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March/April 2012
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February 17, 2009
Articles
PROPERTY TAX APPEALS
Commercial, industrial and residential real estate values have been in a steep decline – as everyone knows. Everyone, it seems, except the property tax assessors. In Minnesota, real estate taxes are based on values that are more than a year old. This means that your 2009 taxes are based on a value from January of 2008. Depending on the type of property you own, the 2008 value of that property may not reflect the steep decline in real estate values that occurred in 2008. Because your tax payment is based, in large part, on the value of the property, higher property values mean higher taxes. A property is overvalued if the assessed value for tax purposes exceeds the “market value.” Market value is defined by most appraisers as the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale.
We are expecting a significant number of property tax appeals to be filed this year, and that will only be the beginning of a trend. As property values decline for most types of property, assessed values will need to be significantly reduced again to reflect the actual January 2, 2009 values for taxes payable in 2010. An appeal could potentially reduce the tax expense of the property owner for more than one year. Tenants who pay real estate taxes as part of their operating expenses may wish to consult with their landlords about a tax appeal to reduce their pass through operating costs.
The tax bills for 2009 should be delivered in early March. A Petition to appeal your property taxes payable in 2009 must be filed with the relevant county no later than April 30, 2009. If the appeal is not timely filed, you cannot typically seek a reduction for the 2009 taxes. Because of the high volume of appeals we are expecting, Felhaber, Larson, Fenlon and Vogt, P.A. is associating with the law firm of Malkerson, Gilliland, Martin LLP, located just two floors below our Minneapolis office, to handle and process property tax appeals for our clients. This association affords us the advantage of combining our resources, including our respective appraiser relationships (knowing the right appraiser for the geographical area and the property is key to a successful appeal), real property data bases, assessor relationships established throughout the region, and our expertise, all for our clients’ benefit.
If your property has an assessed value of at least $750,000.00 and you would like to discuss our representation of you in a property tax appeal, please contact your Felhaber, Larson, Fenlon & Vogt attorney or Felhaber, Larson, Fenlon & Vogt attorneys Catherine (Trina) Sjoberg at 612-373-8536 or Jacob C. Hendricks at (612) 373-8575. We can provide an initial free consultation to go over your tax bill and any recent appraisal or valuation information you may have. If we agree that an appeal has merit, we are willing to discuss either an hourly fee or contingent fee arrangement. We look forward to working with you.
Catherine (Trina) Sjoberg
Attorney
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Felhaber, Larson, Fenlon & Vogt, P.A. |
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