Estimated market values up 3% for residential, 21% for agricultural properties

Published 6:28 pm Friday, March 24, 2023

Estimated market value of residential properties in Freeborn County increased about 3% from last year’s assessments, while agricultural properties increased about 21%, according to the county’s assessor this week.

Ryan Rasmusson gave a presentation about the new property tax valuations that were mailed to residents earlier this month during the Freeborn County Board of Commissioners meeting on Tuesday, providing an update on the changes that occurred in the last year county-wide and how estimated market value is determined.

Rasmusson said on the residential side, the largest increases in estimated market value came from rural residential properties, Albert Lea lakeshore and lakeview properties, as well as properties in the city of Emmons.

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County-wide, values of homes valued at $300,000 or higher also increased, as sales data indicated that the county’s values were lower on those value ranges compared to the lower value ranges.

He said the estimated market value of apartments overall did not see a change, and commercial and industrial properties were also pretty flat with the exception of downtown Albert Lea commercial properties, which saw an increase of between 30% and 40%.

Regarding agricultural land, tillable land values increased about 25% county-wide, with Freeborn Township seeing a smaller increase of 12% and Hartland Township seeing 20%.

He said those two townships had lower increases this year because they had higher increases in the prior assessment.

Rasmusson said the Assessor’s Office estimates market value by conducting mass appraisals, reviewing sales and adjusting for market trends. They compare values that the Assessor’s Office has compared to what the properties have sold for, and they are also required to physically inspect properties at least once every five years. Properties are also inspected in the event of new construction or demolition.

The county is required to classify and value property as of Jan. 2 of each year for the taxes payable in the following year.

To establish the January 2023 assessment, he said they looked at sales between October 2021 and September 2022. When comparing the estimated market value with the sale price, the county is required by the Minnesota Department of Revenue to have a median ratio of between 90 to 105%.

The assessors make adjustments to the assessments based on an analysis of the sales ratio, considering factors such as property type, location, type of home, age and condition.

If people want to appeal their taxes, they can contact the Assessor’s Office in April or May at 377-5176 or in-person. Residents in Hartland, Hayward and Shell Rock townships can attend their local boards of appeal and equalization.

The county’s Board of Appeal and Equalization will meet June 12. Before going to the county meeting, people must first attend the local Board of Appeals and Equalization if one is held.

He noted as the market corrects itself, he expects to see the values eventually decrease.

Residential percent estimated market value changes
Freeborn County: 3%
Mower County: 4%
Fillmore County: 3.96%
Waseca County: 14.6%
Steele County: 6.26%
Dodge County: 3.1%
Olmsted County: 7.51%
Rice County: 9.21%

Agricultural percent estimated market value changes
Freeborn County: 20.93%
Mower County: 40%
Fillmore County: 31.5%
Waseca County: 47.53%
Steele County: 40.04%
Dodge County: 32.73%
Olmsted County: 18.65%
Rice County: 18.12%