Assessment Practices Review Panel - St. Louis County

1 Introduction: Purpose and Mission Review Panel
1.1 Background
The assessment of property is an essential component of Minnesota’s property tax system.
Property assessments define the tax base and consequently who pays what share of the
property tax levy. If some properties’ valuations are too high, those property owners will
pay more than their fair share of property taxes. Conversely, if some properties’
valuations are too low, those owners will pay less than their fair share. Incorrect
classifications will also shift the tax burden. When property is valued and classified
correctly in all jurisdictions, the property tax burden is distributed equitably, as defined by
the Legislature.
The St. Louis County Assessor is responsible for the equalization of property assessments
throughout St. Louis County, excluding the City of Duluth, to ensure that each property is
equally and uniformly assessed. The assessment process includes estimating property
values, classifying properties, reviewing sales of property, equalizing values, notifying
taxpayers and appealing values and classifications.
The St. Louis County Assessor strives to have a property valuation system that is Timely,
Uniform, and Fair (TUF). There are, however, challenges in meeting this goal. The
current local assessor system is complex; it is referred to as a mixed county assessor
system and consists of the following:
- The St. Louis County Assessor’s Department assesses 17 cities, 35 organized
townships and all 75 unorganized jurisdictions.
- Contract local assessors assess 2 cities and 39 organized townships.
- The Cities of Virginia and Hibbing each have their own assessment departments and
employ their own assessment staff. Eveleth, Gilbert and Babbitt hire out their
assessment services.
- The City of Duluth, a city of the first class, has its own assessment department, is
autonomous and answers directly to the Minnesota Department of Revenue (DoR).
Each jurisdiction faces its own and joint challenges that need to be addressed in order to
achieve an overall countywide TUF assessment system.
General Challenges to Timely, Uniform, and Fair
General challenges of a mixed assessment to reach a TUF goal that affects all St. Louis
County jurisdictions include:
- The geographic size of the county that includes approximately 109,000 taxable parcels
excluding the City of Duluth (approximately 40,000 parcels) and tax exempt
properties (approximately 111,000 parcels).
- St. Louis County is the largest county east of the Mississippi River with 6,742 square
miles. It harbors a great diversity and with that, complexity of its land
applications. The diversity of markets and land uses in the county results in the
administration of almost all specialized property tax programs authorized by the State
of Minnesota.
St. Louis County Assessment Practices Review Panel Draft Report February 2012 Page 3