The county board approved a new tax abatement policy Tuesday, November 10, 2009, drafted with input from numerous county personnel including County Assessor Mary Black, Assistant County Assessor Allison Lowe, Auditor-Treasurer Braidy Powers, Chief Deputy Auditor Aimee Luick, Deputy Auditor Cortnee Ashford, and County Attorney Tim Scannell.
The policy, last updated in 1990, states, “Abatements are a last resort to correct assessment errors in valuation or classification when no other solution is possible. They should not be used only as a means to reduce conflict and controversy. … Court rulings dictate that while abatements are discretionary, counties must consider all applications for abatements…even if there is a certainty it will be turned down.”
Abatements may be granted as far back as two years, but retroactive abatements may only be granted to correct clerical errors or if a taxpayer has failed to file for an adjustment due to hardship, such as illness or military deployment.
The document states, “It is not the policy of the county to approve abatement applications for properties that sell below market value, …if a survey not on record in the assessor’s office adjusts acreage, lake frontage or other land measurement, …[or] for failure to report changes in ownership for personal property.” Earlier this year, two businesses, Como Oil and KBJR/KDLH TV, had applied for abatements after paying taxes on structures they no longer owned on land they had previously leased. The structures had changed hands while the property itself had not, but the county had no way of knowing that.
Abatements of under $100 will only be considered “in the most extraordinary circumstances” or if clerical errors occurred.
According to County Assessor Mary Black, abatements for disasters such as fire are outside the parameters of this policy.
Tax installment statute change
Auditor-Treasurer Braidy Powers reported that a change in state statute would now require annual property taxes of under $250 to be paid in one installment instead of two.
The law gives counties the option of allowing people owning multiple parcels with individual taxes under $250 but combined taxes over $250 to pay in two installments instead of one. Powers said that Minnesota Counties Information Systems is asking counties their opinions on this option and recommended that Cook County try to come to a consensus with other counties.
The commissioners told Powers they would agree to do whatever the other counties wanted to do.
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