Property tax statements, assessment notices will be mailed to property owners at the end of March

DOUGLAS COUNTY — Approximately 30,000 property tax statements and assessment notices will be mailed to Douglas County property owners at the end of March.

The assessment notice advises property owners of the estimate of the property’s value and classification (based on current use of the property) and appeal options if the owner disagrees. The value and classification are as of Jan. 2, 2023 and are used to determine the owner’s share of the property taxes they will pay in 2024. Per state requirements, sales of properties between Oct. 1, 2021, through Sept. 30, 2022, are used to set values for the 2023 assessment.

The tax statement itemizes the property owner’s share of the taxes payable in 2023 and is based on the 2022 assessed values and classification (using sales from Oct. 1, 2020, through Sept. 30, 2021). The various Local Boards of Appeal listed on the assessment notice cannot take any action affecting the tax statement for taxes payable in 2023.

The continued demand for homes in the area and cost of building materials have significantly affected market values, said Stacy Honkomp, Douglas County Assessor.

She said every district saw an increase in the 2023 values (for taxes payable in 2024).

“Douglas County had 511 sales this past year which is a 13.5% decrease from last year,” said Honkomp. “However, the average sales price increased approximately 7.25%.”

Demand for lake front properties remained strong county wide, she said, noting that there were 126 lake sales with an average sale price of $486,000. Because of the sales between Oct. 1, 2021 through Sept. 30, 2022, Douglas County will see quite large increases to its lakefront properties, said Honkomp.

She also said that there were 25 good agricultural sales in Douglas County (sales from Oct. 1, 2021, to Sept. 30, 2022). The assessed market values were significantly under the sales prices, necessitating large increases to tillable and non-tillable acreage, she said. As a result, ag properties will see an approximate increase of 26%.

Guidelines from the State of Minnesota is to adjust property values close to those sales that happened during the sales study period. All counties statewide have the same criteria to follow.

The assessor uses land and building schedules to value property consistently throughout the county and be relatively close to the sales prices, said Honkomp.

“With different motivations of buyers and sellers however, it is virtually impossible to value properties at their sales price,” she said. “Douglas County uses a computerized mass appraisal system that considers the sales and the property characteristics unique to each parcel to arrive at a market value. Sales of real estate are the primary guide to the county’s mass appraisal system.”

Honkomp also said that the Minnesota Department of Revenue assigns a regional representative to each county, who monitors every sale and compares the sales prices with the assessed values. If the assessed values are not within 10% of the median (middle sale when ranked in order) sales prices in a district, the Minnesota Department of Revenue can order an adjustment to the entire jurisdiction.

Douglas County works very hard to prevent this from happening, she said.

The value put on your property does not directly affect your property tax bill. It is used to calculate your share of the local property tax levy for the year. The levy is the total property tax revenue needed to fund the budgets set by the county, city or township, and school district. Your property’s taxable market value is multiplied by its classification rate to determine its share of the levy.

Honkomp said that increasing or decreasing your property’s market value does not change the overall amount of property tax collected. If you own and live in your home and are not getting homestead classification, contact the assessor’s office, she said.

All new homesteads will require an application. Any property owners who choose to appeal their 2023 value or classification must make an appointment. Property owners can call the Assessor’s Office at 320-762-3884 or send an email to assessors.office@co.douglas.mn.us.

For property owners in the city of Alexandria, call 320-763-6678 for an appointment to appeal to the Alexandria City Board of Appeal.

Honkomp noted that no action can be taken at those meetings. For those facing financial hardship, go to the state of MN website, www.revenue.state.mn.us, and type in M1PR in the search box. It will connect you to a form that compares your income with your property taxes due (on homestead property) and you may be eligible for a partial refund of your property tax.

Local Boards of Appeal and Equalization and Open Book meetings will begin Tuesday, April 11 and run through Friday, April 21. Appointments are required.

The assessment notice will specify the date and location of the meeting for each district.

An appeal cannot be made to the County Board of Appeal and Equalization in June unless an appeal was first heard by the Local Board (city or township) of Appeal and Equalization, said Honkomp. The assessor’s office is available by phone or email if for questions.

Douglas County offers several convenient ways to pay property taxes. Residents wanting to pay in person should go to the Administration Building at 821 Cedar Street. There is a drop box in the parking lot in addition to one on the west side of the building.