Assessor

FAQs
Homestead
Market Value
  »Appeals

Property Search

Market Value

What is Market Value?

Minnesota Statute 272.03 defines "market value" as "the usual selling price at the place where the property…is…at the time of assessment." It is "the price that could be obtained at a private sale or an auction sale, if the assessor determines the price from an auction sale represents an arms-length transaction. The price obtained at a forced sale shall not be considered."

How Market Value is Determined

View Property:                                                                                           Value and classification of real estate must be established on January 2nd each year. The County Assessor’s Office works throughout the year to estimate the market value of each property for the following January 2nd.

Approximately every fourth year, a County Appraiser will view the property. Any property that had a building permit issued in a given year is viewed and its new value calculated for January 2nd following the construction.

Gather Information: The appraiser gathers information on all characteristics of the property that affect market value, such as size, age, quality, basement finish, and extra features, such as fireplaces, walkout basements, etc.

Approximately every fourth year, a County Appraiser will view the property. Any property that had a building permit issued in a given year is viewed and its new value calculated for January 2nd following the construction.

Compute Value:                                                               The characteristics are entered into a computerized appraisal system. Information on actual sales is updated to reflect market trends, and the computer calculates the property’s value.

The market value estimated by the appraiser in this way should be very close to the amount the property would sell for, if placed on the open market.

The State Board of Equalization requires the overall level of assessment to be between 90-105% of market value. Clay County consistently meets the State Board’s requirement.

Analyze Sales:   Each year the assessor analyzes actual sales of property in each township or city. Sales in a 12-month time period preceding the January 2nd assessment date, (from October 1st to September 30th) are reviewed to determine what properties have sold for on the open market. These sales are used as a guide to help determine 'what similar properties would likely sell for' if they were placed on the market.

Mail Notices: The Assessor’s Office mails a Value Notice to each property owner around the end of March every year. The assessment on January 2nd forms the basis for the following year’s tax.

Tax Capacity Value

The "tax capacity value" is determined by multiplying the market value of the property by the statutory percentage rates (also called class rates) for the specific classification(s) / use(s) on the property. Minnesota has many class rates and those rates can be changed only by the State Legislature.

Example: the class rate for homestead property is significantly less than the class rate for commercial or industrial property. The classification of a parcel determines what percentages are to be used to determine the total tax capacity of each parcel in Clay County.

See the Clay County Auditor's Tax Capacities & Rates web page for a Tax Capacity Value Chart.

Tax Capacity Rate

The "tax capacity rate" is determined annually by the County Auditor. This rate is multiplied by the ‘tax capacity value’ to arrive at the property tax.

See the Clay County Auditor's Tax Capacities & Rates web page for a Tax Capacity Rate Chart.

Home | About Us | Commissioners | Departments | Elected Officials | Services | Search

We welcome your comments or questions.
www.co.clay.mn.us
Copyright © 2001-2008 Clay County.  Disclaimer.
Created by Clay County Web Team.

Courthouse, 807 11th Street North, Moorhead MN  56560   (218) 299-5002
Top of Page

Last updated March 11, 2010.