Assessors play key — and misunderstood — role in determining property values

Everyone knows that it is tax season, at least when it comes to preparing income taxes.

But many homeowners in Isanti and Chisago counties may not know that it is “tax season” for properties in both counties. And this tax season will play a huge role in the property taxes they will pay next year.

Property owners in both counties will receive physical evidence of this property tax season in their mailboxes very soon as they receive valuation notices that include the classification and assessment value of their property.

“When people get that notice, they should read all of it,” said Chisago County Assessor Daryl Moeller, noting that the assessment for the coming year is often overlooked. “That notice will tell people all of the steps, all the dates and times and locations, to appeal if they want to.”

The county assessor’s offices in both Chisago and Isanti counties put those valuations together in a process that is often overlooked and misunderstood.

“We value and classify properties for taxation purposes,” explained Isanti County Assessor Elisha Long. “Our goal is to make sure that properties are equalized and fair. …

“But assessing is so much more than [valuating properties]. We try to connect with our property owners. We try to be involved in our communities and represent those that support us and our office.”

Moeller added that the focus of the county assessor’s office in both counties is the fair and equitable valuation and classification of a property.

“We are appraisers, but I prefer to call us assessors because we’re different than appraisers,” he said. “An appraiser has a subject property, then finds three or four comparable properties, then makes adjustments. We’re appraising, but we also classify properties – they don’t classify properties. That’s the biggest difference.

“Our end goal is that we’re looking for market value. But we try to make sure that similar properties are valued similarly. We have similar goals, but how we get to market value is different.”

Chisago County has roughly 30,000 parcels of land covered by six appraisers, who will appraise roughly a thousand properties each year. Moeller said roughly a thousand people call his office each year with questions dealing with the appeals process; roughly a quarter of those calls cause the appraisers to physically inspect the properties.

Isanti County has roughly 24,000 parcels covered by five appraisers, so each also appraises roughly a thousand properties each year. Long said last year there were roughly 600 appeals conversations, and her office saw 20% of those assessment appeals move forward.

“We’re doing our job and analyzing the data,” she said. “And what I wish is that people who have an issue with us would call us instead of voicing it on social media. Talk to us! There’s an opportunity for us to communicate when they call us.”

Behind the scenes

Both Elisha Long and Daryl Moeller know their job has inherent challenges.

“A perfect assessment would be that every single property would sell for exactly what we appraise it for, with no time adjustments or anything,” Moeller said, and Long quickly responded, “That never happens.”

Moeller agreed, then added, “What we appraise [a property] for and what it can sell for can be the difference between supply and demand, interest rates, or maybe someone did some work on the house.

“Or maybe someone did a remodel, and something happened so that they have to unload it. Now they have to sell for less than it is valued. We go through a thousand transactions every year.”

Typically assessors follow what is called a “quintile” schedule.

“By Minnesota state statute, we are required to physically inspect and review one-fifth of the properties every year,” Long said, noting that each property in a county would be reviewed every five years. “In Isanti County, we benefit from the fact that our jurisdictions can be completed in one quintile year.

“So my appraiser would review, for example, all the properties in Stanford Township in one year.”

Moeller noted that Chisago uses a similar system.

“Most of my assessors do the entire township – when we do everyone, we’re on the same page for that year,” he said. “But there are some areas in both counties – for example, Cambridge and North Branch, Chisago City and Wyoming – where there’s just too many parcels [to cover in one year].

“So we’ll do those over a longer period of time. Most of the townships are one year; most of the more populated cities are two to three years. We try to keep things as consistent as possible.”

But Moeller said he switched the Chisago County system last year, moving away from a system where he used to have one assessor cover Nessel Township, a different assessor for Rushseba Township, and a third did Fish Lake.

“I now have one person that does almost all of the north end [of the county], and we have someone who mostly does the middle section, and someone who does the south end,” Moeller said. “The south end of our county is night-and-day different from the north end. Wyoming is very different from Rush City – two totally different markets.

“So trying to get one assessor doing the north end gives you some consistency.”

That discovery includes investigating the property as thoroughly as possible.

“We’re still not asking to come in,” Moeller said. “But if a property owner says, ‘Do you need to come in?’ or ‘Do you want to come in?’ I leave it up to my assessor to say yes or no. Every situation is different. …

“We need to be cognizant that we are entering someone’s private space. All we’re looking for is to determine what improvements have been made to a house.”

Long said the goal is to make sure that the information the county has about a property is current.

“We want to make sure our data is correct so we can equalize the value of houses,” she said. “We’re also going to make sure we do a ‘sales study,’ which is where we analyze all of the sales that are taking place.”

For the sales study, Long explained that, for 2024, the county analyzed sales that took place from Oct. 1, 2022, to Sept. 30, 2023.

“We’re using historical data to determine what the assessment should be based on time trends and supply,” she said. “But someone won’t pay property taxes on that until the following year.

“That’s a difficult thing for people to understand. They say, ‘I can’t get that for my house today.’ But could they have gotten that much a year ago? That’s the environment we’re in, with rising interest rates and limited inventory.”

When staff goes out to value a property, Moeller said there are certain expectations.

“One is to get the attributes of the property correctly,” he said. “How can we properly appraise a house if we don’t get inside? Having a good interview with a property owner is helpful. But we also want to get the classification properly.

“And are the owners renting the property out? Are they using it seasonally?”

Long quickly added, “There are so many scenarios that might apply to a property – and property owners aren’t aware of them. Until we have communication with them, we can’t help them. We think it’s a very valuable conversation to have.”

But both Moeller and Long noted that, while only one-fifth of properties will get a physical look-see, every property in the county will get a value for the coming year.

“We have to adjust everyone’s values based on what the market is doing,” Moeller said. “Let’s say we look at all of the properties in Amador Township for one year. That doesn’t mean we won’t change the property values over the next four years. We also make valuations based on the sales studies we make every year. …

“We will make market adjustments for everybody. But that once-every-five-years look means everyone is playing on a level playing field. We are there not only to find value in a property; we’re looking to make sure we have the value of the property right.”

On the front lines

“I tease my staff by asking them, ‘How many of the people that you have assessed would know you?’” Moeller said. “How many people could see you at the store and say, ‘Hi, Daryl.’ If they can’t say hi to you, where’s the connection?

“We have to earn their connection and earn their trust.”

Both Moeller and Long said trust means making a fair valuation, then listening to concerns and questions from property owners. But both note that the valuation of a property is, at least to a degree, influenced by the area where the property is located.

In other words, calling an area a “hot” market depends to a degree on how one defines a hot market.

“Wyoming is going to have a bunch of $450,000 to $700,000 sales, while Rush City is going to be filled with $200,000 sales,” Moeller said. “So which market is hotter? Let’s say Wyoming has been selling at $700,000 for several years; that would be a flat market.

“Whereas if Rush City last year was selling at $150,000 and now is selling at $200,000? That’s a hot market.”

Both note that the appeals process is an important final step in the property evaluation process.

“People tend to focus only on what affects them now, which is this year’s tax statement,” Long said. “But an equally critical page is the property valuation page, which you have the opportunity to contest.

“But you have a limited time to contest that valuation.”

Moeller agreed, adding, “If you wait until December, that’s too late – everything is done. All you can do is pay your taxes.

“Right now, you can actively participate in how much you will pay in taxes by either looking at your property valuation and determining if it’s right or wrong, or by looking at the budgets for the county, the city or township budget, and the school budget, and being an active participant in the budget process.”

The first step in the appeals process is to contact the assessor’s office.

“Step one says to call your assessor if you disagree,” Moeller said. “I agree with that – don’t wait if you disagree. Many times, if there are issues, we can either explain why we made the valuation that we did, or we can answer a lot of questions.”

Property owners should know that possibly changing an assessment will require the assessors to physically review the property.

“We want to review the property to make sure our information is correct,” Long said, and Moeller added, “If someone says their basement is half-finished, and we have it fully finished, we need to come out and verify it. … Our goal in the appeal process is to make it right.”

Long noted that a property owner does not need a real estate agent or lawyer to represent them during the appeals process.

“It’s good to know what the market reflects, so you can make a good decision as to where the value stands,” she said. “All you need is to start a relationship with the assessor’s office.”

If that doesn’t satisfy a property owner, they would appeal the assessment with the local board of appeal and equalization, and the final appeal is with the County Board of Assessment, which generally takes place in June.

Working with the assessor’s office

Both Long and Moeller said they can help property owners beyond discussing their property valuation.

“If I see a handicap license plate, I would ask people, ‘Did you know there’s a blind or disabled homestead classification?’” Moeller said. “Are you a veteran? There’s a classification for disabled veterans. …

“There are programs out there that people can take what is given to help them. … The value of the property won’t change. How the property gets taxed – its valuation – might change.”

While Long knows the primary job is to value properties, she wants to do more on the job.

“Our job is to value properties within our assigned counties, but we’re also educators and public relations people,” she said. “We’re meeting those owners and educating them on what’s available, and what their valuation and classification mean for taxation purposes.”

Both Long and Moeller welcome questions from the public about assessments, property values – anything that will make the entire property taxation process more understandable to property owners in particular and to the public in general.

“All we’re trying to do, at the end of the day, is to make sure a particular property, if it’s similar to another property, is valued the same,” Moeller said. “It’s fair and equitable. That’s the overriding factor. …

“The best way to get accurate information about an assessment is to call us.”

To contact the Isanti County Assessor’s Office, call 763-689-2752 or email assessor@co.isanti.mn.us. Its website can be found at https://www.co.isanti.mn.us/262/Assessor.

To contact the Chisago County Assessor’s Office, call 652-213-8550 or email assessor@chisagocountymn.gov. Its website can be found at https://www.chisagocountymn.gov/136/Property-Tax-System.

Click here to meet the assessors of Chisago and Isanti counties.

Click here to read about some of the myths that assessors hear while doing their work.

Click here to learn about some of the common terms and phrases used in the world of property assessment.