Strong market driving up values, say Otter Tail County officials

from Otter Tail County

Approximately 65,000 property valuation notices will be mailed to Otter Tail County property owners starting around March 24. 

Generally, property owners may see increases of 10-30 percent, depending on the type of property they own. 

The increase in property values does not necessarily mean that taxes will rise 10-30%.

Background

The valuation notices provide the estimated market value and property classification for the 2022 assessment for property taxes payable in 2023. The estimated market values are based on property sales that occurred from October 1, 2020, to September 30, 2021. The real estate market has been extremely strong in Otter Tail County due to high demand, record-low interest rates, and a low inventory of properties. Homes are selling quickly and regularly for more than the listing price.

“The increases in property values are unprecedented,” said Kevin Scheidecker, County Assessor. “It is most likely not to happen again next year.”

The State of Minnesota is seeing estimated market value increases on most property types, including recreational land, agricultural land, commercial/industrial, and residential/seasonal. It is important to remember that increasing property values does not mean the taxing jurisdictions (cities, school districts, townships, counties) are collecting more revenue. The value is used to determine a parcel’s share of the total tax bill that needs to be collected based on the budgeting of those jurisdictions.

In other words, if the 2023 budgets of cities, townships, and the county stay the same or minimally increase for 2023, then taxes paid by property owners will not rise at the same rate as the value. Property taxes are decided based on the budget that needs to be met.

Property values in the Pelican Rapids area, especially in lake home sectors, are a barometer of the trends in Otter Tail County.
Listed here is a spot sample of land and building values in area townships—based on 2021 estimated market values. And, these numbers do not reflect the most recent increases.

Dunn Township, which includes most of Pelican Lake, Franklin, and northern LizzieLakes: $765 million
Lida Township, which includes Lida, Lizzie, and Crystal: $379 million
Scambler Township, which includes western Pelican Lake, and Tamarac: $250 million

Action property owners may take:

The valuation notice will explain how to appeal and whether your appeal will go before a Local Board of Appeal or directly to the Assessor’s Office. 

If you have questions about your value and classification or wish to appeal, please call the Otter Tail County Assessor’s Office at 218-998-8010.