Property assessment

How we assess your property

Your property is assessed based on a variety of factors:

Real estate market conditions (how prices increase, decrease or stay the same)
Sales prices of similar properties
How you use your property
Improvements to the property
Condition and usability of the property
For income-producing property: market rents, vacancy rates, and capitalization rates

Find more information about a specific property.

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Impact of the real estate market

We determine a value for each property by analyzing sales and market conditions.

The state of Minnesota requires us to value properties at their market value, as of January 2 each year. Our purpose is to determine the amount the property would sell for. This means your assessed value may be different than what you paid for your property.

State law requires us to review all properties in the county every five years. We document the condition of each property and any improvements made. The condition and improvements made affect that property’s assessed value.

Property values

The real estate market influences the assessed value of all types of property.

Residential real estate prices have fluctuated the last two years. Property values in some communities keep increasing while the values in other communities are stable. In 2021, low interest rates and buyer demand higher than supply, lead to rapidly rising residential home prices. In 2022, interest rates went up and slowed demand, making homes less affordable. Currently, the supply of homes for sale remains well below historic norms.

Commercial, industrial and apartment property prices are affected by a more complex set of factors than residential property.

You will receive a value notice each spring based on the value assessed on January 2. A good sign your property has been fairly assessed is if you could sell it for the value on the notice.

Property value increases and property assessment (PDF)

Classification

We assign each property a classification based on how it's used. Classification helps determine tax rates.

Classifications include:

Residential
Agricultural
Apartment
Commercial
Industrial
Utility

Your valuation notice

The notice states the value of your property and its classification. It also states any special property tax programs that the property may qualify for.

Key current assessment dates

January 2: assessed property value as of this date is used for this year's proposed taxes and next year's tax statement

March–April: valuation and classification notices mailed to taxpayers

April–May: time frame to discuss or appeal valuation or classification

Mid-June: county board of appeal and equalization convenes

Spring–Fall: assessors inspect property for next assessment

How to appeal your assessment

If you disagree with the assessed value or classification of your property, you can appeal it. The valuation notice includes details about the appeal process.

Steps to appeal

1. Call your assessor at the number listed on your valuation notice.

Often you can resolve issues by contacting your assessor.

2. Further dispute your valuation or classification.

Your value notice states which option you have for a further dispute — either an "open book" discussion with assessing staff or a meeting of the local board of appeal and equalization.

3. Attend the county board of appeal and equalization meeting.

If your city holds a local board meeting, you must attend that first, before the county board meeting. If you live in an “open book” city, you can go directly to the county board meeting.

To attend the county board meeting, please contact us by the date on your valuation notice: by phone at 612-348-7050 or by email countyvalueappeal@hennepin.us.