S V In this Issue: U o l Getting to Know the Newest M u Course Instructors m PAGE 16 M e Announcing the 2011 Equal Eyes E 33 Photo Contest Winners R QUAL PAGE 19 N Spotlight on the MN DOR u m E Assessment Practices in Nigeria 2 b PAGE 40 e 0 r Classif-Eyeds: Lake Minnetonka Dream House 1 125 PAGE 52 1 YES OfficialE Publication of the Minnesota Association of Assessing Officers
Summer 2011 | Equal Eyes 1 Do you have an article to suggest, letter to the editor, or any other correspondence for EQUAL EYES EQUAL EYES? Send to: CONTENTS Equal Eyes Managing Editor Features 612 N Broadway Crookston, MN 56716 16 Getting to Know the Newest Course Instructors 19 2011 Equal Eyes Photo Contest Winners 23 Spotlight on the Minnesota Department of Revenue 38 MN DOR Featured Property, Minnesota Governors Residence 40 Global Assessment Practices: Nigeria 45 Property Tax Working Group Update 23 52 Departments
3 In the Know 4 Boards, Directors, Chairs, and Representatives
6 President’s Connection 19 8 Commissioner’s Comments 9 MAAP Update 10 Let’s Get Acquainted 12 Out of the Past
38 13 Meet Minnesota’s New SAMA & AMA Designees
14 Course Reviews 42 International Items 44 Revisiting the Retirees 46 The Chair’s Corner 40 48 Transitions On the Cover 50 What’s New on the MAAO Website 2011 Photo Contest Grand Prize Winner Tim Graul, Dakota County 52 Equal Eyes Classif-Eyeds
53 A Letter From the Editor
Visit
the MAAO website at: The statements made or opinions expressed by authors in www.mnmaao.org Equal Eyes do not necessarily represent a policy position of the Minnesota Association of Assessing Officers.
2 Equal Eyes | Summer 2011 In The Know
“Knowledge is of no value unless you put it into practice.” Anton Chekhov
Equal Eyes Log onto mnmaao.org
Fall 2011 to see updated features: Issue Interactive “MAAO Matters”
Deadline: And Member Directory September 1 enhancements
MAAO
FALL CONFERENCE October 9 – 12
Ruttger’s Sugar Lake Lodge
Grand Rapids, MN
MAAO Weeklong Course Schedule
Assessment Laws and Procedures July 11-14 St. Cloud, Holiday Inn Appraisal Principles July 18-21 St. Cloud, Holiday Inn Appraisal Procedures August 1-5 St. Cloud, Best Western Kelly Inn Mass Appraisal Basics August 22-26 St. Cloud, Best Western Kelly Inn IAAO 102 September 26-30 Plymouth, Kelly Inn MN Assessment Administration October 3-6 Plymouth, Kelly Inn MN Assessment Administration October 3-6 Plymouth, Kelly Inn
Summer 2011 | Equal Eyes 3 EQUAL EYES James Haley, CMA Polk County Managing Editor, Chair
Michael Stalberger, SAMA Minnesota Department of Revenue Associate Editor Editorial Board
Solomon Akanki, AMA Corey Erickson, AMA Nancy Gunderson, SAMA Scott County Ramsey County City of Moorhead
Julie Gustafson, SAMA Jake Pidde, CMA Lori Thingvold, AMA City of Maple Grove City of Plymouth Wright County
Executive Board
President First Vice President Second Vice President Cheryl Wall, SAMA Stephen Baker, SAMA, CAE John Keefe, SAMA Wilkin County Assessor Ramsey County Assessor Chisago County Assessor PO Box 167 90 West Plato Blvd, Suite 400 313 N Main St Breckenridge, MN 56520 St. Paul, MN 55117 Center City, MN 55012 218.643.7162 Fax 218.643.7169 651.266.2005 Fax 651.266.2001 651.213.8555 Fax 651.213.8551 [email protected] [email protected] [email protected]
Finance Officer Past President Bill Peterson, SAMA, CAE William Effertz, SAMA Dakota County Assessor Steele County Assessor 1590 Hwy 55, County Admin Center PO Box 890, 630 Florence Ave Hastings, MN 55033 Owatonna, MN 55060 651.438.4208 Fax 651.438.4469 507.444.7445 Fax 507.444.7446 [email protected] [email protected]
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 Judy Thorstad, SAMA Carlton County Deputy Assessor Cottonwood County Assessor Stevens County Assessor 218.384.9148 507.831.2458 320.208.6550 [email protected] [email protected] [email protected]
Region 7 Region 8 Region 9 Lee Brekke, SAMA Joseph Skerik, AMA Angie Johnson, SAMA Wadena County Assessor Beltrami Chief Deputy County Assessor Carver County Assessor 218.631.7781 218.333.4146 952.361.1961 [email protected] [email protected] [email protected]
4 Equal Eyes | Summer 2011 Committee Chairs/Coordinators/Secretary/Treasurer
Agricultural Chair Nominating Chair Secretary/Treasurer Jeanne Henderson, CMAS Michelle Moen, SAMA Nancy Wojcik, SAMA 13880 Business Center Dr 555 18th Ave SW 6301 Shingle Creek Parkway Elk River, MN 55330 Cambridge, MN 55008 Brooklyn Center, MN 55430 763.241.2876 Fax 763.241.7195 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 Assistant Conference Coordinator PVC Coordinator Site Selection Chair Tami Paulson, CMA Dan Whitman, SAMA Kim Jensen, SAMA, CAE 151 4th Street SE Security Bldg 201 Lake Ave #326 A-2103 Government Center Rochester, MN 55904 Fairmont, MN 56031 Minneapolis, MN 55487 507.328.7668 Fax 507.328.7964 507.238.3210 Fax 507.238.4601 612.348.6106 Fax 612.348.8751
Education Chair Research and Planning Chair Summer Seminar Coordinator Bob Wilson, SAMA, CAE, ASA Michelle Moen, SAMA Kim Jensen, SAMA, CAE 4801 W 50th St 555 18th Ave SW A-2103 Government Center Edina, MN 55424 Cambridge, MN 55008 Minneapolis, MN 55487 952.826.0426 Fax 952.826.0389 763.689.2752 Fax 763.689.8226 612.348.6106 Fax 612.348.8751 Information Systems Chair Rules and Resolutions Chair Tax Court & Valuations Chair Teresa Mitchell, SAMA, CAE Marvin Anderson, SAMA Jim Atchison, SAMA 1590 Hwy 55, County Admin Center 5200 85th Ave N A-2103 Government Center Hastings, MN 55033 Brooklyn Park, MN 55443 Minneapolis, MN 55487 651.438.4216 Fax 651.438.4469 763.493.8173 Fax 763.493.8391 612.348.4567 Fax 612.348.8751 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 William Effertz, SAMA Bob Wilson, SAMA, CAE, ASA PO Box 890, 630 Florence Ave PO Box 890, 630 Florence Ave 4801 W 50th St Owatonna, MN 55060 Owatonna, MN 55060 Edina, MN 55424 507.444.7445 Fax 507.444.7446 507.444.7445 Fax 507.444.7446 952.826.0426 Fax 952.826.0389
Membership Coordinator Scholarship Coordinator Tina Diedrich-VonEschen, SAMA Jan Olsson, SAMA, RES Tina Diedrich-Von Eschen, SAMA 705 Courthouse Sq Room 37 3400 Plymouth Blvd 705 Courthouse Square Room 37 St. Cloud, MN 56303 Plymouth, MN 55447 St. Cloud, MN 56303 320.656.3690 Fax 320.656.3997 763.509.5355 Fax 763.509.5060 320.656.3690 Fax 320.656.3977
Department of Revenue Property Tax Compliance Officers Lloyd McCormick 612.791.4957 Appraisal Supervisor Gary Amundson Brad Averbeck Larry Austin Steve Hurni 218.575.3183 218.439.3673 651.556.6098 320.632.3949 Anoka, Benton, Carver, Becker, Clay, Clearwater, Hub- Aitkin, Beltrami, Carlton, Cass, Big Stone, Chippewa, Douglas, Chisago, Hennepin, Isanti, bard, Kittson, Mahnomen, Cook, Crow Wing, Itasca, Grant, Kandiyohi, McLeod, Meeker, Mille Lacs, Morrison, Sherburne, Marshall, Kanabec, Koochiching, Lake, Pope, Renville, Stevens, Swift, Stearns, Wright Norman, Otter Tail, Pennington, Lake of the Woods, Pine, St. Louis Traverse, Wilkin (and compliance investigations)
Sherri Kitchenmaster Tom Nash Tom Reineke Michael Stalberger 651.230.8387 507.359.7022 651.230.5819 651.556.6071 Brown, Cottonwood, Jackson, Dodge, Fillmore, Dakota, Goodhue, Olmsted, Blue Earth, Faribault, Lac qui Parle, Lincoln, Lyon, Martin, Freeborn, Houston, Mower, Ramsey, Rice, Scott, Washington Le Sueur, Nicollet, Sibley Murray, Nobles, Pipestone, Redwood, Steele, Wabasha, Waseca, Winona (and complex properties) Rock, Watonwan, Yellow Medicnine
Summer 2011 | Equal Eyes 5 President’s Connection “Opportunity is missed by most people because it is dressed in overalls and looks like work” - Thomas Edison
Written by Cheryl Wall, SAMA Wilkin County Assessor MAAO President 2010-2011
Hello Members of MAAO! It’s finally it’s just a matter of your needs and provide some assistance in education. summer and it’s a pleasure to connect aspirations. We strive to provide the best The Education Committee is always with you once again. of what our members are looking for, and looking for knowledgeable and seasoned I encourage you to contact our Executive members to develop courses and seminars This time of year reminds me of something Board members or Committee Chairs suiting the needs of our educational my dad used to say: “Pink sky at night a with any suggestions you may have for demands. If this is an area you may be sailor’s delight, pink sky in the morning, improvements. interested in, please contact a member a sailor take warning.” My dad proudly of the Education Committee, myself served in the Coast Guard during World The Executive Board met Tuesday, May or a member of the Executive Board. War II. This was a common phrase sailors 24 at the St. Cloud Holiday Inn. We We look forward to working with the used as a way to gauge the weather. I had a very full agenda that day, which State Board of Assessors in the future. must admit, I do not use the sunsets and included special guests Doreen Pehrson, sunrises to gauge the weather, but instead State Board of Assessors Chair; and Rob Rob Vanasek and Bill Effertz, Past simply revel in the beauty of the colors! Vanasek, MAAO Legislative Liaison. President and Legislative Committee Doreen was invited to share with us some Chair, respectively, provided a review of My dad is no longer with us, but the of the projects the State Board is currently the legislative session for the Executive stories he shared with our family over the involved in. It is important for MAAO Board. It was during our meeting that the years have become memories that remind to maintain a working connection with Governor vetoed the omnibus bill, so we us of how different life was and how hard the State Board in regards to assessor briefly discussed some of the items that they worked for what they had. Times education and licensure. would have affected assessors if that bill may be different now, but work is still would have come to fruition. Thank you hard, there isn’t enough time in a day to The State Board of Assessors to all that contributed countless hours in accomplish everything, and we still have communicates with our membership being present at the capitol this spring and dedicated men and women unselfishly by way of the Equal Eyes publication, to those that carried a voice in testifying serving to protect us and our country. We being an active part of the Education on behalf of MAAO. Please visit with have a great deal to be thankful for. Our Committee, and now by connecting with any of our legislative team members days go by very quickly as we come and the Executive Board. These connections if you have questions regarding the go from work or play. I have to constantly are made to help assessors become aware outcomes of this session. remind myself to stop and enjoy the little of changes that may affect them and the things before the end of each day. steps they take in their careers, so please The Executive Board heard from each of make time to stay up to date with the the Region Directors on matters pertinent The Minnesota Association of Assessing information they provide. to their areas. It’s always a learning Officers is an organization that offers experience to hear about the market many opportunities for each of us At the meeting, we discussed the rule activity throughout the state as well as to advance in our careers. We have changes scheduled to take effect July 1, other issues our members are dealing become a strong, reputable, and respected 2011. As part of the changes, MAAO will with. I enjoy the time we spend on the organization over the years because of the concentrate on finding new opportunities regional topics while in our meetings. hard work of many. For those that may for our members in regards to an additional Again, there were a few retirement be just beginning in the assessment field, 30 hour course. This new course will be announcements and we wish our retirees the educational offerings and benefits of required as part of the steps to achieve the all the best as they enjoy the next stage membership offer the tools necessary to level of Accredited Minnesota Assessor. in the game! form a solid foundation to build from. Doreen stated that the State Board is receptive to working with MAAO on We discovered that some of our members The members in our organization that are this project and may consider the option (I won’t name any names - Doug Bruns) more seasoned find value in the plentitude of two 15 hour seminars if the prospect have put some sweat equity into comparing of opportunities there are to further their presents itself. CERs (Crop Equivalency Ratings) to CPIs careers simply by being a part of all that (Crop Productivity Indexes) for their MAAO has to offer. The steps we climb This is where the talented members of land valuation. The Crop Productivity in our careers are there for the taking, MAAO may have an opportunity to Index valuation method versus the Crop
6 Equal Eyes | Summer 2011 Equivalency Rating valuation method is the board will do their best to prepare the Summer Seminars, held May 25-26 in an interesting concept and reviewing their membership for the change. It is an action St Cloud, was once again an impressive research could prove to be very helpful to that will further enhance the efficiency event! It was an opportunity to catch up someone prior to investing in a change. of our website and assist with tracking with our comrades and take in some great member’s activities. education. Our event coordinators and The Research and Planning Committee, education committee members deserve a headed by Michelle Bolen, is teaming The Site Selection Committee, under pat on the back for creating an atmosphere up with Nancy Wojcik, our Secretary/ the direction of Kim Jensen, diligently so comfortable for our members. Thank Treasurer to draft a record retention worked on a report for the board in regards you to everyone that contributed their policy for MAAO and it will be reviewed to future MAAO Fall Conference/Annual time and talents to this event! at the August meeting. Every year we Meeting locations in 2013, 2014 and become a bit more organized, and this 2015. Based on their recommendations, Periodically, you receive notices and year is no different. We also approved an the board decided on the Kahler in newsletters from MAAO. Be sure to equipment replacement plan, which will Rochester as the site in 2013 and the check them out and learn what’s new with serve as a guide in tracking equipment Radisson in Duluth as the site in 2014. our organization. purchased for our organization. We will discuss locations for 2015 at a later date. We look forward to what these Thank you for all that you do for MAAO! As a matter of new business, the Executive facilities have to offer our group. Take time to absorb those sunsets! Board discussed the MAAO Credit Card only policy. It was decided that we To keep you in the know with MAAO Best Regards, will only accept credit cards for MAAO Executive Board happenings, the Cheryl Wall activities after September 30, 2012. approved minutes from all meetings are MAAO President Between now and then, the members of available via our website. [email protected]
June 9, 2011
TO: Members of Minnesota Association of Assessing Officers
SUBJECT: 110-Day Notice of Submitting Amendments to MAAO Constitution and By-Laws and Proposed Resolutions
The Rules and Resolutions Committee hereby requests proposed amendments to the Constitution, By-Laws and policy or proposed resolutions be forwarded to: Marvin M. Anderson Brooklyn Park City Assessor 5200 85th Ave N Brooklyn Park, MN 55443 [email protected]
Article VIII, Section 3 of the MAAO By-Laws states “Proposals for amendments to the Association’s Constitution and By- Laws shall be received by the Rules and Resolutions Committee not less than sixty (60) days (August 12, 2011) prior to the Annual or Special Meeting.”
For proposed amendments to the constitution and by-laws to be considered at the 2011 Annual Meeting, they must be received by the Committee Chairperson no later than August 12, 2011. These amendments will be compiled and e-mailed to each member at least thirty (30) days (September 9, 2011) prior to the annual meeting.
All proposed resolutions must be received by the Committee Chairperson no later than ten (10) days (September 31 2011) prior to the annual meeting. These resolutions will be available at the 2011 annual meeting.
Respectfully submitted, Marvin M. Anderson MAAO Rules and Resolutions Committee Chairperson
Summer 2011 | Equal Eyes 7
Commissioner’s Comments Property tax improvements
build on cooperation Written by Myron Frans Update Minnesota Commissioner of Revenue
This year’s regular legislative session certainly It has been difficult for assessors, Revenue These changes should reduce the number of lived up to expectations. It featured numerous staff and agricultural property owners to “appeals of appeals” (when taxpayers seek to An Organization That Connects Assessment Office Personnel Capitol debates hinging on tax policy and the implement changes to Green Acres in recent overturn the dismissal of their original appeal). role of government. As usual, property tax years. Chapter 13 addressed some of the issues were no small part of these discussions. more contentious issues while smoothing Looking ahead UPCOMING EVENTS: the way for eligible acres to be enrolled in At this writing, a budget agreement has not As a longtime tax attorney and former business Rural Preserve or – in some cases – back into been reached. I remain hopeful that Governor executive, I am no stranger to the complexities Green Acres. Dayton and legislative leaders will reach an On August 18th and 19th, 2011, the annual MAAP Summer and nuances of Minnesota’s property tax agreement in time to avoid a state government code. Now, as revenue commissioner, it is This measure passed with broad bipartisan shutdown. my privilege to help Gov. Mark Dayton find support. It received the approval of MAAO, Workshop will be held at the Holiday Inn, Duluth. Topics ways to make Minnesota’s government and the Minnesota Farmers Union and Minnesota As this process unfolds, rest assured that will include: eCRV’s, Assessment Challenges, Tax Court, tax laws work better for Minnesota residents, Farm Bureau, all of which were involved in we will keep you informed of any issues businesses and other taxpayers. the legislative discussions. At Revenue, we are that affect your work or department training Green Acres Update and more. hopeful these changes stand the test of time. sessions. We will also provide our usual This year’s regular legislative session post-session legislative summaries and other unfortunately ended without an agreement for 60-day rule guidance. the 2012-13 budget. However, the department MAAO and the Minnesota State Bar worked with the governor, legislators from Association worked together on revisions I look forward to working with MAAO both parties and a range of stakeholders – that the department supported to clarify the so- and hope to meet some of you at this year’s MAAP OFFICERS including some of you assessors – to enact called “60-day rule” that applies to valuation fall conference. Until then, please keep up some important changes to our property tax appeals for rental property. Enacted on May the good work – and let us know how the system. 31 under Chapter 112, the new language department can help. Jason Vaith, President stipulates what information these taxpayers Stearns County MAAP Green Acres/Rural Preserve must provide to the assessor when appealing 320-656-3692 Enacted April 15, Chapter 13 simplifies and when they must provide it. [email protected] SUMMER WORKSHOP the process and lowers costs for farmers enrolling land in Rural Preserve. I want to The previous 60-day deadline and Melissa Janzen, Vice President thank MAAO, and those of you who were documentation requirements were not always August 18 & 19, 2011 personally involved, for working with the clearly understood and failing to meet those Wright County department on this measure. requirements subjected an appeal to dismissal. 763-682-7369 Melissa.janzen@ co.wright.mn.us Holiday Inn, Duluth Working together, we identified and adopted Effective for appeals based on the 2010 key changes to Rural Preserve, which take assessment, the revised law describes exactly Barb Wendt, Secretary/Treasurer EARN 7 CEH’s by attending! effect for taxes payable in 2012. Property what information taxpayers must send when City of St. Cloud owners are no longer required to record a they appeal the valuation of rental properties. 320-255-7203 use-restricting covenant on their land, pay It also sets a precise deadline for doing so – for a conservation assessment plan or leave August 1 of the year taxes are payable. [email protected] their land in the program for at least 8 years. Shayla Strack, Past President Morrison County Did you know? 320-632-0102 [email protected] INTERESTED IN JOINING MAAP? Now available on the MAAO Website: Christie Fox, Executive Board Blue Earth County ANNUAL MEMBERSHIP IS ONLY $10! 507-304-4238 2010 21 Month Commercial/Industrial/Apartment Sales Study [email protected] - earth.mn.us CONTACT A MAAP OFFICER FOR DETAILS
8 Equal Eyes | Summer 2011 MAAP Update Summer Happenings Compiled by Lori Thingvold, AMA Wright County Update Editorial Committee Member
An Organization That Connects Assessment Office Personnel
UPCOMING EVENTS:
On August 18th and 19th, 2011, the annual MAAP Summer Workshop will be held at the Holiday Inn, Duluth. Topics will include: eCRV’s, Assessment Challenges,Same issue Tax Court,with this Green Acres Update and more. PDF -- do you have
the originals on your
MAAP OFFICERS
Jason Vaith, President Stearns County MAAP 320-656-3692 [email protected] SUMMER WORKSHOP
Melissa Janzen, Vice President Wright County August 18 & 19, 2011 763-682-7369 Melissa.janzen@ co.wright.mn.us Holiday Inn, Duluth
Barb Wendt, Secretary/Treasurer EarnEARN CEU’s 7 CEH ’sby by attending! attending! City of St. Cloud 320-255-7203 [email protected]
Shayla Strack, Past President Morrison County 320-632-0102 [email protected] INTERESTED IN JOINING MAAP? Christie Fox, Executive Board Blue Earth County ANNUAL MEMBERSHIP IS ONLY $10! 507-304-4238 [email protected] - earth.mn.us CONTACT A MAAP OFFICER FOR DETAILS NEEDS UPDATING
Summer 2011 | Equal Eyes 9 Let’s Get Acquainted Michael Thompson
Researched and Written by Julie Gustafson, SAMA City of Maple Grove Editorial Committee Member
From all accounts, it appears that Michael of the County Auditor’s responsibilities. In residential/agricultural appraisers in addition Thompson has hit a home run in the field this capacity, he currently supervises the to Mike. According to Mike, he works of assessing. Michael is the Taxation Taxation Supervisor who oversees four tax with a great group of people. They are a Department Manager and County Assessor specialists. Of course, this is in addition very intelligent and versatile group. The for Scott County. He was appointed County to his County Assessor responsibilities. Scott County Assessor’s and Auditor’s Assessor in December 2009 and Taxation Mike anticipates that his responsibilities Offices work very closely together making Department Manager in January of this year. with this role will increase over time as he them somewhat unique. The majority of becomes more familiar with the Taxation Mike’s assessing staff is well-versed in the Department’s duties and responsibilities. Manatron tax system as well as the CAMA USA appraisal software. Mike believes their Now that we know a little about Mike’s daily interaction with the auditor’s staff and work history, what do we know about Scott familiarity with both of these applications is County? Scott County is comprised of of great benefit to them. seven cities and 11 townships. It has a land area of 365 square miles and is bounded on the west and north by the Minnesota River. It has just over 55,000 parcels with most of them being residential and agricultural. Although Scott County enjoys a growing mix of commercial, industrial, and housing development, it still maintains its rural To fully understand his success, one must go flavor. According to Mike, the northern back to the beginning of his assessing career. section of the county has a suburban/metro In 2003, Mike worked as an appraiser trainee feel while the southern section resembles for his dad’s company, Arrow Real Estate rural outstate Minnesota. Services. At that time, Mike’s sister, Laura Fridgen, worked as an appraiser for Ramsey Most people recognize Scott County as home County. It was Laura who told him about of the Valley Fair Amusement Park, Mystic a part-time assessor’s aide opening at Scott Lake Casino, Canterbury Park Racetrack, County. With a little coaxing from his dad, Murphy’s Landing, and Raceway Park. But he applied and was offered the job. there is more to the county’s make-up than entertainment. The most recent census It is here that his assessing career began. figures show Scott County as the fastest After one week on the job, Mike was growing county in the state of Minnesota, asked to work full-time. He worked in this having increased from 57,846 in 1990 to capacity from October to December of 2003. approximately 109,000 persons by the year In January, 2004 he was hired by Blue Earth 2010. This represents a hefty gain of 55%. County as an Appraiser. After working there On a more personal note, Mike is from a for a year, Mike returned to Scott County as During the housing boom, Scott County family of seven children and was raised an appraiser in January, 2005. He quickly experienced significant growth in townhome in Eden Prairie. He has three older sisters climbed the various appraiser ranks ending development. Most new construction over and three younger brothers. Interestingly, up as an appraiser supervisor in July, 2009. the past couple years has been detached appraising and assessing runs in Mike’s Mike was only in this position five months entry-level homes. Similar to other family. Mike’s dad is an appraiser and before being appointed Scott County jurisdictions, Mike has recently noticed realtor. His sister, Laura is currently a Assessor in December, 2009. One could say a significant decrease in the development commercial appraiser for Ramsey County. Mike has been on the fast track to success of high-end properties and townhome Many of you may know Laura as she served at Scott County. developments - likely a sign of the times. as MAAO’s Region 9 Secretary/Treasurer prior to Don Lovstad. His sister, Lisa, and With his recent appointment as the Taxation The Scott County Assessor’s Office has brother, Bob, are fee appraisers. He has one Department Manager, Mike assumed some two commercial/industrial and eight brother, Bill, who is a teacher and does fee
10 Equal Eyes | Summer 2011 ownership (you do the math!). Every now programs were used statewide and were tied He would also like to achieve the IAAO and then, Mike enjoys playing in Canterbury together on one network. This would allow RES and CAE designations within the next Park’s poker tournaments. When asked if the Department of Revenue to query data five years. Given his success so far, I have he’s ever won or come close to winning a whenever they needed to, eliminating a lot no doubt he will achieve these goals and horse race or poker tournament, Mike said of reporting. Most importantly, he believes then some. he’s made his fair share of final tables but it would facilitate real-time information has never taken first place. sharing, and could greatly improve statewide I would like to extend a big thank you to assessment equity. Mike for taking time out of his busy schedule Mike also enjoys boating on Lake to share some of his assessing experiences Minnetonka and tries to do this a few times One of Mike’s biggest challenges in the and background with us. By doing so, he each summer. Like many young folks, he assessment field is staying on top of and has helped MAAO members in many ways: spends some of this time parked out at Big finding resources to administer all of the from providing background on the make- Island. Last but not least, Mike really looks new property tax laws that are added and up of a successful assessor, to sharing best forward to the Scott versus Carver County amended every year. This has been and will practices, and helping establish networking golf tournament which Mike reluctantly most likely continue to be one of the biggest relationships. In addition, we received a pointed out Carver County has never won. challenges for Minnesota’s assessors. horse racing tip in the process. Kudos to I sense Mike has a bit of a competitive spirit. Mike! Looking to the future, as the Taxation I asked Mike if he would share an unusual Department Manager, Mike looks forward or memorable situation encountered on the to continuing his professional growth. In job. He said the most unusual experience particular, he wants to learn more about the he had was when he was conducting a field County Auditor’s roles and responsibilities. inspection. This comes as no surprise as many of us have a good story or two from our field work. Anyway, Mike had a woman approach him from a house he had just tagged. The woman said she didn’t answer the door because she thought he was serving her divorce papers. However, since that was not the case he could come back and inspect the property. Once inside her home, Mike noticed several holes cut out of the carpeting. The women explained that whenever her cat urinated on the carpet, she cut the spot out. She then proceeded to show him the razor she used to do so. According to Mike, his interior inspection was brief.
When asked if he could change anything about the assessment field what would it be, Mike mentioned some common concerns regarding too many class codes, confusing timelines, etc. Mike also expressed that he has always thought that it would be great if the same appraisal and tax software
MAAO Minnesota Association of Assessing Officers
Executive Board Meeting Calendar: ~ August 30-31, 2011 Crown Plaza Hotel, St. Paul ~ ~ October 9, 2011 Ruttger’s Sugar Lake Lodge, Grand Rapids ~
Summer 2011 | Equal Eyes 11 Out of the Past
Written by Corey Erickson, AMA Ramsey County Editorial Committee Member 5 Years Ago – 2006 15 Years Ago – 1996 20 Years Ago – 1991 ● Bill Peterson was the President of ● New city assessor appointments ● Marvin Anderson became the MAAO and Dan Salomone was the included Stephen Baker in Moorhead City Assessor. Commissioner of Revenue. Brooklyn Center and Leon ● According to an Appraisal ● The MAAO Tax Court Committee Madsen in Fridley. Institute study, about 1 billion met to discuss concerns that some ● The Minnesota Chapter of the (18%) of the nation’s 5.6 billion assessors use the 60-Day Rule as a National Association of Office square feet of primary office space tool for dismissal rather than a way and Industrial Properties was vacant. to obtain information. (NAIOP), published a study ● Newly appointed Commissioner ● Course K (Minnesota Assessment comparing the property tax burden of Revenue, Dorothy McClung, Administration) was in discussions for a hypothetical Minnesota welcomed the involvement of to be replaced by a new management commercial property to its four Minnesota assessors in property and supervision course. neighboring states, and found that tax reform. ● Bruce Sanders became the new the then 6.24 percent effective ● All proceeds from the 1991 silent assessor of the City of Maple Grove tax rate in Minnesota resulted in auction at the Summer Seminars and Michael Dangers received his the greatest tax bill among the in St. Cloud went to the Equal SAMA designation. five states for the hypothetical Eyes “Desktop Publishing” fund. commercial property. 10 Years Ago – 2001 ● Lyon County Assessor, Wayne 40 Years Ago – 1971 ● Valerie Thompson was promoted Budd, retired after 23 years as the ● The City of St. Cloud was in from Real Estate Supervisor to county assessor and Robert Lind need of a new assessor, offering Director of Assessments for the retired after 29 years of service a starting salary of $10,600 to City of Minneapolis, and Mary with Dakota County. $12,900. Boyle was promoted to Principal ● Burnet Realty began using a ● MAAO president Oliver Appraiser in Anoka County. marketing technique called Opheim wrote of the importance ● In a study done by Integra Realty “Talking Houses” allowing of professionalism in the Resources, the Twin Cities was prospective buyers to hear the assessment field, including the ranked the fifth best U.S. metro area details on a house simply by mention of the establishment of a for retail investment. The study tuning into a particular radio minimum level of knowledge and reported an inventory of nearly 49 station while parked in front of proficiency for assessors. million square feet of retail space the property. and a vacancy rate of 8.2 percent. ● Courses at the MAAO Summer The same study ranked the Twin Seminars included a course Cities as the ninth best metro area titled “Lease Analysis” taught for apartment investment. by Dan Boris, and a course titled ● John McCare retired from Itasca “Appraisal in the Digital Age”, County after 15 years of service. taught by Marlin Danielson. ● Glenn Dorfmann, Chief Lobbyist ● After successfully resolving the and Operating Officer for the Savings and Loan crisis, the Minnesota Association of Realtors, Resolution Trust Corp. (RTC) spoke at Region 9’s May meeting. closed. All properties not sold by In his presentation, he predicted the RTC were transferred to the that market values would continue Federal Deposit Insurance Corp. to rise for the next 10 to 12 years, (FDIC) to be sold. particularly for lakeshore property. ● City Assessor James P. Carey retired from the City of Virginia after 25 years of service. Jim holds the record for the longest term as assessor in the city’s 129 year history.
12 Equal Eyes | Summer 2011 Meet Minnesota’s New SAMA & AMA Designees
Written by Jake Pidde, CMA City of Plymouth Editorial Committee Member
SAMA Designee AMA Designee Josh Hoogland Karl Lindquist
Josh Hoogland, Hennepin County, Karl Lindquist, Douglas County, was awarded the SAMA designation was awarded the AMA designation on March 15, 2011. His education on March 15, 2011. His education includes Course A, a Bachelor’s includes Assessment Law and Degree in Real Estate from St. Procedures, Mass Appraisal Basics, Cloud State University, IAAO 102, MN Assessment Administration, Mass Appraisal Basics, Kaplan Basic Income Approach, IAAO USPAP, Advanced Sales and Cost 102, Standards of Practice and Approach from the Appraisal Professional Ethics and a Bachelor’s Institute, Advanced Applications Degree in Real Estate from St. Cloud from the Appraisal Institute, and a State University. Mr. Lindquist has successful challenge to Supervision and Management. Mr. Hoogland three years of assessment experience. Congratulations to you Karl! had a successful interview with the Board in July 2009 and his tax court narrative passed in January 2011. Mr. Hoogland has five years of assessment experience. Congratulations to you Josh!
AMA Designee AMA Designee Ryan Short Josh Johnsen
Ryan Short, Blue Earth County, Josh Johnsen, City of Minnetonka, was awarded the AMA designation was awarded the AMA designation on March 15, 2011. His education on March 15, 2011. His education includes Course A, ProSource includes Assessment Law and 100-104 and 107, USPAP, Mass Procedures, Mass Appraisal Basics, Appraisal Basics, Assessment MN Assessment Administration, Administration, Basic Income Standards of Practice and Capitalization and Advanced Professional Ethics and a Income Capitalization from the Bachelor’s Degree in Real Estate Appraisal Institute, plus several from St. Cloud State University. other courses from the Appraisal Mr. Johnsen has three years of Institute. Mr. Short has over four years of assessment experience. assessment experience. Congratulations to you Josh! Congratulations to you Ryan!
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 2011 | Equal Eyes 13 Course Reviews Recent MAAO Courses
Reviews by Solomon Akanki, AMA Scott County Editorial Commitee Member
2011 Summer Seminars: a review of Effective Report Writing
The 2011 Summer Seminars were held registrants per seminar. SS7 (Exempt or a coherant and meaningful form report. May 25 – 26 in St Cloud at the Holiday Not to Exempt – That is the Question) had Inn and had 342 registrants. Classes began the highest attendance followed by SS10 Rich Dubay, SRPA, SRA taught the class. after lunch and the afternoon was filled (Do you know the Difference? Modular Mr. Dubay is President and CEO of Appraisal with a large variety of class offerings. A vs Site). SS13 (Practical Application of Consultants, a Minnesota Real Estate service different set of classes began immediately Mass Appraisal) had the least attendance. provider. In addition to running his company, after breakfast the following day. Rich also teaches for the Appraisal Institue. We are very grateful to the Conference Thirteen seminars were offered and attendees Committee, Conference Coordinator and The class focused on some rules for effective were given the opportunity to choose Education Committee for making the communication, clear and efficient writing, between two of the twelve 4-hour seminars Summer Seminars a success once again. and accurate presentation of relevant or one two-day 8-hour workshop. The chart data. The course also gave out some very below shows the distribution of Summer For this issue, we choose to review one of the interesting lecture material. The knowledge Seminar 2011 registrants across designations. summer seminars: Effective Report Writing. shared by Mr. Dubay really defined how an This second chart shows the number of This class surrounded the principles of writing appraiser should model his or her report.
Code Description SS1 Unique Appraisal Problems SS2 Trends in the Lodging Industry SS3 Effective Report Writing SS4 Residential Tax Court SS5 Dairy Production SS6 Single-Family Residences SS7 Exempt or Not to Exempt SS8 Rural Special Purpose Property SS9 Classification Station SS10 Modular vs Site Built Homes SS11 Residential Land Valuation
SS12 Senior Housing
SS13 Mass Appraisal Applications
14 Equal Eyes | Summer 2011 We would like to share some of these A well written introduction is also crucial Of course, each approach requires a tidbits for report writing with our readers. and accomplishes several tasks. First, conclusion. An organized conclusion reveals it sets the premise of the approach, it ranges, percentages and eliminates outliers First, Mr. Dubay mentioned Toulmin’s law also places the property in the approach, as evidence. Presenting the evidence sets of composition. This law states that the and it can contain a focus statement that the stage for stating the logical conclusion. effort the writer does not put into writing, explains your position. In some cases, the the reader must put into reading. In order introduction will include an explanation of Regarding length of report, logically, it to ensure minimum effort by the reader an unusual condition, such as the lack of a should only be as long as needed. USPAP in understanding the appraisal report, it lease document that may affect the analysis. is silent on report length, however it is must be correct, complete and coherent. In a complicated analysis, it is helpful agreed that the right length is the length that Professional level publications, such to provide a road map. A table, a is persuasive without being overdone, has as the Wall Street Journal and New list, a paragraph, or a chart can be a little inappropriate boilerplate, is not overly York Times, are written at a 10th grade road map through the approach. repetitive, and is not difficult to follow. level; USA today, Newsweek, Car and Driver, and the local paper are written A technically correct presentation of the We want to thank all the teachers who at a 6th grade level. A 10th grade level is approaches requires that we respect the gave their time for the 2011 Summer appropriate for most appraisal writing. fundamentals of the analysis. Support Seminars. In this busy time of the year, using primary and secondary evidence, it is truly great to see all of the effort put Next, the structure of the report was discussed. is necessary in a persuasive argument. into these fantastic educationl offerrings. A well written report is logically ordered. Elements that require support include cost In order to accomplish this, you should new and depreciation, income and overall See you next year! define the problem, research the issues, rate, and the amount and direction of an analyze the data and reach a conclusion. adjustment. The order of adjustments is important in a technically correct analysis. Assessor Education: At-A-Glance 2011 MAAO Education Schedule Course Date Location Assessment Laws and Procedures July 11-14 St. Cloud, Holiday Inn Residential Case Study Workshop July 12 St. Cloud, TBD - check website Appraisal Principles July 18-21 St. Cloud, Holiday Inn Appraisal Procedures August 1-5 St. Cloud, Best Western Kelly Inn Mass Appraisal Basics August 22-26 St. Cloud, Best Western Kelly Inn IAAO 102 Income Approach September 26-30 Plymouth, Kelly Inn MN Assessment Administration October 3-6 Plymouth, Kelly Inn
2011 PACE Schedule Date Location July 25-29 Marshall, Ramada Inn August 15-19 Owatonna, Holiday Inn September 12-16 Ottertail, Thumper Pond Resort October 17-21 Grand Rapids, Sawmill Inn November 28-December 2 Inver Grove Heights, Inver Hills Community College
Registration and Questions Visit www.mnmaao.org to register for any of these educational offerings, to find more information, or to find the contact person for additional questions.
Summer 2011 | Equal Eyes 15 MAAO Education MAAO’s Newest Instructors
Compiled by James Haley, CMA Polk County Equal Eyes Managing Editor
My name is Nancy Treasurer for MAAO, which I began in I enjoy teaching others and have a thirst for Wojcik, and I will the fall of 2008. Updating the MAAO analyzing and improving assessing software be co-teaching accounting software system and financial applications. It’s amazing how a college Mass Appraisal reporting have become a passion. My other programming course must have embedded Basics with passion is my family. I have two children logical thinking forever! My consortium of Stephen Hacken ages 25 and 21. A daughter who is currently cities with LOGIS software can attest to that. this August. employed with the State of SD, but at a point where she is working on her professional I have always enjoyed teaching and I am currently license designations in multiple states and writing training manuals so I decided to employed as the continuing her graduate education, and a son try teaching this year as my employees and Nancy Wojcik, SAMA City Assessor in his final year of college in North Dakota past acquaintances have stated that I am a Brooklyn Center with the City of preparing for the LSAT exam, so constant very good trainer and easy to understand Brooklyn Center. I studying and internet job searching has and would love to see me teach. I hope to have been with the city 14 years, and started become a family hobby. If I’m not on the live up to the great instructors I have had at the city as an Assessing Technician. I computer, I’m usually on the road, visiting and do a good job representing MAAO as worked my way up to Appraiser II, and my family or with MAAO events. If I an instructor. My goal is to assist people finally to the City Assessor position. Prior actually acquire some glimmer of spare time in an understanding of the principles to Brooklyn Center, I was employed by the I think I would like to write a novel. and the application of formulas for mass City of Brooklyn Park, as the Assessing appraisal, and to remove any fear and create Secretary. My background also includes I have not taught an MAAO weeklong excitement to apply what they have learned 13 years in the private sector working course in the past, but have given a few small in their current or future positions. as an Information Systems Operation demonstrations on field devices, electronic Manager, and a year with Anoka County in file storage for my region, and assisted I look forward to teaching Mass Appraisal Community Block Grant Funds. with a summer seminar education venue. Basics with Stephen Hacken this summer. In my past position as an IT Operations/ We both feel that the mix of our experience James Haley, Equal Eyes Editor, wanted to Manager, I spent many hours writing user will be a great combination of knowledge know what I do in my spare time. Well, if manuals and training employees on new to teach the application of Mass Appraisal. you know me, there is no such thing as spare computer systems and procedures. I also For those of you planning to attend, we are time. I have served as an MAAO Editorial assisted the IT Manager at the City of excited to instruct this summer! Committee Member, Editorial Committee Brooklyn Park with IT system backups and Chair and am currently serving as Secretary/ calendar software training for the employees.
Kyle Holmes is I work for Carlton County, where I have I get the pleasure of instructing the workshop, one of the new been for three years now. I began assessing and since it covers both the exam and the instructors, along in January of 2000. Additionally, I am the residential form report, I think it’s very with Teresa Region IV director and sit on the MAAO valuable in helping prepare students for their Mitchell, for the Executive Board. I have also been on next license level. Preparing for the host committee for two separate Fall the Minnesota Conferences. This is my first experience teaching with Residential Case MAAO, but I have taught other classes, Study Workshop. Outside of work and my involvement with including in-house training classes for the The workshop MAAO, I love to fish and hunt. I also love county or in college. helps prepare spending time with my new daughter, my Kyle Holmes, SAMA assessors who dog Tucker, and obviously my wife. Even though there are challenges and work Carlton County are working preparing as a new instructor, it will be towards their I look forward to teaching this class in rewarding. I just hope to make a difference AMA license. Here is information Kyle particular because I went through it. The in someone’s career. We need good qualified provided to help future students learn case study exam and form report route is the assessors, and if I can help people get their more about him. one I took on my way to my SAMA. accreditation a bit less stressfully, I will be satisfied.
16 Equal Eyes | Summer 2011 MAAO’s Newest Instructors, cont.
Steve Hacken I think teaching provides an opportunity to Pine County. Committees I have served will be instructing give back to the profession. I had teachers on include: Agricultural, Research and Mass Appraisal who assisted me immensely when I was Planning, Finance, Long-range Planning, Basics in 2011. taking week-long courses. I think that Editorial, and a couple versions of the The class is in St. assessors are unique in that we mostly Green Acres Committee. I was also honored Cloud at the Kelly train our own. It’s a great concept that has to serve as President of MAAO in 2008-09. Inn. The dates are worked for many years. I hope that my many August 22 through years of assessing experience can assist Spare time, what is that? When not 26. Nancy Wojcik students in their education and careers. assessing, I officiate high school football, will be teaching basketball, baseball, and softball. I also Steve Hacken, SAMA with him. He, I really hope that we can make the class umpire softball in two college conferences. Winona County like all the other a little fun as well as it being a learning During the summer, I try to work on new instructors, experience. I think my teaching style is pretty my golf game. Believe me, it needs was asked to share some relaxed. I like a lot of interaction among a lot of work although I was lucky information as an introduction. the class between learning coefficients of enough to get a “hole-in-one” last fall! dispersion and price related differentials. I began in the assessing profession in At the conclusion of the class, I hope I have been married to Debbie Hacken 1978 as an appraiser trainee with Chisago that students have a working knowledge since 1980. We have two children, Brodie, County. I knew nothing about real estate of mass appraisal techniques and all of 27, who lives with his wife Lynn in the or assessing when I first started. I took my the statistical analysis that goes with it. Twin Cities, and Beth, 21, who is a senior first assessing class in 1979. I remember at the University of Wisconsin-River Falls. the instructors were John Krueger, Mike While this is my first week-long class, I My wife would be especially irritated Wandmacher, and Q. T. Smith. I have since have instructed MAAO classes in Green if I didn’t mention the dogs, Maggie, a taken about every week-long class offered, Acres, Residential Cost Schedules, and black lab and August, a golden retriever. as well as numerous IAAO and Appraisal Legal Descriptions. I also instructed Institute classes. I have a Bachelor’s Degree Property Tax Short Courses for the I just want to give a quick reminder that from the University of Wisconsin-River University of Minnesota. In addition, Mass Appraisal is not just for persons Falls. I received my SAMA in 1987. I I have taught numerous appraisal and wishing to achieve an assessor’s license. also hold a Certified General Property CAMA courses for Minnesota Counties It can be used for 30 hours of continuing Appraisal License from the Department of Computer Cooperative (MCCC). education and is approved as continuing Commerce. education for Department of Commerce I have been involved with MAAO in a licensing. I have been County Assessor in Winona number of ways. I was Secretary-Treasurer County since 1997. Prior to that, I was County and President of Region 3. I was a Regional Assessor in Pine County from 1985 to 1997. Director for Region 3 when I was at
More Instructor Introductions on the next page...
77th International Conference on Assessment Administration Transforming Assessment: Rising to Meet New Challenges September 18 – 21, 2011 Sheraton Phoenix Downtown Hotel Phoenix, Arizona
Summer 2011 | Equal Eyes 17 MAAO’s Newest Instructors, cont.
Teresa Mitchell it takes to achieve higher designations. Residential Workshop. There was a very of Dakota County I have received amazing support and high attendance that year and the course was has certainly kept encouragement from past instructors who a great way to get my feet wet in a lecture/ busy over the past have mentored me to achieve my goals. workshop setting. Those statistics materials few years. Since are still in use today. I have had numerous obtaining her In 1997, by way of writing a residential opportunities to teach hands-on technology SAMA, she has narrative and passing the Commercial skills to MAAO website administrators, gradually worked Income Case Study Exam, I achieved eCRV technology to assessing peers, and her way through my SAMA designation. In 1999, I met also CAMA technology to our staff. the ranks within her all the requirements and was granted the Teresa Mitchell, SAMA county. In addition CAE designation from IAAO. I could I have been serving as the MAAO IS Dakota County she has also served not have done that without the support of Committee Chair since 2007. It has been MAAO in several fashions, most notably as my colleagues at Dakota County and the very rewarding to develop the website and the IS committee chair. Now, she steps up encouragement and guidance from my online registration processes for MAAO. again as a co-instructor for the residential case MAAO instructors. The opportunity to study course. Here’s some information so you pay it forward to others wanting to achieve In my spare time, I enjoy playing volleyball. can get to know her before taking her course. higher designations will be very rewarding. My family enjoys boating on the mighty Mississippi and the beautiful St. Croix rivers I have worked in the Dakota County Assessor’s I have since taken an IAAO narrative we are fortunate enough to live near. We also Office for about 22 years. I’d like to say I grading course and have served as an IAAO travel as often as we can to the wonderful started in kindergarten, but actually I started in Professional Development Advisor. So far northern lands of Minnesota to camp in the the department as a part-time file clerk during I have assisted several colleagues and staff Boundary Waters Canoe Area. my junior year of high school. Twenty-two in achieving their accreditation goals. This years and several positions later, I am currently course is a very good fit for me. I hope to mentor and encourage the folks the Chief Deputy Assessor. taking this course to complete their form Back in 2005, Stephen Behrenbrinker gave report and successfully complete the case I have considered teaching for several years. me the opportunity to update the statistics study exam and achieve their designation I know the extra commitment and effort materials and teach that segment of the goals. You can do it!!
Getting to know Paul Town Commercial and Residential Land Treasurer 1983 –1986. I have coordinated Knutson...“Getting Valuation are two that I have repeated. I all the MAAO conferences since 1983. I to know you, getting also taught Course B, Residential Appraisal have developed the infamous Small Town to know all about weeklong course for 24 years (1982 - 2005). Commercial seminar and presented it you.” My mother I think a conservative estimate of students numerous times. I was on the State Board used to sing that taught with Course B would over 1,000. of Assessors for 7 years. I was schooled at song from the 1951 the University of Minnesota, Agricultural musical “The King I wanted to teach appraisal to assessors Economics. and I”… and now because I believe that a good appraisal you want to get to background makes you a more competent There is more, I was a fee appraiser for 17 Paul Knutson, SAMA know me? Be careful assessor. In fact a long time ago, I had years, Veteran’s Administration appraiser Rice County what you ask for... my Certified Federal General designation 13 years, and a township assessor 7 years. and for 17 years did appraisal for the VA I was a former Certified Federal General I am Paul Knutson, Rice County Assessor and banks. I felt that experience helped Appraiser, a Kiwanis member and a since 1999. Before taking my current in bringing the classroom some reality. member of the Albert Lea School district position, I worked at Steele County and At the same time I got to be a Senior facilities commission. I have been an the Cities of Woodbury and Plymouth on a Accredited Minnesota Assessor (SAMA) Appraisal Commissioner for Third Judicial contract for about 5 years. I also worked at and a Residential Evaluation Specialist District (Pipeline Condemnation), and I ran Freeborn County for 23 years, 13 years as (RES) from IAAO. unsuccessfully for County Commissioner County Assessor. Use your math skills and (in retrospect I am glad I did not win). I also you will see that I have been an assessor for Now, for a lot of rambling facts about me: played in a country rock band for 27 years. a long time. I joined MAAO in 1971, 40 years this year. I was elected 2nd Vice President of It will be exciting to teach a week long I will be co-instructing Appraisal Procedures MAAO in 2000, elected 1st Vice President course again. with Tamara Doolittle in August. I have taught of MAAO in 2001 and elected President of numerous seminars over the years. Small MAAO in 2002. I was MAAO Secretary
18 Equal Eyes | Summer 2011 2011 Equal Eyes Photo Contest Barns, Businesses, and Beaches Winners!
1st Prize, Beaches Wally Peterson Wright County 1st Prize, Barns Jean Bresin Wright County
2nd Prize, Barns Steve Carlson Polk County
1st Prize, Businesses Greg Nelson Steele County
Prize Money Grand Champion - $50 2nd Prize, Beaches Category Winner - $30 Anne Grunert Category Runner Up - $20 Brown County
Congratulations once again to our Grand Prize winner: Tim Graul Dakota County
Summer 2011 | Equal Eyes 19 State Board of Assessors Meeting Minutes Provided by Pam Lundgren Minnesota Department of Revenue January 25, 2011 Harold Stassen Building, St. Paul
Vice Chair, Doreen Pehrson convened the • Tuesday, March 15 at the Lake George the MAAO Summer Seminars and will meeting at 9:30. David Marhula was unable Community Complex in St. Cloud. receive credit. Per Board Policy, assessors to attend. All other Board members were who provide documentation of attendance present. • Monday, May 23 at the Lake George for a minimum of 3 hours of the seminars Community Complex in St. Cloud. will receive 1 CEH per hour of attendance. The first order of business was the • Tuesday, July 19, Department of Introduction of the new County Assessor Revenue, Harold Stassen Bldg. in St. Kim Jensen, Hennepin County, is requesting Member, Brian Koester. Paul. CEH’s for the 2011 C/I/A Hennepin County Assessor’s Annual Assessment Trends The meeting minutes from the November 16 • Tuesday, September 27, Nicollet Review held on December 13, 2010. The & 17, 2010 were read and discussed. Steve County Courthouse in St. Peter. proceedings covered approximately 5 hours Sinell made a motion to approve the minutes and included an Appraisal Panel Question • Tuesday, November 15, Department as read. Gregg Larson seconded the motion. and Answer session with 25 questions from of Revenue, Harold Stassen Bldg. in The motion carried. St. Paul. assessors. Per Board Policy, assessors who provide documentation of attendance for a Officer Elections: Announcements: minimum of 3 hours of the seminars will The Vice Chair opened the floor for The IRS Mileage rate has been increased to receive 1 CEH per hour of attendance. nominations for the office of Chairperson. 51 cents per mile. Mike Amo made a motion to cast a Sixty-three outside activity letters were Request for Alternate Education and unanimous ballot and elect Doreen Pehrson mailed on December 30, 2010. Experience: as Chair. Deb Volkert seconded the motion. Kathleen Brady, Ramsey County, requested The motion carried. Secretary’s Report: approval to use her coursework from the Rule Changes: Deb reported that the rule University of Mary, Bismarck, North The chairman opened the floor for process is now back on track and it is Dakota where she earned a Bachelor of nominations for the office of Vice Chair. anticipated that the changes will be effective Science Degree in Science and Math Deb Volkert made a motion to cast a near the end of March (later changed to end (Major: Psychology, Minor: Business unanimous ballot and elect Mike Amo of May). Administration). Ms. Brady took the as Vice Chair. Steve Hurni seconded the following courses from the California State motion. The motion carried. Request for Continuing Education Hours: Board of Equalization between January Ehlers and Associates requested CEH’s for 1988 and December 1990: Cost Estimating, Grading Committee Appointments: the Annual Public Finance Seminar to be held Introduction to Appraising, Residential Pursuant to the tabled item from the on February 3 & 4, 2011 at the Northland Appraisal Procedures, Income Approach to November 16 and 17, 2010 meeting, the Inn in Brooklyn Park, MN. There is a total Value, Investment Math, Advanced Sales Board discussed a letter received from of 8.5 hours of education given between the Comp & Income Capitalization, Land & Dave Armstrong requesting that Teresa two days that include the following topics: Multiple Property Appraisal. Mitchell and Kyle Holmes be approved TIF and Abatements, Google, Internet, TIF, by the Board as designated graders for the Bonds, Developer Roundtable Part I, JOBS She has experience in California from 1988 Residential Case Study Exam and the Form Bill Case Studies, Regulation of Issuers and through 2005 and her certificates list her Report graders. Deb Volkert made a motion Financial Advisors, Developer Roundtable title as Appraiser for Property Tax Purposes. to appoint Teresa Mitchell, Kyle Holmes Part II, Advanced TIF, How to Respond to an It has already been recommended to Ms. and Steve Behrenbrinker to the grading IRS Inquiry or Audit, Development Finance, Brady that she attend Assessment Law committee with Steve Behrenbrinker as Investment Strategies, and Trends Affecting and Procedures to start on her Minnesota chair. Mike Amo seconded the motion. Retail. Per Board Policy, assessors who qualifications. It was determined that we The motion passed. Deb Volkert will be provide documentation of attendance for need more information on the Residential responding to Dave Armstrong’s letter. a minimum of 3 hours of the seminars will Courses Ms. Brady attended and we will receive 1 CEH per hour of attendance. request a syllabus for each of them. We Yearly meeting schedule: also need to know if an alternate to Mass The following dates and locations were Christine Ferrell from Kaplan Appraisal Appraisal Basics was attended. Course chosen for the balance of the year’s meetings: Schools requested CEH’s for several exam challenges will be accepted. This seminars that she hopes can be offered at information should be available at the March
20 Equal Eyes | Summer 2011 15, 2011 meeting and the discussion will (530) from the Appraisal Institute, IAAO once a year. Doreen Pehrson will be attend- resume. 151, a successful challenge to Assessment ing the Executive Board meeting in May Administration, and a Bachelor’s Degree in in conjunction with the MAAO Summer Applications for Certified Minnesota Real Estate from St. Cloud State University. Seminars. Brian Koester has volunteered Assessor: Mr. Blonigen had a successful interview with to be the liaison between the Board and the Deb Volkert made a motion to award the the Board in February 2009 and he passed MAAO Education committee. Certified Minnesota Assessor license to the the Income Case Study Exam in November following individuals: 2010. Mr. Blonigen has five years of Terry Morrow, Wright County assessment experience and applied for Tabled from the November 16 & 17, 2010 Steven Young, Grant County. the Senior Accredited Minnesota Assessor meeting: license. Steve Hurni made a motion to Steve Hurni presented his report on the revi- Mike Amo seconded the motion. The award the Senior Accredited Minnesota sion of assessor licensing levels by jurisdic- motion carried. Assessor license to Daniel Blonigen. Jan tion. There was much discussion related to Jackson seconded the motion. The motion whether licensing levels should only apply Application for Certified Minnesota carried. to who holds the contract with a jurisdiction Assessor Specialist: or if they should apply to whoever works in Ginger Woodrum, Hubbard County. Appointments with the Board: the jurisdiction. The board did not come to Education includes Assessment Law and Mark Meili, Carver County, met with the resolution of that issue. Procedures, Residential Appraisal Principles, Board for his Accreditation Oral Interview. The board also discussed how license levels Residential Appraisal Procedures, Mass His education includes Assessment Law and should be determined for each jurisdiction. Appraisal Basics, IAAO 102, Basic Income Procedures, Residential Appraisal, Mass No decision was made. The board will con- Approach, IAAO 151. Ms. Woodrum’s Appraisal, Assessment Administration, tinue looking at data at the next meeting. Form Report passed the grading committee Income Approach to Valuation, Basic in November 2010 and she has two years Income Approach to Value, and a 15 hour of assessment experience. Ms. Woodrum There being no further business, the USPAP. Mr. Meili’s Form Report passed chairman set the date of the next meeting applied for the Certified Minnesota Assessor the grading committee in April 2010, and he Specialist license. Mike Amo made a as Tuesday, March 15, 2011 at the Lake passed the Residential Case Study Exam in George Municipal Center at 9:30 AM. motion to award Ginger Woodrum the December 2010. Mr. Meili has six years of Certified Minnesota Assessor Specialist Steve Sinell made a motion to pay the assessment experience, and he applied for expenses for the meeting. Jan Jackson license. Steve Sinell seconded the motion. the Accredited Minnesota Assessor License. The motion carried. seconded the motion. The motion carried. Steve Sinell made a motion to award the Deb Volkert made a motion to adjourn the Accredited Minnesota Assessor license Application for Senior Accredited meeting. Mike Amo seconded the motion. to Mark Meili. Jan Jackson seconded the The motion carried. Minnesota Assessor: motion. The motion carried. Daniel Blonigen, City of Bloomington. His education includes Courses A, Mass Discussion Items: Appraisal Basics, Highest and Best Use Cheryl Wall invited a member of the board to & Market Analysis (520), and Advanced attend an MAAO Executive Board meeting Sales Comparison & Cost Approaches
March 15, 2011 Lake George Municipal Complex, St. Cloud
Chair, Doreen Pehrson, convened the “Solomon Akanki, Scott County is meeting and 2 years of experience qualify for the meeting at 9:30. Steve Sinell and Jan with the Board for his Accreditation Accredited Minnesota Assessor License.” Jackson were unable to attend. Oral Interview. His education includes Assessment Law and Procedures, Appraiser Announcements: The meeting minutes from the January License Number: 40038258, MAAO The rule change process is moving along. 25, 2011 were read and discussed. Brian Assessment Administration, Mass Appraisal The dual notice of the intent to adopt rules Koester made a motion to approve the Basics and a Masters Degree in Real Estate was sent (via e-mail or US mail) to all minutes as read. Deb Volkert seconded the from St. Thomas University). Mr. Akanki licensed assessors along with the proposed motion. The motion carried. has 1.5 years of assessment experience and rule changes and the SONAR. he applied for the Accredited Minnesota Steve Hurni made a motion to revise the Assessor license. Steve Sinell made a Applications for Certified Minnesota minutes from the November 16-17, 2010 motion to award Solomon Akanki the Assessor: meeting striking the words “pending Accredited Minnesota Assessor license. Mike Amo made a motion to award the completion of the assessment experience Doreen Pehrson seconded the motion. Certified Minnesota Assessor license to the requirement” to read as follows: The motion carried. A Masters’ Degree following individuals as specified below:
Summer 2011 | Equal Eyes 21 State Board of Assessors Meeting Minutes, cont.
Donna House, St. Louis County Basics, Assessment Administration, Basic circumstances the board should initiate a Effective 3/15/11 Income Capitalization and Advanced review/investigation. Kelly Jacobsson, Sherburne County Income Capitalization from the Appraisal Effective 3/15/11 Institute, and several other courses from Steve Hurni presented another version of Judy Dean, Cass County Effective 3/15/11 the Appraisal Institute. Mr. Short has over the report regarding the revision of asses- Erik Bonde, Crow Wing County four years of assessment experience and sor licensing levels by jurisdiction that Effective 3/15/11 he applied for the Accredited Minnesota included changes requested by the board in Lisa Mott, Southwest Assessing Assessor license. Dave Marhula made a January. There was much discussion related Effective 3/23/11 motion to award the Accredited Minnesota to whether each taxing jurisdiction should Assessor license to Ryan Short. Brian have one level of license required or if Brian Koester seconded the motion. The Koester seconded the motion. The motion there should be two levels – one for income motion carried. carried. producing properties and one for non- income producing properties. Discussion Applications for Senior Accredited Josh Johnsen, City of Minnetonka, met with at this meeting addressed the possibility of Minnesota Assessor: the Board for his accreditation oral interview. establishing two levels of licensure for each Joshua Hoogland, Hennepin County. Mr. His education includes courses: Assessment jurisdiction. Since the license levels have Hoogland’s education includes Course A, a Law and Procedures, Mass Appraisal Basics, not been changed in almost thirty years for Bachelor’s Degree in Real Estate from St. MN Assessment Administration, Standards most districts, two levels of licensure may Cloud State University, IAAO 102, Mass of Practice and Professional Ethics, and help the districts and the assessors accom- Appraisal Basics, Kaplan USPAP, Advanced a Bachelor’s Degree in Real Estate from modate some anticipated changes in license Sales and Cost Approach from the Appraisal St. Cloud State University. Mr. Johnsen levels required for individual jurisdictions Institute, Advanced Applications from has three years of assessment experience due to changes in the property makeup of the Appraisal Institute, and a successful and applied for the Accredited Minnesota the districts. Preliminary discussion also challenge to Supervision and Management. Assessor License. Mike Amo made a motion took place regarding communication of the Mr. Hoogland had a successful interview to award the Accredited Minnesota Assessor changes once they are established, the need with the Board in July 2009, and his tax license to Josh Johnsen. Deb Volkert for an appeal process and the need to provide court narrative passed in January 2011. Mr. seconded the motion. The motion carried. some time between the final decisions on Hoogland will have five years of assessment license levels and when they become effec- experience as of May 15, 2011. Steve Discussion Items: tive. The board requested further changes to Hurni made a motion to award the Senior The board discussed the proposed rule the reports and Steve will work on those for Accredited Minnesota Assessor license to change wording for the comprehensive exam the May meeting. Joshua Hoogland effective on May 15, 2011. in response to feedback from the Office of There being no further business, the Brian Koester seconded the motion. The Administrative Hearings. The board decided chairperson set the date of the next meeting motion carried. to change the wording of the proposed as Monday, May 23, 2011 at the Lake rules so a comprehensive exam could only George Municipal Center at 9:30 AM. Appointments with the Board: be required for the Accredited Minnesota Karl Lindquist, Douglas County, met with Assessor license and at least six months Dave Marhula made a motion to pay the the Board for his accreditation oral interview. notice would be given if a comprehensive expenses for the meeting. Brian Koester His education includes courses: Assessment exam was put in place. seconded the motion. The motion carried. Law and Procedures, Mass Appraisal Basics, MN Assessment Administration, Basic Brian Koester made a motion to adjourn Income Approach, IAAO 102, Standards The Board discussed current complaints the meeting. Dave Marhula seconded the of Practice and Professional Ethics, and and related issues, including under what motion. The motion carried. a Bachelor’s Degree in Real Estate from St. Cloud State University. Mr. Lindquist has three years of assessment experience and applied for the Accredited Minnesota Assessor license. Steve Hurni made a motion to award the Accredited Minnesota State Board of Assessors Upcoming Meetings Assessor license to Karl Lindquist. Dave Marhula seconded the motion. The motion Tuesday, July 19, Dept. of Rev., Harold Stassen Bldg. in St. Paul carried. Tuesday, Sept 27, Nicollet County Courthouse in St. Peter Tuesday, Nov 15, Dept. of Rev., Harold Stassen Bldg. in St. Paul Ryan Short, Blue Earth County, met with the Board for his accreditation oral interview. His education includes Course A, ProSource 100-104 and 107, USPAP, Mass Appraisal
22 Equal Eyes | Summer 2011 Spotlight on the DEPARTMENT of REVENUE Introduction to the Property Tax Division The Property Tax Division is one of 19 “divisions” in the Department Our division is staffed by 40 employees, who you will learn more of Revenue. The Minnesota Department of Revenue is the about on the following pages, and we currently have two vacancies seventh-largest agency in state government, excluding educational that we are in the process of filing. Our division is divided into institutions. We have more than 1,500 employees working in 15 work groups, which will also be described on the following pages. Minnesota locations and 17 places outside the state. Our primary work location is the Harold E. Stassen Building in the Capitol The Property Tax Division’s work groups are: Complex in St. Paul. The building is located at 600 North Robert • Information and Education Street. • Property Tax Compliance Officers • Property Tax Research • State Assessed Properties The Minnesota Department of Revenue manages the state’s revenue • Taxes and Aids Administration system. We administer 28 different taxes, collecting over $12 billion annually. This money funds education, local government aid, However, any “division” of our division is difficult. We work well property tax relief, social service programs, highways, and other as a team, and that is good as a lot of our responsibilities require Spotlight state programs and operations. us to cross work groups and interact with all division colleagues.
Minnesota taxpayers are valued customers who rely on our services As a simple example, consider the final ratios your county or city to meet their state tax obligations. The department believes that received earlier this year. That information was first collected and most citizens want to complete and file their taxes accurately, and verified by the Property Tax Compliance Officers (PTCOs) work we work hard to provide the services and information they need. group. The information was then sent to the division and initially processed by division support staff. The Property Tax Research Our mission is to make the Minnesota revenue system work well work group then compiled the information, analyzed it further, for the state and its taxpayers. and generated more reports and useful data. That information was distributed and then you worked with the PTCOs again. Once Traditionally, taxpayers in Minnesota think of the Department of finalized, that information was merged with property data collected Revenue in terms of the external divisions including Collections, on the abstracts in the Taxes and Aids Administration work group. Individual Income Tax, and Sales and Use Tax. However, Any questions related to how property was assessed – which the there are several other specialized divisions such as Corporate information on the abstracts represents – were answered by the Franchise, Criminal Investigation, Special Taxes, Tax Research, Information and Education work group. Finally, the end product and Withholding Tax. In addition to these external divisions, the ratios are used by the counties as a measure of the assessment department is served by other divisions that support the mission performance. But there are other uses of those same ratios that you and functions of the department. These divisions include Appeals may be aware of. The State Assessed Properties work group provides and Legal, Communications, Employee Development Services, values of certain properties – think railroad operating property and Facilities, Financial Management, Human Resource Management, utilities – which may have value amounts adjusted based on the ratio Information Security and Disclosure, Information Systems, and data. What appears as a straightforward number (hopefully between Tax Operations. 90 and 105 percent) takes hard work, continuous collaboration, and a dedicated staff. The Property Tax Division is (by our own account) unique within the Department of Revenue. We serve taxpayers, but our primary role is one of oversight of our primary customers – the counties, cities, and local officials throughout the state. Rather than being “tax collectors” who bring revenue into the state, we provide assistance so that the counties can then collect revenue of which some is transferred to the state. We also actually distribute revenue to local units of government.
Summer 2011 | Equal Eyes 23 Division Management
As you may know, Myron Frans is the recently-appointed laws of the state and fully administer them. In an even broader Commissioner of the Department of Revenue. He has nearly sense, consistency and compliance is seen as a department-wide three decades of tax law expertise as well as strong business initiative. This will involve a more active role for our Property and managerial experience. The Property Tax Division reports to Tax Compliance Officers as well as more education so that you the Commissioner’s Office through Matt Massman, the Assistant have all the tools you need to do your work to the best of your Commissioner for Tax Policy. ability. You will see this assistance and focus on uniformity and consistency in various initiatives, including complex John Hagen is the Director of the Property property appraisal assistance, data and Tax Division. He was appointed in March reporting management and streamlining, 2010, replacing Gordon Folkman. John and improved analysis tools. An additional oversees all aspects of the property tax example is communication and outreach in administration process, from local levies, regard to state assessed properties. taxes, credits, and aids, to classification and valuation, to state assessed properties, I hope you enjoy reading about the work to legislative and policy realms. John groups in the division. In the electronic has worked in some aspect of property world we live in, you have likely seen tax administration for over 30 years. He an email from most of the folks on the started as an appraiser and was a County following pages. You will hopefully see Assessor before joining the Property Tax the staff of the division are a diverse bunch, Division, where he has 24 years experience in various roles. but they all share a common goal of serving our customers – the taxpayers of Minnesota, as well as property tax administrators. The division’s management team includes Assistant Director Deb Volkert, Eric Willette, Jason Nord, Lloyd McCormick, Before you get to know the division staff members, I would and Michael Stalberger. The team’s administrative support is like to highlight some special project initiatives in the division. coordinated by Jamie Hopkins. • The eCRV project is led by Jason Parker, and it has picked up momentum. Submiiting an electronic CRV will be a reality From the Director statewide before the end of 2011. It is my pleasure to introduce the Property Tax Division for this • Deb Volkert is leading several other department-wide initiatives to help our division function better and provide Spotlight final installment of the Regional Spotlight. I am proud to be associated with such a professional and hard-working group; the even better service. She is actively involved in a long-term employees in the division are among the best in the state. Even project to review and improve the way we collect and use property tax information. in light of the budget unrest and other concerns that could affect • Division employees are working on potential uses of an the morale of public employees, the team we have in place here extranet to communicate more directly and immediately. make it easy to come to work every day. • Of course we have annual reports and working groups that the division supports and staffs. Look for this to continue. Another reason why I appreciate the opportunity to be part of a feature describing our division and the work we do in MAAO’s On the next pages, you will learn about the specific work groups publication is because of the exceptional – and continually in the division. One truly essential part not listed there is the improving – relationship the division has cultivated with the assistance provided by the division’s support staff of Office and MAAO and assessors throughout the state. It is the only way I Administrative Specialists. The division is fortunate to have an can envision all of us doing our jobs as effectively as possible exceptional group of folks who work across work groups to make to serve our taxpayers. sure all the work gets done. In the Property Tax Division, we cross-train staff so that This spirit of collaboration is a focus of more than one person is able to complete my work as director. We all need to be tasks. That is even more true for our sure we are applying the same standards support staff, and you will see that as you and practices to administer the laws. We look at the pictures for each of the work are adding educational opportunities. We groups. The support staff that work with also work to bring in local property tax that group were included and shows their administrators on working groups and breadth and depth of experience. It is not committees, and we continue to build on an exaggeration to say that without these our relationships with MAAO. dedicated colleagues – Elsie Hendrickson, Jamie Hopkins, Pam Lundgren, Jodi Just as important as collaboration is Rubbelke, and Julie Rosalez – the Property Tax Division would consistency. We all know how important it is to strive to ensure not be able to function. consistency. Surely, the property tax in Minnesota is very complex, but part of our job is to make sure we understand the
24 Equal Eyes | Summer 2011 Information and Education
What we do: The Information and Education Section provides guidance, opinions, insight, and directions on the proper implementation of assessment laws. Each year we issue thousands of emails, as well as respond with hundreds of phone calls and written letters to property tax administrators, government personnel, elected officials, and taxpayers. We work with the Legislature during the legislative session when new laws are discussed, and after the session we educate assessors and other assessment personnel on the appropriate implementation of the laws. We coordinate numerous other educational offerings and courses by developing curriculum, organizing classes, and providing instruction. We oversee required reporting documents for Boards of Appeal and Equalization and monitor compliance initiatives. We also administer the Sustainable Forest Incentive Act.
Customers: Commissioner of Revenue, Assistant Commissioner of Goals: Revenue, Property Tax Division, Legislature, County Assessors . To assist in creating and maintaining equal and uniform and other assessors, Governor, other Minnesota state agencies, assessment practices statewide. . To ensure the proper implementation of property tax local government and various county/city officials, groups and assessment laws. associations, property owners, taxpayers / citizens. . To monitor compliance with statutory requirements. . To respond to requests for information or guidance Spotlight Products: accurately and in a timely manner. . Builds and maintains the Property Tax Administrator’s Manual. Challenges and obstacles: . Creates and updates Fact Sheets for general public use . Implementing and addressing annual legislative changes outlining the property tax process and various programs. to property tax laws. . Designs and maintains applications for homestead and . Providing accurate and consistent oversight of the property tax programs. implementation of property tax laws. . Coordinates training, guidebooks, and forms for Boards of . Providing guidance to lawmakers when addressing Appeal and Equalization. potential changes that need to be equally administered in . Develops annual format for Notices of Valuation and all areas of the state. Classification. . Facilitating productive interactions between different . Assists assessors with proper administration of property administrators (e.g. assessors, auditors, appraisers), tax laws. computer consortia, state agencies, etc. . Responds to questions (in writing and verbally) regarding . Completing critical review of sometimes-complicated data the property tax. to assist in determining qualifications for homesteads, . Provides advice and opinions to assessors on interpretation special programs, exemptions, etc. and implementation of property tax laws. . Develops bulletins and other administrative directions to aid in the administration of property tax programs. . Manages and provides education including Assessment Laws and Procedures, Assessment Administration, Code of Ethics, PACE, and Board of Appeal and Equalization training. . Collaborates with others on working groups teams including the board that reviews applications for property tax exemptions for institutions of purely public charities. . Monitors and coordinates the County Assessor application and appointment process. . Initiates assistance to assessors when responding to natural disasters and other emergencies.
Summer 2011 | Equal Eyes 25 Property Tax Compliance Officers What we do: The Property Tax Compliance Officers Section works in conjunction with the Information and Education Section and provides guidance, opinions, insight, and direction on the proper implementation of assessment laws. We conduct in- county visits and provide practical and hands-on assistance to assessors. We educate assessment personnel and other stakeholders on the appropriate implementation of existing and new laws. We provide instruction for numerous educational offerings and assist in developing curriculum. We act as the Department’s and the Division’s liaison in each assessor’s office. Each year we respond to numerous emails and phone calls from property tax administrators, government personnel, elected officials, and taxpayers. We work to ensure consistent, uniform, and equalized assessment practices and valuations throughout the state through sales verification and review, the sales ratio study process, and the State Board of Equalization. We provide assistance on the assessment of the most complex properties statewide. We are responsible for compliance . Provides advice and opinions to assessors on interpretation initiatives and audits, including required reporting documents and implementation of property tax laws. for Boards of Appeal and Equalization and other special . Assists in the development of bulletins and other investigations. administrative directions to aid in the administration of property tax programs. . Collaborates with others on working groups teams for Customers: property tax related matters. Commissioner of Revenue, Assistant Commissioner of . Participates in the County Assessor application and Revenue, Property Tax Division, Legislature, County Assessors appointment process. and other assessors, Governor, other Minnesota state agencies, . Assists assessors when responding to natural disasters and local government and various county/city officials, groups and other emergencies.
Spotlight associations, property owners, taxpayers / citizens. Goals: Products: . To assist in creating and maintaining equal and uniform . Provides guidance and assistance to all 87 county assessor assessment practices statewide. offices, in addition to numerous city assessor offices. . To analyze sales and other information to ensure valuations . Serves as the on-the-ground representative of the and classifications are appropriate. Department of Revenue in property tax matters. . To monitor compliance with statutory requirements and . Oversees the efforts of assessors in valuing over 2.5 million proper implementation of assessment practices. parcels (value approximately $585 billion) and classifying . To respond to requests for information or guidance property into more than 50 classifications. accurately and in a timely manner. . Recommends assessment changes to the Commissioner of Revenue via the State Board of Equalization to ensure Challenges and obstacles: compliance with state law, statewide uniformity and . Implementing and addressing annual legislative changes consistency in assessment practices. to property tax laws. . Interacts and communicates with assessment professionals . Providing accurate and consistent oversight of the and other tax administrators at the county and local level, implementation of property tax laws. providing a bridge between the Department of Revenue . Facilitating productive interactions between different and local practitioners. administrators (e.g. assessors, auditors, appraisers), . Educates and informs participants in various courses, computer consortia, state agencies, etc. seminars, and workshops. . Completing critical review of sometimes-complicated data . Investigates compliance with property tax laws and to assist in determining qualifications for homesteads, assessment practices and reports findings/initiates required special programs, exemptions, etc. changes. . Collects, reviews, and analyzes sales information throughout the state to understand and compare to assessors’ responses to local markets. . Coordinates information sharing between counties to ensure consistent and uniform valuation and classification. . Responds to questions (in writing and verbally) regarding the property tax.
26 Equal Eyes | Summer 2011 Property Tax Compliance Officers Region 8 (Regional Rep) Assigned Counties Lake of the Woods Kittson Roseau As of February 2011
Marshall Koochiching
Pennington Beltrami Red Lake Cook
Polk St. Louis Clearwater Lake Itasca Norman Mahnomen Region 4
Hubbard
Becker Clay Cass
Spotlight
Wadena Aitkin Carlton Crow Wing Wilkin Otter Tail
Region 7 Todd Morrison Pine Kanabec Region 3 Grant Douglas Mille Lacs
Traverse Benton Stevens Pope Isanti Stearns Big Stone Sherburne Chisago
Swift Wright Anoka Regional Rep Kandiyohi Meeker Washington Tom Reineke (7) Region 6 Chippewa Ramsey Tom Nash (9) Lac qui Parle Hennepin Region 9 Steve Hurni (13) McLeod Carver Yellow Medicine Sherri Kitchenmaster (14) Dakota Renville Scott Mike Stalberger (5) Sibley Larry Austin (13) Goodhue Gary Amundson (11) Lincoln Lyon Redwood Nicollet Le Sueur Rice Brad Averbeck (15) Brown Wabasha
Waseca Blue Earth Pipestone Murray Cottonwood Steele Dodge Olmsted Watonwan Winona
Rock Nobles Jackson Martin Faribault Freeborn Mower Fillmore Houston
Region 5 Region 2 Region 1
created 02/17/2011 Summer 2011 | Equal Eyes 27 Property Tax Research What we do: The Property Tax Research Section provides information and data related to the property tax system. Information is collected and integrated in various database systems and utilized to create reports, conduct analysis, and complete modeling. We work to provide accurate, complete, and timely information so recipients can make knowledgeable decisions. We coordinate annual data collection and reporting projects for the department and the division which are utilized as measures of the property tax system as a whole as well as indicators of and tools for specific components and activities.
Customers: Commissioner of Revenue & Assistant Commissioner of Revenue, Property Tax Division Director and Personnel, Tax Research Division, Legislature and legislative staff, Governor, local governments, assessors, other state agencies, policy groups and associations, academics, individuals / citizens. tax assessment, as well as an overview of the Minnesota Products: Department of Revenue’s responsibility to oversee the state’s . Builds and maintains tax simulation models for property property tax assessment process. tax aids and credits, levy behavior, and for the property tax . Gives presentations to and serves as an educational resource system as a whole. for the division, the Department, the legislature and local . Analyzes proposed legislation for fiscal impacts related to governments on property tax trends, sales ratio, and the property taxes, aids and credits. Supports the tax policy Voss database. process by providing the legislature, the commissioner’s . Conducts surveys and provides research and statistical office and the general public with revenue estimates of analysis on other legislatively mandated studies related to these impacts. property taxes and property tax programs. . Testifies at legislative committee hearings on the impacts of . Provides support to legislatively-mandated studies and
Spotlight property tax proposals. groups, including the Property Tax Working Group, the . Compiles and analyzes sales data from 87 counties and three Fiscal Disparities Study and the Tax Expenditure Review cities in order to produce annual Assessment Sales Ratio Study. Studies for the Minnesota Tax Court, for equalization of property tax levies and state aids to local governments, and Goals: for the equalization of assessments throughout Minnesota . To meet statutory requirements and deadlines. through the State Board of Equalization. . To provide timely and useful information to property tax . Develops and maintains the property tax-income (Voss) administrators and policy makers. database. Conducts comprehensive research and analysis in order to produce the annual Residential Homestead Property Challenges and obstacles: Tax Burden Report, which examines how homeowner . Producing accurate and reliable research and analysis under property values and property taxes vary by income and tight and constantly-changing legislative deadlines. region. . Updating models, databases and assumptions of the property . Develops and implements database systems of property tax tax system based on both mandated changes and observed and related data to maximize the efficiency and accuracy of behavior. our research and statistics. . Compiles data and conducts in-depth analysis of statistics related to property taxes, aids (including local government aid and county program aid), credits, levies, and effective tax rates. . Answers requests for property tax data and analysis from the legislature, researchers and the public. . Annually researches and evaluates property tax value trends and assessment quality indicators across the state to produce the legislatively mandated Property Values and Assessment Practices Report. This report provides the legislature with an accurate snapshot of the current state of property
28 Equal Eyes | Summer 2011 State Assessed Properties What we do: The State Assessed Property Section values certain utility, railroad, air flight, and wind energy property throughout the state. It also provides information and data related to the valuations and assessments of these properties. The valuations conducted by the section are complex and differ from the valuations traditionally associated with the property tax as they are based on the unitary value of the entity as a whole. We work to provide accurate, complete, and timely valuations so counties can correctly apply these values and calculate taxes. Additionally, the section answers numerous questions from counties related to state assessed property as well as addresses questions and appeals from the entities being valued. We also work closely with county officials to ensure the final values for each entity are correctly apportioned to the specific taxing areas where they are located.
Customers: Commissioner of Revenue & Assistant Commissioner of Revenue, Property Tax Division staff, Legislature and legislative assessed property. staff, local governments, assessors and auditors, other state . Answers requests for state assessed property data and agencies, policy groups and associations, utility companies, analysis from the legislature and others. airlines, railroads, wind energy generation companies, property . Provides support to legislatively-mandated studies related tax representatives. to state assessed property.
Products: Goals: Spotlight . Completes the annual valuation of 92 utility companies, 21 . To meet statutory requirements and deadlines. railroads, 32 airlines, and over 1,700 wind towers with an . To provide timely and useful information to property tax estimated market value of over $8 billion. administrators (counties), tax representatives, and policy . Builds and maintains databases to collect information makers. from counties and companies to complete valuations and . Improve reporting and communication processes with maximize the efficiency and accuracy of the section’s work counties and entities. product. . Coordinates the determination of data required to be Challenges and obstacles: provided by utility, railroad, air flight, and wind energy . Producing accurate, stable, and fair market valuations for companies for use in the valuation process. all property under tight deadlines. . Serves as policy expert in administering the state assessed . Staying current on legislative changes, industry changes, property tax by analyzing statutes, rules, and procedures to and best practices that are constantly changing. fairly and uniformly value state assessed property. . Utilizing current technology to improve efficiencies and . Gathers relevant information and completes studies of procedures. industries and industry segments to determine appropriate . Finding new avenues to share information and knowledge changes in policy. on complex and technical subjects with all stakeholders. . Conducts annual capitalization rate study and blue chip railroad study to determine appropriate rates to use to capitalize company income into an estimate of value. . Responds to taxpayer appeals in formal and informal settings to ensure fair, uniform, and proper treatment of all taxpayers. . Participates as a representative of the Department of Revenue in tax court litigation regarding state assessed property. . Provides education and assistance to counties and entities sufficient to answer questions and allow them to understand the valuation process. . Analyzes proposed legislation and supports the tax policy process by providing the legislature, the commissioner’s office and the general public with information regarding the impact of legislative changes. . Testifies at legislative committee hearings related to state
Summer 2011 | Equal Eyes 29 Taxes and Aids Administration What we do: The Taxes and Aids Administration Section is responsible for numerous administrative functions of state government. We make administrative policy through instructions, guidance, education, and establishing reporting requirements. We also provide direct program administration of various functions; from aid calculation, certification, and payment; to executing state deeds. We provide expertise, data, and reports to policy makers and other customers. We oversee tax programs and corrections of errors. We coordinate annual data collection of assessment and property tax information that is used throughout the division and by others.
Customers: Legislature, legislative staff, Department of Revenue Commissioner and Assistant Commissioner, the Governor, Property Tax Division staff, county and local government officials, computer program vendors and consortiums, other state agencies, data request customers, real estate practitioners, title . Develops and maintains the following manuals: Property companies, lawyers, research and civic organizations, general Tax Administration, Tax Delinquency and Forfeiture, and public. Delinquency Personal Property Tax. . Provides instructions and forms for the tax statement and truth in taxation notice. Products: . Testifies at legislative committee hearings on the impacts of . Determines, certifies, and pays nine state aids, including: Local Government Aid (LGA), County Program Aid, Police property tax proposals. State Aid, Fire State Aid, and Disparity Reduction Aid. . Gives presentations and serves as an educational resource . Determines, certifies, and pays seven state credits, including: on property taxes, aids, and credits. Residential and Agricultural Market Value Credits, Disaster Credits, and Bovine TB Credits. Goals: . Administers other state payments, including: DNR-PILT .
Spotlight To meet statutory requirements and deadlines. payments, Insurance Surcharge, Senior Citizen Deferral, . To provide timely and useful information to property tax Taconite Aid Reimbursement, MN Conservation Fund, Local administrators and policy makers. Option Abatement, Border City Reimbursement, Wetland . To improve reporting and communication processes with Credit Reimbursement. . counties and other stakeholders. Determines, certifies, and administers levy limits and special . To ensure the proper implementation of property tax laws. levies for counties and cities over 2,500 population. . Manages state deeds for the conveyance of tax-forfeited land on application from county auditors by executing deeds, and Challenges and obstacles: processing re-conveyances and cancellations of forfeiture. . Producing accurate and reliable data and analysis under tight . Monitors use deed compliance and determines allowable and constantly-changing legislative deadlines. public uses for use deeds to governmental subdivisions. . Staying current on legislative changes and government . Develops and maintains data abstracts, including: Abstract practices that are constantly changing. of Tax Lists, Abstract of Assessment; TIF Supplement, Fall . Utilizing current technology to improve efficiencies and Mini Abstract, Spring Mini Abstract, Manufactured Home procedures. Abstract, and Exempt Property Abstract. . Provides instructions and guidance for the preparation and completion of each abstract by developing procedures to implement property tax law changes. . Completes analytical and data summary projects for the Commissioner, department policy staff, working groups and external customers. . Communicates with external and internal clients regarding Thanks to all the property tax system questions. Property Tax Division Employees . Calculates preliminary and official state general property tax for providing the information for the staff rates and collects county payments and reports. introductions, and a special thanks to . Audits state tax data and coordinates accounting within Revenue and with Minnesota Management and Budget. Jamie Hopkins for compiling it all! . Teaches Auditor/Treasurer Property Tax Administration Course and prepares the Tax Calculation Course and testing.
30 Equal Eyes | Summer 2011 Property Tax Division Staff
Division Management process, etc. Deb also serves as the Executive Secretary/Treasurer of John Hagen, Division Director the MN State Board of Assessors. She enjoys the problem solving John is the director of the Property Tax division, a position he has been required by her job and that there is always something new to learn. in for about 16 months. He has worked in the division for 24 years Keeping all the balls in the air can be a challenge. Traveling when and has a total of 39 years of government service. John enjoys his job she was young, Deb now stays close to home with her 10-year old and finds it rewarding – he looks forward to coming to work every daughter who presents new challenges every day. Deb wonders if day. He lists the variety of work, the challenges and opportunities her daughter keeps her young or wears her out! that he encounters as some of the most enjoyable parts. However, (Editor’s note: other division management and supervisors are listed John says by far the most enjoyable part of his job is and always has within their work groups.) been the bright and hard working people has had the opportunity to know and work with both inside the department and in the assessing Special Projects and Division Support profession. John lists putting people in a position to be successful, Jason Parker, Data and Information Project Manager keeping coworkers energized and challenged, and trying to make Also known as the “eCRV Project Manager,” Jason has been with the work enjoyable and meaningful as his biggest challenges. Property Tax Division for a little over five years. His main endeavor right now is to work with counties, submitters, state staff, and all He is married to LuAnn, and has two daughters (Amanda and Brooke), stakeholders to create and implement a successful electronic CRV three stepsons, and five wonderful grandchildren. John’s hobbies (eCRV) system to replace the multi-part paper CRV form. Jason include Twins Baseball, fishing, woodworking, remodeling houses, also assists the PTD in improving efficiency and service through reading historical accounts, movies and music. appropriate and up-to-date use of technology. A new initiative is to implement an extranet web portal for interacting more effectively When John began work with the department, he was given a #2 pencil, with counties and specific stakeholders. He enjoys meeting and a pad of paper and a statute book. There was one Apple computer working with county staff and visiting county offices in greater in the division that Wayne Gerwing used to create pie charts for his Minnesota! However, aligning technical systems to serve people and their work needs is an on-going challenge that requires patience annual railroad report. No one could think of anything else to do Spotlight with it. Today we have computers with multiple screens, BlackBerry and tenacity. cell phones and instant messaging. He’s not sure he could find a #2 pencil in the Division. Besides shuttling three kids to various activities and serving as an assistant youth baseball coach, Jason has performed at the Minnesota Renaissance Festival for over 25 years. Jason says, “It is exciting to see the evolution of increasing teamwork between counties and the state to serve citizens. Together, we have only just begun!”
Elsie Hendrickson, Office & Admin Specialist Int Elsie has been in the PTD for over 27 years with a total of 28 in government service. A couple of her main responsibilities are maintaining the State Assessed database so valuations can be sent to companies and preparing and sending State Deeds for Tax Forfeited Land to County Auditors.
She enjoys the flexibility her job provides but finds meeting those pesky deadlines can pose a challenge.
Deb Volkert, Assistant Director Jamie Hopkins, Office & Admin Specialist, Sr Deb has spent about 36 years in government service, witnessing Jamie has been with the state for one and a half years with a total of the evolution of what it is now the Property Tax Division. She’s four years of government service, include a stint in the Peace Corps. moved through Research & Planning, Local Government Aids & Jamie provides administrative support to the management team as Analysis, Local Government Services (which merged with Property well as the Information and Education Section. She manages the Equalization), and then the division was renamed the Property Tax correspondence system routing and tracking incoming questions from Division. She considers herself fortunate to have worked in most areas assessors and taxpayers. Jamie is glad to play a role in ensuring the of the division over the years providing a unique and broad perspective. property tax laws are administered equitably throughout the State. Deb is currently involved in division operations - an area that has been Her primary challenge is decoding all the new terminology, acronyms neglected within the division for a number of years - so flexibility exists and abbreviations. as to where to start and what it will entail. Additionally, she is involved at various levels in many data related projects, such as moving utility and Ideally if she’s not at work in the short summer, she’s playing “two’s” airline flight valuations (and tax calculation for airlines) into GenTax volleyball. However, recently starting graduate school forces Jamie (Department of Revenue tax system), redesign of data collection to hit the books more often than the beach.
Summer 2011 | Equal Eyes 31 Property Tax Division Staff Special Projects and Division Support, cont. JodiLynn (Jodi) Rubbelke, Office & Admin Specialist Int Taxes and Aids Administration Jodi has been in the PTD for 31 years and currently spends her Jason Nord, State Program Administrator Director time processing CRV/eCRV batch files, managing LBAE/CBAE Jason has been in PTD for 10 years, prior to which he also registration and certificates, and providing general office support. worked at the DOR in the Research Division for five years. His She is glad for the variety of projects she has to work on and the responsibilities including managing: abstracts and reporting; aid fact that she only works ¾ time. calculations, certifications, and payments; and auditor/treasurer- related programs (state property tax, levy limits, property tax Jodi has been married for 27 years, has two daughters, and two statements, TNT, forfeiture, deeds, etc.). Jason enjoys interacting dogs. She loves going to thrift stores, turning trash into treasures, with counties and trying to find ways to make things work better. although she confesses that sometimes it still is trash. She also Unfortunately, the complexity of the property tax system and the volunteers for Send Love Today, making handcrafted cards and constant demands on time and resources seem often to get in the sending them to people who are battling brain cancer. way of that very endeavor.
Julie Rosalez, Office & Admin Specialist Sr James Shanley, State Program Administrator Intermediate Julie, aka the Sustainable Forest Incentive Act (SFIA) James has been in the PTD for three and a half years. He maintains Administrator, has been with PTD for 17 years and has a total of and audits the abstracts that are used for quality control of local 31 years of government service. Her duties include processing government property tax data and also processes the division’s enrollment applications, creating and maintaining program payments of aids and credits. In addition to those roles, James also information in the new Gentax system, and annually processing creates and updates SAS programs and SQL/Access databases used certification letters and incentive checks. Julie likes working with throughout our division. In addition to enjoying working with his the variety of people from Revenue, DNR, Private Forester, the colleagues (we like working with him too), James enjoys the work counties, and the landowners. There is something new every day variety which always provides opportunities to learn new skills. with SFIA, but for now, it can be the challenge of wondering if we Challenges in his role can be gathering the most useful data in a will have a program or not by the time this article is published. timely manner and finding the best format for presentation of the data to the users. Julie has been married for 27 years and has two great sons. Her
Spotlight hobbies are hand quilting, gardening, and canning items grown In his free time, James can be found golfing, bowling and reading in her garden. to compensate! While only in PTD for a few years, James has been offered more challenging duties as his skills increase. Pam Lundgren, Office & Admin Specialist, Sr If you’ve ever called the division with a licensing question, Jonetta Feiner, State Program Administrator Intermediate you were likely greeted by Pam. She is Jonetta has been with PTD for 35 years, and 37 total in government the Program Administrator for the State service. She started in the Property Tax Division spending 25 as Board of Assessors (SBA), among other Jerry Silkey’s secretary. Jonetta then moved into the Taxes and duties. Pam as worked in the PTD for over Aids Section and has been there ever since. Her primary role is 19 years in a career of government service auditing abstracts, made challenging by the many law changes that spans more than 30 years. In her role affecting them. While Jonetta does enjoy working with a wide serving the SBA, she issues yearly licenses, array of local and state employees, she looks forward to retiring maintains databases for education and if/when the economy turns around. licensing, and coordinates the meetings (making arrangements and taking minutes). Speaking with Pam, you can sense the enjoyment she has for her work, and this includes the interactions with the assessors, Pam Lundgren’s her co-workers, and the relationships she has alter ego built with the SBA. Pam faces the annual challenge of getting all the assessors licensed before June 30th – she compares it to herding cats! It just doesn’t happen without a lot of effort.
Pam boasts a “great family” of two sons, wonderful daughter- in-laws, and seven grandchildren. She says anything that burns gasoline or makes sawdust is interesting and definitely fun. Pam enjoys classic cars, shooting, woodworking, live theater, blues music, classic movies and books. She is also a good cook (as any Jonetta Feiner, SPA and Luau dancer? grandmother should be) and knits and crochets for the family.
32 Equal Eyes | Summer 2011 Property Tax Division Staff
Taxes and Aids Administration, cont. changing property tax system. Heather Bestler, State Program Administrator Heather has been in the PTD for 10 months but also has some Shawn Wink, State Program Administrator Principal South Dakota government service under her belt with three years Shawn has been with the PTD for 13 years. In his role he issues as Naturalist for their Game, Fish and Parks Department. At PTD, the property tax aid and credit payments, administers the property Heather administers the State General Tax program, audits abstracts tax levy related programs (TNT, Levy Limits, Levy Survey), and and helps create, assist and edit various web-based projects. serves as budget coordinator for the division. He likes the variety Heather appreciates the freedom to work on what she enjoys and of the work and the people he works with, but finds it challenging the opportunity to develop talents and abilities through continuing to make sense of our increasingly complex and ever-changing education and working with knowledgeable co-workers. The property tax system. steep learning curve can be arduous, as the property tax system is complicated and always changing. Property Tax Research Eric Willette, Property Tax Research Director Heather recently graduated with a Masters in Public Administration Eric, aka “Head Nerd” has been in the PTD for four years, before and is fluent in German. which he served 12 years with the League of Minnesota Cities. Eric leads the research section’s activities, which include: legislative Larry Bewley, State Program Administrator Senior revenue estimates; sales ratio studies; and providing reports and other Larry has been with PTD for 29 years. His primary responsibilities property tax information to the commissioner’s office, the Governor’s are related to administering the various office, legislators, local government officials, the media and the public. state aid programs – Local Government Eric likes that he gets to work with fun, smart people on interesting Aid, County Program Aid and Police and and important topics. However, describing the property tax system Fire Aid. Larry enjoys the people he works to the diverse audiences he works with can be challenging. with on a daily basis and has a common
challenge we all experience – making Eric and his wife, Elizabeth Roe, have two daughters, Eleanor (9) Spotlight deadlines. and Clara (7). In no particular order, Eric likes baseball, music, birds and detective novels. Larry Bewley is the Larry enjoys collecting “stuff” and puts Commissioner of the himself on the verg of being a hoarder! Nick Greene, Senior Research Analysis Specialist division’s annual NCCA Nick has been in the PTD for four years, with a total of ten years at the bracket contest Derrick Hodge, State Program DOR. He is responsible for scoring legislative proposals, state budget Administrator Senior forecasting, and modeling property tax aids, credits and refunds. He Derrick has spent seven years in PTD for a total of 12 in government enjoys the opportunity to work on a variety of property tax issues and service. His primary responsibilities are administering the delinquent also the problem-solving involved. A challenge in his role includes tax and tax forfeiture process, coordinating the State Deeds for Tax- trying to compensate for imperfect data. Forfeited land, analyzing and implementing tax policy and providing administrator education. Derrick enjoys the diversity of the work Nick is married with two children (a third on the way!) and enjoys and that he is always kept busy (maybe even a little too busy...). He golfing. also enjoys interacting with county staff and (hopefully) helping them along the way. Constantly (re)prioritizing his work to ensure Jean Tian, Research Analysis Specialist that he is focused on the most critical items can be challenging. Jean has worked for the division for two and a half years. She works with the Voss (Property Tax Derrick is married and has two daughters (ages 7 and 4) and a son Burden Report) database which (age 1). He loves reading books and watching TV and having fun links property tax and income with the family information for each homestead in the state. The database contains Nissa Herberg, State Program Administrator data on estimated market value, Nissa joined the Property Tax Division 10 months ago, but she state-paid property tax refunds, has about three years of government service. She processes and net property tax, and homesteader calculates aid payments, including local government aid, county income. Jean cleans, edits, program aid, and pension aids. Nissa is also involved in the maintains, and updates the database legislative process, incorporating legislative changes into the and conducts data analyses with its Auditor/Treasurer Manual, educational materials, and administrative information. She enjoys learning processes. She also prepares materials for and teaches various topics new things on the job and working at auditor/treasurer courses. Nissa is drawn to public service, so Jean Tian and James Shanley with her co-workers. Her primary she enjoys that part of her job as well as the ongoing education display their winning entries in challenge is catching up on new the PTD St. Patty’s Day Food available. Her primary challenge, being fairly new to property programming languages. Contest tax administration, is understanding the complex and continually
Summer 2011 | Equal Eyes 33 Property Tax Division Staff
Property Tax Research, cont. Michael Williams, Research Analysis Specialist Tom Clark, Research Analyst Michael has spent three years at DOR in the PTD. His primary Tom has spent 34 years with the responsibilities include general data analysis, and specifically PTD. He helps plan and implement developing the Voss Report and the Sales Ratio Study. Well-suited the annual assessment/sales ratio for his role, Michael enjoys getting his hands dirty with data and the study which is used to evaluate challenge to produce unbiased and nonpartisan research. assessment quality throughout the state. He analyzes and distributes Lonn Moe, Revenue Operations Specialist data prepared in the study. He Lonn has been with the PTD for three years and has a total of enjoys the excellent variety his 25 years of in government service. His primary responsibilities role presents, a mix of people include budget forecasting, property tax simulation modeling, interaction, technical statistical and conducting revenue analyses for introduced legislation. Lonn Eric Willette and Tom Clark at a analysis and programming. One appreciates the opportunities he has to help fix the system but getting division-wide lunch challenge he faces is constantly data in a timely matter can be challenging. adapting to new tools and processes that enable more meaningful and cost effective data collection and analysis. Lonn is taking horseback riding lessons and enjoys gardening.
Leonard Peterson, Research Analyst Supervisor Leonard serves as the Supervisor for the Sales Ratio Unit. He has been with the PTD for 27 years and has a total 39 years of government service. His primary responsibilities include preparing sales ratio studies for the State Board of Equalization and Minnesota Tax Court, calculating adjusted net tax capacities for school and local government aid distributions, and making sure that the Department’s sales ratio procedures stay aligned with the IAAO standards. Leonard appreciates the chance to work with a variety of people on
Spotlight many technical issues and the opportunity to continually upgrade his knowledge and skills. He comments that maintaining a high quality product when resources are greatly reduced can be difficult. Information and Education Leonard is married with three adult children and one grandchild Michael Stalberger, Revenue Property Tax Programs Supervisor (photos available on request!). His hobbies include deer hunting with Mike has been with the PTD for four years and has a total of 7+ his youngest daughter, fishing at his family lake home, travelling years of government service under his belt. He wears many hats as with family, photography, videography, reading and painting, the Assessment Practices Supervisor. He works with Information astronomy, and singing in choir. and Education section staff to provide timely, accurate, and complete information to assessors, including developing courses Leonard comments that technology sure has changed from when and providing assessment advice. He also works with the State he started; computers weren’t networked and he used IBM punch Assessed Property section staff to value all state assessed property, cards for input. Also, the abstracts were hand edited and came in including utility, railroad, air flight, and wind energy property and on large booklets the size of horse saddle blankets. provide information to counties and interested parties. Lastly, he coordinates assessment practices activities with other division Jessica Harding, State Program Administrator Intermediate activities, including legislative activities, policy and procedure Jessica has been with the PTD for about two years, during which development, and better use of technology. Mike considers his there was an interruption for a stint when she taught English co-workers a great bunch of people and also enjoys the daily work in Hong Kong. Her responsibilities include administering the variety and the challenge in finding answers hiding in the “not-black- legislative revenue estimate process for the Property Tax Research and-white” world of assessing. His primary challenge is balancing Unit, serving as the administrator for the Property Tax Working time and resources with all we have to do in assessing. Mike’s role Group, and assisting in the production and distribution of research at Revenue has changed throughout his career here, and is grateful reports, presentations and data. Jessica likes the participation in the that the department supports this learning. For anyone who recently legislative process that her role provides, as well as great coworkers. took a class Mike instructed, you learned a very interesting fact She says it can be difficult to balance and prioritize projects with about him – everyone else will have to wait for the next class… strict deadlines. Mike enjoys running, has completed a marathon and is looking Jessica and her husband (who happens to hail from England) serve forward to other races. as a foster family for cats for a local animal rescue organization.
34 Equal Eyes | Summer 2011 Property Tax Division Staff Information and Education, cont. Andrea Lee Tish Fish, State Program Administrator Senior Jessi Glancey, State Program Administrator, Intermediate Andrea has been with the PTD for just over 3 years. Her primary Jessi serves as the Education Coordinator for the various education responsibilities include answering questions from assessors on programs in Information and Education. She has been in PTD for classifications, exemptions, special programs, etc.; working with six months and with DOR for one and a half years. Her primary the Legislature during the session as they are writing new laws responsibilities include coordinating the educational offerings, and preparing our law summary; and maintaining manuals and instructing courses, and building and updating teaching materials. other documents that are used in administering property taxes. Jessi really enjoys the teaching aspect of her job, as she loves Andrea enjoys her great coworkers, the fact that no two days are being in a classroom and educating people. Challenges in her role the same, and continual opportunities to learn. Sometimes the include understanding all the different concepts and new laws that volume of work can be staggering, and the questions, especially are constantly changing. those on exemption can be extremely complicated, requiring a lot of research and time. Jessi and her husband of five years and have a three year old little boy who always makes them laugh and another child on the way! Andrea lives with her husband and their dog (she refers to them as They enjoy doing things as a family, anything from going on walks her Prince Charming and his Noble Steed). She spends the majority to finding new and fun places to visit. of her personal time reading or working out. Andrea says one thing you may not know about her is that she types incredibly fast (while being accurate) – she once tested at 180 words-per-minute.
Property Tax Compliance Officers Lloyd McCormick, Appraisal Supervisor Lloyd is the Supervisor for the Property Tax Compliance Officer (PTCO) work group. He has worked in the Property Tax Division
for 25 years, and had 10 years of previous government experience Spotlight for a total of 35 years. Lloyd’s primary responsibilities include coordinating the State Board of Equalization; reviewing PTCO orders/recommendations; working with the PTCO work group, providing assistance and guidance; and coordinating PTCO activities with other division activities with an ultimate goal of regional and statewide consistency. He enjoys the variety of the job responsibilities and interacting with assessors throughout the Drew Imes and Jessi Glancey planning - state. The biggest challenge he faces is accomplishing our goals or scheming - the next assessor’s class with limited resources. He notes that a lot of the changes he sees have come through the use of technology. The basic functions the Drew Imes, State Program Administrator Senior division does have stayed the same; they just get done differently Drew has been with PTD just over three years. He and Andrea Fish now with new resources. started on the same day! If you count summers working for the Lake County Highway Department, Drew comes in with about four years Besides hating painting, which Lloyd just crossed off the “honey- of government service. Drew’s main duties include responding do list,” he enjoys woodworking, kayaking, and drumming. Lloyd to inquiries from assessors, taxpayers, and others; reviewing, is married with two adult children. analyzing, and interpreting laws to inform local governments of the administration of the property tax system; providing formal Tom Reineke, Property Tax Compliance Officer 2 training concerning the administration of the property tax system; Tom is the other “new” Regional Rep in the division, having and participating in formal investigations concerning inappropriate started in November 2010. Prior to joining the department, he behavior or violations of laws/rules. He enjoys the fact that there is worked for Rice County, the City of Bloomington, and the State something different to do every day. of Arizona, for a total of over 14 years of government experience. Tom’s current position requires monitoring sales/assessor market Drew is definitely an outdoorsy guy; his biggest challenge is values for equalization of assessment level between counties and sitting inside all day. He notes he needs fresh air to survive – he is assisting counties with complex property valuation issues. One a snowboard instructor in the winter and a mountain biking/long- aspect of his position allows him to research unusual or one-of-a- boarding bum the rest of the year. Drew prefers sleeping in a tent kind properties. Tom finds this very interesting and challenging rather than in a real structure and would have every meal cooked at the same time. over a campfire if he could. He quite possibly could be the last person his age who doesn’t have “The Facebook” (nor does he have cable He has been married for 21 years and both he and his wife enjoy TV or the internet at home). Drew lists his most amazing trait: he outdoor activities including horseback riding, camping and actually found a girl that wants to marry him! gardening.
Summer 2011 | Equal Eyes 35 Property Tax Division Staff Property Tax Compliance Officers, cont. Tom Nash, Property Tax Compliance Officer 1 Brad Averbeck, Property Tax Compliance Officer 1 Tom has worked as a Regional Rep in the Property Tax division Brad is better identified as a Regional Rep – a role he has performed for over 26 years. On top of that, he served in the United States Air for over eight years. Prior to that, he worked at the county-level for Force and worked in Todd County, bringing his total government 10 years, bringing his government service total to over 18 years. service to over 34 years. Tom lists as his primary responsibilities Brad reviews sales (CRVs), conducts office visits, ensures ratio ensuring that the assessment of his assigned region of the state is compliance for State Boards of Equalization, answers questions assessed properly and equitably and analyzing sales data. He enjoys and gives assessment guidance wherever he can. Brad enjoys the working with the assessors and their staff and is challenged by the incredible diversity of the region he works in. He has everything complicated issues in different markets (as well as figuring out the from the agriculturally-rich Red River Valley to the lakes and computers!). streams of the north central region. Brad’s biggest challenge is the driving. His average one way commute to a county is almost 2 Tom has one son who is in the Marine Corp. Reserves and who just hours! This can result in a lot of road time, which at times can make recently married a wonderful lady. He has many hobbies, including it difficult to finish other tasks. Brad notes his job has changed over primitive camping and buckskinning activities (1803 to 1840 era). time as the size of his region has “grown.” Tom teaches firearms safety to young adults and adults, and he likes to shoot and hunt. He also enjoys outdoor and nature photography Brad has been married to his wife, Debbie, for 22 years and they and is an avid fan of automobile racing - especially sports cars and have three boys. He enjoys hunting (especially for the waterfowl) formula one cars. and fishing (especially bow fishing). Tom notes tremendous changes at the department. The “Good Old Sherri Kitchenmaster, Property Tax Compliance Officer 1 Boy” ways of doing things are gone, as is the writing of letters and Sherri is also better known to the counties she works with as their manuals by hand. The computer is a great time saver and a good Regional Rep, and she is one of the newest Reps with nine months tool to use for analysis. of service in the division. Previously she worked at the county-level for 10 years. She briefly summarizes her responsibilities as being Larry Austin, Property Tax Compliance Officer 1 an “information conveyor” and she picks up CRVs and she ensures Larry has spent 35 years in government service, eight of which equalized values. Sherri really enjoys working with the counties. have been in the property tax division serving as a PTCO/Regional
Spotlight Her primary challenge is related to her newness. The training and Rep. He recently began working with the counties and cities in keeping track of all the information she is learning can be difficult. Northeast Minnesota. His primarily responsibilities include ensuring equalization within the county, within the region, and across regions Sherri has been married for 13 years and has two sons. Her siblings of the state. He also serves as a liaison between the counties and the are spread all over the western US from Alaska, to Wyoming, to department, being available to answer questions and give advice in a Kansas, to Arizona. Sherri loves to take pictures and scrapbook. timely manner. Larry enjoys meeting new assessors and assessment support staff, mentoring new county assessors when needed, providing information, answering questions and helping assessors do the best possible job. His challenge is new – the driving! Instead of working with all the metro counties, he has some long trips. Larry notes that his new assignment required him to leave a very talented, professional group of hard working assessors for a new group of very talented, professional, hardworking assessors. It just is a longer drive. He wonders if anyone knows a short cut to Baudette.
Steven Hurni, Property Tax Compliance Officer 2 Steve has been in government service for 34 years, 23 of which have been in PTD. Currently he serves as a Property Tax Compliance Sherri Kitchenmaster, Tom Reineke, and Jason Nord at (yet another) division meeting! Officer 2, also known as a Regional Representative. Steve provides assistance, guidance, and oversight regarding property taxation. He values the opportunities the Regional Rep role has given him Gary Amundson, Property Tax Compliance Officer 2 to work with the great County/City Assessors and their amazing Gary is the Regional Rep for part of the metro area and north/ staffs throughout the state. Steve finds the “specialized” legislation northwest ring of counties – a territory new to him even though he has affecting statewide assessment practices challenging. Steve worked for the division for 24 years. Add on secen years of county- comments that the technology advancements that have become level service, and Gary has 31 years of government work experience. available to the assessment profession over these past 30+ years Gary spends his work time reviewing sales ratio statistics, evaluating are pretty amazing. assessments, and providing assistance to assessors. He enjoys the variety of issues and people. As for his primary challenge? He says, Steve and his “special lady” Paula have been married 25+ years and “ditto” - the variety of issues and people. are very proud of their two children Matthew (23) and Melissa (21).
36 Equal Eyes | Summer 2011 Property Tax Division Staff State Assessed Properties Stephanie Nyhus, Principal Appraiser Patricia Fondrick, Revenue Tax Supervisor 2 Steph has worked in government service for 16 years, with Trish is the State Assessed Property Supervisor, a position she has almost 10 of those years in the PTD. She recently transitioned been in for five months. Prior to joining the division, she worked from the Information and Education to State Assessed Properties. for the department for over four years. Her primary responsibilities Even though she is no longer with I&E, she hopes to bring the include supervising the State Assessed Property work group staff and communication channels she developed with counties there to all that it involves (completing timesheets, reviews, making sure it is State Assessed and develop policies and procedures for that all running smoothly, etc.). This includes the valuation of Utilities, section. Steph oversees the specialized tax administration for Railroads, Airflight and Wind Energy. The work group completes property which is subject to state assessment including utilities, the valuations of the different entities so the counties are able to railroads, airflight, and the wind energy production tax. She is assess the taxes. She also works on the division’s implementation of also a trainer for state assessed property’s transition to GenTax, the GenTax tax system, participating in meetings regarding utility our integrated tax system. This involves learning the computer and airflight. Trish enjoys the challenge of the valuations that work system and developing training materials to train other members group completes, but determining a value for some of these most of our division. Steph enjoys being back on the valuation side complex entities are also her primary challenge. of the equation. Unitary appraisal is different from real property appraisal, and it has been a challenge (yet fun) to learn the new Trish is married and has 3 dogs, and she enjoys reading, cross- procedures and gain a new perspective. Her primary challenge is stitching and singing. consolidating the viewpoints between accountants and appraisers –something she already knew from personal experience! Ann Schwieger, Revenue Tax Specialist Senior Ann is a Revenue Tax Specialist (RTS) in the division’s State Outside of work, Steph can usually be found shuttling her daughter Assessed Properties work group. She has worked in the division for around to extracurricular activities. Maddie will turn 15 shortly and three years, and has five additional years of service in the department will be a sophomore this fall. Steph will be happy if she becomes for a total of eight years. Ann is the employee in the State Assessed a nice, happy, independent, well-adjusted, mature, 17-year old Spotlight Properties with the most unitary valuation experience – this means who is ready to handle college life and likes baseball (and doesn’t valuing utility, railroad, and air flight properties. She has enjoyed think her mother is dumb anymore)! That’s not too much to ask learning about unit valuation. Additionally, she enjoys the interaction for right??!! with the taxpayers and the county assessors.
Anna Tseng, Revenue Tax Specialist Intermediate Anna has been with the PTD for a year and a half but has eight years The total of government service. As part of Anna’s role, she determines Property Tax Division valuations for state assessed property, including airflight, railroads, utilities, and wind energy. She also works with the equalization, Celebrates, too! allocation and apportionment of the value to the appropriate taxing jurisdictions. She enjoys the variety of work with different industries Birthdays: but wishes there was more time to meet and get to know more of Jamie Hopkins turned 40! the stakeholders. and Julie Rosalez receeived a “quilt card”
Green Food for St. Patrick’s Day
Heather Bestler, Jessi Glancey (and Nissa Herberg - not pictured) received recognition for graduate program studies
Summer 2011 | Equal Eyes 37 Department of Revenue Featured Property The Governor’s Residence; St. Paul, MN
Have you ever heard the Building” for official public statement, “Every ruler needs use as a governor’s residence a quiet place to call home”? and for state ceremonial functions. The law placed In Minnesota, that home is the house and its management known as The Minnesota State under the jurisdiction of the Ceremonial Building, aka Minnesota Department of the “Governor’s Mansion”. Administration. The Governor’s Mansion serves as the official home In the mid to late 1970’s of the presiding Governor the house was placed on the of Minnesota. However, it National Register of Historic has not always served in this Places and on the St. Paul capacity. Historic Sites Register. As a result, renovations to the house The Governor’s Mansion was exterior must now be reviewed originally designed and built and approved by the State in the early 1900s as a private Historic Preservation Office residence for Horace Hills of the Minnesota Historical Irvine, a successful St. Paul Society. lumberman and lawyer. It is located in St. Paul’s historic Up until 1980, governors were Summit Avenue neighborhood allowed to propose changes on a 1.5 acre site overlooking to the house, the Legislature the Mississippi River. The provided the renovation Front Entrance Gate, 2009 (Copyright Pete Sieger) land for the Irvine home was funds, and the Department of purchased for $7,000 and was considered one of the last desirable Administration supervised the improvements. To ensure more sites available on Summit Avenue. consistent management of the house, the Governor’s Residence
Spotlight Council (GRC) was created in 1980 to advise officials on the Construction began sometime after the initial permits were issued preservation, renovation, and maintenance of it. A non-profit in 1910, and the house was completed in 1912. William Channing funding organization called the 1006 Summit Avenue Society was Whitney, a prominent Minneapolis architect at the time, designed created in 1982 to aid in preserving and refurbishing the home. the Irvine home. The architecture style reflects an English Tudor country manor. The original house was 14,706 square feet in size. In 1966, Governor Karl Rolvaag and First Lady Florence Rolvaag This 20 room stone and brick home boasted nine bedrooms, ten were the first to occupy the home as a governor’s residence. Since bathrooms, nine fireplaces, and two porches. It cost an estimated then it has been occupied to various degrees by nine governors and $50,000 to build. their families. Governor Jesse Ventura and his family declined to use the Governor’s Mansion as their home, maintaining their The Irvine family raised three residence in Maple Grove instead. Towards the end of his term, children in this stately home and Governor Ventura shut down the Governor’s Mansion. Many occupied it until Mrs. Irvine’s people felt this action was retribution for the legislature slashing death in 1964. In 1965, in memory of their parents, the Irvine’s daughters, Clotilde Irvine Moles and Olivia Irvine Dodge, donated it to the people of Minnesota to serve as the official residence of the governor. The conveyance came with a deeded restriction that the buildings must be demolished if the property was no longer used by the state as a ceremonial building Mrs. Irvin & Children, 1917 (Copyright MHS) or for other public purposes. That same year, the Minnesota Legislature passed a law accepting the donation and designating the house as the “State Ceremonial The Entrance Hall, 1920 (Copyright MHS)
38 Equal Eyes | Summer 2011 his security budget, and it created quite an uproar. Eventually the Governor’s Mansion was reopened to the public and used as a residence again by Governor Ventura’s successor, Tim Pawlenty.
This year the Governor’s Mansion turns 100 years old. Today the home boasts 22 rooms, 2 family rooms, 8 bedrooms, 5 full and 5 half baths, and is slightly over 16,000 square feet in size.
The Ramsey County Assessor’s Office last review was December 22, 2006. The interior review was limited to the first floor, basement, and carriage house.
• Basement – 3000 finished sqft: 3 finished rooms, restrooms, cloakroom, and assorted areas to support public and private functions. Usage is predominantly for public and official functions. • First Floor – 4460 finished sqft: 8 rooms used mostly for public functions, including a kitchen (with pantry and elevator), security, coatrooms, storage, enclosed porch, and a half bath. • Second Floor – 4385 finished sqft: 5 bedrooms, 5 baths, a family room, and enclosed porch. This floor is the governor’s residence and not open to the public and was not viewed by
the assessor. Spotlight • Third Floor – 2230 sqf is also governor’s residence and includes 2 bedrooms, 1 bath, a family room, a heated storage area, and a large unheated storage area. • Carriage House – 1040 finished sqft above garage and storage. Misc interior and exterior photos, 2009 (Copyright Pete Sieger) The finished area includes 1 bedroom, 1 bath, a kitchen, and office. The finished area is currently used as office and support exempt. The following allocations of value are utilized: for the residence. The lower level garage is shared by the governor’s family and staff. • Taxable - 50% of the value of the main residence and carriage • Detached Garage – 25x27 with basement, is used for state house garage, plus 10% of the value of the land (roughly 50% owned vehicles, maintenance equipment, and storage. of the surface coverage of improvements = 10% of land). • Exempt - Remaining 50% of the main residence and carriage Tax Status and Assessment house garage, plus the remaining 90% of land. Additionally, The assessment of the Governor’s Mansion last became an issue 100% of the value of the finished upper level of the carriage in 2002 when then Governor Ventura and the Legislature were house and 100% of the detached garage. embroiled in a budget dispute and the Legislature in scrutinizing the Governor’s Office budget focused on a perceived inaccuracy The Governor’s Residence is traditionally open for free public in the Governor’s budget. The item was an expense for payment tours several times each year. Summer tours are held in June, of property taxes. Some legislators announced that everyone knew July, and August. Holiday tours are typically held in December. that the State does not pay property taxes, so how could this be For more tour information, you can call 651-297-2161 or send an a legitimate expense. The phones lit up, and the Ramsey County email to [email protected]. Assessor was quickly on the hot seat. A review of records indicted indeed there were property taxes levied against the property. Sources: Many, including John Hagen, asked “How could this be?” What Glass, Stone & Steel.com is Ramsey up to? Ramsey County Assessor’s Office State of Minnesota, The Minnesota Governor’s Residence After some research our answer was (and is today), the property Star Tribune is partially taxable. What? The State of Minnesota pays property taxes? Yes, we rely on Minnesota Statutes, Section 272.011, a Pictures courtesy of: statute primarily for DNR state-provided housing. The property Pete Seiger is being used by a state officer for a residential purpose, so the Minnesota Historical Society home must be partially taxable.
For 2011, it is assessed at $2,904,200 with slightly over 50% of the value attributed to the building. Of the total value, $2,139,400 is
Summer 2011 | Equal Eyes 39 International Assessment Practices Propterty Assessment in Nigeria
Written by Solomon Akanki, AMA Scott County Editorial Committee Member
This article will enable us to present direction of the economy. appreciate the differences between Properties are valued using the the property assessment system in traditional methods of valuation – a developed economy as compared the income, sales comparison and to that of a developing economy cost approach. and identify the potential for reform in such countries. Income Approach A lack of adequate data prevents NIGERIA: AT-A-GLANCE appraisers in Nigeria from using Nigeria is located in West Africa the income approach to value. and is the most populous country vital details like lease terms and in Africa (about 160 million), the conditions are kept confidential. seventh most populous country in Also, the unstable economy and the world, and the most populous fluctuating interest rates make country in the world in which the use of the income approach the majority of the population is difficult and often unrealistic. black. Its area is 356,667 square Gross rent estimate may sometimes miles. Nigeria is listed among the be accurate, but operating expenses “Next Eleven” economies and is a are often not an accurate estimate member of the Commonwealth of Nigeria has three tiers of government - just due to lack of detailed records. Nations. The economy of Nigeria is one of like the United States – federal, state and the fastest growing in the world. Nigeria is local. The current democratic government, Sales Comparison Approach a federal constitutional republic comprising fashioned after the United States, started in There are so many factors that hinder the use 36 states and its Federal Capital Territory, May 1999. Since then there has been three of this approach in Nigeria. Most properties Abuja. These states are sub-divided into 774 elections. are constructed by individual owners Local Government Areas (LGAs). from personal savings (mortgages are not Nigeria is the largest trading partner in sub- common because of outrageous interest rates The plethora of states, up from only three Saharan Africa for the United States and and very short terms – five years max). It is at independence, reflect the country’s supplies a fifth of its oil. It has the seventh- not uncommon for potential homeowners to tumultuous history and difficulty managing largest trade surplus with the U.S. of any spend 5-10 years constructing their houses. such a heterogeneous national entity at all country worldwide. Nigeria is currently the Because of limited sales information, this levels of government. Nigeria has eight 50th largest export market for U.S. goods and approach is very difficult to conduct. cities with a population of over one million the 14th largest exporter of goods to the U.S. people. Lagos is the largest city in sub- The United States is the country’s largest Also properties differ significantly in Saharan Africa, with a population of over foreign investor. The annual inflation rate features, fixtures and location. As an eight million in its urban area alone. The is about 13.3% and it varies considerably illustration, for you to get a comparable sale table below shows the population of the every year. for a subject property in Nigeria, if you were eight largest cities. instead in Minnesota, you might have to APPRAISAL IN NIGERIA go as far as Illinois to find the comparable. CITY POPULATION Methods of valuation such as discounted Another limitation on the availability of Lagos 7,937,932 cash flow (DCF) analysis are rarely applied data is real estate professionals not willing in Nigeria. DCF is sometimes used to to share information on transactions as most Kano 3,848,885 purchasers of property want their identities Ibadan 3,078,400 assess the viability of an investment in a viability (feasibility) appraisal report. hidden. To apply the sales comparison Kaduna 1,652,844 Anticipated changes in rent are rarely based approach, the appraiser must search not only Port Harcourt 1,320,214 on an inflation rate because of the unstable in the immediate neighborhood, but also the Benin City 1,051,600 economy and lack of adequate and reliable wider environment, to find comparables. Maiduguri 1,044,497 data; instead they are usually based on the Zaria 1,018,827 expectation of the appraiser, guided by his As noted, comparables are very hard to experience of the market in the past and the find, but there is one exception: in areas of
40 Equal Eyes | Summer 2011 prototype housing estates. Even in these cost new per square foot; this is called the that year are 100,000 Naira and 1,000,000 areas, modifications can make each unit very capital cost of the tenement. Five percent of Naira respectively, the rating authority will different in quality, size and characteristics. the capital cost, allowing for depreciation, use a tax rate of 10 percent. Some rating Additionally, in most cases appraisers is the assessed value. authorities use arbitrary tax rates for political are not able to see beyond the exterior of reasons. the dwelling. Comparisons are also made Tax Rates more difficult by the lack of individual unit The tax rate is based on budgets and total Exemptions and Relief records. A universe of red tape engulfs the assessed value each year. For example, The statute exempts the following economy. In a survey by the International if the total budget and assessed value for properties from assessment: land and Finance Corporation, Nigeria ranks buildings used exclusively for public 178th out of 183 countries when it worship; cemeteries and burial grounds; comes to efficient transfer of property. charitable and educational institutions In some Nigerian states, governors certified by the commissioner; any must personally sign off on every property exempted specifically by the property sale; many demand a fee. commissioner with a notice in the state Gazette. Cost Approach Apart from specialized properties, this With prior approval from the method is predominantly used to value commissioner, the tax authority can properties in rural and some suburban provide relief by reducing or remitting areas where properties are not sold or property tax on account of a person’s transferred regularly. poverty or partially relieving residential property taxes (but the statute does not TAXES specify a percentage). The Property Tax Nigeria’s property tax is called Tax Collection tenement rate and covers all land with Tax statements specify the due date; buildings. Since the local government if any tax payer defaults, the local does not use the tax in a way that government can seize the property or directly benefits property owners, recover the amount owed through legal taxpayers show great reluctance to proceedings in a court of competent pay the tax. The Nigerian government jurisdiction. Even though tax authorities faces widespread tax evasion. In a have enforcement authority, collection rented property, if the owner does not is a big problem. Tax authorities usually pay his/her taxes within three months do not prosecute defaulters because of the due date, the renter is liable for many are elites and political power such taxes. If an agent collects rent brokers who the chairmen (like county for the owner, the agent is liable for administrators) cannot embarrass. paying the tax out of rent paid that year. Appeal Procedures The Commissioner for Local Government Tax Base may establish appeal tribunals to hear and The three methods generally used decide on assessment appeals. The appeal to determine assessed values are the tribunal can have between three and five capital value, rental value and spot value members, including one chairman, (area) method. State Commissioners appointed by the commissioner. The for Local Governments tend to apply Assessment Appeal Tribunal has the the rental value to urban areas and the power to confirm, reduce, increase, or spot value to less developed areas. The annul the valuation as well as remove northern states tend to lag behind the a taxpayer’s name from the valuation other states in valuation expertise. list. A taxpayer can appeal the decision In order to apply the rental value of an Assessment Appeal Tribunal to a method, the rental value is estimated magistrate’s court. The burden of proof according to the controlled rent for is on the aggrieved taxpayer and there is residential real estate and market rent no statutory requirement for an appraiser for commercial real estate. The spot to represent the taxpayer. Since most value method seems to be similar taxpayers do not understand property to the cost approach. The appraiser assessment, the procedure does not determines the gross living area and ensure fairness. multiplies this by the replacement
Summer 2011 | Equal Eyes 41 International Items The Executive Board
Written by Bill Peterson, SAMA, CAE Daktota County Assessor IAAO Representative
IAAO EXECUTIVE BOARD MEETING IAAO FREE MEMBERSHIP DRAWING KEY REASONS TO BECOME MINNEAPOLIS JULY 21-23 The lucky winner of the free IAAO AN IAAO MEMBER IAAO is holding an Executive Board membership at Summer Seminars was Cindy Education: Cost effective education meeting in Minneapolis on July 21 – 23. Bowman, City of Plymouth. Congratulations, programs help you meet the challenges MAAO is hosting board members and has the IAAO State Representatives hope you of an increasingly complex career. IAAO events scheduled on July 21 and 22. MAAO enjoy your prize. offers a range of educational opportunities is honored that the board agreed to have a for the beginner to seasoned professional. meeting in our great state. NEW MEMBER OFFER ENDS Textbooks are known for their depth and EXPOSURE DRAFT OF PROPOSED SEPTEMBER 30, 2011 quality of information. CHANGE TO IAAO BYLAWS IAAO has a 91% member retention rate. That speaks volumes to the benefits of Professional Designations: Receive IAAO Bylaws, Section 11.1, was revised membership! I’d like to remind you that to include a new Chapters and Affiliates certification that recognizes IAAO has a special offer for new members. professionalism, and competency in Committee in the list of standing committees. First time members will receive a free live The change was approved by the Executive matters regarding property appraisal and webinar or previously recorded webinar to assessment for property tax purposes. Board April 15, 2011 for exposure to the use between now and December 31, 2011. membership. The intent and effect of the This new member offer expires September Peer Networking: Meet other assessment proposed change is to provide an updated list 30, 2011. If you’re interested contact: of standing committees. Send comments by professionals to share common ideas, Jan Olsson, RES, 763-509-5355; Doreen concerns and interests. Tap the IAAO July 15, 2011, to IAAO Executive Director Pehrson, CAE, 507-934-0438; Tom May, Lisa Daniels, [email protected]. This brain trust with IAAO’s new on-line AAS, 612-348-3527, or Bill Peterson, CAE, networking forum AssessorNET. Share exposure draft was posted on the IAAO web 651-438-4200. Sign up today!!! site as of May 5, 2011. and receive ideas at conferences and seminars. Locate other members through IAAO ELECTIONS: CANDIDATE FUTURE CONFERENCE SITES Member Look-Up. DEADLINE JULY 1 Why you should attend: Interested in becoming a member of the - Receive continuing education credits Publications: Fair & Equitable and Journal IAAO Executive Board? The filing deadline - Talk with the experts; of Property Tax Administration IAAO’s is July 1. Please see the IAAO web site for - Hear the latest research results monthly and quarterly publications bring more details. Contact former board member - Learn new ideas and techniques you up-to-the-minute perspectives and Tom May if you want to know what the job - Network with colleagues research on today’s assessment issues. involves. 2011 Phoenix, AZ Sept 18-21 Library Services: Access to a research FREE USPAP DOWNLOAD 2012 Kansas City, MO Sept 9-12 library featuring 10,000 volumes of IAAO members are allowed to download 2013 Grand Rapids, MI Aug 25-28 literature and over 600 periodicals. one free copy of USPAP. Please see the 2014 Sacramento, CA Aug 24-27 IAAO web site for details. 2015 Indianapolis, IN Sept 13-16 Members-only Access and Discounts: Receive special rates on publications, text books, technical standards, seminars, and UPCOMING IAAO WEBINARS conference registration. Utilize special The following IAAO-sponsored webinars are scheduled. Sign up at the IAAO web site. sections and resources on the IAAO July 13, 2011 Claiming the Unclaimed: How Tax Collectors Can Claim Property to Website including access to the library Satisfy Delinquent Taxes; presented by Lorie Domnas through memberlink and the Glossary Aug 17, 2011 Quarterly Market Update: Shake Up in the 2011 Real Estate Market; for Property Appraisal and Assessment. presented by Tim Sullivan Oct 19, 2011 Price is What You Pay; Value is What You Get: The Valuation of Mall Leadership Opportunities: Become an Department Stores; presented by Greg Lafakis, CAE & Joseph Ryan author in one of IAAO’s publications. Help Nov 16, 2011 Quarterly Market Update; presented by Peter Korpacz shape industry policies by volunteering Dec 14, 2011 That Which Causes Us Trials Shall Yield Us Triumph: The Role of the for a committee, or consider running for Valuation Witness in the Assessment Appeal Process; presented by the IAAO Executive Board. Greg Lafakis, CAE & Ellen Berkshire
42 Equal Eyes | Summer 2011 The MAAO Editorial Committee Presents: The 2011 Minnesota Assessor’s Census
Soon, MAAO members will be receiving an email with a link to a short electronic survey. The survey is intended to reveal some information about Minnesota’s assessment professionals. We had a few questions about MAAO and its members that we hoped to answer with this questionairre:
What do our members like and dislike about Equal Eyes?
Who are our members, and what interests do they have?
What interesting ideas do our members have for the future of MAAO?
How do our assessor’s offices function from county to county?
What information systems do we use?
How much salary are we taking home from region to region?
Are we aging? If so what should we do about it? What should we be writing about?
Help us advance MAAO by participating in this brief survey. Answers are anonymous and you could win one of two $150 prizes. We only need your name to pay you!
Summer 2011 | Equal Eyes 43 Revisiting the Retirees: Bob Hanscom
Researched and Written by Corey Erickson, AMA Ramsey County Editorial Committee Member This issue, we catch up with Bob Hanscom, the former Hennepin County Assistant Assessor Bob Hanscom’s career in assessing can be devastated St. Anthony Village in 1984 and his wife of 40 years, Mary Jo, have gone on summed up by one word: ambition. I say that later the Red River flood of 1997. For the countless trips. These trips include major because Bob accomplished a great deal in his Red River reassessment, Bob helped put excursions once a year that have brought 33 years in assessing. But like most of us, together a group of 50 volunteer assessors, them to places such as Italy (twice), France, Bob didn’t plan for a career in assessing after who finished the field work in three days. Croatia, Germany and Thailand. Bob and his schooling, but once he got that first job, Mary Jo’s next trip is planned for this coming plans or no plans, much was accomplished. One of Bob’s greatest contributions was fall when they will be going to Switzerland. probably made as a longtime demonstration Bob’s entire career was spent in the Hennepin report grader for the State Board of When not traveling the planet, Bob and County Assessor’s Office, starting in 1971 Assessors. In the late 1970’s, licensing Mary Jo enjoy spending time with their and lasting until his retirement in 2004. for assessors changed, and it became a three adult children, and three grandchildren. After graduating from Dunwoody Institute Bob’s youngest son is getting married with a degree in Architectural Drafting and this summer, so no doubt wedding Estimating, Bob had plans of getting a job plans are also keeping things very busy. somewhere in the construction industry. After giving it some thought, he didn’t see So, what kind of advice does Bob have for himself enjoying a career that would mean those of you just starting your assessing spending most of his time at a drafting table. careers? “Make the most of your career So Bob thought he might be better suited to and get active in MAAO,” shares Bob. a career in estimating. However, Bob was He also encourages everyone to attain drafted into the US Army to serve in Vietnam a higher level of licensure to be able before he could do that. After serving in to compete for future job openings. the army, Bob landed that first job with Hennepin County as an assistant appraiser. Bob with granddaughter Addie Bob’s advice for those of you nearing retirement would be to retire when you are After joining the assessment ranks, Bob’s requirement for city and county assessors to ready. “You will know when the time is right,” career was a quick and steady climb up not just be certified, but to be accredited, and Bob explained. Unlike some new retirees the career ladder at the Hennepin County later, senior accredited. This change forced who have a difficult time with the transition Assessor’s Office. Starting as an assistant many assessors to write a demonstration to life without a job, Bob had his retirement appraiser, Bob soon became a residential report that was likely graded by Bob. date planned for many years in advance and appraiser, commercial appraiser next, then the transition has been an easy one. After principal appraiser, and in 1987 became To be a report grader at this time was a big such a busy and interesting career, a relaxing assistant county assessor, which is the position job, because after the licensing requirement retirement is certainly well deserved. he held for the remainder of his career. change came into effect, Bob started grading between two and three appraisals per week. Bob was very involved in all facets of In grading these reports, Bob took great pride assessing. A 25 year member of MAAO, in “coaching” the applicants, guiding them Bob was the organization’s President in in how the report needed to be corrected 2000. Bob also taught many courses and in order to pass. All eventually passed. seminars, including a blueprint course and many seminars on Tax Court. In addition, Bob is proof that giving 100% to your job he also started an internship program does not mean you will never be able to leave between the Hennepin County Assessor’s the work world and enjoy retired life at some Office and St. Cloud State University. point. Once Bob retired, he made a decision that his career in assessing was completely With the Department of Revenue, Bob over and it was time to fully experience life developed the appraisal methodology as a retiree. Yeah, I know, not a super hard that was used in two major disaster decision. What this means for Bob though, reassessments. First, the tornado that is he has truly embraced retirement. He and
44 Equal Eyes | Summer 2011 Property Tax Working Group Update Homesteads and the Ag Classification
Written by Stephen Behrenbrinker, SAMA, CAE City of St. Cloud Assessor MAAO Past President
Update on Activities property must be owned and occupied • Reduces the cost for local and state The Property Tax Working Group (PTWG) by an individual. government has met monthly since October 2010 in St. • Homestead benefits would not extend • Allows the legislature to grant tax relief Paul. The last meeting was held April 8, beyond the first acre. The house garage based on income through the Property 2011. The committee decided not to meet and one acre would be subject to all Tax Refund System until the 2011 Legislature adjourns in May. voter approved and capital improvement The continuing emphasis of the working referendums. Some of the negative outcomes of these group will be on homestead and agricultural • All other farm land would be taxed at proposals may be: issues. The PTWG formed a Classification a single tax rate with no limitations on • Tax shifts (intentional or unintentional) Subcommittee to review homestead issues acreage or valuation. Farm land would • Creates the need for property tax and make recommendations to the overall not be subject to any voter approved or refunds or phase-in of rates group. The first subcommittee meeting was capital improvement referendum. • Perceived loss of homestead benefits held March 28, 2011. • No homestead tiers, no borrowing, and by taxpayers no credits. • May complicate the interaction of other MAAO was challenged by the PTWG to come • Eliminate the agricultural homestead programs such as Green Acres or Rural up with some proposals for consideration by credit. Preserve the committee regarding homestead and • Any transition of tax rates should be agricultural issues. The following are some analyzed to determine if a phase-in of Thanks to Jason Nord, Eric Willette, key points from a memo provided by MAAO the change is appropriate or if tax shifts and Mike Stalberger for their on-going to the working group on April 8, 2011 and should be handled by the Minnesota contributions and to John Hagen for his will be the basis for further discussion. Property Tax Refund system. support of the committee’s work. Thanks • Support the concept of a “house is a to the MAAO Legislative Committee, Proposals for Consideration house” whereby expanding homestead including Bill Effertz, and Tom Dybing for The Minnesota Association of Assessing benefits to all residential and agricultural their insight and involvement in this process Officers (MAAO) promotes the simplification properties of 1-3 units by either a value along with Tom May and Rob Vanasek. of the property tax system so it is exclusion or other forms of a tax credit. understandable and transparent to taxpayers. • Consider the requirement of submitting The PTWG meeting schedule for the coming MAAO presents the following items for the Farm Service Agency information to months is June 15, July 20, and August PTWG’s consideration: determine tilled acres. 17, 2011. Meeting times are 9:30-11:30 am. All meetings are open to the public • Consolidate agricultural land and Some of the positive outcomes of these and a number of assessors have attended buildings (excluding house, garage and proposals may be: the meetings. All reports, agendas, and one acre) into one property class with • A simpler more understandable meeting minutes are available on the a single classification rate. Changes transparent tax system for taxpayers group’s website. The website also includes to the qualifications for agricultural and administrators background information, studies, reports and homestead have added to the complexity • Promotes the concept of “a house is a presentations. of administration and confusion on the house on all properties” part of taxpayers. • Reduces cost for tax calculations and If MAAO members have questions • Agricultural property should receive the record management or comments, they are welcome homestead classification and benefits the • Eliminates the need for creation and to contact me at 320-650-3352 or same as any residential property; the management of a number of reports [email protected].
Interested in receiving updates regarding MN Property Tax Working Group? Go to: http://taxes.state.mn.us/property/Pages/workgroup.aspx and sign up for the mailing list.
Summer 2011 | Equal Eyes 45 The Chair’s Corner: Staying Current with MAAO’s Committees Legislative Committee Written by Julie Gustafson, SAMA City of Maple Grove Editorial Committee Member
Legislative Committee Committee Members: Region 1: Tom Dybing, Houston County Region 2: Dan Whitman, Martin County Committee Chairperson: Region 3: Gary Grossinger, Stearns County Bill Effertz, SAMA Region 4: Mark Peterson, Cass County Steele County Assessor Region 5: Tom Houselog, Rock County Region 6: Ed Pederson, Swift County Region 7: Reed Heidelberger, City of Alexandria Region 8: Rob Wagner, Polk County Region 9: Gloria Pinke, Dakota County Region 9: Jim Atchison, Hennepin County Region 9: Stephen Baker, Ramsey County Region 9: Steve Sinell, City of Eden Prairie
The Legislative Committee represents the the Agriculture Committee in reaching a improvement had to do with practicality of general interests of assessors throughout common position for MAAO on the Green administration and the cost effectiveness of Minnesota on legislative matters. It meets Acres and Rural Preserve legislation. This implementing the changes. The Legislative annually in conjunction with the Executive collaboration proved to be extremely helpful, Committee’s goal is to see that proposed Board to establish a “Mission and Position and MAAO was viewed by many legislators legislation is consistent with uniform Statement.” This document serves as the as a group of unified professionals. applications and is established for the foundation for the Legislative Committee good of all taxpayers in Minnesota. Many when representing the broad range of Each committee member is assigned specific times, legislation is proposed for unique assessors’ interests with regard to proposed dates throughout the session for which they circumstances that are directed at only a legislation. are responsible for legislative coverage. small number of taxpayers. Rob Vanasek, MAAO’s legislative liaison, The focal point of this joint meeting is or the Chair will contact the member if they Recently, the Governor vetoed the Omnibus to collaborate with the Commissioner of are not needed to attend. Although public Tax bill (House File 42) which contained Revenue and staff. This two-way exchange testimony before one of the tax committees some language that MAAO testified against. between MAAO and the Department of is inevitable, our primary goal is to supply Some of the items we testified against are Revenue is critical to properly formulating information to legislators and analysts provided below: an effective legislative position. The 2011 before the bill reaches their respective tax Position Statement for MAAO was adopted committees for a public hearing. • Appealing to the Local Board of by the Executive Board on August 25, 2010. Review when the assessor denies Green As noted, Rob Vanasek is the Legislative Acres applications. The committee consists of at least one Liaison for MAAO. Rob has been faithfully representative member from each region. serving MAAO since 2006. Over the years, • Modifications to the class 4c resort Region IX has four members due to their Rob has become a recognizable face during language to specifically incorporate a proximity to the action in St Paul. Each the legislative sessions. This familiarity has narrow group of properties. member brings specific talents that best earned him a reputation as a trustworthy man represent the interests of their respective of integrity. Rob has opened many doors • Continuation of Disabled Veteran region. As bills are introduced, each for MAAO, including alliances with other Market Value Exclusion benefits for member can weigh in on their topics organizations with similar interests. In St. surviving spouses for five years and an of interest and these bills can be vetted Paul, Rob has proven that, “it’s not always inclusion of family caregivers. among the committee before we approach what you know, but rather who you know.” legislators and/or their staff. With Rob’s guidance, our list of ‘contacts’ This is not an all-inclusive list, but it has grown innumerably. highlights some of the issues of greater When time permits, we often look to the gifts importance to MAAO. and talents of active committees of MAAO The 2011 Legislative session saw many for valuable input. This past session, the bills introduced that were related to property Although not official as of yet, the Governor Legislative Committee collaborated with tax. Most of MAAO’s suggestions for signed House File 1219 into law (Session
46 Equal Eyes | Summer 2011 Law Chapter 112). Articles 3, 7, and created ambiguity as to what information willing to listen and work with MAAO 11 of this bill will impact assessors to was specifically required to be provided. on legislative matters. The discussions varying degrees. Assessors should pay This ambiguity gave counties overly broad have been very productive and mutually particular attention to them. Article 11 latitude to apply the “Gotcha” dismissal beneficial. We share the same goals and “Miscellaneous” has language which provision. Both sides had much at risk, but MAAO appreciates the opportunity to expands 2a classification for licensed game the success can be found in the compromise. participate in the discussions and always farms as well as changes to the 60 day Each party developed an understanding and advocate for the assessment community. income requirement for tax court petitions. appreciation of all the issues that were at stake. The group members worked together Bill realizes that in the end, we have to Reading between the lines, the biggest to accomplish their mutual goals. shake hands and work together on improving victory with enactment of this bill is perhaps the assessment process in Minnesota. The what we will not find. We will not find the With regard to future goals of the Legislative Legislative Committee looks forward to class 2a inclusion of horse boarding and Committee, Bill believes the secret to any working with the Department of Revenue in horse training ‘farms’ on limited acreage. successful relationship is communication. the future and improving communications. This would have been a big expansion to The Legislative Committee will continue MAAO can only benefit from an enhanced the agricultural class in Minnesota. to look for ways to improve communication relationship with them. within MAAO, with the Department of Bill would also like to address the “60 day Revenue, and with related associations For those of you wondering about what income” requirements that were amended that share common interests with MAAO. makes a good Legislative Committee this past legislative session. These 60 day The improved avenues of communication chair, a brief summary of Bill’s extensive income changes found in Minnesota Statutes will allow MAAO to enhance these background and experience is summarized 2010, section 278.05, subdivision 6 are relationships and will ultimately improve below. considered to be significant because they our effectiveness in St. Paul. represented a collaborative effort between Bill has worked in the assessment profession assessors, county attorneys, and private In closing, Bill would like to make a special for almost 29 years working in Le Sueur attorneys representing the Minnesota State shout out to Tom Dybing (Vice Chair), County, the City of Bloomington, Hennepin Bar Association. This involved compromise Gloria Pinke, Gary Grossinger, and Jeanne County, and now in Steele County as County from each of the parties. Thanks to all of the Henderson and the Ag Committee for their Assessor. He has served on MAAO’s participants because it took an extraordinary herculean efforts in dealing with the Green Executive Board for several years in effort to get an agreement on this language. Acres and Rural Preserve issues. They each various capacities while also serving on Every county had much to lose because spent many hours working with interested the Legislative, Finance, and Long Range without a compromise, the language could parties trying to figure out a workable Planning Committees. Bill was MAAO’s have been removed all together. Special solution. president from 2009 - 2010 and was thanks to Stephen Baker, Tom May, and Jim Secretary/Treasurer from 2000 - 2004. Atchison for their leadership in representing It is important to note that we do not have the perspective of MAAO. choices over what laws are passed and which He has served on the Legislative Committee ones are not. We are grateful that we are able since 1996, and shared the chairmanship in The intent of this law is to get assessors to sit at the “table” and explain the assessors’ 2010 with quote “Stephen ‘Shake n Bake’ essential information needed to properly positions to legislators and analysts. It is Baker” when Steve Kuha retired. analyze the facts which should lead to a important that we as assessors can speak professional disposition of the tax court case. with a unified voice. Having a single voice His dedication to the field of Assessing and Petitioners’ attorneys claimed that they were puts us in a better position to advocate for MAAO is never-ending, and we thank him liable to their clients if they failed to provide our common interests. for his efforts! the required information in a timely manner. Petitioners’ attorneys also claimed that the One final note: Bill wants to point out that existing statutory language was vague and the Department of Revenue has been very
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. There are helpful tools that many offices use that could assist other assessors. 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, form letters, and any policy/office procedures. Please send all documents to one of the following members: [email protected] [email protected] [email protected]
Summer 2011 | Equal Eyes 47 Assessor Retirements Transitions
Compiled by Nancy Gunderson, SAMA City of Moorhead Editorial Committee Member
Raymond Shudy, Senior Commercial Appraiser, Retires from Hennepin County Ray was originally hired by Sturgeon Keith Rennerfeldt, who had recently been On behalf of Hennepin County and Lake Township in the spring of 1980. promoted to Principal Appraiser. After a MAAO, we thank you for all your They sent him to school to get his CMA, few years, a couple of Senior Appraiser contributions. We wish you well as you which he attained in January of 1981. At positions opened up. I did well enough literally sail off in to the sunset. this time laws had changed, requiring all on the test to be promoted.” assessors to be licensed. Due to these stricter requirements he shortly thereafter The senior appraisers at that time were had accumulated a dozen townships that responsible for appraising all commercial, he was contracted to appraise. industrial and apartment properties. They also maintained some connection with the However, the bright lights of the big residential section; working with appeals cities and the idea of a steady gig which on some of the higher valued homes, included benefits, drew him down to the mainly in the Lake Minnetonka area. Twin Cities area. Per the recommendation of a friend, Ray applied for an opening in Current records show at least “18 separate the Hennepin County Assessor’s Office in cases that I had testified on between 1988 June of 1984. Roy Johnson, the appraisal and 1996. In one year, the county had supervisor there at the time, interviewed over 3,000 tax court filings. Fortunately, him and they hired Ray on the spot. On those days are long gone. Right?” notes a June 24, 1984, his nearly 27 year run somewhat sarcastic Mr. Shudy. “It seems began. like history has a way of repeating itself.”
“I remember looking at some of the nicer Ray has also been a member of the houses around Bush Lake during that MAAO IS/IT committee and has spoken first summer with Hennepin,” recalls at a number of educational events over Written By Mr. Shudy. “As revaluation got into full the years. Paul Sandvik swing, I found myself working under Senior Appraiser Hennepin County
Lorella Fulton Retires from Koochiching County Please help Equal Eyes share news related to Retirements Lorella Fulton She loves to spend time with family, so retired from she is excited to have more time to share Koochiching with them. She will continue to travel to If a co-worker recently retired - or County as the watch the grandchildren play sports. She is retiring soon - please notify the Assistant Assessor may even do some traveling without the Editorial Committee after almost 25 grandkids. by sending an email to years. [email protected] or Contratulations, Lorella! Enjoy retirment! by contacting any member directly. She plans to spend more time at the We’ll assist in writing the article, “shack” in Loman, MN and on the all we need to know is houseboat. Who and When...
48 Equal Eyes | Summer 2011 John Gellatly to retire from the City of Duluth John Gellatly started his woods, hoping all the CAMA appraising career in 1992, and tables drain out of his head onto after almost 19 years, he will the trail. retire this summer. While he worked with St. Louis County, He will continue volunteering John held three positions: with the Superior Hiking Trail four years as an Appraiser, Association and the DNR by eight years as the CAMA maintaining several portions Appraiser, and finally one year entertaining of the memories. One of of the trails by his house in as Assistant County Assessor. His last the funnier stories John has is when he Smithville. He is also planning on five years have been spent serving the was appraising in the county and a goat catching the fall colors up the North Shore residents of Duluth as their City Assessor. actually climbed not only into his car, but with several hikes on his favorite sections put all four hooves in his briefcase which of the Superior Hiking Trail. John has many great memories of his was open on the front seat. years working for both St. Louis County He has many projects lined up, with and the City of Duluth. He has enjoyed John is really looking forward to his early the biggest being a huge remodel of his the camaraderie of his many colleagues retirement and having the extra time to current house. He also hopes to travel and over the years and the relationships that spend with his wife, Tracy, and his two have many days of an “open calendar”. have been formed. In this line of work, adult children, Keir and Alyssa. you build a great collection of many interesting stories. The property owners Anyone that knows John understands his all have their unique personalities, but love for walking and hiking. He definitely the animals usually lend to the most is planning on spending a lot of time in the
Glen Purdie and Dave Meek Retire from the Steele County Assessor’s Office Glen has grown along with Steele County. Glen moved the Assessor’s Office to the newly-built Steele County Administration Center in 1996. He was given the opportunity to help design the Assessor’s Office.
After more than 34 years in the assessment field, Glen decided it was time to move on. With retirement, Glen will spend time with his grandchildren, enjoy his cabin on Lake Emily, and spend many Long-time Steele County Assessor Glen wonderful days out on the golf course. the Assessor for 14 years, he worked in Purdie retired on March 18, 2011. Nicollet County and then retired as the He will be missed at Steele County! commercial appraiser in Steele County. Glen started as an appraiser in December of 1976 and worked at the historic 1891 Dave Meek also retired after more than Dave does not have any definite future Steele County Courthouse. 33 years in the assessment field on Friday, plans with retirement, but he will enjoy Glen had originally obtained a degree April 29, 2011. many cruises in his classic car and will in math, which in turn helped him along spend time with his wife, Cheryl, and the way in becoming Assessor. He He originally started in the Navy, but their grandkids. was appointed as County Assessor in Dave joined the appraiser ranks in 1978 February of 1990. at Dodge County. He became the Dodge Thank you Dave, you too will be missed! County Assessor in 1990. After being
Summer 2011 | Equal Eyes 49 What’s New on the MAAO Website: Did You Know...
Written by Teresa Mitchell, SAMA Dakota County Information Systems Committee Chairperson
The MAAO website has gone interactive! There have been some great enhancements introduced to improve your member experience on the website. Here are a few features to check out:
MAAO Matters Introducing the new and improved Bulletin Board for Minnesota Assessors to engage in timely dialog and dynamic discussions. Are you faced with challenging assessing Matters that you would like to seek the opinion of your colleagues about? Sharing best practices and discussing current issues in the assessing industry Matters! Here is how to use it:
While logged in, Regular and Associate members are able to take advantage of this benefit of MAAO membership. Go to MAAO Matters and peruse the categories and discussions currently available. All Categories, Forums and Topics are links to take you into the discussion thread. If there is a discussion you want to stay on top of, click Subscribe and you will be alerted when any new posts are added. Or start up a new topic of your own. You can delete or edit anything you post. Mark your Favorites for an easy way to jump to your favorite topics. Review your Posts, Subscriptions and Favorites by clicking on My Posts. You can vote up or vote down topics as well as report abuse.
The old bulletin board lacked any of these types of interactions and notifications to keep you informed of the topics important to you. So your opinion Matters! Member participation Matters! MAAO Matters will not grow as a knowledge base for Minnesota assessors without you starting the discussion. Start one up today!
If you would like to suggest a new Category or Forum to organize new topics, please email [email protected].
50 Equal Eyes | Summer 2011 Submit a job online You can use the online request form and pay by credit card for the fastest possible posting of your job. This is the perfect place to find the audience you are looking for. Your job is emailed to the entire MAAO database of not only past and present members, but also anyone that has recently received an MAAO scholarship or ever registered for a course via the MAAO website.
Your MAAO Community has made some New Connections! You may have noticed the new look of the Member Directory on the website, well that is just the beginning of what’s new.
Imagine being able to connect with assessors from all over the state, all in one place. With the new member directory it is possible. Below are just a few possiblities and how to use them:
Click My Profile to begin checking out what you can do within the new MAAO online Community. ● Post a Status message on your Profile. ● Be sure you have a picture in your member profile so while using the new MAAO Matters bulletin board or member directory, members can put faces with names! If your picture is a little too up close and zoomed in, you can click on the picture and adjust the size of your thumbnail – be sure to click Update thumbnail.
Click My Features. ● Upload pictures to your very own photo album that you’d like to share with other members.
Click on My Community ● Each time you visit this tab, you can get acquainted with 20 random past and present member photos which can be clicked to view the member’s profile. The “view all members” link will display the member directory when clicked. ● The Recent Activities section displays the most recent member activity such as new connections, new photos, comments and registrations.
Click on Connections ● View established connections, the entire member directory and/or use the search functionality to find members. Click on any member and request a Connection.
Click on your Inbox ● Once connections are established, you can post messages to any or all of your connections on the MAAO website.
The interactions and networking connections you can make are endless. Get connected today!
As always, if you have a suggestion for additions or improvements to our website, please email [email protected].
Summer 2011 | Equal Eyes 51 Lake Minnetonka Dream Home
FOR SALE! The Listing Status: For Sale - June 2011 List Price: $5,999,900
Address: 5560 Maple Heights Road Greenwood, MN Year Built: Partial construction began in 2003 Total Living Area: 18,674 Square Feet
This corporate-owned listing has been on the market for 350+ days.
The 18,674 sf single family, two-story home is located on Lake Minnetonka. This home is located on a 1.25 acre private island on St. Albans Bay with 1,188 feet of lake shore and a private bridge accessing the property. The home is currently under construction and is being sold in its existing state.
The property boasts: • 4 bedrooms • 6 baths • 15 car heated tuck-under garage
According to the Star Tribune - The house belongs to a corporation tied to Minneapolis-based commercial property owner/developer, Jeff Wirth, who is probably best known for doing a major redo of the Grand Hotel Minneapolis (the former Minneapolis Athletic Club) and for developing the Radisson Hotel and Waterpark of America at the Mall of America. The Grand Hotel went back to the lender in 2010 and has since been sold to another entity.
52 Equal Eyes | Summer 2011 A Letter From the Editor Why we do the work we do...
Written by James Haley, CMA Polk County Equal Eyes Managing Editor
In the public sector, whether elected, hired, However as it relates to those of us who becomes immediately evident when or appointed; there comes a time when we assess property, their most important sitting in a MAAO meeting that the are all asked to go above and beyond what obligation is serving on the Local Board people in attendance truly care about is expected of us as government officials of Appeal and Equalization. Although we their craft. Not only do they care, but or citizens. We join trade organizations, Assessors may sometimes squirm when they are all knowledgeable and skilled serve as a union negotiator, or serve as a we do not agree with their decision, the professionals with the best intentions. township supervisor. Whatever the case, role they play is crucial to the equity people are and will continue to be bound and perceived fairness of the property And it’s across the board, whether it be to their society, peers, and neighbors. tax system. Our city and township board a region, committee, or executive board So much so, in fact, that they are often members are charged with making real meeting. All these professionals are civil times willing to complete these extra decisions that directly affect the financial servants, and all are taking time from tasks with little to no compensation. This well-being of their own neighbors. their busy lives for the betterment of the trait is usually identified as civic duty. They also provide for us assessors real group. Civic duty, you bet we’ve got it. protection against perceived injustice The concept is not new. We can trace in mass appraisal and property tax. All This attitude and work ethic is what allows this desire back to ancient Greek poleis. of this, with little to no compensation. our group to consistently provide top In this environment, civic duty was quality education, host outstanding events, mandatory in order to be considered We as members of MAAO serve our civic provide award winning publications, a citizen. The Greeks had a strong duty in our own way. We push forward with and guide our elected leaders to make affiliation to their city/states and civic projects that may or may not provide us intelligent choices. It is this sense of duty was part of everyday life. Aristotle with immediate and physical compensation responsibility that we all seem to possess, wrote: “To take no part in the running of for our efforts. We spend hours, days, but no one seems to be able to explain the community’s affairs is to be either a or weeks of extra work developing a definitively, that keeps us moving forward. beast or a god!” The early democracies website; and, in the process field dozens of antiquity served as a perfect model of questions from confused users. We give The civic duty of our township and city of using civic responsibility to enhance years of our working lives contributing to board members serves as the glue that the well-being of the group. Although the development of educational courses. holds the community together. So too largely abandoned during the mid to We teach them, compile the materials, and is the drive of those who serve MAAO high ages, the importance of civic duty stand up in front of hundreds of skeptical in holding us assessors together. As the was again brought forward during the students. We accept responsibility for an new editor of Equal Eyes, I am honored French and American Revolutions. Our entire week worth of constant duties at our to be a part of this strong tradition of own blueprint, the US Constitution, conferences, requiring months of work. service to the group. I am also extremely begins “We the People…”, not “we humbled by the experience and talent the few motivated individuals…”. Perhaps it is the expectation of future benefit of my fellow assessors. I hope to one that drives us. It is reasonable to expect that day give back to all of those who are work input will equal a positive output. currently showing me the ropes by paying Today, a shining example of those people Maybe it is an intrinsic desire, comparable it forward to the next new kid on the block. with a strong sense of civic duty is to an activity like fishing or sewing. township and city board members. Though Altruism and the feeling that a person gets I sincerely hope you have enjoyed this usually busy with a career, running a when they have helped someone could have issue of Equal Eyes. It represents the hard farm, family life and possibly other local a part. Pomp and circumstance, perhaps? work of the entire Editorial Committee responsibilities, these strong leaders Whatever the reason we are driven, in the and all of those who have contributed. go above and beyond to serve their grand scheme of things, it really doesn’t I thank you for the opportunity to serve. fellow citizens. They often times use matter. Because this drive to serve remains their own equipment to plow our rural and will always remain crucial to the roads after snow storms. Other times survival of any group, including MAAO. they give hours of their time dealing with local issues such as drainage and And serve we will, because MAAO culvert acquisition. Still more, they attend packs some of the most motivated and countless township or city meetings, and competent members of any group I have sort out the issues of a local community. been a part of. As a young assessor, it
Summer 2011 | Equal Eyes 53 EQUAL EYES PRESORT STD PUBLISHED BY THE MINNESOTA CHAPTER OF IAAO AND U.S. POSTAGE THE MINNESOTA ASSOCIATION OF ASSESSING OFFICERS PAID 612 N Broadway PERMIT NO. 27 Crookston, MN 56716
54 Equal Eyes | Summer 2011