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Item 1. Local Board of Appeal and Equalization2026 ASSESSMENT OVERVIEW 1 1 Set Budgets These determine how large or small the property tax levy will be. Value and Classify Property Administer state property tax programs. These factors determine the portion of property tax the property owner will pay. MINNESOTA PROPERTY TAX SYSTEM Legislation is passed guiding the Minnesota property tax system. Oversight and guidance is provided to MN Assessors. Local Taxing Authorities (County/City/Township/School District/LIDs) Calculate Tax Rates Ensure the levied amount is collected from taxable property within each taxing district. 1. 5 .4 .3 . 2 . 2 2 TO VALUE AND CLASSIFY PROPERTY Property Value: Based on market data including sale prices, cost to construct and income produced. Property Classification: Based on the current use of the property. (This may or may not match the current zoning of the property.) The combination of property value and classification determines the Tax Capacity for each property. Tax capacity combined with local tax rates determine the portion of property taxes each property owner will pay. It is the responsibility of the Assessor to accurately value and classify property to ensure that the tax capacity is fair and equitable across all property types and jurisdictions within the County and in accordance with state statute. The Minnesota Department of Revenue directs and regulates the work done by Minnesota Assessors. The State Board of Assessors oversees the education, training and licensure of Minnesota Assessors. WHAT IS THE ROLE OF THE ASSESSOR? 3 3 10/1/2024 thru 9/30/2025 January 2nd, 2026 Assessment Date March Valuation Notices Mailed April - May Appeals: Local Boards of Appeal and Equalization and Open Book June County Board of Appeal and Equalization June State Board of Equalization June July August September Truth in Taxation Levy Certifications November Truth in Taxation Notifications Mailed December Final Budget Hearings; Final Levy Certifications January Tax Rates are calculated March Property Tax Statements Mailed May 15th, 2027 1st Half Taxes Due October 15th, 2027 2nd Half Taxes Due - excluding Agricultural property November 15th, 2027 2nd Half Taxes Due on Agricultural property2027Property Taxation Timeline: 2026 Assessment / 2027 Payable Year 20262024 2025Sales study period for the 2026 Assessment. Sales are verified, analyzed, and compared to the 2025 Assessed Values.AssessorTaxpayer ServicesLocal Taxing AuthoritiesDevelop Preliminary Budgets at Local, County and School District Levels for 2027 4 4 PROPERTY OWNER APPEAL OPTIONS Local Board of Appeal and Equalization Meetings April 6th – April 23rd Meetings held by the local city or township. Property owners must appeal at this level to be heard at the County Board level. Open Book Meetings Property owners in these districts can appeal to the County Assessor’s office up until the County Board of Appeal and Equalization meeting in June. Wright County Board of Appeal and Equalization June 15th, 2026 Appointments required by June 8th, 2026 Minnesota Tax Court Deadline to file: April 30th of the year in which the property taxes are payable. Property Owners do not have to appeal at any other level prior to filing in Tax Court. 5 5 2026 ASSESSMENT SUMMARY 2026 Market Value Increase: 7.17% including new construction on taxable property types. * The current assessment meets or exceeds standards for uniform assessment in all jurisdictions as established by the International Association of Assessment Officers and the Minnesota Department of Revenue. $14.90 $15.97 $16.92 $18.08 $21.94 $25.67 $26.21 $27.79 $29.78 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00 30.00 2018 2019 2020 2021 2022 2023 2024 2025 2026 *Values from MN DOR PRISM Report which excludes: exempt, personal property, and state assessed values. County EMV (in billions) 7.91%7.19%5.97%6.85% 21.34% 16.99% 2.10% 6.03%7.17% 0% 5% 10% 15% 20% 25% 2018 2019 2020 2021 2022 2023 2024 2025 2026 Total % Change (YoY) 6 6 2026 ASSESSMENT SUMMARY Wright County Valuation Change Property Type Gross Change (including New Construction) Net Change (excluding New Construction) Residential + 5.55%+ 3.35% Seasonal Residential + 9.95%+ 8.80% Agricultural / Rural + 12.88%+ 12.62% Commercial + 8.13%+ 6.54% Industrial + 13.38%+ 10.73% Apartments + 4.61%+ 3.02% Manufactured Home Parks + 28.04%+ 28.04% Total Valuation + 7.17%+ 5.32% 7 7 Agricultural $4,234,173,025 13% Apartments & MH Parks $1,033,354,500 3% Commercial $1,706,447,600 6% Exempt $2,086,509,700 7% Industrial $1,011,686,000 3% Residential $20,441,732,275 64% Seasonal Residential $1,351,696,300 4% 2026 Assessment EMV Breakdown by Property Type Agricultural Apartments & MH Parks Commercial Exempt Industrial Residential Seasonal Residential 8 8 2026 ASSESSMENT SUMMARY Wright County Growth Calendar Year Plats New Parcels Total Parcel Count New Homes 2025 50 1,090 73,492 1,081 2024 40 847 72,481 1,043 2023 46 712 71,652 1,031 2022 53 1,370 71,063 1,120 2021 66 1,982 69,807 1,413 2020 53 643 67,990 1,223 2019 50 821 863 2018 43 797 913 $223 $271 $294 $317 $405 $582 $610 $510 $576 $513 $0 $100 $200 $300 $400 $500 $600 $700 Total New Construction Value Added (in millions) 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 9 9 LOCAL BOARDS OF APPEAL AND EQUALIZATION The Fine Print: Purpose of the Local Board: Review the 2026 Assessment for property taxes due and payable in 2027 Sales Study Period October 1st, 2024 – September 30th, 2025 Review data provided by Property Owner’s and the Assessor to determine if a change to value or classification is warranted. Prior to making a change, a physical inspection of the property should be conducted by the Assessor to ensure the property data is accurate. If access is denied, an adjustment can not be made by the LBAE. Changes to the value or classification of an individual parcel can be made based on the factual information provided during the meeting and in accordance with MN Property Tax statutes. Relevant Statutes: A quorum must be present with at least one “Training Certified” member as described under MN Statutes, section 274.014 MN State law requires the assessor to value property at full market value. MN Statutes, section 273.11 The assessor’s estimate of market value is prima facie valid correct. The burden of proof is on the property owner to prove that the assessor’s value is in error. MN Statutes, section 271.06 10 10 LOCAL BOARDS OF APPEAL AND EQUALIZATION The Fine Print: Making Changes at the Local Board: The Local Board shall consider all appeals and the factual evidence provided. They may then choose to do one of the following: 1.Vote to change the property value or classification based on factual evidence provided by the property owner. 2.Vote “No Change” on the property. The property owner retains the ability to appeal at the County Board of Appeal and Equalization or file in Tax Court. 3.Recess the meeting to a later date if a decision can’t be made. Remember that changes made should be justified by facts as they have the effect of shifting the tax burden onto other property owners in the district. 11 11 PROPERTY OWNER RESOURCES Wright County Assessor’s Office 763-682-7367 https://www.co.wright.mn.us/134/Assessor 3650 Braddock Ave NE, Suite 1700 Buffalo, MN 55313 Minnesota Department of Revenue Property Tax Information: https://www.revenue.state.mn.us/property-tax-information Understanding Property Tax: https://www.revenue.state.mn.us/understanding-property-tax Estimated Market Value: https://www.revenue.state.mn.us/estimated-market-value Board of Appeal and Equalization Handbook https://www.revenue.state.mn.us/sites/default/files/2021-12/baetraining_handbook%20122021.pdf Property Tax Refund https://www.revenue.state.mn.us/property-tax-refund Wright County Taxpayer Services 763-682-7578 https://www.co.wright.mn.us/170/Finance-Taxpayer-Services 3650 Braddock Ave NE, Suite 1400 Buffalo, MN 55313 Property Owners can sign up to receive notices electronically. Valuation Notices Truth in Taxation Notices Ta x Statements Currently over 2,600 parcels are signed up for this free service. 12 12 Wednesday, April 22, 2026 Otsego Local Board of Appeal & Equalization 1 Minnesota State Law requires assessors to value property based on historical data. Taxes payable are always based on the prior year’s value, which was determined using sales data from a previous time period (see chart below). Therefore, in an escalating market, assessed values are typically lower than the current market. Likewise, if sales prices are declining, it’s possible that assessed values will be higher than the current market. This is due to the time frame we are required to work with and the effects of a rapidly changing market. PREVIOUS ASSESSMENT CURRENT ASSESSMENT Gather & Verify Sales Data Valuation Year Pay taxes Oct. 1, 2023 Thru Sept. 30, 2024 2025 2026 2027 Oct.1, 2024 Thru Sept. 30, 2025 2026 2 SUMMARY OF THE OTSEGO 2026 ASSESSMENT Estimated Market Value of City of Otsego 2021-2026 Assessment TOTAL CITY VALUE: $4,221,493,000 (Excludes: exempt, state assessed, & personal property) $2.47 $3.05 $3.71 $3.73 $3.99 $4.22 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 5.00 2021 2022 2023 2024 2025 2026 EMV (in billions) EMV $3,507,416,050, 83% $151,381,700, 4% $263,821,800, 6% $197,541,850, 5% $12,557,400, 0% $88,774,200, 2% Otsego EMV By Class Residential Commercial Industrial Agricultural Mobile Home Park Apartments 3 Otsego Valuation Change – 2026 Assessment Property Type Net Change (excluding n/c) Residential +1.83% Agriculture +3.26% Commercial +13.30% Industrial +6.89% Apartments +1.79% MH Parks +31.18% Total Valuation +2.64% 4 Residential / Seasonal Recreational The annual property assessment elements in Otsego consist of new construction, quintile review, and sales analysis. This year’s 2026 residential assessment activity included 280 net new home permits along with 230+ structure or various item permits for a total new construction value of over $106,000,000. Approximately 2,100 properties were reviewed in the field for quintile, and 330 qualified sales were analyzed for the sales ratio study. The result of this activity was a 1.83% net increase in total city residential value, year-over-year. After adjusting for market conditions and equalization, the final median ratio of the 2026 assessment is 95.89%. The State of Minnesota requires assessors to value property at 100 percent of market value with an allowable median ratio range of 90 to 105 percent. Wright County Large Cities Net % Change Total Dollar Value of New Construction 2026 (assessment) compared to 2021-2025 Total dollar value of new construction in Asmt.2026 (Residential) $106,382,400 Total dollar value of new construction in Asmt.2026 (C/I/A/MH)* $ 18,701,800 Total dollar value of new construction in Asmt.2026 (Agriculture) $ 209,600 Total 2026: $125,293,800 Total 2025: $100,727,000 Total 2024: $105,297,700 Total 2023: $176,372,400 Total 2022: $184,300,800 Total 2021: $130,909,900 New Construction Dwellings (Assessment Year) Net # of Permits 2026 280 2025 239 2024 252 2023 302 District % Change Albertville Buffalo Delano 2.53 3.46 2.69 Monticello 1.75 Otsego 1.83 St. Michael 3.37 5 *Graphs depict only QUALIFIED SALES from 10/1/24 – 9/30/25 $301,343 $349,429 $421,760 $382,192 $399,435 $413,734 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 2021 2022 2023 2024 2025 2026 Time-Adjusted Median Sale Price $484,721 $461,855 $415,038 $415,009 $288,293 85 sales 34 sales 83 sales 12 sales 112 sales $- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 2 Story 1 Story Split Mod. 2 Story & 1 1/2 Story Townhome Time-Adjusted Median Sale Price By Style 6 *Value of all improved residential properties including seasonal recreational and partially complete n/c $286,400 $345,400 $402,700 $386,400 $402,500 $410,650 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 2021 2022 2023 2024 2025 2026 Median Assessed Value 7 2026 Assessment Review Area (in blue) 2025 QUINTILE (Calendar Year) 2024 QUINTILE (Calendar Year) 8