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3.e Update on 2019 Assessments Staff Report Date of Meeting: April 3, 2019 To: City Council From: Neil Soltis, Administrator Re: 2019 Assessments Background: Washington County released assessment data for 2019 and notices have been sent to property owners. There have been a number of inquiries regarding the notices. The assessed value of all taxable properties in Scandia rose by 10.9% with the assessed value of residential properties increasing 11.3%. Following are some of the key tables from the County’s Assessment Report for 2019. Most significant is the third page which shows the ratio between the estimated market value and the time adjusted selling price for the 43 sales in Scandia during the assessment period. Note that the estimated market value of properties sold during the assessment period has assessed values that 85.4% of the selling price. Washington County sets a target for Assessors that the ratio be 95%. This has led to the increase in assessed values. As shown on page 4 based on the new assessed values the ratio is now 95.1% which is in line with the County target. It is also important to note that an increase in assessed value does not necessarily equate to an increase in taxes. The equation for computing a property’s taxes is determined by taking the taxable value of a property divided by the taxable value of all properties in the City and multiplying that number by the property tax levy. Consequently, if the taxable value increased by 10.9% and a property’s assess value increased by the same amount, the share of the property tax levy would be remain unchanged. In advance of the Board of Appeals and Equalization meeting on Monday, April 8, this is a good opportunity for a discussion on the assessment process.