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Nw Iowa | The acceleration is using a comp from a earlier date and than adding a percentage to that comp to come up with full comp value. Basically state demanded county to add 2.5 percent ( this is from local accessor, May be rounding up or down) a month to a comp in 2022. . A farm bought in Dec of 21 would be almost 20% higher as a comp valuation in Sept which was cutoff for 23 tax valuation.. That would not mirror market here. I have a friend in Cottonwood county who told me last week he had a parcel valued at 18000 a acre which is not even close to market there.. Our local county capped it at 12000 per acre, which was reasonable on good land but many counties did not. . There have been a lot of sales in last 6 months where land sells 10 to 20% below county valuation. Also adding insult to some is valuations are based completely on soil types, no discount for irregular fields. Some counties will work with you a large potholes. My examples above are not one offs, very prevalent in our area. The acceleration of comps is unprecedented. I know there are rules on valuation but until there is a class action suit it is very hard for individuals to fight this.
Edit, this was not just on ag land, just about any real estate in Minnesota took a huge hike for 23 valuations. Minnesota is trying to get valuations up there so they raise tax money quite quickly it appears as this is definitely a state push, not a county one. Accessors are getting tremendous pressure to follow Mn guidelines on the acceleration of comps
. Edit Above all happened in 2022, I have not talked to our county accessor what state did in 23 for 24 valuations. I am guessing they stayed pretty flat as their mythology have gotten values ahead of the market. If state had let comps be without adjusting them values would have went up, but not the extreme values county used as comps after adjustment. I realize that valuation does not mean tax but when state has all this extra valuation to work with I can guess how tax collections in the future will go. It also allows politicians to say they are actually taxing property value at less than they were which just gives them more tax money in the future.
Edited by jdironman 3/19/2024 07:50
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Property taxes…oof!
