor’s Department, Einess wrote about lawmaker’s Robert Nichols all filled appraiser and John McKay, former Deputy commitment to reforming the Green positions for Ramsey County. Assessor in the Duluth Office of Acres program. 2007 also marked the St. Louis County Assessor’s the 40th anniversary of the program. 15 Years Ago – 1997 Department, transferred to the ł A drawing was held at Summer County Highway Department as a Seminars, and Cory Bultema of ł Lyle Boehlke, the Buffalo Lake City Right of Way Agent. the City of St. Louis Park, Daryl Assessor, was awarded a certificate ł Larry Thurston, an assessor Moeller of Chisago County and of commendation from John Hagen in the City of Virginia Beach, Jim Rouleau of Anoka County all of the Department of Revenue for 50 Virginia, wrote an article titled “Are received memberships to IAAO. years of work as an assessor. Foreclosures Affecting Property ł The IAAO Executive Board Meeting ł The MJC (IAAO Metropolitan Values?”, once again reminding us was held in Myrtle Beach, South Jurisdiction Council) was held in how similar the market of 20 years Carolina. Notable educational Bloomington. Bloomington City ago was to the current market. sessions included a full day of Assessor Pete Koole served as USPAP and a day-long session on tax moderator for a panel discussion on 25 Years Ago – 1987 exempt properties and conservation the valuation of shopping centers. easements. ł The Minnesota Department ł Commissioner of Revenue Tom Triplett reported that 15 percent of ł At the Region 1 meeting in April, of Revenue and Administration unveiled plans for construction of a the state’s total market value of taxed Rice County Assessor Paul Knutson and untaxed property was exempt was appointed mentor for the Region. new Revenue building in the State Capitol complex in St. Paul. from property taxes. This equated to a total value of $22.6 billion for all 10 Years Ago – 2002 ł Steve Hacken accepted the position exempt property in the state. of Winona County Assessor after ł Chief Judge *HRUJH:3HUH] of serving 12 years as the Pine County ł The Minnesota House introduced the Minnesota Tax Court received Assessor. legislation to require all County the Tax Judge of the Year Award by Assessors to be Senior Accredited the National Conference of State Tax 20 Years Ago – 1992 by January 1, 1989. Judges. 40 Years Ago – 1972 ł Brooklyn Park City Assessor, Marv ł Because of the horrible real estate market, many thought vacation Anderson, was nominated by IAAO ł Nearly 90% of the 2,500 assessors to sit on the Board of Publications homes would become a thing of the past. As evidence of how rough it in the State of Minnesota were of the Centre for Advanced Property part time employees and located in Economics. was, in Hilton Head, South Carolina, two bedroom condos that sold for jurisdictions with populations under ł Lee Brekke accepted a chief deputy $90,000 five years earlier were going 10,000. assessor position in Hubbard County, for $40,000, which often failed to ł Governor Wendell Anderson replacing Laura Jordahl who left cover the seller’s mortgage. Very appointed the first members to the assessing profession. similar to the market of recent years. the newly created State Board of Assessors. They were Allen Sulerud, ł There were problems in the ł St. Cloud City Assessor Steve William Slavin, Vernon Anderson, Allegheny County, Pennsylvania Behrenbrinker attended the 1992 Ralph Deger, Wes Abram, James Assessor’s Office 10 years ago. Northeast Regional Instructor O’Brien and Arthur Helland. Chief Assessment Officer, Susan Training Workshop in Amherst, Caisse, reported that the county Massachusetts. At the time, the ł A publication called “Public Affairs” needed to hire another 126 assessors instructor training workshop was a merged with the “Assessminutes” to “sustain assessment equity on an requirement for individuals interested publication, which was the pre- annual basis.” in teaching IAAO courses. cursor of Equal Eyes.
18 Equal Eyes | Summer 2012 Meet Minnesota’s New SAMA & AMA Designees
Compiled by Jake Pidde, CMA City of Plymouth Editorial Committee Member
New Senior Accredited Minnesota Assessors
Anne Grunert Gregry Kiecker Anne Grunert, Brown County, was Gregory Kiecker, Local Assessor awarded the SAMA designation in Sibley and Renville Counties on January 24, 2012. Her was awarded the SAMA coursework includes Assessment designation on January 24, 2012. Laws, History and Procedures, His education includes Courses Residential Appraisal, Mass A, B, H, F, J, IAAO 102 and Appraisal Basics, MN Assessment 400, USPAP. Mr. Kiecker’s Administration, IAAO 102, Basic Form Report passed the grading Income Approach to Valuation committee in October 1989 and and a number of seminars. Ms. he passed the Residential Case Grunert’s Form Report passed the Study Examination in June 2010. grading committee in June 2009 Mr. Kiecker had a successful and she passed the Residential oral interview with the Board in Case Study Exam in September 2009. Ms. Grunert had a August 2011 and he passed the Income Case Study Examination successful oral interview with the Board in February 2010 and in January 2012. Mr. Kiecker has 39 years of assessment she passed the Income Case Study Examination in December experience. Congratulations to you Greg! 2011. Ms. Grunert has 7 years of assessment experience. Congratulations to you Anne!
New Accredited Minnesota Assessors
Leonard Peterson Jennifer Blumers Leonard Peterson, Koochiching Jennifer Blumers, City of County, was awarded the AMA Bloomington, was awarded the designation on January 24, AMA designation on January 24, 2012. His education includes, 2012. Her education includes, Assessment Laws, History Assessment Laws, History and and Procedures, Basic Income Procedures, a Bachelors’ Degree Approach to Valuation, Mass in Real estate from St. Cloud State appraisal Basics, Income University, Mass Appraisal Basics, Approach to Value Appraisal, and MAAO Assessment Administration, PACE (elective). Mr. Peterson IAAO 102, a successful challenge has appraisal experience since to Basic Income Approach, USPAP March 2005 and Assessment and PACE. Ms. Blumers has experience since January 2006. assessment experience since May, Congratulations to you Leonard! 2008. Congratulations to you Jennifer!
To recognize the accomplishments of new AMA and SAMA desginees, we are spotlighting them when awarded by the State Board of Assessors. Are you a new designee? Get your photo ready!
Summer 2012 | Equal Eyes 19 State Board of Assessors Meeting Minutes Provided by Pam Lundgren Minnesota Department of Revenue
January 24, 2012 +DUROG6WDVVHQ%XLOGLQJ6W3DXO
Chairperson Doreen Pehrson convened the Kim Jensen, Hennepin County is requesting Ryan Kraft, Olmsted County is requesting 15 meeting at 9:30 6 CEH’s for a meeting and panel discussion hours of continuing education for two days on December 12, 2011 that included of training from Dynamic Direct Training. Steve Hurni and Dave Marhula were unable numbers commercial/industrial and Day one includes morning and afternoon to attend this meeting. All other members apartment presentation on 2011/2012 trend session on Updated Purchase Agreements and were present. information. Per Board Policy 6 CEH’s Required MODULE – Residential Leasing. will be awarded to the assessors who have These sessions examine purchase agreements Minutes of the November 15, 2011 meeting provided documentation of attendance at this and addendums and agent opportunities and were read and discussed. Mike Amo made a seminar by submitting a roster. responsibilities when representing landlords motion to approve the minutes as amended. or tenants in residential leasing agreements. Brian Koester seconded the motion. The Tami Paulson, Olmsted County is requesting The second day covers transactions that motion carried. CEH’s for a 30 hour (including 2-hour exam) involve buyers, sellers, agents, appraisals, General Appraisal Report Writing course LQVSHFWLRQVLQVXUDQFH¿QDQFLQJDQGFORVLQJV Election of Officers is tabled until the from the Appraisal Institute which she This request was denied since it applied to March meeting when all the members will attended from December 5 – 8, 2011. She Real Estate Education only. CEH’s are not be present. is also inquiring as to whether this course awarded for Real Estate education. would satisfy the requirement for the elective Grading Committee Appointments are course for the AMA license. Per Board Policy Marian Paulson, Kittson County is requesting tabled until the March meeting when all the 28 CEH’s will be awarded to assessors who continuing education credits for the IAAO members will be present. provide documentation of having attended Self-Study Curriculum for one of her this course. Brian Koester made a motion to employees. There are five courses; Site Request for Continuing Education Hours: approve this course as an alternative for the Analysis and Evaluation; An Introduction elective course for the Accredited Minnesota to the Cost Approach to Value; Introduction Kathryn Korte, Stearns County, is requesting Assessor license. Jan Jackson seconded the to the Sales Comparison Approach to Value; continuing education hours for an 8 hour motion. The motion carried. Introduction to the Income Approach to Value; seminar she attended on June 21, 2011. and Mass Appraisal of Residential Property. The seminar, Reviewing Residential Mary Boyle, Anoka County is requesting Per Board Policy each of the courses will Appraisal Reports was sponsored by B & CEH’s for in-house training in Microsoft receive 10 CEH’s and will be awarded to B Professionals and the Table of Contents Word and Excel (4 hours of each) from 8:00 assessors who provide documentation of from the textbook used for the seminar am to noon on December 8 and the 15th. Her completion of the courses and passing the has been submitted as documentation. Per request states that the training was tailored to exam. (Exam completion is required for Board Policy 8 CEH’s will be awarded to WKHFRXQW\¶VVSHFL¿FQHHGV7KLVUHTXHVWZDV self-study or on-line courses used for CEH’s.) assessors who provide documentation of denied and no CEH’s will be awarded. This attendance at this seminar. WUDLQLQJZDVQRWVSHFL¿FDOO\WDLORUHGWRWKH Request for Course Approval: DVVHVVPHQW¿HOG Ehlers and Associates is requesting Richard Wright, City of Bloomington is continuing education hours for their annual Brian Ducklow, Goodhue County is requesting course approval of the Appraisal two-day (12-hour) Public Finance Seminar requesting approval of a 7 hour appraisal Institute 28 hour on-line course for Basic being held on February 2 & 3, 2012 at the course from McKissock entitled, Appraising Appraisal Principles. This course meets Earle Brown Heritage Center. Topics to and Analyzing Industrial and Flex buildings the minimum requirement of 26 hours of be covered include: Financing Energy for Mortgage Underwriting. The course attendance and has a proctored exam. Steve Improvements, Restaurant Development explains aspects of commercial mortgage Sinell made a motion to accept the Appraisal Roundtable, Financing Realities in Today’s loan underwriting for both multi and single Institute on-line course Basic Appraisal Economy, Bond Market, Assessor’s tenant leased income producing industrial Principles as an alternate to MAAO Appraisal Update, TIF Case Studies, Analyzing DQGPXOWLWHQDQWÀH[VW\OHRI¿FHLQGXVWULDO Principles for the Certified Minnesota and Maximizing Your Investments, and buildings. He hasn’t yet attended the course Assessor license. Gregg Larson seconded Tax Credits. Per Board Policy 12 CEH’s and is waiting to register until it’s approved. the motion. The motion carried. Assessors will be awarded to assessors who provide Per Board Policy 7 CEH’s will be awarded who provide documentation of attendance documentation of attendance at this 2-day to assessors who provide documentation of and passing the exam will receive 26 CEH’s. seminar. attendance at this seminar.
20 Equal Eyes | Summer 2012 State Board, continued
CMA Applications: Jennifer Blumers the Accredited Minnesota Brian Koester seconded the motion. The Assessor License. Brian Koester seconded motion carried. Deb Volkert made a motion to award the motion. The motion carried. Kevin Scheidecker, Otter Tail County the Discussion Items Certified Minnesota Assessor License. SAMA Applications Brian Koester seconded the motion. The Outside Activity letter. Copy in folder. motion carried. Anne Grunert, Brown County submitted an application for the Senior Accredited Education Committee report – Brian CMAS Applications: Minnesota Assessor License. Her Koester. coursework includes Assessment Laws, Brian Koester made a motion to award History and Procedures, Residential Manual Update – Deb has been unable to -R\FH+ROP%HFNHU&RXQW\WKH&HUWL¿HG Appraisal, Mass Appraisal Basics, MN work to complete updating the manual due Minnesota Assessor Specialist License. Assessment Administration, IAAO 102, to other priorities with the new tax system Deb Volkert seconded the motion. The Basic Income Approach to Valuation and a IRUXWLOLW\DQGDLUÀLJKW+RSHIXOO\VKH motion carried. number of seminars. Ms. Grunert’s Form will get back to it within a month or so. Report passed the grading committee in In the meantime, assessors are encouraged Interviews with the Board: June 2009 and she passed the Residential WRFRQWDFWWKH%RDUGRI¿FHLIWKHUHDUHDQ\ Case Study Exam in September 2009. Ms. questions or any forms are needed. Leonard Peterson - Koochiching County Grunert had a successful oral interview met with the Board for his Accreditation with the Board in February 2010 and she Duluth – the Board decided to request Oral Interview. His education includes passed the Income Case Study Examination information from the city of Duluth related Courses: Assessment Laws, History in December 2011. Ms. Grunert has 7 years WR¿OOLQJWKHFLW\DVVHVVRUYDFDQF\DQGWKH and Procedures, Appraiser License #: of assessment experience and she applied requirement for SAMA licensure. 20517176, Basic Income Approach to for the Senior Accredited Minnesota Valuation, Mass appraisal Basics, Income Assessor License. Gregg Larson made a There being no further business, the Approach to Value Appraisal, and PACE motion to award Anne Grunert the Senior chairperson set the next meeting date as (elective). Appraisal experience since Accredited Minnesota Assessor License. March 20, 2012 at the Harold Stassen March 2005 and Assessment experience Mike Amo seconded the motion. The Building, Room 4381. This will be a since January 2006. Mr. Peterson applied motion carried. planning meeting and it will convene at for the Accredited Minnesota Assessor 9:00 rather than the usual 9:30. There will License. Jan Jackson made a motion to Gregry Kiecker, Local Assessor in Sibley be no interviews at this meeting. award the Accredited Minnesota Assessor and Renville Counties submitted an License to Leonard Peterson. Mike Amo application for the Senior Accredited Brian Koester made a motion to pay the seconded the motion. The motion carried. Minnesota Assessor License. His education expenses for the meeting. Jan Jackson includes Courses A, B, H, F, J, IAAO 102 seconded the motion. The motion carried. Jennifer Blumers – City of Bloomington and 400, USPAP. Mr. Kiecker’s Form met with the Board for her Accreditation Report passed the grading committee in Mike Amo made a motion to adjourn the Oral Interview. Her education includes: October 1989 and he passed the Residential meeting. Gregg Larson seconded the Assessment Law and Procedures, a Case Study Examination in June 2010. Mr. motion. The motion carried. Bachelors’ Degree in Real estate from St. Kiecker had a successful oral interview Cloud State University, Mass Appraisal with the Board in August 2011 and he Basics, MAAO Assessment Administration, passed the Income Case Study Examination IAAO 102, a successful challenge to Basic in January 2012. Mr. Kiecker has 39 years Income Approach, USPAP and PACE. of assessment experience and he applied Ms. Blumers has assessment experience for the Senior Accredited Minnesota since May, 2008 and she applied for the Assessor license. Mike Amo made a Accredited Minnesota Assessor License. motion to award Gregry Kiecker the Senior Steve Sinell made a motion to award Accredited Minnesota Assessor License.
Do You Have Assessor Licensure Questions?
Contact the State Board of Assessors 651-556-6091 or [email protected]
Summer 2012 | Equal Eyes 21 State Board, continued March 20, 2012 +DUROG6WDVVHQ%XLOGLQJ6W3DXO
Chairperson Doreen Pehrson convened the The Licensing and Training manual is commercial real estate pulse. The board meeting at 9:00 am. not yet completed. Deb expects to make approved 4 hours per board policy. progress before the next meeting. All members were present as of 9:30 am. CMA Applications: Website: The new website rolls out in May. Minutes of the January 24, 2012 meeting Recent minutes should be added. Discussion Deb moved to award Matthew Naatz (Dodge were read and discussed. Brian Koester also took place regarding including a list &RXQW\ WKH&HUWL¿HG0LQQHVRWD$VVHVVRU moved to approve the minutes with minor of licensed assessors on the new site. Deb License. Brian seconded. The motion changes. Jan Jackson seconded. The motion commented that it is up to the board to carried. carried. make the determination of what should be included on the site. It was noted that CMAS Applications: (OHFWLRQRIRI¿FHUV WDEOHGIURP-DQXDU\ other licensing bodies have lists available meeting) of license-holders. The board agreed that a Brian moved to award Peter Yager license list should be included, preferably 6KHUEXUQH&RXQW\ WKH&HUWL¿HG0LQQHVRWD Nomination for Vice Chair: both alphabetically and by license level. Assessor Specialist License. Deb seconded. The motion carried. Steve Hurni nominated Brian Koester. The FY 2013 License Renewal Form and Mike Amo seconded. the Record Retention Form were approved. Discussion Items: Anticipated mailing date is no later than Gregg moved to table the election until all April 2nd. Duluth update: members were present. Dave seconded. Gregg Swartwoudt was recently appointed Motion carried. Meetings with the Board: to the Duluth City Assessor position, Nominations resumed: however, he only has a CMA. As requested John Hagen and Stephen Baker, MAAO by the Board, Deb wrote to the city’s chief Greg nominated Steve Sinell. Deb seconded. President, joined the meeting at 9:45 am DGPLQLVWUDWLYHRI¿FHU'DYLG0RQWJRPHU\ Voting was done by ballot. Steve Sinell was to discuss assessment practices issues. informing him of the requirement that the elected to Vice Chair. Discussion also included the possibility of assessor must hold a SAMA license and setting up a team including members from DVNLQJKLPZKDWWKHLUSODQZDVIRUIXO¿OOLQJ Nominations for Chair: the Department of Revenue, MAAO and the SAMA requirement for the Duluth City Jan made a motion to nominate Doreen as the Board of Assessors to explore possible Assessor position. Adele Hartwick, chief Chair. Steve Sinell seconded. The motion changes to statute to include more options ¿QDQFLDORI¿FHUIRUWKHFLW\UHSOLHGWKDW carried. Mike Amo made a motion to cast when assessment practices issues are they had hired Gregg Swartwoudt as the a unanimous ballot for Doreen. Dave discovered. city assessor and he expects to complete his Marhula seconded. The motion carried. SAMA this summer. The Board requested Request for Continuing Education Hours: that Deb write back and let them know that Grading Committee Appointments (tabled the Board will be reviewing this situation from January meeting): The board received a request for CEHs for again in September and reiterate that they Local Board of Appeal and Equalization cannot appoint anyone to the position that Steve Hurni moved to appoint Steve Training. The training is scheduled for 3.5-4 does not hold at least an AMA. Gregg Behrenbrinker, Kyle Holmes and Teresa hours. It was noted that most do not meet Swartwoudt should be copied on this reply. Mitchell to the grading committee, with the 3 hour length and are usually only 2 to Steve as chair. Brian seconded. Motion 2-1/2 hours. This training was not approved Outside activity letters – revision – tabled carried. for CEHs. until next meeting
Doreen will call Steve Behrenbrinker to The MAAO requested CEHs for the License Level Revision Discussion: discuss the review/mentor/grading system. MAAO Summer Seminars: All courses were Pam will email Steve Hurni an Excel approved as submitted with the exception of spreadsheet with a list of assessors, license Secretary’s Report: the HP12C seminar. levels required and their assessment jurisdictions (by county) after July 1 so it Deb reminded board members that receipts Tami Paulson requested CEHs for a 3.75 LQFRUSRUDWHVFKDQJHVPDGHLQWKHSDVW¿VFDO must accompany all expenses on expense hour seminar entitled, “2012 Commercial year including retirements and new contracts reports beginning this month. Real Estate Update: A State of the State”: for local assessors. The seminar topics include: Capital and its Some members brought in question/ effect on value; Sizing up the Twin Cities The board is in agreement that for ease of answers for the Oral Interviews. All will in the regional and nation market; Rental administration, license levels should be bring questions to the next meeting. rates and their stability factors; Twin Cities jurisdictional (as it currently is). Discussion
22 Equal Eyes | Summer 2012 State Board, continued included requiring an AMA for districts that what was done when the current list was Doreen indicated that the board should FRQWDLQDVLJQL¿FDQWDPRXQWRIFRPPHUFLDO established. The possibility of requiring consider a 2-day meeting yet this year industrial property (significant would anyone who contracts with a jurisdiction to to discuss the license level update and QHHGWREHGH¿QHG ,WLVDQWLFLSDWHGWKDW KDYHDQLQFRPHTXDOL¿HG&0$6ZDVDOVR KRSHIXOO\PDNHVLJQL¿FDQWSURJUHVV,WLV many jurisdictions in the state would have discussed. also anticipated that a special meeting of the an increase. When we did the last level Board will be called between now and May. list, the statutory requirement for income Further discussion included situations where TXDOL¿FDWLRQGLGQRWH[LVW commercial property is assessed by the Complaint: The board went into a closed county. If that option is not available, some meeting to discuss and take action regarding The board is also in agreement that in order jurisdictions may have to pay more to hire a complaint that was received. to contract with a jurisdiction, assessors someone with a higher level of licensure. PXVWKDYHD&0$SOXVLQFRPHTXDOL¿FDWLRQ The possibility of sending a survey to county The board resumed their regular meeting. Any concerns could be addressed on a assessors every year, perhaps as part of the There being no further business, the per-county basis. One suggestion was for SBE process was discussed. Requirements chairperson set the next meeting date as May the jurisdiction to contract with the county in true county systems were also discussed – 21st, 2012 at the Lake George Municipal and the county then could contract out the do the employees assigned to certain districts Complex, in the Sunroom. The meeting will residential. need to meet the license level requirement convene at 9:00. It is anticipated that there for those districts or is it OK for them to will be many interviews at this meeting. The board discussed some possible criteria work under the county assessor’s license as for establishing the license levels including now occurs. Brian Koester moved to pay the expenses population, value of income producing for the meeting. Mike Amo seconded the property, etc. They also discussed including It was noted that the Board will also need motion. The motion carried. a process whereby the county assessor could to discuss an implementation period for any review the proposed levels and could request new license level list. It was also noted that Dave Marhula moved to adjourn the that levels be raised or lowered before the the board could establish level progression meeting. Brian Koester seconded the ¿QDOGHWHUPLQDWLRQVDUHPDGHVLPLODUWR expectations or educational expectations. motion. The motion carried.
Minnesota Association of Assessing Officers
Executive Board Meeting Calender: ~ August Joint Legislative Meeting ~ ~ September 23, Brainerd, Breezy Point ~ ~ November 1, St. Cloud ~
Summer 2012 | Equal Eyes 23 FEATURE Property Tax Working Group Update
Written by Stephen Behrenbrinker, SAMA City of St. Cloud Assessor
Background Part 1: Guiding Principles Minnesota Statutes, Section 270C.991 Subdivision 4 establishes This part provides a statement of the committee’s recommendation a Property Tax Working Group (PTWG). of establishing guidelines for making changes to property tax laws. The principles include: The goals of the working group are: 1. To investigate ways to simplify the property tax system x Remember the purpose and make advisory recommendations on ways to make the x Base property tax on property attributes not owners system more understandable; x Defend broad-based goals from narrow interests 2. To examine the property tax calendar to determine what x Question alternatives changes could be made to shorten the two-year cycle from x Require value or intention statements on new legislation assessment through property tax collection; and x Make simplicity a priority 3. 7RGHWHUPLQHWKHFRVWYHUVXVEHQH¿WVRIWKHYDULRXVSURSHUW\ x Provide sunsets to prompt review WD[FRPSRQHQWVLQFOXGLQJSURSHUW\WD[FODVVL¿FDWLRQV credits, aids, exclusions, exemptions and abatements, and 3DUW &ODVVL¿FDWLRQ to suggest ways to achieve some of the goals in simpler and This part of the document addresses the need to reduce the number of PRUHFRVWHI¿FLHQWZD\V FODVVL¿FDWLRQVDQGHOLPLQDWHWLHUVDQGSDUFHOOLQNDJHZLWKHPSKDVLV on agricultural properties. MAAO has played a major role in this The PTWG is to make recommendations to the legislature by section of the document. February 1, 2013. Part 3: Operational and Administration Changes The 12-member working group consists of the members: This part of the document comments on the current property tax Kathleen Gaylord, Chairperson, Association of MN Counties system and how it is administered. Some of the suggestions in Rep. Denise Dittrich, MN House of Representative process are to consolidate reporting requirements, applications and Rep. Greg Davids, MN House of Representatives effective dates. The PTWG reviewed the assessment calendar and Sen. Warren Limmer, MN Senate considered recommendations from MAAO. The PTWG is also Sen. Rod Skoe, MN Senate reviewing valuation notices, TNT notices and tax statements for Thomas Mould, Homeowner possible improvements. Eric Sorensen, Homeowner Luayn Murphy, League of MN Cities 3DUW 2WKHU3URSHUW\7D[3UHIHUHQFHV%HQH¿WV David Fricke, MN Association of Townships This part of the document considers who should get property tax Matt Van Slooten, MN Chamber of Commerce EHQH¿WVZK\DQGKRZWKHVHEHQH¿WVVKRXOGEHDSSOLHG7KHVHEHQH¿WV Chris Radatz, MN Farm Bureau, MN Farmers Union include exclusions, credits, exemptions, deferrals, refunds and aids. 6WHSKHQ%HKUHQEULQNHU01$VVRFLDWLRQRI$VVHVVLQJ2I¿FHUV Jason Nord, MN Department of Revenue (non-voting) Thanks to Jason Nord, Eric Willette, Jessica Thompson Harding and the Department of Revenue Staff for their on-going contributions and Update on Activities to John Hagen for his support of the committee’s work. Thanks to The Property Tax Working Group (PTWG) has generally met the MAAO Legislative Committee, including Bill Effertz, and Tom monthly since October 2010 in St. Paul. The last meeting was Dybing for their insight and involvement in this process along with held March 23, 2012. There were no meetings held in April Tom May and Rob Vanasek. or May while the legislature was in session. The committee continues to make progress in addressing concerns of the current The next meeting of the PTWG is June 20, 2012 in St. Paul. Meeting property tax system. With the time remaining for the committee, times are 9:30-11:30 am. All meetings are open to the public and a emphasis will be on producing a significant document for number of assessors have regularly attended the meetings. All reports, presentation to the 2013 legislature. The committee, with the agendas and meeting minutes are available here.The website also assistance of DOR staff is now developing the “Draft Consensus includes background information, studies, reports and presentations. & Discussion Points of the Property Tax Working Group” which is a draft working document of the items addressed of the working If MAAO members have questions or comments they are welcome to group. The document is divided into four parts. contact me at 320-650-3352.
24 Equal Eyes | Summer 2012 The Chair’s Corner: Sta¢ing Current with MAAO’s CommiĴees Tax Court & Valuations Committee
Written by Cory Bultema, SAMA Tax Court & Valuations Committee Chair St. Louis Park City Assessor
9DOXDWLRQFDQEHGH¿QHGDVWKHSURFHVV do as assessors. The Committee Members: of assessing value. As assessors, we use primary role of the Cory Bultema, City Assessor St Louis Park, Chair mass valuation to estimate property values assessing profession is Jeff Johnson, Stearns County, Tax Court Vice Chair for taxation purposes. The mass valuation to study the market in Steve Nelson, Ramsey County methodology, when properly applied, tends order to set valuations. Scott Lyons, Dakota County to produce solid results in the macro sense. Our estimate of market Nancy Gunderson, City of Moorhead We all know that good quality data in value needs to mirror Matt Gersemehl, City of Bloomington conjunction with a good read on the market the market in a logical Ann Miller, Washington County can yield a quality mass assessment. The fashion and we, as Jim Swenson, City of Minneapolis best part of the mass assessment is that we valuation professionals, Earl Zent, Hennepin County, Valuations Vice Chair JHWWRUH¿QHRXUZHDNQHVVHVDQGWLJKWHQ need to be able to Rollie Huber, Washington County up areas which need attention each and explain and defend our Paul Knutson, Rice County every year. This function is the crux of the valuations. Tony Rasmuson, Wright County assessing profession on an annual basis, Joel Miller, Dakota County and the Valuation and Tax Court Committee As assessors, our 'DQ6FKDIÀHU2OPVWHG&RXQW\ tends to not jog anyone’s elbow on the mass valuation mission has Jack Renick, Lake County valuation side of the equation. always been interesting whether the real estate Yet we live in an imperfect world. There is markets are moving up, down or holding seminars for the Spring and Fall a distinct difference between good median steady. Over the past several years our Conferences. However, being a resource ratios and acceptable PRDs and CODs on valuation skills have been sorely challenged for practical applications has been and mass assessments and credible individual with some market sectors moving up, others will continue to be a very important role valuations. There are many reasons why were moving down, and some were moving of the committee. If you face a daunting an individual assessed value may have in both directions at the same time. valuation question, committee members imperfections. Property characteristics are available to kibitz. We are not likely to have a way of evolving outside of our kin. Being able to successfully defend our values have all of your answers (valuations being Certain property types are not well suited to is the foremost mission of the Valuation ORFDOL]HGDQGVSHFL¿FWRWKHSURSHUW\ EXW mass valuation modeling. Buyers and sellers and Tax Court Committee. In particular, WKHEHQH¿WRIEHLQJDEOHWRGLVFXVV\RXU bring their own interpretation of value and, developing supporting documentation or the issue with other assessing professionals is as such, the markets are not wholly rational. ZRUN¿OHDQGZULWLQJLQGLYLGXDOQDUUDWLYH one of our best attributes. In this respect, And sometimes, alas, we might make an appraisals using the applicable approaches to the committee is interesting. The folks who imperfect call on a valuation. value to produce credible valuation reports serve on the committee are generally high that can, if need be, be presented in Tax level practitioners of the valuation arts. You and I know that we do not set taxes, &RXUW7KHZRUN¿OHDQGQDUUDWLYHDSSUDLVDO Experience runs the gamut of locations and we must frequently explain this fact are essentially foundation documents for (metro and out state), property types, over and over and over. Like many of you, WKH¿YH³:¶V´RIYDOXDWLRQ7KH¿UVWIRXU and practical applications. The curiosity I have found that emphasizing a “fair shake” “W’s” (Who, What, Where and When) of DVVRFLDWHGZLWKWKH³:K\´SDUWRIWKH¿YH on the valuation question is frequently met market transactions are always interesting, “W’s” is a common attribute of committee with understanding by the taxpayer. It is a but the absolute best “W” is, in my opinion members. Or, at least it should be! big part of the equity question after all. Even anyway, “Why”. Understanding the the taxpayer who calls in consternation on diverse motivations of buyers and sellers Minnesota Tax Court is a specialized, how taxes can increase in a time of declining is perhaps the most interesting of all of our executive branch court specifically valuations understand that the integrity of many duties. I know that this is my primary established by the Minnesota Legislature the valuation system is meant to present a fascination with the assessing profession and to hear only tax related cases. The OHYHOSOD\LQJ¿HOGIRUHYHU\RQH it always will be. Court’s mission is to provide timely and equitable disposition of appeals of, The concept of a “fair shake” on the Past projects of the Valuations and Tax among other things, local property tax valuation question is crucial to what we Committee have focused on educational valuations, classification, equalization,
Summer 2012 | Equal Eyes 25 ĴȱȂȱǰȱ and exemptions. The goal of Minnesota their client’s working style. Some are decisions from the Tax Court and uploading Tax Court judges is to apply their tax HI¿FLHQWVRPHDUHKLJKO\FRPSHWHQWDW practical aspects of dealing with petitions law expertise in a manner to ensure that both law and valuation, and others are to the MAAO website for your reference, taxpayers are assessed what they owe, no pushing the envelope on both valuation and serving as a sounding board answering more or no less. and legal issues. Like us, they all have questions as they arise. their individual nuances. It always helps With the exception of special use to understand the style of the attorneys you I would like to extend a very large thank properties, there are many common work with, and this is a fascinating aspect you to Jim Atchison, the Hennepin County denominators in valuation analysis and of the Tax Court work. Assessor, for his tireless work in chairing Tax Court petitions. When it comes to the this committee for eight years. There is Tax Court side of the equation, practical (TXDOO\LPSRUWDQWDQGRIWHQPRUHGLI¿FXOW no one in the assessing profession who applications are our strength. Most of the to resolve, are the pro se petitioner cases. I respect more than Jim. He has been committee members work with a relatively The term “pro se” essentially means to a mentor to many of us, and his market high volume of petitions annually. If there represent oneself. It is absolutely essential knowledge is amazingly broad and deep. is one thing I can convey to you in this to understand that the pro se petitioner Jim’s willingness to share his knowledge article, it is this: If you get a petition that often does not know or totally understand is an example for us all, and he has always VHHPVSDUWLFXODUO\GLI¿FXOWYLVLWLQKRXVH the rules and procedures. They often come insisted in making our assessments and ¿UVWQH[WFDOODURXQGDQGYLVLWZLWK\RXU from the perspective of “should be” rather the assessing profession better year over local assessment peers, and then discuss, than “precedent or fact based thinking”. year. I would also like to extend kudos to if needed, with one of our committee 7KLVFDQOHDGWROHQJWK\DQGDGLI¿FXOW the Valuation and Tax Court Committee members.” Discussions regarding the series of explanations in both the valuation vice Chairs, Jeff Johnson, Stearns County, valuation issue, the relative strength and and procedural aspects of the case. I have and Earl Zent, Hennepin County. Their weakness of your comparables, and the found that focusing on the merits of the FRQWULEXWLRQVWRWKH¿HOGDQGFRPPLWWHH applicable valuation approaches can be question rather than procedural issues can have also been exemplary. enlightening and are always interesting. be most helpful in dealing with this type of petitioner. Good luck! In closing, when we all work together for Another important role of the Valuations a common cause, only good things can and Tax Committee is providing advice Looking to the future, the Valuation and happen! for dealing with attorneys. For this reason Tax Court Committee will continue to alone the committee is an asset to the prepare educational seminars dealing profession. In my opinion, there are two with the practical aspects of handling important factors to understand when it SHWLWLRQVVSHFL¿FXVHW\SHYDOXDWLRQVDQG comes to attorneys. The attorney’s role similar topics moving forward. Additional is to be an advocate for their client and projects in the works include: downloading
Seeking Nominations:
The Nominations Committee is seeking candidates for MAAO Second Vice President to be elected at the 2012 Fall Conference
Candidates are being sought from the outstate areas.
We are also seeking candidates for Region Directors from Regions 2, 3, and 4
For more information, or to make a nomination, contact: Michelle Moen, SAMA, Nominating Chair 555 18th Ave SW Cambridge, MN 55008 763.689.2752 Fax 763.689.8226 [email protected]
26 Equal Eyes | Summer 2012 FEATURE Lost in the Darkness
Written by Jason Jorgenson, CMA Carlton County We have all had run-ins with angry tax payers. But, one appraiser from Carlton County had a particularly eerie experience while hunting in northern Minnesota. This is the story of why it pays to be respectful to your constituents.
It was a beautiful September afternoon in the Setting up next to a deer trail that followed Gathering my thoughts, I again found the heart of the Brainerd lakes area. The leaves the wood line, I settled in for the night. A hidden trail amongst the young poplars were clinging to the trees in desperation; as gentle breeze whispered through the leaves leading out to the main trail. Nerves on edge, the change of seasons crept in to take their as the squirrels scampered around on the and adrenaline pumping through my veins, I ¿QDOEUHDWK$XWXPQLVP\IDYRULWHWLPHRI ground below. As the sun nestled into meandered back down the main trail hoping the year; the woods have a calming effect on WKHWUHHWRSVDFURVVWKH¿HOG,KDUYHVWHGD to arrive back at my truck where my GPS and the soul. Grabbing my portable tree stand a nice doe. With little time left before dark cell phone rested calmly on the seat. (Note handful of arrows and my bow I set out for an I took care of the necessary business at to self: remember to put in back pack next evening that I would never forget. time.) But to my demise, I was so UDWWOHG,FRXOGQ¶W¿QGP\WUXFNLQ My story starts back a few the darkness. Remembering that I months, in the spring of that year. passed a car parked along the way Land values had climbed again, I headed back for help to get out. triggering the onset of the appeals process. I received a call from a Arriving back at the car, I was very upset taxpayer, requesting greeted by the wife of the ill- a review of several parcels of mannered property owner whose land and his residence. Setting home I had appraised earlier that the appointment, we arrived at year. She calmly told me which the home and were greeted by way to go, so I hopped back on my the owner’s wife at the door. We machine and headed off down the reviewed the property from top to old road bed. Still turned around ERWWRP¿QGLQJDEDVHPHQWWKDW in the darkness, I was hopelessly KDGEHHQQLFHO\¿QLVKHGWKDWZDV lost. Nothing looked the same as not accounted for in the records. it did during daylight hours. I Adding the appropriate value went back to the car to get better for the changes, we sent out the LQVWUXFWLRQVRQO\WR¿QGDQLUDWH new improved value. Only to be taxpayer loading up his gear contested again due to the increase from a successful hunt as well. in value. Harshly, he told me he didn’t care if I spent the whole night To make a long story short the out there in the woods and to get value stood through the local and away from him. His wife tried to county boards of appeals process. calm him down as I explained to him he was not singled out and it Months later, I tucked my truck was not personal, that I was just into spot just off the old road doing my job. bed on the freshly fallen leaves. In a hurry for the hunt, I unloaded the 4 hand. Now, with the impending darkness 9HQWXULQJRIIGRZQWKHGDUNURDG,¿QDOO\ wheeler, strapped down my gear and headed looming near, I loaded up the deer and my found a land mark and remembered that I back three quarters of a mile through the bow and headed for home. Scampering had pulled off the main gravel road onto a meandering roads and trails into the depths of through the woods, the path that led me to smaller not so traveled path to park. Loading the forest. My destination was a bottleneck my success had disappeared in the shadows. up my gear never felt so good. yet another quarter mile deep down a small A dim outline of trees was all that was path that wandered through an overgrown left on the westerly horizon to keep my 7KHQH[WPRUQLQJZKHQ,DUULYHGDWWKHRI¿FH SRSODUWKLFNHW7RP\ULJKWDOXVK¿HOGRI bearings. Finding that path was becoming I had an apology awaiting me in my voice clover and greenery, to my left a low swampy very critical at this point. mail from a much calmer taxpayer. area, a nice spot for my stand was just ahead.
Summer 2012 | Equal Eyes 27 Feature The BILLION-Dollar Assessment: State Assessed Property in Minnesota Part 2, Wind Energy Production Tax
Written by Michael Stalberger, SAMA Blue Earth County Assessor
The work of the State Assessed Property work unit results in a total estimated market valuation of over $11 billion annually for the approximately 145 companies that are valued as state assessed property. While many steps and terms in their valuation are familiar to assessors statewide DQGWKHDSSUDLVHUVLQWKHXQLWDUHDWOHDVWLQFRPHFHUWL¿HG&HUWL¿HG0LQQHVRWD$VVHVVRUVOLNHPDQ\RIWKHLUFROOHDJXHVLQFRXQWLHVDQGFLWLHV the valuation process truly is a specialized one that many other assessors do not fully understand.
This article describes the Wind Energy Production Tax in Minnesota and starts to describe the differences and similarities in the assessment processes. It is the second in a series to be included in Equal Eyes designed as an informal introduction to the State Assessed Property unit and its unique role in the assessment practices of the state. Please review Part 1 in the Spring 2012 Issue for further background information.
Introduction What’s a Watt? As described in the first article in this The wind energy production tax is in lieu of series, Minnesota state law requires the the ad valorem property tax. It is authorized A Watt = one joule per second Commissioner of Revenue to value several under Minnesota Statutes, section 272.029. A Kilowatt = 1,000 watts types of real and personal property. State Counties and cities still assess the land A Megawatt = 1,000 kilowatts statutes describe the requirements for under the WECS, but the equipment itself A Kilowatt = apprx. 1.34 horsepower these valuations, and Minnesota Rules is exempt – instead paying the production Consumption of energy is labeled in provide the administrative framework tax, if appropriate. The tax is determined by watt-hours. Watts measure instanta- for the process of the valuations by the the SAPs unit and sent to the companies, but neous power. Watt-hours measure the Commissioner and therefore of the State it is collected and distributed by the county total amount of energy consumed over Assessed Property (SAPs) unit. The property similar to regular property taxes. a period of time. A 100 watt light bulb types related to state assessed property left on for one hour uses 100 watt- LQFOXGHÀLJKWSURSHUW\UDLOURDGSURSHUW\ 28 Equal Eyes | Summer 2012 State Assessed Property, continued to share information related to changes in Xcel Energy Other Minnesota Utilities the operations and use of property that is 7% by 2010 7% by 2010 assessed by the state in their jurisdictions. 15% by 2011 12% by 2013 Most importantly though, in regard to the 18% by 2013 17% by 2017 Wind Energy Production Tax, the counties 25% by 2017 20% by 2021 need to ensure a proper valuation and 30% by 2021* FODVVL¿FDWLRQDVVRFLDWHGZLWKWKHODQGXQGHU the production system. *at least 25% must be from wind energy, the remaining 5% can be from any renewable source Wind Energy History and Policy According to Minneapolis-based National developments. Again, the goal of the based on the size of the wind energy project. Wind, LLC, a leader in developing legislation is to have 25 percent of energy The Minnesota Legislature enacted the community wind projects (www. come from wind resources by 2025. All current-day version of the wind energy nationalwind.com), Minnesota is among the Minnesota utilities must obtain a certain production tax during the 2002 legislative nation’s leaders in wind energy production, percentage of their energy production from session as part of the omnibus tax bill that ranking fourth behind Texas, California, and renewable energy systems by the years year. The law imposed the production tax ,RZD6LQFHWKHFRQVWUXFWLRQRILWV¿UVWZLQG listed. The percentages apply differently to beginning with taxes payable in 2004 on the farm in Crookston in 1987, Minnesota has Xcel Energy and other Minnesota utilities production of electricity from wind energy been the Midwest’s pioneer for wind energy (see chart above). conversion systems installed after January development. In the past 20 years, over 60 1, 1991. The system equipment pays a tax wind farms have been developed across Wind Energy Production Tax Law based on production, but the land is still Minnesota with a total wind energy capacity The original laws related to wind energy, assessed locally and is subject to property of over 1800 MW. enacted in 1991, exempted all wind energy tax. The land is valued at its highest and best use unless the county approves to value Minnesota Wind Stats the land in the same manner as similar land as of January 1, 2011 that is not improved with a wind energy FRQYHUVLRQV\VWHP7KHFODVVL¿FDWLRQRIWKH Total installed wind energy capacity (MW): 2,196 land must be based on the most probable use Wind energy capacity under construction (MW): 298 of the property if it were not improved with Total wind energy potential (Billions of kWh/year): 657 the wind energy conversion system. Average potential power output (MW): 75,000 Ranks 9th in US for potential wind energy output The production tax rates are based on the Ranks 4th in US for current wind energy output size of the wind energy conversion system. They are as follows: x large-scale system (nameplate capacity Minnesota has the legislation to prove it conversion systems used as an electric of more than 12 megawatts) pays 0.12 believes in wind energy projects with local power source and installed in 1991 or later. cents per kilowatt-hour; ownership. The state’s Renewable Energy Numerous changes to this exemption or x medium-scale system (nameplate Standard is one of the nation’s strongest taxable status occurred in subsequent years capacity between two and 12 megawatts) renewable energy standards, requiring based on the size of the system. Then, pays 0.036 cents per kilowatt-hour; utilities to provide 25 percent of their total beginning with the 2000 assessment, the x small-scale system (nameplate capacity electrical generation from renewable sources responsibility to value the systems was of two megawatts or less) pays 0.012 like wind, hydrogen and solar power by the transferred to the Department of Revenue. cents per kilowatt-hour; and year 2025. Initially enacted in 2001 as the This responsibility has since been repealed x very small conversion systems with a Minnesota Renewable Energy Objective, as the system is exempt and companies pay nameplate capacity of 0.25 megawatts the law required that utilities “make a the production tax instead. or less and small-scale systems (two good faith effort” to obtain 10 percent of megawatts or less) that are owned by a their Minnesota retail energy sales from Current law imposes a production tax on the political subdivision are exempt from renewable sources by 2015. In 2007, the production of electricity from wind energy the production tax. law was amended to establish a Renewable conversion systems in lieu of the property Energy Standard with “mandated” renewable tax. It is outlined in Minnesota Statutes, Annually, on or before February 1, the owner energy goals beginning in 2010. section 272.029 and is essentially a tax that is of the wind energy conversion system must imposed on the production of electricity from ¿OH0LQQHVRWD)RUP0 VHHH[DPSOH21 Minnesota’s utilities are on track to meet wind energy conversion systems (WECS) PAGE) with the Commissioner of Revenue the state’s requirements. The Minnesota installed after January 1, 1991, and used as an detailing the amount of electricity produced government has instituted renewable energy electric power source. The project is required LQWKHSUHYLRXVFDOHQGDU\HDU7KH¿OLQJ objectives for utilities, tax incentives and to pay local taxing districts a direct payment date was March 1 for 2004, but the 2005 community-based legislation (C-BED based on the electricity production from the Legislature changed the date to February 1 to statute), all encouraging wind energy wind turbines. The tax is on a sliding scale allow the Department of Revenue and local Summer 2012 | Equal Eyes 29 State Assessed Property, continued M25 Wind Energy Production Report Due annually on February 1 Name of company Report for calendar year Street Choose one Apportion the tax based on: City State Zip code Number of towers and interconnects Actual production Print or type Total number of towers Total production capacity in megawatts (MW) Total production for the year (MWH) Complete the information below for each taxing area where a system is located. If you’ve chosen to have the tax apportioned to each taxing area based on the number of towers and interconnects, complete Column A. If you’ve chosen apportionment based on actual production, complete Column B. A B Number of Actual towers/interconnects production County City or township School district Towers Production Special taxing districts Parcel ID Interconnects County City or township School district Towers Production Special taxing districts Parcel ID Interconnects County City or township School district Towers Production Special taxing districts Parcel ID Interconnects County City or township School district Towers Production Special taxing districts Parcel ID Interconnects County City or township School district Towers Production Special taxing districts Parcel ID Interconnects Tower and production information by location and production information by Tower County City or township School district Towers Production Special taxing districts Parcel ID Interconnects County City or township School district Towers Production Special taxing districts Parcel ID Interconnects I declare that this report is true and complete to the best of my knowledge and belief. Signature Title Date Name of contact person (please print) E-mail address Phone Sign here ( ) Mail to Minnesota Revenue, Mail Station 3340, St. Paul, MN 55146-3340 or send an electronic version to [email protected]. (11/05) 30 Equal Eyes | Summer 2012 State Assessed Property, continued governments more time for administrative The production tax determined must be paid Wind Energy Production Tax Collections and budget planning purposes. If the to the county treasurer at the same time and By County, Taxes Paid 2012 owner fails to submit a timely report, the in the same manner provided for payment of Data provided by MN Revenue commissioner determines the tax based upon property taxes. The tax, based on the size of the nameplate capacity of the system times the wind conversion system, must be paid to County 2011 Tax ($) a capacity factor of 60 percent. the county on or before May 15 and October Clay 641 15. If unpaid, the production tax is subject Cottonwood 239,292 The form collects information from each to the same enforcement, collection, and Dodge 12,966 company, including total production capacity interest and penalties as delinquent personal Faribault 5,208 to determine the tax rate. The information property taxes. Freeborn 524,292 is provided at the special tax district level Grant 76,770 to ensure the production tax is paid to the The wind energy production tax is Jackson 1,153,006 correct taxing authorities. Companies select distributed along with the regular property Lincoln 871,682 how their total tax based on the entire tax settlements made by the county treasurer Lyon 22,731 system is distributed to the individual taxing to the local governments in the following Martin 365,138 authorities. It can be based on the number percentages: 80 percent to counties and Meeker 113,783 of towers or the percentage of production in 20 percent to cities and townships. Prior Mower 1,497,019 each of those districts. to distributions in 2010, 80 percent was Murray 1,389,901 distributed to counties, 14 percent to cities Nobles 827,190 A developer of a new or existing wind and townships, and the remaining 6 percent Pipestone 577,091 energy conversion system, as defined was distributed to school districts. The state Rock 5,424 under section 272.029, subdivision 2, is not included in the distribution of the Sherburne 103 may negotiate with the county where the production tax revenues. St. Louis 78,062 wind energy conversion system is located Steele 37,952 to establish a payment in lieu of the wind County and City Role in Wind Energy Todd 1,383 energy production tax imposed under section Production Tax Watonwan 38,508 272.029. The in-lieu payment is to provide As noted before, county and city assessors Winona 461 fees or compensation to the host jurisdictions DUHRIWHQWKHH\HVDQGHDUVLQWKH¿HOGDQG Total 7,838,603 to maintain public infrastructure and can provide the State Assessed Property services. A host jurisdiction includes a city work group valuable information related or town and the county in which a facility to wind energy production system projects. energy conversion system (the turbine and is located. The payment in lieu of the wind ,IFRXQW\RUFLW\VWDIILGHQWL¿HVSURGXFWLRQ supporting structures), but it states the land energy production tax may be based on sites, they should record where they are remains taxable to the fee owner of the land. production capacity, historical production, located and verify that a production tax is 7KHODQGLVFODVVL¿HGEDVHGRQWKHPRVW or other factors agreed upon by the parties. being paid in that district for that project. probable use of the property if it were not The payment in lieu of tax agreement must If not, they should notify the department. improved with a wind energy conversion EHVLJQHGE\WKHSDUWLHVDQG¿OHGZLWKWKH Additionally, county and city staff can system. The value should be based on the Commissioner of Revenue and the county share the reporting requirements with the property’s market value, at its highest and recorder. Exemption from the tax under production companies. best use. However, there is more discretion section 272.029 is effective for the same LQWHUPVRIYDOXDWLRQ6SHFL¿FDOO\WKHVWDWXWH duration as the in-lieu payments under With the growing use of technology in states: section 272.028 are in effect. assessing, if counties or cities have the capability and resources, it may be very “If approved by the county where the %DVHGRQWKHDQQXDO¿OLQJWKH6WDWH$VVHVVHG helpful to use GIS to map the location property is located, the value of the land on Property work unit computes the tax. Upon of wind energy production systems so which the wind energy conversion system is completion of the wind energy production that those maps can be used to ensure the located shall be valued in the same manner tax calculation, companies are mailed a tax appropriate production taxes are being paid. as similar land that has not been improved order notice. Typically, issues related to the $GGLWLRQDOO\WKHGHSDUWPHQWPD\¿QGWKDW with a wind energy conversion system.” tax calculation are resolved through email information helpful if there is confusion correspondence. All tax issues must be settled in determining the production taxes and For example, a wind tower site located in DQGWKHWD[DPRXQWVPXVWEHFHUWL¿HGWRWKH assigning them to taxing authorities. DFRUQ¿HOGZRXOGEHSURSHUO\FODVVL¿HGDV county assessors and auditors no later than agricultural for tax purposes, but its value February 28. After the tax notices are sent Most importantly, assessors must value would be like commercial/industrial or other to the county the only recourse for an appeal and classify the land situated under the types of property not used for agricultural is with the tax court or district court. The wind energy conversion systems, as well purposes. In other words, the value of a department can make corrections of errors as any taxable auxiliary improvements. wind tower site would be comparable to the in the calculation, but must make these and Minnesota Statutes, section 272.02, value established for some communication certify them to the county auditor on or subdivision 22 provides the exemption for tower and billboard sites. If approved by before April 1. the real and personal property for the wind the county, however, the value used in this Summer 2012 | Equal Eyes 31 State Assessed Property, continued Minnesota - Annual Average Wind Speed at 80 m 96° 94° 92° 90° 48° 48° " Crookston Bemidji " Lake Superior Duluth " "Brainerd " Fergus Falls 46° 46° Saint Cloud " Wind Speed Willmar " m/s Minneapolis " " >10.5 Saint Paul 10.0 9.5 9.0 8.5 8.0 7.5 " 7.0 Mankato 6.5 44° Rochester " 44° 6.0 5.5 5.0 " Worthington 4.5 4.0 < 4.0 96° 94° 92° 90° Source: Wind resource estimates developed by AWS Truepower, 50 0 50 100 150 Kilometers LLC for windNavigator ¶ . Web: http://www.windnavigator.com | http://www.awstruepower.com. Spatial resolution of wind resource 250 255075100Miles data: 2.5 km. Projection: UTM Zone 15 WGS84. 11-OCT-2010 1.1.1 32 Equal Eyes | Summer 2012 State Assessed Property, continued example could be the same as what other on the total system that is interconnected In the case of a dispute, the commissioner similar agricultural land is valued. with different distribution systems. Even of commerce determines the total size of if the system is not interconnected, the the system. The commissioner of commerce One other important point for assessors nameplate capacity of one wind energy may determine that two wind energy to be aware of relates to how the State conversion system is combined with the conversion systems are under common Assessed Property work group determines nameplate capacity of any other wind energy ownership when the underlying ownership total production capacity. This is important conversion system that is: structure contains similar persons or entities, because of the sliding-scale nature of the even if the ownership shares differ between production tax rate based on the capacity ł ORFDWHGZLWKLQ¿YHPLOHVRIWKHZLQG the two systems. However, wind energy of the system. energy conversion system; conversion systems are not under common ł constructed within the same calendar ownership solely because the same person For systems installed and contracted for year as the wind energy conversion RUHQWLW\SURYLGHGHTXLW\¿QDQFLQJIRUWKH after January 1, 2002, the total size of a system; and systems. wind energy conversion system is based ł under common ownership. This has been an introductory review of the State Assessed Property work unit and the work they do to determine the Wind Energy Production Tax in the State of Minnesota. In other issues of Equal Eyes, the focus will shift to the other industries assessed by the work unit: 7KH$VVHVVPHQWRI$LUÀLJKW3URSHUW\ The Assessment of Railroad Property The Assessment of Pipeline Property The Assessment of Utility Property 6WHSKDQLH1\KXV3URSHUW\7D[&RPSOLDQFH2I¿FHULQWKH6WDWH$VVHVVHG3URSHUW\ZRUNXQLWSURYLGHGVWDWLVWLFDOLQIRUPDWLRQDQG background assistance for this article. Thank you, Steph! REQUEST FOR INPUT Property Tax Working Group 7KH0LQQHVRWD$VVRFLDWLRQRI$VVHVVLQJ2I¿FHUV 0$$2 KDVEHHQLQYLWHGWRSDUWLFLSDWHLQD3URSHUW\7D[:RUNLQJ Group. This legislatively appointed group consists of members from the Minnesota House of Representatives and the Senate, the Association of Minnesota Counties, the League of Minnesota Cities, the Minnesota Township 2I¿FHUVWKH0LQQHVRWD&KDPEHURI&RPPHUFHWKH)DUP%XUHDXDQG)DUPHUV8QLRQWKH0LQQHVRWD'HSDUWPHQW RI5HYHQXHWKH0LQQHVRWD$VVRFLDWLRQRI$VVHVVLQJ2I¿FHUVDQGSXEOLFPHPEHUV The Working Group is looking for input from assessors regarding their role in the property tax system. All meetings are open to the public. Stephen Behrenbrinker will be representing MAAO on the Working Group. Jason Nord will be representing the Minnesota Department of Revenue on the Working Group. Please provide your feedback and comments here regarding the following questions for assessors that will be considered by the committee: 1. What part of the assessment process in the property tax system requires the most time? 2. What part of the assessment process in the property tax system requires the most computer programming? 3. What part of the assessment process or the property tax system is the most confusing for the public? There is also the option to provide additional comments that you would like the working group to consider. Thank you for your participation in this important endeavor. Summaries of the meetings will be provided to MAAO as available. Don’t delay, please respond with your COMMENTS TODAY!! Summer 2012 | Equal Eyes 33 Global Assessment Trends Egypt Written by Solomon Akanki, AMA Scott County Editorial Committee Member This issue we head to North Africa and examine how property taxes are administered in Egypt As I was trying to decide which InstitutionI for Chartered Surveyors country to spotlight, Egypt just came ((RICS), among whom only two to me serendipitously. If you believe aare specialized in valuation. that you will believe anything. The UUnfortunately, these designations country I spotlight each time depends aare not yet widely recognized at on the amount of pertinent country ththe local level. As a sign of good specific information I am able to ppractice, some appraisers follow amass. I believe we would have a lot rreport templates by RICS or the of fun reading about the assessment AAppraisal Institute while other practices in yet another developing ffirms have developed their own economy. ttemplates. Egypt is a country mainly in North IIncome Approach Africa, with the Sinai Peninsula AAs a result of the socialist laws forming a land bridge in Southwest oof 1952 that fixed the rents of Asia; it is thus a transcontinental rreal estate properties for decades country and a major power in Africa. aand entitled tenants to bequeath Covering an area of about 390,000 lleases for generations, landlords square miles, Egypt is bordered by the aand investors tended to develop Mediterranean Sea to the north, the nnew projects for sale, not for lease. Gaza Strip and Israel to the northeast, AAccordingly, the use of the income the Red Sea to the east, Sudan to the aapproach was uncommon in the south and Libya to the west. It is the world’sorld’s ,QÀDWLRQ,QÀDWLRQ communitycommunity of Egyptian appraisers, simply 30th-largest country; in land area, it is about Annual inflation rates have varied because there were no income producing the same size as all Central America, twice VLJQL¿FDQWO\RYHUWKHSDVW\HDUV,QÀDWLRQ properties. In 1996, a new act was approved the size of Spain, four times the size of the gradually declined from 13% in 1992 to an by the parliament to liberate the rents of United Kingdom, and the combined size of average of 3% between 1998 and 2003 and new properties and accordingly some new the US states of Texas and California. started picking up again to hit 13% in 2009. developments, especially large multitenant ([WUHPHLQÀDWLRQUDWHVRIDQG RI¿FHEXLOGLQJVDQGUHJLRQDOPDOOVWDUJHWHG Egypt is one of the most populous countries were recorded in three exceptional years – business tenants. Housing investors are in Africa and the Middle East. The great DQGUHVSHFWLYHO\,QÀDWLRQLV reluctant to develop projects for letting majority of its over 81 million people live commonly measured by the average change in purposes; most new housing developments near the banks of the Nile River where the the Consumer Price Index (CPI), which is the still target buyers, not tenants; some buyers only arable land is found; meaning that about FKDQJHLQSULFHSDLGIRUD¿[HGPDUNHWEDVNHW lease their properties afterwards. The 99% of the population uses only about 5.5% of goods and services as tracked by the Central culture of renting a home that existed in the of the total land area. Apart from the Nile Agency for Public Mobilization and Statistics. 1940s has returned very slowly since 1996 Valley, the majority of Egypt’s landscape is Annual and forecasted inflation rates are as most Egyptians born after 1952 have desert; the large areas of the Sahara Desert reported in the press and are available on the grown accustomed to the fact that there are are sparsely inhabited. About half of Egypt’s Web for the public and real estate appraisers. no new homes available for letting. On the residents live in urban areas, with most other hand, a small supply of housing with spread across the densely populated cities of Licensing/Certification/Reporting high rents targeted expatriates or provided Cairo, Alexandria and other major cities in Requirements only temporary solutions for high-income the Nile Delta. Egypt’s capital city, Cairo, is At the end of 2009, approximately 140 citizens who wished to buy their homes, Africa’s largest city and has been renowned appraisers had been licensed by the country’s especially after the Mortgage Law was for centuries as a center of learning, culture licensing authority. Most of them are non- enacted in 2001. and commerce. The economy depends mainly government appraisers. There are only four on agriculture, media, petroleum exports, associate members of the Appraisal Institute Today most appraisers (they call them exports of natural gas and tourism. in Egypt and 10 members of the Royal YDOXHUV SUHSDUHDQHVWLPDWHRIFDVKÀRZ 34 Equal Eyes | Summer 2012 Assessment Trends, continued Sales Comparison Tax declaration forms are easily obtained Approach IURPWD[RI¿FHVRUWKH\FDQEHGRZQORDGHG The sales comparison from the Ministry of Finance website. The approach is widely declaration is 7-9 pages long and there accepted in Egypt, are seven versions of the form tailored for especially by courts, as different types of properties (residential, it is simple, logical and industrial, commercial, ports, petroleum etc.). understood by all market Failure to submit tax declaration results in stakeholders. The market ¿QHV2QFHWKHIRUPVKDYHEHHQVXEPLWWHG value is estimated by property valuations are based on a number of comparing the subject factors including location, view, construction SURSHUW\WR¿YHVLPLODU quality, utilities and services and proximity properties that are to parks and emergency and social services. currently offered for sale Once the assessment of each property has been or have recently sold. made, property owners have 60 days to appeal the valuation. Properties are re-appraised every Cost Approach ¿YH\HDUV An Egyptian two story home The cost approach is routinely included in 7KHQHZSURSHUW\WD[LVDVVHVVHGDWDÀDWUDWHRI for a single year to be used in direct DSSUDLVDOVEXWUDUHO\UHOLHGXSRQIRUWKH¿QDO 10% of “taxable value”. Taxable value is equal capitalization along with an appropriate estimate of value. More weight is placed on to “rentable value” less 30% for maintenance capitalization rate. When valuing large this method when appraising special purpose costs (or 32% for non-residential properties) investment grade income producing buildings that are infrequently sold and DQGOHVVDÀDW/( 86' SHU commercial properties, some appraisers also when appraising recently constructed SURSHUW\5HQWDEOHYDOXHLVGH¿QHGDVRI use different methods and techniques such SURSHUWLHVZLWKLQVLJQL¿FDQWDPRXQWVRI ³FDSLWDOYDOXH´ZKLFKLWVHOILVGH¿QHGDV as term and reversion, period by period cash depreciation. of market value. Properties with a market ÀRZRUGLVFRXQWHGFDVKÀRZDQDO\VLVZLWK value of less than LE500, 000 (USD91, 240) an appropriate discount rate. In developing Tax Assessment System are exempt from this tax. Under the new countries like Egypt where markets are A new Egyptian real estate tax assessment tax regime, the owner of a property valued LQHI¿FLHQWUHOLDEOHGDWDLVUDUHO\DYDLODEOH system came into effect in 2010, replacing at LE500, 000 pays LE30 (USD5.47) in the outlook of future increases in revenues a system in place since 1954. The new tax property taxes while the owner of a property is cautious; investors are unwilling to make V\VWHPVLPSOL¿HVDVVHVVPHQWVSXWVLQSODFH valued at LE3 million (USD547,445) pays assumptions about future non-contractual DÀDWWD[UDWHDQGIRUWKH¿UVWWLPHDSSOLHV LE3180 (USD580) per year. Tax payments are increases in revenue and so more weight is to nearly all properties in Egypt; close to made annually or semi-annually with taxes due XVXDOO\JLYHQWRWKH¿UVW\HDUQHWRSHUDWLQJ 90% of properties, including all of those in June and December. income rather than to future increases. Thus, valued at LE500,000 (USD91, 240) or less An important element of the new tax is that it appraisers are more conservative and tend will have no tax liability. Despite the small is levied not only against completed buildings to value income-producing properties using tax base, the government expects improved but also against projects under construction direct capitalization more commonly than compliance and increased revenue from this to encourage completion of projects and the the DCF method. tax reform. sale or rental of empty units. The prior real HVWDWHWD[H[HPSWHGXQ¿QLVKHGFRQVWUXFWLRQ from the tax and as a result many buildings LQ(J\SWKDYHDQXQ¿QLVKHGWRSÀRRUWKDWKDV been “under construction” for decades which is XVHGDVMXVWL¿FDWLRQIRUWD[H[HPSWLRQ7RPH this is compelling evidence that government policies affect public behavior and so policy makers have to be extremely diligent. Exempted from real estate tax are the several million apartments that were “rented” under the Nasser-era rent control system under which renters pay a negligible (often less than USD10) monthly rent. The new system is more streamlined, transparent and universally applied as compared to the old system that was applied An Egyptian Residential Development unequally and encouraged tax evasion. Summer 2012 | Equal Eyes 35 FEATURE “Musseling In” On the Chain of Lakes: Invasive Species in Alexandria, MN Written by Reed Heidelberger, SAMA City of Alexandria Assessor As invasive species turn up in more and more lakes with each passing year, any assessor who has not heard from a property owner won- dering how the presence of these pests affects their value will probably hear that question one day soon. Recent events in my jurisdiction provided just such an opportunity. Residents of the city of Alexandria take \HDUODWHUWKH\KDGEHHQYHUL¿HGDVSUHVHQW There has always been variation between great pride in the many lakes that surround in every lake in the chain except two. One of sales on the lakes in the chain due to their it, in particular the locally famous “Chain of those lakes, Lake Victoria, has a substantial natural characteristics. The largest lakes Lakes,” a series of seven lakes ranging in portion of its shoreline in the city limits with the “best” water and lakeshore were at size from approximately 250 to 2500 acres, of Alexandria and thus was of particular the high end of the scale. The value scale of all with interconnecting channels making it interest to me. Also, due to its location at properties on the remaining lakes gradually possible, to varying degrees, to travel from one of the ends of the chain and a resulting drops down as the size and quality of the lake lake to lake by boat. One can imagine the RXWÀRZWRWKHUHVWRIWKHODNHVLWDSSHDUHG also declines. Lake Victoria, the uninfested dismay residents felt when zebra mussels to be spared infestation, at least for a time. lake, is in the lower half of the value scale. were found in one of the largest lakes in the This provided a unique opportunity to make Another important factor affecting the sale chain in June 2009. Due to the connections some comparisons of sales on infested and of lake properties at this time was the fact between the lakes, the mussels very quickly non-infested lakes as well as what impact that the economic downturn was beginning began showing up in the other lakes, until, one being on “The Chain” has on lakeshore value. to make its full force felt. While values in The “Chain of Lakes” are a popular vacation and residential area that surrounds the central Minnesota city of Alexandria 36 Equal Eyes | Summer 2012 Zebra Mussels, continued the local property market never went into freefall, the amount of sales activity did decline significantly. This was true even of lake properties, which had been red hot during prior years. Lake properties were still selling, but the marketing time for them did increase—and even that was somewhat relative since in most cases it was a matter of having a property on the market for months rather than weeks as during the market’s peak. Sales of high end lake homes ($500,000+) were particularly sluggish. While the market was cooling down, the discussion about zebra mussels was getting hotter. Some Lake Victoria property owners called for the channel between that lake and the chain to be sealed off, to prevent the mussels from spreading. Other owners, particularly those trying to sell their properties in an already slowing market, protested. They felt that Small, and razor sharp, Zebra Mussels cut the feet of unsuspecting swimmers (MN DNR) losing access to “The Chain” would make it HYHQPRUHGLI¿FXOWWRPDUNHWWKHLUSURSHUWLHV flared on both sides. The commissioners calls from property owners wondering how the (Naturally, local realtors always tend to have themselves were divided. Ultimately, the presence of zebra mussels in their lake was “On the Chain!” prominently displayed in their Board of Commissioners voted in May 2010 going to affect their value. The best answer listing of any properties located on these lakes.) WRFORVHWKHFKDQQHOWRERDWWUDI¿FE\PHDQV we could give was that we did not know. We Public meetings were held. Lake associations of a barrier, but not seal it off entirely. While would have to wait and see how the market became involved or new associations were ZHLQWKH$OH[DQGULD&LW\$VVHVVRU¶VRI¿FHKDG reacted. Now we were going out into the created. Representatives from the Department not been directly involved in this controversy, ¿HOGWRJLYHSURSHUW\RZQHUVRQ/DNH9LFWRULD of Natural Resources were grilled by parties that was about to change. an open invitation to ask their questions. A from both sides. Ultimately, it was determined typical query from someone who had opposed that because the channel connecting Lake It just so happened that the 2010 quintile closing the channel was, “Well, how much are Victoria to the chain was under county review schedule for the city of Alexandria you going to lower my value now that I’m jurisdiction, it was the Douglas County Board included a large number of properties located not on The Chain anymore?” Once again, of Commissioners who were on the hot seat. RQ/DNH9LFWRULD2XURI¿FHDVZHOODVWKH our response was that we were going to wait There were more public meetings and tempers FRXQW\RI¿FHKDGDOUHDG\EHHQ¿HOGLQJPDQ\ for direction from the market. As we talked to more property owners on Lake Victoria, however, it became clear that there were two distinct groups. We had expected to hear from people who felt that the closing of the channel had a negative impact on the value of their property. What was more surprising to us was the number of Lake Victoria property owners who made comments like, “The Lake has been so much more peaceful this summer.” “This is how I remember the lake being 30 years ago.” or, “We have our lake back!” These people were glad that the channel had been closed, UHGXFLQJERDWWUDI¿FRQWKHODNH$VZHWDONHG to property owners, it became clear that most people fell into one camp or the other, and that the numbers were about equally divided. 7KLVSURYLGHGWKHEDVLVIRURXU¿UVWLQNOLQJWKDW maybe the closing of the channel was not going to have any discernible impact on the market. If property owners on the lake were evenly divided between those who liked the closed channel and those who disliked it, potential buyers would likely be similarly divided in Zebra Mussels latch on to nearly anything (MN DNR) their views, we reasoned. Meaning that there Summer 2012 | Equal Eyes 37 Zebra Mussels continued would continue to be buyers interested in determined there were zebra mussels present the stigma began to subside, people adjusted property on Lake Victoria and maybe even in that lake as well. The channel between to the new reality and lakeshore property potential new buyers who were interested in Victoria and the other lakes in the chain was remained desirable. More surprising to me being on a “premier” lake that now had the subsequently reopened for the 2011 boating is the apparent fact that being “on the Chain” added advantage of being somewhat secluded. season. The time period during which Victoria did not have a clear association with lakeshore was isolated and mussel-free was too short to values either. It appears to me that there are The question of what impact, if any, the allow for a comprehensive before and after enough pros and cons in the minds of property presence of zebra mussels had on value began analysis of sales activity. There were sales owners and potential buyers about what it to break down in a similar “pros and cons” that took place, however, and together with means to be on the Chain that the ultimate fashion in my mind. The announcement that information we gathered about how property effect on property value of that particular fact mussels had been found in a lake was certainly owners and the community reacted, we were is negligible, or at least overshadowed by the a dramatic event and it carried with it a certain able to draw some conclusions. The number more traditional predictors of lakeshore value stigma. As people began to get used to the of sales of properties on the major lakes around such as quality of the lake and shoreline and lot idea and more information and discussion Alexandria began to decline sharply in 2008, size and location. Economic conditions and a EHJDQWRÀRZKRZHYHULWEHFDPHFOHDUWKDW as the economic downturn hit full stride. generally depressed real estate market played all was not negative. At this point, let me state Median sale prices of lake properties declined a far greater role in what was happening with clearly, the presence of any exotic species is along the same curve. Both sale numbers and lake sales in our area. not a “good thing” and I would never attempt median price bottomed out in 2009, and then to make that argument. Once that presence rebounded somewhat in 2010 and 2011. The The presence of zebra mussels in our local becomes a reality, however, people begin to number of sales declined 65% from its peak lakes, while an unfortunate reality, has also adapt to the new reality and often it takes shape in 2008. The median sale price did not fall off been a tremendous learning opportunity for in unexpected ways. The negative effects of as sharply, falling only 13% during the same me as an assessor. Others may have different zebra mussels are well known and they were period. The sales on Lake Victoria followed experiences in different markets and the PXFKGLVFXVVHGDW¿UVW7KH\DUHQRQQDWLYH exactly the same trend as the group of lakes presence of some other invasive species, and crowd out native species. They build up as a whole. such as Eurasian Water Milfoil, may bring in large clusters on docks and boat lifts and an entirely different set of issues to bear on clog water intakes. Their very hard and sharp The market data did not show us any difference the lakeshore market. My experience gave shells can cause nasty cuts when one brushes between what was happening on Victoria, PHD¿UVWKDQGRSSRUWXQLW\WRVHHKRZDKLJK against or steps on them. either as a “mussel free” lake or as a lake that SUR¿OHLVVXHOLNHWKLVSOD\VRXWLQWKHPLQGV was no longer part of the Chain of Lakes. and opinions of individuals and a chance to There is one other important fact about zebra Based on that fact, and even more so on do some market analysis of how such an issue PXVVHOV7KH\DUHSURGLJLRXVZDWHU¿OWHUVDV what we heard from property owners, my may or may not affect property values. We are they strain the water for the microscopic bits of conclusion is that the presence of zebra still in the early days of this infestation and SODQNWRQXSRQZKLFKWKH\IHHG7KLV¿OWHULQJ mussels had little impact on lakeshore property time will tell what, if any, impact it will have often leads to a noticeable increase in water values. Once the initial shock was over and on our lakeshore market in the future. clarity in waters where they are present. What impact would the improved water clarity have? Would it cause an explosion of weed growth as the sunlight would now penetrate deeper water and give weeds new growing areas? That was DSRVVLELOLW\+RZZRXOGLWDIIHFW¿VK"7KH best answer the experts could provide was that increased water clarity might be good for some ¿VK ODUJHSUHGDWRU¿VKFRXOGVSRWSUH\PRUH HDVLO\ DQGQRWVRJRRGIRURWKHUV VPDOO¿VK that could not hide from predators as easily or that relied on the same food the mussels were eating). On the other hand, for people who were interested mainly in recreation on the lake, especially boating or swimming out in the lake away from places where mussels would be clustered, or who just liked to look at the lake, increased water clarity could be considered an appealing aspect of a lake. Ultimately, the question of Lake Victoria as an isolated, mussel-free lake became moot, as the DNR announced in January 2011 that it had Zebra Mussels can quickly take over an entire ecosystem (MN DNR) 38 Equal Eyes | Summer 2012 Assessor Retirements Transitions Compiled by Nancy Gunderson, SAMA City of Moorhead Editorial Committee Member Jody LeVasseur Retires from Mower County -RG\VWDUWHGZLWKWKH0RZHU&RXQW\$VVHVVRU¶VRI¿FHLQ XQGHU the direction of Richard Anderson (MAAO President 1979). She began appraising the City of Austin in 1983 and was named Deputy Assessor in 2006. Jody served the MAAO on the Editorial Board as well as the NCRAOO conference committee. The leadership she KDVSURYLGHGWRWKH0RZHU&RXQW\$VVHVVRU¶V2I¿FHWKURXJKRXW the years is unparalleled. Jody has two children: Emmy (John) Gorman of Lincoln, Nebraska and Andy (Abby) LeVasseur of Rochester, MN. She has two adorable grandsons: Braden and Colin Gorman (Lincoln, NE) – who, I’m sure, will be very excited to spend a little more time with their Nana and possibly converting her to a Cornhusker fan! Jody will still be active in assessing as a contracted appraiser for Austin Township. She plans on enjoying travel visiting family and friends. Jody at her retirement celebration. Mary Jane Peterson, Commercial Appraiser, Retires from Ramsey County A full retirement is no doubt in store for Mary Jane. She and her husband Bill are avid travelers, and have multiple trips planned yet for 2012. They plan to head to Seattle for a wedding in August, and then off to Europe in the fall. The European trip will start with a stop in England, where Mary Jane and Bill will stay with a cousin who lives in Bournemouth, and then off to Budapest and Prague. With all of her interests, boredom will not be an issue for Mary Jane in retirement. She also plans to do a lot of gardening, house projects and plan more trips. Mary Jane has a son and a daughter, both married, who both live in the Twin Cities, and four grandchildren. Quality grandma time will be a little easier in the coming months with no assessment to worry about. Her Mary Jane Peterson husband Bill works as a commercial fee appraiser and has no immediate plans to retire, but Mary Jane says that could change Mary Jane Peterson has retired from her position as a “at a moment’s notice”. More reason for Mary Jane to savor the Commercial Appraiser for Ramsey County. Mary Jane logged solitude of the coming months. 25 years in the appraisal profession, which includes 10 years as a fee appraiser, 2 years with Washington County, and 13 years Mary Jane will be greatly missed in the Ramsey County with Ramsey County, in both residential and commercial. Assessor’s Office, and we all wish her the very best in retirement. Summer 2012 | Equal Eyes 39 Transitions, continued Pam Lundgren Retiring from Minnesota Department of Revenue Pam Lundgren is retiring from the Minnesota Department of Revenue after 34 years of service. Pam started work in the Property Tax Division in 1982 and has been the program administrator for the Minnesota State Board of Assessors since 1992. Most of you have communicated with Pam at some point in your career when obtaining a new license, renewing a license or checking on your continuing education. Pam has taken her responsibilities dealing with assessors very seriously. She has always been willing to go the extra mile to help assessors out with whatever licensing issue they were facing. True to form, she even timed her retirement so she would be here to handle assessor license renewals at the end of the four-year cycle. Pam’s retirement party was held on Thursday, June 28 in the Skjegstad Room at the Department of Revenue’s Stassen Building. Her last day of work was Tuesday, July 3 and now she’s off to enjoy Pam receiving recognition of service at the 2012 Summer Seminars a well-deserved retirement. Pam will be spending lots of time with her family, including seven On behalf of Minnesota assessors, the Minnesota State Board JUDQGFKLOGUHQ,I\RXWLPHLWULJKW\RXFDQDOVR¿QGKHUDWWKH01 of Assessors, and her friends and co-workers at the Department, Street Rod Association’s Back to the 50’s event each year. Pam ZHZLVK3DPDORQJDQGIXO¿OOLQJUHWLUHPHQW $QGVRPHKRZ loves those classic cars, woodworking, live theater, the blues, Board members will learn to adjust without her home-made treats classic movies and books. She also has a knack for knitting and at each Board meeting.) crocheting. Many division employees’ kids are kept warm each \HDUZLWKPLWWHQVVOLSSHUVHWF1RZRUULHVDERXW3DP¿QGLQJ things to keep her busy in retirement. Valerie Thompson, City of Minneapolis, Retires Al Whitcomb, Dakota County, Retires Valerie Thompson, Chief Appraiser at the City of Minneapolis, retired Often referred to as the numbers guy, Al Whitcomb spent the last RQ0D\DIWHU\HDUVRIVHUYLFHLQWKH$VVHVVRU¶V2I¿FH 28 years of his working career in the assessing business. Beginning LQ KLV¿UVWWKUHH\HDUVLQWKHDVVHVVLQJSURIHVVLRQZDVZLWK 9DOHULHVWDUWHGKHUFDUHHULQWKH$VVHVVRU¶V2I¿FHLQ DVD Washington County as a residential appraiser. His next 25 years Planning Aid. She quickly moved up the ranks to Assessor I, then was spent working for Dakota County. Assessor II, & Assessor III. In 2000, Valerie was promoted to Residential Supervisor; shortly thereafter she was appointed as Prior to this time he did a four year stint in the U.S. Navy most Director of Assessments in 2001. In 2004, upon the retirement of of which was on an aircraft carrier in the South China Sea. This Scott Renne, Mayor R.T. Rybak appointed Valerie the interim City was followed by a 14 year career in the real estate business which $VVHVVRU9DOHULH¶V¿QDOFDUHHUPRYHZDV&KLHI$SSUDLVHUDSRVLWLRQ came as a result of his father who was also a Real Estate Broker. responsible for the valuation of the Minneapolis Central Business Al said that during his total career in the Real Estate Profession District (valued at approximately $4 Billion dollars). As Chief he has seen interest rates on home mortgages go from more than Appraiser Valerie also oversaw all of Minneapolis’ tax court cases; 16% to 2.5%. SHWLWLRQVZKLFK LQ SHDNHGDWFDVHV¿OHGRQSDUFHOV ,QKLVHDUOLHU\HDUVDVDQDVVHVVRU$OEHFDPH¿[DWHGRQWKH+HZOHWW Valerie’s success is attributed to her hard work and dedication to Packard HP-12c electronic calculator and its ability to aid him in the assessment profession along with her lifelong commitment to assessing. Soon after outgrowing its potential he moved on to the continuing education. Valerie is one of the most (if not the most) HP-42s calculator due to its extensive memory and programming knowledgeable and respected appraisers in our profession today. Our ODQJXDJH'XULQJKLV¿UVWKDOIGR]HQ\HDUVKHZURWHPDQ\+HZOHWW RI¿FHWKHHOHFWHGRI¿FLDOVDQGWKHWD[SD\HUVKDYHDOOEHQH¿WHGIURP Packard calculator programs which he shared with fellow assessors Valerie’s strong leadership style and tenacious negotiation skills. from around the state. He also taught classes at the summer seminars. In retirement Valerie plans to spend more time with her husband Charlie, enjoy her love of music, take up the game of golf, and spend By around 1990 Al discovered the world of spreadsheets. This was more time with her daughters and grandchildren. We wish Valerie a new universe of number crunching with endless possibilities. His all the best in her well-deserved retirement years. early years of spreadsheet development were focused on apartment 40 Equal Eyes | Summer 2012 Transitions, continued appraisal modeling using multiple regression analysis and adaptive sales ratio study program using Microsoft Excel, his Swiss Army estimation procedures. He quickly picked up on the power of macros Knife of applications. Both projects were on Al’s front burner and high level formulas. He loved those numbers, maybe even too right up to his last day of employment. much at times. Once again his developments found their way to Most of Al’s coworkers will remember him by his laugh and his more St Cloud summer seminars. Would you believe that he even smart-alecky sense of humor. For quite a few years Al was known instructed a seminar three weeks after his retirement? We guess that as the “Captain” in a motorcycle group of fellow assessors and he just can’t get those numbers out of his system. their spouses. They took many rides each year and were never without plenty of jokes and poking fun at one another. Al said Al truly believes that using those powerful applications sitting on this was a great stress reliever. our desktop computers and the science of mass appraisal modeling can make our job so much easier and more defensible. In his new career as a retiree Al will spend time with his wife and family of two sons and eight grandchildren. He will also do some A good share of Al’s career was spent battling tax reps and attorneys traveling. In his extra time (those retirees are so busy) he will over apartment values. We think that most of those petitioners found repair and rebuild computers (no surprise) and maybe do some Al’s arguments compelling though a bit overly detailed. custom Microsoft Excel work. In his last few years of employment he was asked to develop Al and his wife Donna live in Baytown near Stillwater. We wish something along the order of Phase II of the Assessor’s Commercial him all the best in his new life and we thank him for all of the Exchange. This was followed by a request to develop a standard great tools he provided for his fellow assessors. Beverly Woods Retires from Sibley County Beverly Woods retired on March 30, 2012, after 19 1/2 years of VHUYLFHZLWKWKH6LEOH\&RXQW\$VVHVVRU¶V2I¿FH6KHVWDUWHG her assessing career in 1992 and began assessing one city in 1994 and several townships in 2003. Beverly had a cheerful attitude and was often referred to as the VHFRQG³PRWKHU´WRWKHUHVWRIWKHRI¿FHVWDII6KHZDVDOZD\V willing to offer advice and had a way of lightening the most VWUHVVIXOWLPHVRIWKH\HDULQWKHRI¿FH During her retirement, she will enjoy spending more time with KHUJUDQGFKLOGUHQ¿VKLQJDQGWHQGLQJWRKHUODUJHJDUGHQ:H DUHJUDWHIXOIRUKHUPDQ\\HDUVRIGHGLFDWLRQWRWKHDVVHVVLQJ¿HOG Beverly Woods receiving recognition of service and will greatly miss her. On behalf of the members of MAAO, we wish Beverly a very happy and well deserved retirement. John Evans Retires from Ramsey County John Evans last day as a Commercial Appraiser with Ramsey County was Friday May 4th. John worked for the Ramsey County Assessor’s Office for 26 years, the last 23 as a Commercial Appraiser. Frequent travel is something John looks forward to in retirement. In fact, he has already logged one trip, just returning from a road trip to the east coast and plans to spend many weekends this summer at a resort on Burntside Lake, near Ely, owned by some friends. 2WKHUKREELHVWKDWZLOOXQGRXEWHGO\¿OOKLVWLPHLQFOXGHJRO¿QJ ¿VKLQJUHDGLQJDQGPD\EHHYHQDQRFFDVLRQDOWULSWRWKHKRUVH track. John lives in south Minneapolis and also enjoys spending time with his 3 children. Congratulations John and we all wish you a great retirement!! John Evans Summer 2012 | Equal Eyes 41 Revisiting the Retirees: James Ingemunson Researched and Written by Corey Erickson, AMA Ramsey County Editorial Committee Member This issue we catch up with Jim Ingemunson, Former Hennepin County Commercial Supervisor For the past several retiree columns, I have was once the head of the City group. Jim co-worker, and the co-worker was so startled, KDGWRSXWDIDLUDPRXQWRIHIIRUWLQWR¿QGLQJ always enjoyed the opportunity to network he ran backwards and fell over the edge of a retiree. This usually involves looking at old and socialize with other assessors through the driveway. Thankfully for both, the dog issues of Equal Eyes, and keying in on retiree these organizations. He found it very helpful was on a chain so never quite caught up to the names, jurisdictions worked for, retirement WR¿QGRXW³ZKDWRWKHURI¿FHVZHUHGRLQJ´LQ co-worker or Jim. dates and things like that. Then I have to get terms of different procedures for classifying the contact information, which can involve or valuing properties. Retired for about 12 years now, Jim certainly FDOOLQJWKHUHWLUHH¶VIRUPHURI¿FHRUPD\EH enjoys all that retirement has to offer. He loves a Google search. Well, this time I had none to travel and has been on many trips to Europe, of that. Our MAAO President, Stephen New York City, the Florida keys, and countless Baker, simply gave me a name and contact trips to Arizona to visit relatives. Around the information for a retiree he thought would be a time he retired, Jim moved from Minnetonka great candidate. So, thanks Stephen for saving and bought an older home in St. Paul’s west me a couple of hours of work and thank you side neighborhood, nearby where he grew Jim Ingemunson for agreeing to an interview. up. He has spent a lot of time updating and improving the house since retiring. Jim also Yes, our retiree for the summer issue is James enjoys collecting antique toys and walking Ingemunson, the former city assessor of all his dog, a Boxer name Axel. Axel is Jim’s metro cities west of Interstate 35W. Okay, not fourth Boxer. exactly, but Jim is the former City Assessor of both Golden Valley and Minnetonka, so Jim’s advice for assessors new to the profession maybe 10 percent of metro cities west of is to network, and to simply do your best. 35W. Although if we include the fact that Jim liked many things about assessing, but Very sound advice. Jim also reminds us to Jim also served as the Commercial Supervisor when asked what he liked most, his response not take disagreements with property owners for Hennepin County for many years, the 10 was doing new construction. Maybe this is personally. People aren’t usually angry at us percent may have to increase a little. the answer to expect from an assessor with a personally as assessors, but are instead upset background in drafting. Jim enjoyed looking at with the entire tax system. Because there was no MAAO Dan Franklin the building plans and working on the sketches. As I’ve heard is fairly common, Jim says that scholarship in the mid ‘60’s, Jim didn’t have He also enjoyed working on the appraisal retirement is “wonderful”. He especially likes SODQVWRHQWHUDVVHVVLQJDIWHU¿QLVKLQJKLV reports for Tax Court cases. schooling. Jim went to Dunwoody Institute, all of the freedom that comes with not needing where he completed training in drafting, and What Jim liked least about assessing was to go to work any longer. Jim especially likes then began working for a contractor who explaining to property owners that the property waking up in the morning, without particular built apartment buildings. After working for tax is not necessarily a fair tax, because it plans, and looking forward to another day of the contractor for awhile, Jim got word that has no relationship to income or a person’s doing what he wants. This often includes a the City of Golden Valley was looking for wealth otherwise. That’s always an enjoyable quick walk to the neighborhood coffee shop residential real estate appraisers. Jim applied conversation, so I’m not sure why Jim to work on the New York Times crossword DQGJRWKLV¿UVWDVVHVVLQJMRE-LPHYHQWXDOO\ mentioned it. He also doesn’t miss the other puzzle with his neighbors. For those of you became the Golden Valley City Assessor, fun conversation that we are all too familiar who are horrible at crossword puzzles, and then spent 10 years as the Minnetonka City with. That is of course explaining to a property this would include yours truly, you’ll be happy $VVHVVRUDQG¿QLVKHGKLVFDUHHUZLWK\HDUV owner how on earth their value could decrease to hear that according to Jim they get easier LQWKH+HQQHSLQ&RXQW\$VVHVVRU¶V2I¿FHDV and taxes increase. and go at it. with practice. the Commercial Supervisor. Jim’s memory bank is chock full of stories of In closing, we can all look forward to a retirement Jim was a member of MAAO for his entire 32 WLPHVSHQWLQWKH¿HOGUHYLHZLQJSURSHUWLHV mindset that leads to true contentment. This year assessing career, and was also a member One memory is from very early in his career would include a proper appreciation for the of IAAO. Jim recalled back several years ago when he was out quartiling (for you newer complete freedom retirement can bring and, when there were two assessing organizations assessors, this is the term used pre-quintile) I think more importantly, an appreciation for in the metro area – one for County Assessors ZLWKDQRWKHUDSSUDLVHUIURPKLVRI¿FHZKHQD never having those tough conversations with and the other for City Assessors, and Jim large German Shepherd came charging at his a property owner. 42 Equal Eyes | Summer 2012 $1,950,000 FOR SALE!!8241 N Shore Trl N, Forest Lake, MN The former “Lake House Restaurant” Yr Built – 2008 GBA – 7,038 s.f. Land – 1.49 acres The property is located on Forest Lake between Second and Third Lake on Willow Point. Possible Contract for Deed Large fully equipped kitchen with three walk-in coolers, freezer and large dry storage area Formal dining area, separate casual dining area and bar area Large outdoor patio/dining area, JD]HER¿UHSLWUDLQJDUGHQVHWF 20 dock slips with EZ FLOAT dock system More photos of the property can be located on the website of the designer. Summer 2012 | Equal Eyes 43 FEATURE Revitalization of the St. Paul Union Depot Written by Marvin Dieck, CMA Ramsey County ,WZRXOGEHGLI¿FXOWWRWDONDERXW the Union Depot in downtown St. Paul without mentioning the Central Corridor light rail system that is currently being constructed along University Avenue between Minneapolis & St. Paul. The two are synonymous in their intent and use, one not occurring without the other. The Central Corridor light rail will run from Minneapolis through the University of Minnesota campus along Washington Avenue to University Avenue toward the Exterior of “Headhouse” or Great hall downtown of St. Paul. The system YRWHUDSSURYDOLQRUGHUWRKHOS¿QDQFHWKH transportation hub will lead to not only will wind around the Minnesota State Union Depot revitalization project; though an increase in speculative development Capitol grounds and through downtown after additional research, according to the and investment in downtown St. Paul, 6W3DXOHYHQWXDOO\WRLWV¿QDOGHVWLQDWLRQ H.F 0680 bill, March 1, 2011, it “eliminates but specifically a resurrection of the at the Union Depot. Just two blocks further the authority of regional rail authorities to commercial activity in the Lowertown area east of the Depot, the Metropolitan Council levy property taxes.” of St Paul. purchased the vacated south building of the old Gillette Manufacturing plant. It is There is strong community optimism At a recent downtown St. Paul BOMA currently under reconstruction as the new that the arrival of the light rail and the (Building Owners and Managers maintenance facility for the light rail cars. completion of the Union Depot as a Association) membership meeting featuring The 240 million dollar revitalization of the Union Depot is coming from a combination of financial resources; local taxpayer backed loans of about 55 million dollars, 10 million dollars in state financing, historic grants, and most of the remaining balance provided by federal stimulus aid programs for mass transit projects and job creation. It is estimated that approximately 80% of the funding will come from various federal sources. An interesting aspect of the original proposal was that the Ramsey County Regional Rail Authority (RCRRA) be given the power to impose a property tax with Train Platform & Bus Lanes when completed 44 Equal Eyes | Summer 2012 Union Depot, continued inter-city bus lines will begin connection to the Union Depot as well. Future considerations are also for pedestrian walkway and bike path connections to the Mississippi River Regional Bike Trail, as well as to the nearby Bruce Vento Nature Sanctuary. The Central Corridor light rail is scheduled to begin dropping off passengers in 2014. In subsequent phases, the Union Depot will be the stopping destination for the Rush Line Commuter Rail from Hinckley, the Red Rock Commuter Rail from Hastings, and the Gateway Corridor between St. Paul and Hudson, Wisconsin. Though not included in any immediate plans, there has been consideration of a high-speed train from Chicago through La Crosse and along the Mississippi River WRLWV¿QDOGHVWLQDWLRQDWWKH8QLRQ'HSRW Great Hall, 2012 Since it may be possible for high-speed rail to operate on some of the same tracks St. Paul City Mayor Chris Coleman as to the west coast of the Union Depot. currently used by regular freight train the keynote speaker, there were strong The Greyhound and Jefferson Bus line service, some crucial planning is needed indicators that funding is underway for station, located on University Avenue near to coordinate both the freight and any the much anticipated new St. Paul Saints the State Capitol, planned to move their high-speed rail service. Also the issue Regional Baseball Stadium to be built on operations to the Union Depot. However, of a high-speed train between Rochester the remaining north half of the Gillette much to the disappointment of local St. and St. Paul was explored even though property. The hope is that the opening 3DXORI¿FLDOV*UH\KRXQGKDVUHFHQWO\ there is no existing direct train route. of the ballpark will coincide with the decided to opt out of relocating their Major acquisitions of land are needed for arrival of the Central Corridor light rail to station to the Union Depot, and choosing the tracks required by high-speed train downtown St. Paul and the newly restored Minneapolis instead to consolidate their service. Evidently, local government Union Depot. Speculation is that this bus operations. All metro area bus and RI¿FLDOVLQ5RFKHVWHUDQGWKH0LQQHVRWD may spur commercial interest for further development in the Lowertown area. Back in 2000, as the Met Council was planning the Central Corridor, Amtrak RI¿FLDOVDQGWKH6W3DXO0D\RU¶VRI¿FH were discussing the revitalization of the Union Depot as the new east metro transportation hub. With the Union Depot being the last stop of the Central Corridor light rail in St. Paul, the Met Council acquired the south building of the former Gillette manufacturing and warehouse two blocks away to be used as the maintenance facility for the light rail. 'XULQJWKH¿UVWSKDVHZKHQWKH8QLRQ Depot is completed at the end of 2012, only one platform and tracks on either side will provide service for Amtrak trains. Currently located off Transfer Avenue in the Midway Area, Amtrak will move its baggage handling, mail car functions, and its “Empire Builder” train service from Chicago through the Twin Cities Vehicle access for passenger drop off Summer 2012 | Equal Eyes 45 Union Depot, continued 46 Equal Eyes | Summer 2012 Union Depot, continued Department of Transportation have had The entire property consists of 33 acres IRUIXWXUHRI¿FHRUUHWDLOWHQDQWV7KLVGRHV discussions for this purpose. with the additional purchase of adjacent not include undetermined possible retail parking lots to the east of the Union Depot. kiosk spaces in the common areas, or the The current Union Depot, designed by additional 1,038 square foot building off Charles Sumner Frost in partnership with Chosen as general contractor, the Mortenson Kellogg Boulevard, which is slated for Alfred Granger, actually replaced an Construction Company began demolition the Jefferson, Greyhound, and Metro Bus earlier depot built in 1881. The original and renovation of the Union Depot in /LQHVWLFNHWRI¿FHDQGDUHQWDOFDURSHUDWRU 'HSRWZDVJXWWHGE\¿UHVWZLFHWKH¿UVW early 2011. Placed on the Nation Register Negotiations are pending with One on One in 1884 and then again in 1913. Frost of Historic Places 40 years ago, great Bicycle Studio Inc., which has a current previously worked on the Minneapolis care has been taken to ensure “authentic location a few blocks away from the Milwaukee Depot, and the LaSalle Street representation of the original Union Hiawatha line in Minneapolis, to operate a and Northwestern terminal in Chicago. Depot.” bicycle center in the lower level for bicycle Construction of the great hall of the Union storage and repair. Planned use is to include Depot, which is actually referred to as There will not be private vehicle access to showers and lockers for commuters and the “Headhouse,” and the 45 foot wide the main entrance of the depot off 4th Street. retail services. Cristos Restaurant, which Concourse that extends over Kellogg Light rail passengers will depart from the for years has leased space on the main level Boulevard and the train yard, was started in new station built on 4th Street right in in the Great Hall, has signed a new lease 1918 and opened in the early 1920’s. The front of the main entrance to the great hall. with RCRRA for about 7,950 square feet peak of activity for the Depot occurred in Since the new light rail station blocks off to continue its restaurant and special event the mid 1920’s with over 150 trains and the former drive-thru to the main entrance, operations. RCRRA has chosen to renovate 20,000 passengers arriving daily from all street access for taxis and private vehicles and occupy about 2,800 square feet on the parts of the nation. The Union Depot served dropping people off at the depot is available 2ndOHYHOIRUWKHLURI¿FHV as the main transportation hub in downtown on the lower level drive-thru between St. Paul until the last train, the Empire Sibley and Wall streets. Pedestrians can The RCRRA is in the process of choosing Builder running from Chicago through St. then take either one of the new staircases an operator to run the day-to-day operations Paul on its way to Seattle, pulled out of St. or the new glass elevator to the main hall. of the Union Depot and to manage the Paul in 1971. commercial tenant space. Commercial The Great Hall or “Headhouse” has a tenant spaces and mobile retail kiosks will Shut down and vacant since then, it was two-level basement parking garage of 177 be valued for assessment purposes and purchased by Minneapolis based JAS stalls. Though the parking ramp is owned taxed under MN Statute 272.01 as Leased Apartments in 2003 for possible conversion by RCRRA, the sale of each residential Public Property. The State of Minnesota is to residential condominiums and office condominium unit in the building includes responsible for any valuation of “Operating XVH7KHVRIWRI¿FHPDUNHWDWWKHWLPH a parking license of one stall and the Property” related to the railroad operations. and the large amount of common space balance of parking stalls are open to the All railroad property deemed “Non- PDGHLWGLI¿FXOWWROHDVHDQGHFRQRPLFDOO\ public. With parking available in both Operating” property shall be assessed by unfeasible. The space on the east side of the surface stalls and under the train deck, there WKHFRXQW\DVVHVVRU¶VRI¿FH great hall, formerly occupied by long-time are approximately 1,035 parking stalls to tenant Leeann Chin, was converted into 9 serve public needs. Under MN Statute For those who may be interested in residential units. Excluding a commercial 459.14, subdivision 8, the public parking more in-depth information regarding the portion that faces 4th Street, the 2nd level owned by RCRRA is exempt from property redevelopment of the St. Paul Union Depot was converted to an additional 30 units taxes as is all on-site parking related to the simply perform a Google or Yahoo search for a total of 39 residential condominiums. operation of the facility. on ”Union Depot in St. Paul,” or go to the Apparently as of 2012 all but 1 unit has City of St Paul website www.stpaul.gov, been sold. Including the basement garage parking, the or the link to the Ramsey County Regional Depot, Concourse, and the 2ndÀRRUOHYHO Rail Authority on the Ramsey County The RCRRA purchased the Headhouse over the Concourse, there is a total gross website: www.co.ramsey.mn.us. from JAS Apartments in 2009 and the building area of 268,057 square feet of Concourse from the Postal Service in 2010. which 39,858 square feet is leasable space Summer 2012 | Equal Eyes 47 What’s New on the MAAO Website: Your Resource Source Written by Paul Sandvik, SAMA Senior Appraiser, Hennepin County Information Systems Committee During early 2011, MAAO Past President high-quality education, foster the sharing ¿QJHUWLSVWRKHOS\RXPRUHHI¿FLHQWO\DQG Cheryl Wall along with the Executive Board of assessment practices, and to collaborate effectively achieve these goals. Many of us are decided it was time to create an area of the with our Department of Revenue to assist well aware of the sheer volume of high quality MAAO website set up to act as a library of them in their oversight duties. It is the vision education materials & resources that have been DVVHVVRUUHVRXUFHVVSHFL¿FDQGUHOHYDQWWR of MAAO to be the recognized statewide created over the years by MAAO members. MAAO. This idea was kicked around for leader in assessment education, mass I am guessing that less of us are fully aware quite some time prior to that and by late 2011 appraisal training, and the dissemination of of how much time and energy have actually the Information Systems Committee created information for mass appraisal and property been put in by those in the Minnesota assessing WKHZHESDJHVDQGSRVWHG¿OHVSURYLGHGE\ tax administration.” community. So many dedicated MAAO numerous counties throughout the state. members, past and present, have put their +RSHIXOO\WKLVLVQRWWKH¿UVW\RXDUHKHDULQJ The use of the MAAO website (www. blood, sweat, and tears in to creating resources of this initiative. Over the past year or so mnmaao.org) greatly increases an assessor’s to educate and assist their peers in the assessing a number of requests have been sent out ability to better achieve many of these goals. profession. The MAAO website, created by on behalf of the Research and Planning The new Assessor Resources section of the and for MAAO members is a perfect place to Committee to you and your fellow MAAO website will be another powerful tool at your host and highlight these tools. members asking for your ideas and tools for this project. The type of information sought includes: program applications, survey forms, spreadsheets/guides used in calculations, form OHWWHUVDQGRI¿FHSROLFLHV / procedures, and any other useful resources. The goal is to develop an environment to share any and all tools that help you do your job PRUHHI¿FLHQWO\WKDWFDQ also be utilized by other assessors statewide. One of the primary goals of this project is “wheel reinvention” prevention. Another is for consistency. As you all know, the more consistent we are as a profession, are the more fair and equalized the assessments will be. To quote the MAAO president Stephen Baker, “MAAO’s mission is to promote professionalism, high ethical standards, 48 Equal Eyes | Summer 2012 MAAO Website, continued At this point in the article, I can hear you marvel at your skills and abilities! If you have something to share or want to thinking to yourself “OK, this sounds suggest something to add, and or if you have interesting! How do I check out what’s Maybe you took a class at summer seminars any feedback on how to improve this section available? I want to see if there really are any that had a great presentation (a power point of the website (i.e. how its organized, etc…), tools that can make my job easier.” That is a slide show, useful handouts, etc..) that you please email us at webmaster@mnmaao. fantastic question that you ask. The answer would like to reference. Maybe you wanted org. Our mission is to keep the Assessor is simple. Just go online to the MAAO to attend one of the offered classes but weren’t Resources fresh and up to date as new tools website, sign in using your member account able attend. Perhaps you are working through are developed they will be added and tools name and password, and click on the Assessor \RXU¿UVWWD[FRXUWSHWLWLRQRUPD\EH\RX that are no longer relevant will be removed. Resources button on the grey vertical tool bar just want to see if there is a better way to Thanks much for helping to keep MAAO a on the left of your browser window. communicate with taxpayers. We’re here strong & useful organization! to help! The resources currently available consist of a range of tools that can assist assessors Here is but a small sampling of the fantastic that may be new to the profession, newly WRROVFXUUHQWO\DYDLODEOHDW\RXU¿QJHUWLSV promoted, or just encountering a process that 1. Multiple power point presentations on is rare and or new to them. If you haven’t the new DOR Sales ratio methodology already found yourself at a point in your assessing career where you were presented 2. T-Calc (Time and Market Conditions with a new challenging duty or task, you more Adjustment Extractor) for Sales Ratio than likely will. This is pretty much a given Studies. considering the ever changing complexity of 3. Tax Court Income & Expense the Minnesota Statues that we must adhere to Compliance Checklist as assessors. This often makes our work more 4. Sample Tax Court Courtesy Letter challenging but it also ensures things will be interesting to say the least. 5. The New Licensee Toolkit & The New Assessor Toolkit For those of you thinking to yourselves, “I 6. Commercial, Apartment and Vacant have unlimited resources and I just can’t get Land Field Reports enough challenges to take on! This section of the website is not relevant to me”. Stop 7. Tax Exempt Property Valuation Guide right there. You are likely a candidate 8. A number of Green Acres tools to contribute all of your hard work. You 9. New Construction Valuation Estimator probably have some great tools in your Form repertoire that your peers could make good use of. So please share them and let us 10. Valuation schedules for Ethanol Plants REMINDER: Request For Web Resources: The Research and Planning Committee sent out a note to all members requesting resources to share on the MAAO website. 7KHUHDUHKHOSIXOWRROVWKDWPDQ\RI¿FHVXVHWKDWFRXOGDVVLVWRWKHUDVVHVVRUV The Executive Board thought that it would great to have a location to share these tools/data with each other. The type of information we are looking for includes: applications, survey forms, spreadsheets/guides used in calculations, IRUPOHWWHUVDQGDQ\SROLF\RI¿FHSURFHGXUHV Please send all documents to one of the following members: [email protected] [email protected] [email protected] Summer 2012 | Equal Eyes 49 $/HWWHU)URPWKH(GLWRU North Dakota Makes the Smart Decision Written by James Haley, AMA Polk County Equal Eyes Managing Editor So, quick fact about myself that you may government’s right to collect revenue based who deeply care about the state of affairs not know: I am not a Minnesota Resident on Ad Valorem tax. In layman’s terms, this at the local level. People stated that while (gasp). My constituents comment on this measure would end property tax in North WKHSURSHUW\WD[V\VWHPLVÀDZHGLQPDQ\ all of the time: “How come your car has Dakota. ways, it still remains the best way to collect North Dakota plates?”; “You don’t live in revenue for local government. Imagine Polk County?”; “How can someone who So there I was, sitting in the voting booth, a system where all of those who have a doesn’t live here possibly understand our deciding the fate of my own profession in my vested interest in their own local affairs complex real estate market?” Yes, I have home state. I don’t believe that I will ever are left to decide how much to collect and heard many comments regarding my North again have to decide something so personal spend; where the revenue that is needed is Dakota residency. However, I can assure and controversial. I thought I had my mind guaranteed to be there; and where those you that A) We in North Dakota have heard made up coming in. But for some reason, who own the most end up paying the most. of, and partake in the real estate market; and P\KDQGKHVLWDWHGWR¿OOLQWKDWOLWWOHEXEEOH While it has its quirks and some seriously B) I am familiar with and do indeed pay on my ballot. I thought deeper and realized perverse drawbacks, the system for the property taxes. Or so I thought… that the issue went beyond my job or tax most part is extremely good at what it was policy in general. It’s deeper than that. The designed to do. On Tuesday, June 12th, 2012, it was primary issue at heart here is responsible citizenship election day in North Dakota. And on this and local control. As proposed, this measure emasculated day, there was a record turnout to the polls local government. It literally made it all over North Dakota. Over one third of Before I go any further, I think some constitutionally illegal to levy taxes against all voting-aged residents in North Dakota background on the issue is necessary. the value of property. It had no revenue voted in these primaries. That number is Some of you may be aware that there is replacement solution, other than “the funds comparable to presidential year general oil in North Dakota. A lot of oil, actually. must come from somewhere”. It came elections. All over town and around the Recently, North Dakota surpassed Alaska from a grass roots movement of people state, there were more signs up and solicitors as the 2nd leading oil producer in the United who were tired of seeing the county take out than I can ever remember. But why did States, trailing only Texas. Yes, I said that; homes from elderly people and the local so many people come out to vote? Why was trailing only TEXAS, a state that is twice the government getting in the way of real estate this June primary so important that it drew size and built most of its enormous present intensive commerce. While these concerns record numbers? day economy on oil. We have so much are universal and very real, childishly oil that our infrastructure is not capable of taking away the property tax system entirely Well the answer is quite simple: there was completely exporting it. There are so many without regard to the consequences was not a lot of really important stuff to decide. We jobs here that people are living in campers and is not the answer. had to decide our candidates for the US through the harsh North Dakota winter and Senate and House, choose mayors across paying a premium to do so. We have so What happens when the oil dries up? Many the state, choose school boards and park much money that our legislature doesn’t people asked this question leading up to superintendents, and vote on city ordinances. know what to do with it all. But, we still the decision. No one knew the answer for But these types of decisions happen all the need property tax. And 75% of the voters in sure, but I have a pretty good idea of what time, and we don’t draw this type of crowd. this June election agreed with me. would happen. Falling oil and mineral tax Sitting at the end of the ballot was the main revenue would lead to an increased strain reason for this huge turnout. Measures 1-4 No, people didn’t say that they liked property on income tax and fee based tax revenues. needed to be decided. taxes. I don’t like paying property taxes and This strain would create a need to increase ,¶PSDUWRIWKHV\VWHP6RWKDW¶VGH¿QLWHO\ income tax rates at a time when people can Now the primary measure that brought so not the case. People will never like property least afford it. People would get angry that many people here was Measure 4. This tax. How could you enjoy paying a tax on their taxes are too high and demand relief. measure decided that little issue that most something that you have already paid taxes Then relief would come in the form of people have heard of: The University of on before? In addition, people typically government bonds and other debt solutions. North Dakota’s “Fighting Sioux” nickname aren’t too thrilled when there is a portion of The interest rates on the government bonds retirement. But close behind Measure 4 their tax dollars that are levied subjectively. would become so great as to require further in drawing voters was the decision that I tax increases to fund the payments. The was most concerned with: Measure 2. This But what people did say with their “No” cycle would then be in place. measure represented the termination of local votes was that they are responsible citizens 50 Equal Eyes | Summer 2012 ȱĴȱȱȱǰȱ It was so clear that this was not a good idea that more people voted against this measure than voted for Measure 1 (a measure that made it illegal for state representatives to line their pockets with oil money). Why was it so obvious? Because people understand that there is no such thing as a free lunch. That this money needed on the local level will either be lost or made up for with increased income tax. Even worse, this revenue could be made up for with the regressive sales tax. People understood that ZKLOHWKLQJVPD\KDYHEHHQ¿QHQRZLQ years there would have been a real problem. So why am I talking about an issue from North Dakota in a magazine about Minnesota? Because I think this is a feather in the cap of all assessors. The “No” vote LVGH¿QLWHO\QRWVRPHWKLQJWRFHOHEUDWH, mean come on; no one is this excited to pay property tax. But I think it shows that while people may not enjoy paying property tax, they truly believe in its functionality and usefulness. At the end of the day, that is something we can all feel good about. SummerSummer 22012012 | EqualEqual EyEyeses 5151 (48$/(<(6 PUBLISHED BY THE MINNESOTA CHAPTER OF IAAO AND THE MINNESOTA ASSOCIATION OF ASSESSING OFFICERS 612 N Broadway Crookston, MN 56716 52 Equal Eyes | Summer 2012