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Assessor: Market value changes expected

FAIRMONT– County Assessor Mike Sheplee provided the Martin County Commissioners an update on Tuesday. Sheplee went over the preliminary 2022 assessments, which came out Jan. 2, and the estimated market value changes.

“The changes this year are fairly significant and we expect to hear a lot of feedback,” Sheplee said.

He said despite the changes, they’re not much different than they are around the region or in the state.

“They are the most significant increases in value that I’ve seen in my career,” Sheplee said.

The assessor’s office uses sales ratio study and looks at the sold properties in order to see what the market is telling them to do regarding their values.

Sheplee said for the sales ratio study they use the sales from October 2020 to September 2021.

“Last summer began a significant uptick in values that were needing to be captured in the most recent assessment,” Sheplee said.

He showed the commissioners a chart that had a column titled EMV percent change, which is the approximate amount each class, category and parcels within them will be changing.

On tillable land a 10 percent increase was required to be at market for the current assessment but Sheplee said because a lot of high dollar sales closed in the late summer, the value of tillable land will be likely to increase again next year. The current A1 tillable rate is $8,200 per acre even though they’ve seen recent sales in the $11,000 to $13,000 range.

“If the market continues to be hot like that the rest of the ag changes will be coming in the next assessment,” he said.

Commercial and industrial was fairly flat and Sheplee said in checking around the region, it’s the same story.

“Residential is where the big changes are,” he said.

Houses in Fairmont off water are getting a good-sized jump this year which they haven’t seen in a long time. Sheplee said it seems that anything that comes up on the market, regardless of size or condition of property, is selling and quickly.

“Similar story on rural residential properties. It’s not uncommon to see a 1900s, two bedroom home with a small garage sell in the $200,000 range,” Sheplee said.

Commissioner James Forshee asked about difference between Fairmont on water and off water.

Sheplee said historically on water has had healthy 15 to 20 percent increases and he has seen the market plateauing a little bit.

He also pointed out that under median sales price, Fairmont on water is $355,743 and Township on water is $356,109.

“Sales either in town or out of town, the median is the same,” said Sheplee.

“They want to live on the lake,” said Commissioner Elliot Belgard.

Sheplee also said he thinks most people given the information would agree the market is pretty in favor of sellers right now. He said notices of new estimated market values will be going out around March 25. Beacon will be updated with new values at that time as well.

The commissioners also heard from Sarah Eischens, Sentence to Serve Supervisor, who provided the board with a quarterly report.

“We had 43 report to the crew last quarter. Of those 43 we had 20 finish successfully,” she said.

Eischens said they had about 3.5 crew members everyday which has been helpful when getting projects done.

She said there was 2,563 hours worked between different job sites covering a variety of places in the county and in different townships.

“We were able to have people work off about $3,830 in fines,” Eischens said.

About two weeks ago she said they put in some restrictions on STS for reasons pertaining to Covid. She said within the department of corrections they’ve had 20 to 25 percent of staff out with covid or exposure. She said they’re not going to mix people from the jail and community on the crew together so as to avoid possible exposures.

“The idea is to keep our crew members safe but also our crew leaders and the places we’re working at,” Eischens said.

In other action, the commissioners:

— Accepted the State of Minnesota Snowmobile Safety Enforcement grant for $2,261 in each fiscal year 2022 and 2023.

— Accepted an Off Highway vehicle Safety Grant in the amount of $7,572, which will cover equipment and supply expenses incurred for off highway vehicle enforcement equipment and activities.

— Set the County Board of Appeal and Equalization for 6:30 p.m. Tuesday, June 21.

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