Minnesota Statute 272.03 defines "Market Value" as "the usual selling price … at the time of assessment". It is the most probable price that a property should sell for in a competitive and open market under all conditions requisite to a fair sale. It is assumed the buyer and seller are each acting prudently and knowledgeably, and it is assumed the price is not affected by undue stimulus.
Why is a market value established for my property?
Market value is one of the three main components used in determining property taxes:
• The market value established for your property determines your fair share of the total property tax burden, regardless of what the total tax burden is.
• Minnesota state law determines how the total tax will be distributed among the various types of property in the state, such as apartment, commercial and industrial, and residential property.
• The amount of money that is needed to fund local services determines the actual dollar amount of property tax you will pay.
Of course, the actual calculation of your property tax is a little more complicated. Changes in the city’s property tax base, special property classifications, state mandates, and other statutory requirements, like fiscal disparities and tax increment financing will affect the actual dollar amount of property tax that you pay.
How am I notified about my market value and property class?
In late February or early March of each year, the City of Bloomington Assessor's office sends you a notice.