Property tax is a government cost charged to a property owner based upon the property’s taxable estimated market value and classification. Counties, townships, cities, school districts, and a few miscellaneous taxing authorities levy taxes on real estate and some personal property to help pay for local services including road and bridge maintenance, community services, police and fire protections, libraries, parks, and education. The State also levies a general tax on commercial, industrial, and seasonal recreational residential properties.

Each property’s tax burden is determined according to its value, classification, and the local property tax levies. Assessors are responsible for estimating property values and determining property classifications.

Market values, budgets, property classification rates, and classification credits determine the property tax. The first step is to determine the tax capacity value by multiplying a property’s taxable market value by its classification rate. Step two is to establish a tax by multiplying the property’s tax capacity by the overall tax rate. The overall tax rate is a multiplier, resulting from the division of each district’s total levy by the district’s tax capacity value. The third and final step is to subtract any property tax credits from the preceding tax calculation to determine the net payable tax.

The county assessor, along with the county appraisers on staff, estimate the market values and classify properties based on current use or most likely use of the property.

The assessor’s office also administers a number of land owner and special tax programs. These programs are listed and explained under the corresponding tabs to the left.

Market value can be defined as the highest price in terms of money which a property will bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably, and assuming that neither is under undue duress.

The law requires that appraisers view each parcel of real estate to appraise its market value based on current market conditions. In addition to current market, numerous physical changes affect the land and building values. These factors are considered when estimating the value of a property. This requires a physical inspection of all property subject to assessment within a five-year period or “quintile”.

Minnesota state law requires that the value and classification of all real and personal property be established as of January 2nd of each year. The assessor's office works throughout the year to analyze property sales and economic conditions in order to estimate market value of properties for the following January 2nd assessment date.

Market values are included on the Valuation Notice, which is mailed to each property owner at the end of March.

The assessor determines the classification of each property based on the current use of each parcel. There are multiple property classifications such as residential, commercial, agricultural, seasonal recreational residential, industrial, exempt, and rural vacant.

Agricultural and residential can be either homestead or non-homestead and some properties can fall under more than one classification. Each classification may be taxed at a different percentage of market value. These percentages are set by the Minnesota State Legislature and may change from year to year.

Each taxable property will be viewed by the assessor’s office staff once every five years. In addition, all new construction, alterations, or improvements are viewed in the current year.

The assessor gathers information on all characteristics of the property that affect market value, such as size and age of the building, quality of construction, condition of the structure, and special features such as basement finish, fireplaces, walk-out basements, decks, etc. Characteristics about the land are also observed, such as location, number of acres of land, quality features of the land, as well as determining value of aspects such as water front footage along the Mississippi River.

The Houston County Assessor's Office utilizes a computer-aided mass appraisal (CAMAVision) system which assists the assessor in achieving uniformity and equality during the assessment process.

According to state law, the estimated market value determined by the assessor, is supposed to represent 100% of real value as expressed in the real estate market. This is determined through annual sales studies that run from October 1 through September 30 each year.

The Minnesota Department of Revenue, through the State Board of Equalization, meets annually with the county assessor and through the use of statistical measures determines and reviews the overall quality and level of assessment by way of the sale study results.

The median ratio, of the estimated market values, for each class and jurisdiction, with at least six sales in that grouping, must be at 90-105%. If not, the overall values of the parcels within that classification and that jurisdiction must be adjusted, either higher or lower, so that it falls within the 95% to 105% range.

The Houston County taxing districts hire the county assessor’s office to complete the assessment for them. All assessments are supervised from the county assessor's office, under the direction of the county assessor.

The staff appraisers employed by Houston County must adhere to training and experience requirements that are set by state statute. The State Board of Assessors governs and administers the licensing of ad valorem property assessors. Houston County recognizes five separate titles for its property assessors.

• Appraiser Trainee has not completed the first level of course work and one year of experience.
• Certified Minnesota Assessor, CMA (non-income qualified), has successfully completed the necessary course work and one year of experience. This position is granted by the State of Minnesota.
• Certified Minnesota Assessor, CMA (income qualified), has achieved the CMA non-income qualified and successfully completed the additional course work and experience. This position is granted by the State of Minnesota.
• Accredited Minnesota Assessor, AMA, has achieved the CMA income qualified and successfully completed the additional course work, written and received a passing grade on a residential form report, has acquired three years’ experience and has passed the required eight-hour exam. This position is granted by the State of Minnesota.
• Senior Accredited Minnesota Assessor, SAMA, has achieved the AMA, has no less than five years’ experience, has passed an additional eight-hour exam, and has successfully completed an interview in front of the Minnesota Board of Assessor’s. This is the level necessary to become a County Assessor.