2.0 SR BOARD OF APPEAL 04-27-2020

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Sales Ratio Studies Sales ratio studies compare the Assessor’s Estimated Market Value to the sales price of the property. Sales from October 1, 2018 to September 30, 2019 were used to determine the Estimated Market Value for the January 2, 2020 Assessment. The Minnesota Department of Revenue requires the Assessor to maintain a ratio of 90% to 105%. The final sales ratio for the 2020 assessment is 94.0%. Residential Sales There was a total of 624 residential sales in Elk River that occurred between October 1, 2018 and September 30, 2019. Of that number, 351 sales were considered “good” sales that were included in the Department of Revenue Sales study for the 2020 assessment. The average sale price was $259,307 with an average assessed value of $250,459. An additional 273 sales were not used. These were rejected for such reasons as new construction/physical change, foreclosures/bank sales, and sales between related parties. Vacant Land/Lot Sales There were 32 vacant land/lot sale transactions from October 1, 2018-September 30, 2019. This included 2 transactions for new plats (Riverplace 2nd, Lawatsch Farms) and 20 individual sales of single-family platted lots with an average sale price of $70,335. Five of the sales were tax forfeited parcels. Residential Building Changes Increases were made to the house schedule to raise the level of assessment. Following the market indications, lower value “entry level” homes received greater increases than higher end “executive” homes and split and rambler style homes saw a larger increase than two story homes. Residential Land Changes Base rates for residential lots/land were increased 15%. Neighborhood modifiers were reviewed city wide and inequities were addressed through upward or downward adjustments. Rural Vacant Land increased 10% to Woods/Pasture/Tillable Ag Building Changes Ag house and garage increases followed the residential building schedule.