You CAN Legally Save Money
on Real Estate Taxes
Contact us by April 20 to appeal your property taxes
The current economy has left most of us looking for ways to cut costs. Real estate taxes constitute one of the biggest expenses for property owners and tenants in Minnesota. In the next few weeks, 2009 real estate tax bills will appear in mailboxes across the State.
Your real estate taxes are based on the assessor's estimated fair market value of your property. However, a surprising number of properties are overvalued. Bolstered by easy credit, the real estate market hit historic highs just a few years ago. Since then, all sectors of the real estate market—commercial, industrial and residential—have suffered in the sharp economic downturn. State law specifies that, for property tax purposes, property is to be valued at fair market value every five years. What a willing buyer would pay to a willing seller—the traditional measure of fair market value for real property—has drastically declined. Assessors' estimates of value often lag behind the actual market.
How Your Tax is Determined
Property tax assessors do not have the capacity to inspect each property every year, so, in the absence of hard data, they often rely on annual mass appraisals. Bulk appraisals, however, do not take into account the peculiar characteristics of a given parcel. Nevertheless, these mass valuations can determine the amount of real estate taxes you pay unless other factors that might negatively affect value are brought to the assessor's attention. A higher valuation by the assessor means a higher tax.
Values for real estate taxes payable in 2009 were set as of January 2, 2008. By then, many of us had already begun to feel the pressures of a falling market. If you have not addressed a perceived overvaluation by now, you may still file a real estate tax protest to appeal the assessor's estimated market value for taxes payable this year. Anyone with an interest in the property—whether an owner, a tenant or even a mortgage lien holder—may file. Petitions must be filed on or before April 30, 2009.
The Time to Act is NOW
We anticipate filing a large number of tax petitions this year, marking a trend likely to continue into 2010 (when assessed market values will be determined as of January 2, 2009) and beyond. A tax appeal is a common-sense approach to cost-savings, and the benefits of a successful tax appeal can span multiple years into the future.
We Can Help
Please contact us soon if you have reason to believe that your multifamily, hotel, office, warehouse, retail or industrial property has been overvalued. Winthrop & Weinstine recommends reviewing properties with current values of $1 million or more. With input from one of our several appraiser relationships, we can help evaluate the merits of your case and determine whether a tax appeal is warranted. We have the experience to represent you well.
If you would like to discuss whether or not to file an appeal, please contact your Winthrop & Weinstine attorney or
Joanne L. Matzen at (612) 604-6641, or by email at
jmatzen@winthrop.com, preferably by April 20, 2009, so we can meet the April 30, 2009, filing deadline.
Winthrop & Weinstine, P.A., is a dynamic and growing law firm that passionately champions client issues. With 88 attorneys in a broad range of practice areas, the firm offers the experience and expertise to serve the diverse needs of clients ranging from individuals to
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NOTICE: This newsletter is a periodic publication of Winthrop & Weinstine, P.A., and should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general information purposes only, and you are urged to consult your legal counsel concerning your situation and any specific legal questions you may have.