HomeMy WebLinkAbout7C - Conduct Board of Review
MEETING DATE:
AGENDA #:
PREPARED BY:
REVIEWED BY:
AGENDA ITEM:
DISCUSSION:
CITY COUNCIL AGENDA REPORT
MAY 17, 1999
7B
JANE KANSIER, PLANNING COORDINATOR
DON RYE, PLANNING DIRECTOR
=~ ' '-f L...
PUBLIC HE G TO CONSIDER APPROVAL OF
RESOLUTION 99- VACATING A BLANKET EASEMENT
LOCATED ON 3442 SYCAMORE TRAIL
History: In November, 1992, the property owner at 3442 Sycamore
Trail filed a registration proceeding for this property with the District
Court. At that time, the City raised an objection due to the existing
utilities on the property. Rather than grant an easement over the
existing utilities, the Court provided for a blanket, unrestricted
easement over the entire property. The purpose of this vacation
petition is to remove the unrestricted easement and to replace it with a
defined utility easement.
Current Circumstances: The Planning Commission reviewed this
vacation request on May 10, 1999. The Planning Commission adopted
Resolutions 99-04PC recommending approval of the proposed
vacation. The Planning Commission determined there is not a public
need for the entire blanket easement, as long as a specifically described
easement is retained. The attached resolution includes a provision
retaining an easement for the existing utilities. There is no public need
for an unrestricted blanket easement over the entire property.
The Issues: Minnesota Statutes 412.851 allows the Council to vacate
easements or right-of-way by resolution. The statute states that "no
such vacation shall be made unless it appears to be in the public
interest to do so ".
The proposed vacation of the unrestricted easement is consistent with
the Comprehensive Plan. Furthermore, there is no need for the City to
maintain an unrestricted easement over the entire property. The
described easement will adequately protect the City's interest in the
existing utilities, and provides the necessary area for the maintenance
of these utilities.
b\99.file!i\99.xac\9.9-023\99.o23c<;..,doc P?ge L
162 '0 Eagle LreeK Ave, ::i.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
ALTERNATIVES:
RECOMMENDED
MOTION:
REVIEWED BY:
1:\99files\99vac\99-023 \99023 cc.doc
Conclusion: The staff recommends approval of the vacation of the
blanket, unrestricted easement, subject to the condition that an
easement is retained over the existing utilities.
The City Council has three alternatives:
1. Adopt Resolution 99-XX approving the vacation as requested and
authorizing the Mayor and City Manager to execute the appropriate
documents.
2. Deny Resolution 99-XX.
3. Defer this item and provide staffwith specific direction.
Staff recommends Alternative #1. A motion and second to approve
Resolution 99-XX approving the vacation of the blanket, unrestricted
easement, subject to the condition that an easement is retained over the
existing utilities.
Page 2
RESOLUTION 99-B... ~ l
RESOLUTION PROVIDING FOR THE VACATION OF A BLANKET,
UNRESTRICTED EASEMENT LOCATED ON LOTS 12, 13 AND THE NORTH 1/2 OF
LOT 14, MAPLEWOOD TOWNSITE
BY:
SECOND BY:
WHEREAS,
a petition for the vacation of a blanket, unrestricted utility easement has been
duly presented to the City of Prior Lake, signed by the owners of the property
abutting the following described easement situated in the City of Prior Lake,
Scott County, Minnesota to wit:
LEGAL DESCRIPTION:
Lots 12, 13 and the North 1/2 of Lot 14, Maplewood Townsite; and
WHEREAS, notice of the hearing on said petition has been duly published and posted in
accordance with the applicable Minnesota Statutes, and
WHEREAS, a Public Hearing was held on said petition on Monday, May 17, 1999, at 7:30
p.m. in the Council Chambers at the Prior Lake Fire Station #1; and
WHEREAS, the City Council then proceeded to hear all persons interested in said petition
and persons interested afforded the opportunity to present their views and
objections to the granting of said petition; and
WHEREAS, the City Council of Prior Lake has determined that the vacation of said
easement would be in the public interest.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
that pursuant to Minnesota Statues 412.851, the blanket unrestricted utility easement
situated on the above described property in the City of Prior Lake, Scott County,
Minnesota is hereby vacated, subject to the following condition:
1. A utility easement for the existing utilities on the property must be granted to the City.
This easement is described as follows:
That part of the platted roadway in the plat of Maplewood Townsite, Scott County,
Minnesota, lying northwesterly of the following described line: Beginning at the
southwest corner of Lot 8 of said plat; thence southwesterly to the southerly corner of
Lot 12 of said plat and there terminating, and lying southwesterly of the northeasterly
lot line of Lot 12, extended southeasterly to the last above described line, and there
terminating.
BE IT FURTHER RESOLVED that this Resolution will be forwarded to the Office of the
County Recorder, Scott County, for appropriate action.
1:\99fi1es\99vac\99-023\rs99xxcc.doc Page 1
16200 Eagle Creek Ave, S,E.. Prior Lake, Minnesota 55372-1714 / Ph, (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
BE IT FURTHER RESOLVED that the Mayor and City Manager are hereby authorized to
execute the court order effectuating the above described easement action.
Passed and adopted this 17th day of May, 1999.
YES
NO
MADER MADER
KEDROWSKI KEDROWSKI
PETERSEN PETERSEN
SCHENCK SCHENCK
WUELLNER WUELLNER
Frank Boyles, City Manager
City of Prior Lake
{Seal}
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Page 2
CITY COUNCIL AGENDA REPORT
MEETING DATE:
AGENDA #:
PREPARED BY:
May 17, 1999
7C
Frank Boyles, City Manager
AGENDA ITEM:
BOARD OF REVIEW
DISCUSSION:
History
Minnesota Statute provides that the County or City Council can sit as
the local Board of Review. The City Council has decided it wishes to
fulfill this function.
Current Circumstances
The Board of Review this year is scheduled for Monday, May 17,
1999 at 8pm in the Fire Station City Council Chambers. County
Assessor Leroy Arnoldi will be present to assist the City Council in
conducting the Board meeting.
The Issues
The only issue before the City Council sitting at the Board of Review
is the valuation placed upon each parcel by the County Assessor as
of January 1, 1999. Property owners received their valuation notice in
April. A property owner wishing to contest his or her valuation must do
so in person or in writing at the Local Board of Review. This will allow
the party to continue the appeal to the County Board of Review or
court system should they desire.
Conclusion
The Council should review the attached report provided by Leroy
Arnoldi to refamiliarize itself with appraisal and valuation related
issues. The Mayor should open the Board of Review as it is a
hearing. I will provide a brief overview of the purpose of the Board of
Review. Assessor Arnoldi will give his report (a written copy of which
will be supplied to Councilmembers). Then each property owner
present should be given the opportunity to state their concerns about
their valuation as of January 1, 1999. If there are questions requiring
additional research, Mr. Arnoldi will prepare a report and provide it to
the Board of Review prior to extension of the Board of Review
meeting scheduled for June 7,1999 at 8pm.
ALTERNATIVES:
The Council may take anyone of the following actions:
1. If all valuation questions are addressed at the meeting, the Council
may adjourn the hearing and affirm the Assessor's values.
16200 Eagle Creek Ave, S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
RECOMMENDED
MOTION:
2. If additional research is required, the Council should adjourn the
public hearing and direct the preparation of a report for consideration
at the June 7, 1999 meeting.
The Council's action should be based upon the circumstances of the
hearing.
Memorandum
To:
Local Boards Of Review
cc:
From:
Leroy T. Arnold~ SAMA - Scott County Assessor
Date:
May 12, 1999
Subject:
1999 Local Boards Of Review
This booklet will serve to provide you with information about the property
assessment process and your responsibilities in the process acting as the Local
Board of Review.
The assessment in Scott County is done by a combination of the efforts of two
local assessors and their staffs and the County ,Assessors Office; consisting of six
staff appraisers, the County Assessor, a Deputy County Assessor, and an
Assessment Technician. These individuals are responsible for an annual valuation
and classification of over 33,000 parcels of property. The total taxable market
value exceeds 4 billion dollars, which bears a total property ta.'< burden of in excess
of 81 million dollars.
With real estate taxes bearing a large burden of the cost pf government, the local
Board of Review is an important step in maintaining an equitable property tax
system. We hope that all members take their jobs very seriously and look forward
to working with you throughout the process. Please be aware any reductions that
the Board may make will have the effect of shifting the tax burden to all other
property. We must avoid the "easy way out" of reducing all individuals that
appear as it would be unfair to property owners that have not appealed.
Call me at 496-8124 with any questions you have about Local Boards of Review
or information within this booklet.
FORMAT FOR LOCAL BOARDS OF REVIEW
At the ] 998 Local Boards of Review, we will utilize a standardized sIgn III sheet, and
report/recommendation to the Local Boards from the Assessor.
The format for the Local Boards of Review will be:
· On a first come, first serve basis, the individuals will make their presentation to the
Local Board of Review. The Assessor will make notes of taxpayer comments and
respond to questions; but will not make specific recommendations during the
appearance. The issues that the taxpayer should be discussing are the January 2,
] 998 valuation and/or classification of the property.
· If there is more than one meeting, the Assessor will collect as much information as
possible on appealing properties after the first meeting and make specific
recommendations on each case at the second meeting. The level of detail provided
to the Local Board and number of properties inspected will depend upon the
number of properties appealing. Hopefully, the report will be provided to the
Local Board prior to its reconvened meeting. But, due to time constraints, there
may be cases where it is presented to the Board at that meeting.
· The Local Board may accept the Assessor's recommendations as a whole, may
accept part of the Assessor's recommendations, or may deal with the properties on
a case by case basis.
The real estate tax is an ad valorem which is based on the value of property and not on the
ability of the property owner to pay. The values placed on all real estate in Scott County
are based on the estimated value of land and the improvements upon the land, while no
consideration is given to who owns the land.
The assessment is updated in a uniform, objective manner each year. Each year the
assessor analyzes the previous twelve months' real estate sales to modify the mass
appraisal system to properties. For the January 2, 1998 valuation, sales from October,
1996 to September, 1997, were analyzed both for market trends as well as the assessment
to sale ratio (assessor's value divided by the sale price) on the sales.
There are two reasons why valuations are changed. The most obvious is inflation or
deflation of prices in the real estate market. While inflation has slowed down in recent
years, there is still inflation in some parts of the residential market.
The second reason for a valuation change is, even in a stable market, if a property based
on an analysis of sales is perceived to be under-assessed either in relation to comparable
properties or to the "target" level of assessment, the valuation may increase. It also is a
result of continually attempting to improve the mass appraisal system to treat all property
in a uniform manner. This "fine tuning" of the assessment causes some properties to
receive larger valuation increases than other properties. The Commissioner of Revenue
requires a level of assessment between 90 and 105 percent of market value.
It should be noted that an increase in valuations will not necessarily result in an increase in
tax. Increased taxes are the result of increased government spending. If the tax base
increases and spending remains stable, there is a corresponding decrease in the tax rate
and taxes will stay the same.
SALES RATIO
Evidence suggesting a forced sale, foreclosure, sale to a relative, or anything but an ann's-
length transaction results in the sales infonnation being discarded. This is important
because the real estate sales infonnation is the data base for the statistical comparisons
necessary to make the property assessment.
The accuracy of the Assessor's Office estimated market values is measured by the sales
ratio, which is the Assessor's estimated market value divided by the actual selling price.
For example, a house having its estimated market value assessed at $90,000 and an actual
selling price of$100,000 gives a sales ratio of90 percent. For areas in Scott County, the
accepted range for the median sales ratio measurement is 90 to 100 percent. In other
words, the median (or midpoint) of the sales ratios for all properties sold should fall within
90 to 100 percent.
A sales ratio of slightly less than 100 percent is desirable in order to avoid having a great
many properties valued at more than their actual market value. If the sales ratio were at
100 percent, it would mean that half the properties were assessed at less than market value
and half were higher, with too many over the actual market value. On the other hand, a
sales ratio of 92.5 percent means half the properties are below 92.5 percent of actual
market value, half are higher, and a relatively low number are valued by the assessor at
more than actual market value. Therefore, the acceptable range is 90 to 100 percent.
Median
100
Median
92.5
92.5
95
105
80 85
95 100
HALF THE VALUES ARE
OVER 100%
FEW VALUES ARE
OVER 100%
RESPONSIBILITIES OF LOCAL BOARDS OF REVIEW
The town board of each town and the councilor other governing body of each city is the
Board of Review, except in cities whose charters provide for a Board of Equalization.
The County Assessor shall fix a day and time when the Board of Review or the Board of
Equalization shall meet in the assessment districts of the County. On or before February
15 of each year, the Assessor shall give written notice of the time to the city or town clerk.
The meetings must be held between April I and May 31 each year. The clerk shall give
published and posted notice of the meeting at least ten days before the date of the meeting.
The Board shall meet at the office of the clerk to review the assessment and classification
of property in the town or city. No changes in valuation may be made by the County
Assessor after the Board of Review or the County Board of Equalization has adjourned.
This restriction does not apply to administrative in nature.
The Board shall determine whether the taxable property in the town or city has been
properly placed on the list and properly valued by the assessor. If real or personal
property has been omitted: the Board shall place it on the list with its market value;
correct the assessment so that each tract or lot of real property and each parcel, or class of
personal property is entered on the assessment list at its market value. No assessment of
the property of any person may be raised unless the person has been duly notified of the
intent of the Board to do so. On application of any person feeling aggrieved, the Board
shall review the assessment or classification, or both, and correct it as appears just.
A Local Board of Review may reduce assessments upon petition of the taxpayer, but the
total reductions must not reduce the aggregate assessment made by the County Assessor
by more than 1 percent. If the total reductions would lower the aggregate assessments
made by the County Assessor by more than 1 percent, none of the adjustments may be
made. The assessor shall correct any clerical errors or double assessments discovered by
the Board of Review without regard to the I percent limitation.
RESPONSIBILITIES OF THE COUNTY BOARD OF EQUALIZATION
The County Board of Equalization follows the Local Board of Review in the assessment
process. In every county, the basic charge of county equalization is essentially the same.
It involves the equalization of the assessment level between the individual assessment
districts and between the various classes of property within the county. Property owners
who are not satisfied with the results of their appearances at the Local Boards of Review
may appeal to the County Board of Equalization.
Assessments of property are made to measure each taxpayer's share in paying the costs of
government in his city, township, school district, and county. If the cost of local
government is to be fairly shared among the taxpayers, it is necessary all taxable property
be listed on the assessment rolls and all valuations be made as professionally and
accurately as possible.
COMPOSITION OF BOARD
The County Commissioners, or a majority of them, with the County Auditor; or, if he
cannot be present, the Deputy County Auditor, form a board for the equalization of the
assessment of property of the County.
The County Board may appoint a special Board of Equalization to which it may delegate
all of the powers and duties and discretion of the appointing County Board and be subject
to the same lawful regulations as the County Board of Equalization would be. The
appointing Board determines the number of members to be appointed to the special
Board, compensation, expenses to be paid, and the term of office of each member. At
least one member of the special Board of Equalization must be an appraiser, realtor, or
other person familiar with property values in the County. The County Auditor is a
nonvoting member and serves as the recorder for the special Board.
The Board cannot, however, reduce the aggregate value of all property in its County, as
submitted to the Board with the additions made thereto by the Auditor, by more than 1
percent.
Taxpayers who feel that the assessments for the current year are unfair must first appear
before the Local Board of Review before the County Board of Review may hear their
appeal unless it is established that the taxpayer did not receive notice of the market value
at least five days prior to the Local Board of Review meeting or that the assessment was
made subsequent to the meeting of the Local Board as provided in M.S. 273.01.
Any complaints or objections to the current year's assessment made by taxpayers who may
appeal to the County Board of Equalization must be considered by the Board. Such
assessments must be reviewed in detail and the Board has the authority to make any
corrections it believes to be just. In reviewing a protest to an assessment, the Board may
ask the County Assessor to investigate and report back later.
The County Board of Equalization does not have the authority in any year to reopen
former assessments on which taxes are due and payable. The Board considers only the
assessments that are in process in the current year. Occasionally, a taxpayer may appear
to protest an assessment that was made in a previous year. The Board should explain
tactfully that it has no authority to consider such matters and that after taxes have been
extended, adjustments can be made only by the process of application for abatement or by
legal action.
The County Board of Equalization may not exempt property from taxation.
The County Board of Equalization may not place omitted property on the assessment
books. This power is vested only in the Local Boards of Review and to the County
Auditor. However, when it comes to the attention of the Board that any property subject
to taxation has not been assessed, the Board may, by resolution, request the Auditor to
place such property on the tax tolls.
The County Board of Equalization has no authority to make original assessments. Its
duties are restricted to review and equalization of assessments already made.
RESPONSES TO TYPICAL T AXP A YER QUESTIONS
1.
Q.
Why did my taxes increase?
A. The fundamental reason for increase in taxes is increased government
spending. The government suffers from inflation, just as individuals do,
as well as demand for increased services. Additionally for property taxes
payable in recent years, there have been some changes in State aids to
school districts and local units of government. Generally speaking, a
larger share of the costs of doing government are being borne by the
property tax.
2.
Q.
Why are my taxes so high?
A. (For Residential Homestead Property) Property taxes are based on the
valuation of the property. There is a progressive system for computing
the tax capacity from the market value. This results in a progressive
property tax for owner occupied property.
The State of Minnesota has an income adjusted property tax refund for
homeowners. There are different benefits for senior citizens, disabled
individuals, income levels, or based on the number of dependents.
Information about the M-1 PR form, (which is mailed out to individuals
along with their State Income Tax Forms) is available by calling 296-
3781.
If you are a homeowner and your property tax for 1997 increased by
more than 12 percent, you may be eligible for a speoial refund this year.
3.
Q.
What is State Paid Tax Relief?
A. This is your pro-rated share of a State aid paid to Scott County to reduce
the property tax level. This is already within the calculations of your
taxes.
,s.
'I.
Q.
What is the tax rate?
A. The term tax rate replaces the former term mill rate. The tax rate is
expressed in percentages and is multiplied by the tax capacity resulting in
the tax obligation prior to any reduction by credits.
Q.
How do you arrive at the tax amount?
A. All taxable property is classified and valued as of January 2 of each year.
This classification and valuation is the basis for the property tax payable
in the following year. For example, your 1998 property taxes are based
on the valuation and classification as of January 2, 1997. Based on the
classification of the property, the market value is taken times the
statutory tax capacity percentage to compute a gross tax capacity.
Ifa residential property has a value of$125,000, the computation:
o the first $75,000 in value x 1.0 % = 750
o above $75,000 is value x 1.85% = 925
o totaling those computations = 1,675
(This represents the tax capacity.)
The gross tax capacity is taken times the tax rate to yield the tax. For
example, if the tax rate were 1.50, the 1,675 would be taken times 1.50
to yield a tax of $2,512.50. The tax rate will differ depending on the
school district, township, or city.
The first half is payable by May 15, the second half payable by October
15.
6.
Q.
My property was reassessed last year, so why should I get a State
imposed aggregate increase?
A. Aggregate changes in assessment are made by the State Board of
Equalization. The purpose of these changes is to ensure that the
assessment level lies with the 90 to 105 percent of market value corridor
which is required by the Department of Revenue. The changes are made
on a class of property rather than on individual properties. If a property
was revalued and received an increase, it is possible for the State in their
statistical analysis of the assessment to impose another increase. After
the aggregate increase from the State, if the property's estimated market
value for property tax purposes exceeds what it could be sold for on the
open market, the value should be reduced to within the 90 to 105 percent
acceptable corridor.
1.
Q.
What can I do about my taxes?
A.
The Assessor deals with the classifications and valuation of the property
which provides the basis for the taxes, but not the specific tax amount. If
the classification or valuation is in error, the first step is to discuss your
concerns with your local assessor or a staff appraiser from the Scott
Count Assessor's Office. If an agreement cannot be reached, a more
formal method of appeal may be necessary.
There are basically three methods of appealing the valuation or class-
ification of a property.
They are:
[J The abatement process
[J Local Board of Review, County Board of Equalization
o Tax Court, including the Small Claims Division
-.......-
Property Tax Classification Rates:
What They Are, How They Work
The classification rates on selected properties for taxes payable in 1998 are shown below:
PROPERTY
CLASS
TAXES PAYABLE 1998
CLASSIFICATION RATE
Residential Homesteads
First $75,000 of market value
Value over $75,000
Residential Non-Homestead (single unit)
First $75,000 of market value
Value over $75,000
Commercial and Industrial
First $150,000 of market value
Value over $150,000
1.0%
1.85%
1.9%
2.1%
2.7%
4.0%
Farm Homesteads
House, garage, one acre
=
Same as residential homesteads
Land value up to $115,000
Land value over $115,000
Up to 320 acres
Over 320 acres
Farms Non-Homestead Land
Residential Rental (apartments)
3 or fewer units
4 or more units
0.4%
0.9%
1.4%
1.4%
2.1%
2.9%
Seasonal Cabins (non-commercial)
First $75,000 of market value
Value over $75,000
1.4%
2.5%
How to Use Classification Rates:
Example: Suppose your home is valued at $90,000 and your local tax rate is 1.35 (135% of tax
capacity)
Then:
Your Home's Tax Capacity =($75,000 times .01) + ($90,000 minus $75,000) times .0185=$1,027
Your PropertY Tax = $1,027 times 1.35 = $1,387
(Note: Homesteads also receive the education homestead credit to reduce their school taxes. For
1998, this credit would be approximately $121 for a $90,000 home.) 't - . I
1 ('\
CLASSIFICATION OF PROPERTY
The classification of property after the valuation is complete to identify the
property as residential, commercial, homestead, non-homestead, etc. Each
class refers to a different statutory assessment rate. It is based on the use
as of the assessment date.
CLASS RATE
Statutory percentages' applied to the estimated market value of a parcel
based on the parcel's classification to arrive at the tax capacity.
COEFFICIENT OF DISPERSION
In statistics, the ratio of a measure of absolute dispersion to an appropriate
average usually expressed as a percent. It may be computed from either
the quartile or mean deviation, but is usually expressed as a ratio of the
standard deviation to the mean. A measure of relative dispersion.
COST APPROACH
That approach in appraisal analysis which is based on the proposition that
the informed purchaser would pay no more than the cost of producing a
substitute property with the same utility as the subject property. It is
particularly applicable when the property being appraised involves
relatively new improvements which represent the highest and best use of
the land or when relatively unique or specialized improvements are located
on the site and for which there exist no comparable properties on the
market.
NON-HOMESTEAD
Residential property that does not qualify for a full year or mid-year
homestead. The tax capacity is higher, hence, a higher tax.
INCOME APPROACH
That procedure in appraisal analysis which converts anticipated benefits
(dollar income or amenities) to be derived from the ownership of property
into a value estimate. The income approach is widely applied in appraising
income-producing properties. Anticipated future income and/or reversions
are discounted to a present worth figure through the capitalization process.
LEGAL DESCRIPTION
A statement containing a designation by which land is identified according
to a system set up by law or approved by law.
LOCAL TAX RATE
Rate of tax applied to the tax capacity of property to calculate the tax due.
Formerly known as the mill rate.
MARKET APPROACH
A process of analyzing sales of similar recently sold properties in order to
derive an indication of the most probable sale price of the property being
appraised. The reliability of this technique is dependent upon (a) the
availability of comparable sales data, (b) the verification of the sales data,
(c) the degree of comparability or extent of adjustment necessary for time
differences and (d) the absence of non-typical conditions affecting the sale
price.
MARKET VALUE
The highest price in terms of money which a property will bring in a
competitive and open market under all conditions requisite to a fair sale,
the buyer and seller, each acting prudently, knowledgeably and assuming
the price is not affected by undue stimulus.
FUNCTIONAL DEPRECIATION
Impairment of functional capacity of efficiency. Functional obsolescence
reflects the loss in value brought about by such factors as overcapacity,
inadequacy, and changes in the art, that affect the property item itself or its
relation with ,other items comprising a larger property. The inability of a
structure to perform adequately the function for which it is currently
employed.
FUNCTIONAL CURABLE DEPRECIATION
Functional obsolescence which may be corrected or cured when the cost of
replacing the outmoded or unacceptable component is at least offset by the
anticipated increase in utility, and, hence, ultimately in value, resulting
from the replacement.
FUNCTIONAL INCURABLE DEPRECIA TION
Functional obsolescence that results from structural deficiencies or
superadequacies that the prudent purchaser or owner would not be justified
in replacing, adding or removing, because the cost of effecting a cure
would be greater than the anticipated increase in utility resulting from the
replacement, addition, or removal.
ECONOMIC OBSOLESCENCE
Impairment of desirability or useful life arising from factors external to the
property, such as economic forces of environmental changes which affect
supply-demand relationships in the market. Loss in the use and value of a
property arising from the factors of economic obsolescence is to be
distinguished from loss in value from physical deterioration and functional
obsolescence, both of which are inherent in the property. Also referred to
as Locational or Environmental Obsolescence.
ESTIMATED MARKET VALUE
The value which the Assessor has estimated the property to be worth. This
value is required to be at least 90 percent of what similar properties are
actually selling for.
PARCEL
A piece ofland, regardless of size, in one ownership.
PROPERTY TAX REFUND
Also know as the "Circuit Breaker". State-reimbursed refund to owners
of homesteaded property and renters based on income.
REV ALVA nON
The mass appraisal of all property within an assessment jurisdiction to
obtain equalization of assessed values. Also for reappraisal of a former
assignment.
SALES ASSESSMENT RATIO
The ratio derived by dividing the estimated market value by the selling
pnce.
AGGREGATE RATIO
The ratio determined by dividing the total assessed value of all sales by the
total selling prices.
=
MF'.AN RATIO
The total of all the ratios in a given set divided by the number of items in
the set.
MEDIAN RA TIO
The value of the middle item where an odd number of items are arranged
(arrayed) according to size; or the arithmetic average of the two central
items, if there is an even number of items. It is a positional average and is
not affected by the size of extreme values.
SPECIAL (LOCAL) ASSESSMENT
Street, sewer, curb, etc, cost determined by local municipality.
PIkr
Qud
PUBLIC HEARING
BOARD OF REVIEW
***
MAY 17,1999
/ Y!!-3 (~ /~S,/'7};iL._