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W’bago reacts to tax hikes

WINNEBAGO — Winnebago residents attended the city’s Board of Appeal and Equalization hearing earlier this week to discuss and appeal their property assessments.

Each year, the hearing is held to provide a forum for property owners to appeal the valuation of their properties.

Faribault County Assessor Gertrude Paschke spoke at the hearing. The Assessor’s Office gathers property data and updates assessment records annually, which determine the sales ratio of properties. If the sales ratio is at 100 percent, it is equal to the assessed value of the property. When the value of a property goes up, so does the property tax.

Last year, Paschke said, there were 16 property sales in Winnebago, which set the sales ratio at 83.3 percent.

However, she said being that the requirement of the state is for the sales ratio to be between 90 to 105 percent, she had to make a local effort to bring it up by 10 percent.

Even with the effort, however, the sales ratio only equaled 89 percent. Paschke said believing that the sales ratios would meet the requirements the following year, a request was made to the Minnesota Department of Revenue to maintain the 89 percent. This request was denied, and the Assessor’s Office had to work to bring up the sales ratio by another 5 percent. This brought last year’s sales ratio up to 106.4 percent, which led to a 5 percent decrease on all properties for this year to stay within the state’s requirements.

“It was painful, because I said we know our people, we know our area and sales,” Paschke said. “And, unfortunately, that was the case and my hands were tied.”

At the hearing Tuesday, about nine Winnebago residents were in attendance, with many addressing both Paschke and the City Council.

Todd Golly, co-owner of Independent Chemical Fertilizer, Inc. in Winnebago spoke about how the increased property tax of his fertilizer plant has affected his business. According to Golly, the tax rose 6,000 percent this past year.

“How can you run a business if you have an expense that large change 6,000 percent a year?” Golly asked.

He asked for the city to work with the state to find solutions to help rural businesses.

“If you guys don’t fight for us, I will guarantee you that six jobs and a business will be gone very soon if this continues,” Golly said.

Paschke said one thing the city can do to help is to contact state officials, such as Rep. Bob Gunther and Sen. Julie Rosen, and work with the Legislature.

Council member Jean Anderson suggested the city create a petition to be passed around by residents to show the city’s concerns to the Legislature.

“We can’t just give up,” Anderson said. “We have to keep trying to do something.”

Many residents in attendance made appointments with the Assessor’s Office to have their properties re-assessed.

The council went into recess, with a second equalization hearing for those residents to be held 5:30 p.m. May 8.

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