Equal Eyes

OFFICIAL PUBLICATION OF THE MINNESOTA ASSOCIATION OF ASSESSING OFFICERS MNMAAO.ORG

SUMMER 2021VOLUME 43 NUMBER 165

Equal Eyes

Tick TockIt’s Time to

Get Your AMATips inside this issue

2 Summer 2021 / Equal Eyes

MAAOLEADERSHIP

EDITORIAL COMMITTEE

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Lori Thingvold, SAMAWright CountyManaging Editor

Jason Jorgensen, SAMAWadena County Associate EditorCommittee Chair

Jamie Freeman, SAMAHubbard County

Holly Soderbeck, SAMAMN Dept of Revenue

Missy Manke, CMAWright County

Amber Swenson- Hill, SAMAPolk County

Jake Pidde, SAMAStearns County

Nancy Gunderson SAMAClay County

Executive Officers President Patrick Chapman, SAMA1st Vice President Joe Udermann, SAMA2nd Vice President Tim Bulger, SAMAFinancial Officer Chase Peloquin, SAMAPast President Daryl Moeller, SAMA Regional Directors Region 1 Ryan DeCook, SAMARegion 2 Jennifer Flicek, SAMARegion 3 Jean Sowada-Popp, SAMARegion 4 Amber Peratalo, SAMARegion 5 David Parsons, SAMARegion 6 Doug Bruns, SAMARegion 7 Chris Odden, SAMARegion 8 Mary Jo Otten, SAMARegion 9 Joshua Hoogland, SAMA

Committee Chairs Agricultural Mark Koehn, CMACAMA and GIS Randy Lahr, SAMAConference Coordinator Paul Knutson, SAMA, RESEditorial Jason Jorgensen, SAMA Information Systems Michael Neimeyer, CMALegislative Mark Peterson, SAMAMembership Coordinator Rebecca Malmquist, SAMA, RESNominating and Procedures Michelle Snobl, AMAResidential John Conway, SAMARules and Resolutions Joe Udermann, SAMASales Ratio Dell Sanko, CMAScholarship Carrie Borgheiinck, SAMASecretary Penny Vikre, SAMASite Selection Lisa Clarke, CMAStrategic Planning Michelle Moen, SAMASummer Seminar Coordinator Kim Jensen, SAMA, CAETax Court / Valuations Ann Miller, SAMA Treasurer Reed Heidelberger, SAMAU40/10 Troy Halter, CMA

Educational Workgroups Assessor Development Patrick Chapman, SAMACourse Management Tina Diedrich-Von Eschen, SAMACourse Curriculum & Standards Sherri Kitchenmaster/Jessi Glancey, SAMA

Education Coordinator/Online Admin. Emily SquyresAngie DeBoer, CMAMartin County

https://www.tylertech.com/

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Summer 2021 / Equal Eyes 3

INDEX

* The statements made or opinions expressed by authors in Equal Eyes do not necessarily represent a policy position of the Minnesota Association of Assessing Officers.

26

President’s Perspective

MAAP Update

Classifieds

Top 10

What You Get For Out of the Past

Transitions

Tax Court

5

7

9

20

24

25

30

3 1

The Clock is Ticking 16

Global Assessment - Brazil

AMA Deadline Information


MEET OUR NEW EDITORIAL COMMITTEE

MEMBER

Angie DeBoer

Hello! My name is Angie DeBoer. I have been with the Martin County Assessor’s Office for 4 ½ years and with Martin County for 13 years total, previously working in the Auditor/Treasurer’s Office and starting in the Sheriff’s Office as a Corrections Officer. I have a Bachelor’s Degree in Education and kind of fell into the world of assessing like a lot of us do but have enjoyed my time doing it and have a learned a lot in the last few years. I grew up in the neighboring county so I am glad to be close to home. My husband and I have three boys: Trace, Clay, and Lane and a brand new fur baby – an Aussie named Indy. We love racing so between the boys’ activities, the puppy and racing, we like to keep busy. I look forward to being part of this committee and being able to serve MAAO in this capacity!


president’s perspective

“My Mission in life is not to merely survive, but to thrive; and to do so with some passion, some compassion, some humor and some style.” Maya Angelou

By Patrick Chapman, SAMA Ramsey County

MAAO President

In recent years the MAAO has started a new committee and this committee is dedicated to engaging the younger and newer members of MAAO. It is the under 40 years of age, under 10 years of experience, known simply as the U40/10. This committee has worked very hard at our events to raise money for the things we need like the family member scholarship and most of our Information Technology needs. They did another great job at this year’s summer seminar without the befit of most of them being there. They had great items for the raffle and things worked very well. Thank you to Troy Halter and the whole committee. With their efforts, and Daryl Moeller selling, we raised $3,020!

Another ad hoc committee that is similar is the self-named Over 60 years of Age, Over 40 in MAAO. This committee has been on a retirement streak. Founding members Keith Albertson, Paul Knutson and Steve Hacken all retired this year. I know there are more members but these three in particular I would like to recognize. All 3 are former Presidents of MAAO. All 3 have left

a big mark on MAAO. All 3 were instrumental in my development as an assessor. Keith is a long-standing member of the Minnesota State Board of Assessors and an advocate for the assessing profession in every essence of the word. Steve, a teacher, mentor and a voice of the assessor. He stood up for assessing every chance he got. Paul, the man who puts it all together for this organization. He has done such a good job with keeping assessors in touch with our conferences and acting as the Unofficial MAAO MC. I would like to thank these three gentlemen personally for all they have done for me and all they have done for the Minnesota Association of Assessing Officers. You may still see their faces around a conference or a classroom, please make sure and thank them as they are three of the reasons our organization is so strong.

A last note is that the AMA deadline is now. If you need to be upgraded to AMA by June 30 of 2022, your deadline is now. If you turned in your report today it takes 4-6 weeks to get graded then if you need revision you may take 2 weeks to do that, then turn

it in again and the grader gets another 4-6 weeks. Time adds up quickly. The board is scheduled to meet in May of 2022, not June. It will be beneficial to look at the deadline as the May meeting. Remember that the board had a change to the education requirement so you may need the 15-hour property specific course. Look at the Minnesota State board web site to see the list of classes that qualify; there are a number of in person options and online options. Just want to close by telling you all how good it feels to be starting to get back to some normal activity. This challenge that we are facing is only going to make us stronger. Thank you to all of you for preserving!

Patrick Chapman, SAMAPresident MAAO


Your MAAO Education Coordinator Team Amanda Dutcher Event, Administrative, and Program Management Consultant https://www.linkedin.com/in/atdutcher/ Amanda serves as MAAO’s education coordination lead, driving strategy, attending executive board and committee meetings, and overseeing planning and communications. A versatile administrative professional with over a decade of experience managing projects, programs, and events, Amanda drives business growth through her detail-oriented, relational techniques. Through her people-centric approach, Amanda has managed hundreds of offerings across sectors, including vocational training, retained executive searches, and events ranging from multi-sector leadership convenings to fundraising galas to multiday conferences. Amanda’s diverse experience positions her to quickly understand nuances and apply learnings to effectively plan, coordinate, and support offerings and provide creative solutions to unique needs. Jess Jellings Event, Social Media, and Project Management Professional https://www.linkedin.com/in/jess-jellings/ Jess serves as the logistics coordinator for MAAO’s educational offerings, striving to make every course seamless, satisfying, and memorable. Currently also a Communications and Event Specialist with the Great Plains Institute, Jess’s focus is on client and customer experience. With a background in event planning, hospitality, and office management, Jess works to increase visibility and reputation through creative events and digital communications. Jess previously worked for the Minnesota Twins and as operations coordinator for Pizza Lucé; she draws on her fifteen years of experience in the hospitality industry to effectively negotiate contracts, create engaging offerings, and provide positive attendee experiences through on-site and virtual event support. Amanda and Jess can be reached at [email protected]

Introducing...Your MAAO

Education Coordinator Team


MAAPUPDATE

By Jenna Takemoto 2020-2021 MAAP President

The 2021 MAAP Summer Workshop will be held

August 19-20, 2021 St. Cloud Holiday Inn & Suites

Registration form on the following page


By Jenna Takemoto 2019-2020 MAAP President MAAP

UPDATE

22002211 MMAAAAPP WWoorrkksshhoopp aanndd MMeemmbbeerrsshhiipp RReenneewwaall FFoorrmm

St. Cloud - Holiday Inn & Suites

75 37th Ave S, St. Cloud, MN 56301 August 19-20, 2021

*Please use one registration form per person*

Name: Employer: Title: Address: Phone Number: E-mail Address:

In Person Summer Workshop Registration Fee: $85.00*

Virtual Workshop Registration Fee: $55.00*

MAAP Membership Fee: $10.00

Non-member Summer Workshop Registration Fee: $110.00

Total Enclosed

*If you are a returning or new MAAP member, membership dues are to be paid at this time. The total due for the workshop + membership is $95 for the in-person option or $65 for the

virtual option.

Please return registration form with payment (check, cash, or MAAO Scholarship) by July 14th, 2021. Include a self-addressed return envelope with vouchers.

Send registration form along with payment made payable to

Minnesota Association of Assessment Personnel or “MAAP” To: Washington County

PRTS – Assessment Division ATTN: JESSICA ARNESON

14949 62nd Street PO Box 6

Stillwater, MN 55082

Registration may be faxed to (651) 275-7060 or emailed to [email protected] with payment to follow.

Classifieds


ClassifiedsAmber Swenson-Hill, SAMA

Polk County Editorial Committee Member

55557700 MMaappllee HHeeiigghhttss RRdd,, GGrreeeennwwoooodd,, MMNN 5555333311

$$1155,,000000,,000000

Take a peek inside Windemere. Approximately 13,949 square foot

4 story estate on a 1.37 acre private island.

• 5 Bedrooms • 1 Full bath, 5 3/4 bath, 3 1/2 bath • 1,150 square feet of lake frontage • Glass enclosed atrium • Panoramic views of St. Albany’s Bay on Lake Minnetonka • 12-person theater • Bar lounge • Double wine rooms • Cigar & poker room • Indoor grotto • Full gym • Sauna • Locker Room • Luxury garage with space for 8 cars & a car wash.

front feet of lake frontage


The Scholarship EditionWhere Are They Now?

Written by Carrie Borgheiinck, SAMAHennepin County

Tina Diedrich-VonEschen,

Kanabec County Assessor

Have you ever wondered where all our scholarship recipients end up? No? Well, when you have been on the scholarship committee as long as I have, you start to wonder where these recipients end up and what has transpired in their life and career since MAAO awarded the scholarship.

In this first article of Where are they Now: Scholarship Edition, we catch up with the second person to ever receive the Dan Franklin Scholarship, Tina Diedrich. Today we all know her as Tina Diedrich-VonEschen, Kanabec County Assessor. A special thank you to Tina for taking her time to answer these questions so we could catch up with her. She gives us great insight into her schooling and career while leaving us with some wonderful advice.


e Dae Dan Franklin Scholar-

Interview has been edited for clarity and length.

Question 1: Where did you attend college and what was your major/minor?

Answer: St. Cloud State University (SCSU), Bachelor of Science in real estate with an appraisal emphasis.

Question 2: Do you remember how you found out about the Dan Franklin Scholarship?

Answer: Dr. Mooney (professor at SCSU) always relayed scholarship opportunities to us in class.

Question 3: Did you know (or how did you know) anything about assessing at the time you heard about and applied for the scholarship?

Answer: I really knew very little about assessing, other than what had been discussed in our classes at SCSU. Side note - I wonder how much they talk about assessment these days…we can use all the help we can get to encourage people into the field!

Question 4: What sort of career did you think you were going to have when you were in college?

Answer: My initial thoughts were to go into the fee appraisal world, but I was also contemplating continuing on for my MBA. I did end up doing an internship with Diversified (DRESI) and they hired me on after graduation. Life ended up throwing in a few road bumps, changing my priorities, and led me into the assessment field. I’d say it’s been a pretty good fit ever since.

Question 5: How did you learn about what assessing was/is?

Answer: Other than through courses, actual hands on work experience.

Question 6: Tell me about your assessing career.

Answer: I am closing in on 20 years. Stearns County gave me the opportunity to start my career in assessing. I started as an Apprentice Appraiser in Stearns County then moved to Appraiser and Senior Appraiser as I continued with my education/licensing levels. I also did some work as a Local Assessor in Benton County for a couple years. I’ve been the Kanabec County Assessor since August of 2016.

The Scholarship Edition: Where Are They Now? continued

August of 2016.


EE

Question 7: Any advice to anyone else who is just getting their start into assessing?

Answer:

1) Take advantage of all the educational opportunities offered to you and go in with an open mind – there is always going to be work to do back at the office but those education opportunities help you do that work so much better and in more ways than you even realize when you are first starting out.

2) Network with fellow assessors – many of the individuals going through the educational process at the same time as you will be good resources down the road, you’ll appreciate those connections.

3) Get involved in MAAO – it is a great organization that needs all the volunteers they can get. I’ve been involved in a few committees and I’ve always gotten much more out of my experiences than I’ve put into it.

Question 8: Who has been some of your most impactful mentors while in assessing and why?

Answer: So, so many…how do you pick just one? Gary Grossinger, Dave Anderson, Brian Koester, Bob Wilson...countless others that I so greatly appreciate sharing their knowledge and wisdom with me.

Question 9: Tell me about one (or two) of your favorite assessing related stories, encounters, or situations.

Answer: I really don’t have a specific favorite. I could tell you about the time I was told I was ‘the devil’ but I’d rather focus on the positives in this career than the negatives.

Question 10: What’s your favorite day of the year?

Answer: Any day I’m off spending time with my family as that’s where your priority should always be.

The Scholarship Edition: Where Are They Now? continued


Summer Seminars


May 26-27, 2021


Where Am I?

answer on back cover


Written by Patrick Chapman, SAMARamsey CountyMAAO President

State Board of Assessors Grading Chairmanwith information supplied by Bobbi Spencer, MDOR

The Clock is ticking

AMA Deadline Information Supplied by Bobbi Spencer, MNDOR State Board of Assessors

The AMA deadline was set by MN Statute 270C.9901.

Once you obtain your initial Minnesota assessor license:

You must get your AMA license by July 1, 2022, or five years from the date you were first licensed in Minnesota.

Examples:

You were licensed as a CMA or a Certified Minnesota Assessor Specialist (CMAS) by July 1, 2017, you must get your AMA license by July 1, 2022.

You are licensed as a CMA or CMAS after July 1, 2017, you must get your AMA license within five years of the date you were first licensed as an assessor in Minnesota.

For details, see Assessor Accreditation Deadline on the Board of Assessors website:https://www.revenue.state.mn.us/minnesota-state-board-assessors

https://www.revenue.state.mn.us/minnesota-state-board-assessors

https://www.revenue.state.mn.us/minnesota-state-board-assessors


Tips for the Residential Form Report Here are some tips for the form report that may help you through this challenging assignment. These tips could help ease the pressure as you pursue your AMA license.

1) Use the Form Report Guide / Take the Seminar

Use Residential Form Report guide on the MAAO website (free for members) take seminar

2) Use the Case Study Exam Guide / Take the Seminar

Use Residential Case Study Exam guide on the MAAO website (free for members) take seminar

3) Find your Data

Find an area with adequate data, land sales, comp house sales, you may need to go to a nearby community. More data can make this a lot easier.

4) Select Comps First

Select your comps and data first then select your subject. Find out what data the area has and do not use your aunts house just because you can get in easy to inspect that property. Let the sales data tell you what your subject looks like. If you have all split entry data don’t do a 2-story house.

5) draw Your Own Conclusions

Data is data and opinions are not. If someone in your office found two houses that support an adjustment for a garage, and you

have a similar property you can use that data adjusted for your market conditions. This is not plagiarism. If you use their thoughts that is. Come to your own conclusions.

6) Depreciation Rule of

Thumb

For market extraction of deprecation. A rule of thumb is that houses generally deprecate at about 1% per year so when you are making effective age choices let that be your guide. If you develop

a 38% deprecation on a house, I would anticipate that the effective age would be around 35 years or so. If you have 47% deprecation, I would think around 45 years or so.

7) Get Math Together Prior to Assembling the Report

Get all the math together then start the process of assembling the report. The report is in a manner to deliver the information. It is not start at page one and fill it out to the end.

8) Order of Work

Order of work for the report:

1. Market conditions adjustment

2. Comp Selection, improved and vacant land

3. Subject selection

9) Adjustments

Do the math work for the sales comparison approach at least 2 adjustments must be market derived. The other adjustments can be depreciated cost or from


a CAMA source, but document the source. No adjustment can be completely unsupported.

10) Cost Approach

Know how the cost manual works. If you have question, ask someone. The most common error is that people do not know how to do a basement replacement cost. The proper way is to build the entire basement before you fill in the finish. If you have a 960 sf rambler with 400 sf of basement finish,you do the full unfinished 960 x $20

(rate), then the finished at 400 x $40 (rate) and add those together for the basement total cost.

11) Income Approach

Income can be the most challenging. You can use rent from one source and sales from another to come up with the market if you do not have rental sales. Rambler A sold for $100K and a similar rambler B rented in the same neighborhood for $750. You can use those two points of data to develop GRM and rent data.

12) Assemble Report AFTER All Data Analysis

After all data analysis is done then start the assembly of the report.

13) Proofread

Have someone proofread it!!!!!!!!!!!!!!!!!!!

These tips can help you in the construction of your form report.

Good luck! Patrick Chapman, SAMA Grading Chairman, Minnesota State Board of Assessor’s

EE


AMA Requirements List

License An existing CMA or CMAS license

Courses Two Income Courses One 15-hour property type specific course, such as multiunit residential property,

agricultural property, lakeshore property, or new construction (see board approved licensure course list)

Reports, Exams & Designations (Select One) Residential Form Appraisal Report and Residential Case Study Exam Residential Demonstration Narrative

Note: Form appraisals and narrative appraisals must have an effective date of appraisal no more than five years prior to the date it is submitted for grading.

Obtain one of the following designations: MAI, SRA, CAE, RES, AAS or MAS Note: These designations are equivalent to the Residential Demonstration Narrative

Assessment Experience Three years of assessment experience

Note: Review the board’s experience policies for more details

Application & Fee • Once all of the above requirements are completed, submit an AMA application and pay

the application fee on the Assessors Licensing System.

Note: o Assessors who move from one license level to another within the same fiscal

year need only pay the fee difference between the two levels.

o The Board does not act on applications until ALL requirements have been met.

• Timeline Policy: License applications and fees must be received no later than three business days prior to a board meeting.

Equivalent Assessor Education Review the board’s policies for education equivalent to assessor’s education requirements for the following:

• Minnesota Real Property Appraiser License • 4-Year Real Estate Degree • Designations

State Board of Assessors AMA Requirement ListNOTE: Visit the website for the most up to date iformation

https://www.revenue.state.mn.us/accredited-minnesota-assessor-ama

experience policies

Assessors Licensing System.

Timeline Policy:

board’s policies

https://www.revenue.state.mn.us/accredited-minnesota-assessor-ama


Jamie Freeman, SAMA Hubbard County

Editorial Committee Member

THE TOP 10 Increases in

building materials

The Top 10 increases in building materialsTop 10

Increases in Building Materials

It has been a volatile year for building material prices. The COVID-19 pandemic drastically impacted the cost of building materials and the prices have skyrocketed as a result.

I do have to note that the information used in this article was from research completed in March 2021. The increases listed below represent a one-year price increase. Additionally, the prices continue to fluctuate on an ongoing basis and will likely vary from different regions of the state.

While nearly every type of building material has increased in price this past year, here is a list of the products seeing the largest impact.

1. Softwood Lumber: 79.7% Increase. Softwood lumber comes from conifer, which are mainly pines and fir trees. In the United States, softwood lumber is typically used in construction of homes and other buildings, and most often used in dimension lumber for construction framing.

2. Particle Board & Oriented Strand Board (OSB): 62.5% Increase. Particle board is made from compressed wood chips and resin. It is a vital material in almost all types of construction projects, and used for concrete forms, exterior wall sheathing, roofing, flooring, cabinets, shelving, etc.


Top 10, continued

3. Iron and Steel Scrap: 45.7% Increase. Iron and steel scrap are raw materials used for the production of new steel. Much of the scrap metal recycled in the United States goes into the manufacturing of completely new items, such as appliances or building materials.

4. Plywood: 44.1% Increase. Plywood is a type of strong thin wooden board consisting of two or more layers glued and pressed together with the direction of the grain alternating. Used in construction very much the same way as particle board.

5. Copper Wire and Cable: 18.2% Increase. Copper is the electrical conductor in many categories of electrical wiring. Copper wire is used in power generation, power transmission, power distribution, telecommunications, electronic circuitry, and countless types of electrical equipment.

6. Hardwood Lumber: 16.9% Increase. Hardwood lumber comes from trees such as hickory, oak, mahogany, maple, and walnut. This type of lumber is tough and is not easily dented. Since the trees used for this type of lumber take a longer time to grow as compared to softwood lumber, supplies aren’t as plentiful and can be more expensive. It is useful for cabinets, veneers, plywood, and flooring.


Top 10, continued

7. Structural Steel: 15.2% Increase. Structural steel is a category of steel used for making construction materials such as steel bars, plates and structural shapes. It is defined as steel shaped for use in construction for buildings purposes. The main ingredients in structural steel are iron and carbon.

8. Millwork: 11% Increase. Millwork is woodwork such as doors, sashes, or trim manufactured as a mill. Millwork is used for both decoration and function in buildings. Other examples of millwork would include kitchen and bathroom cabinets, bookcases, crown molding, chair rails, mantels, stairway parts, switch plates, cornices, and even decorative wood items are a part of millwork.

9. Steel Pipe and Tube: 10.1% Increase. Pipes are usually made of carbon steel or low alloy steel. Tubes on the other hand are made of mild steel, aluminum, brass, copper, chrome, stainless steel, etc. Steel tubes are used in appliances and gas pipes. Steel pipe is used by businesses and residential homes to convey their supply of natural or propane gas. It can also be used for sprinkler systems.


EE

Top 10, continued

10. Plastic Construction Products: 8.0% Increase. The leading uses of plastics for residential and commercial construction include pipes, electrical conduits, plumbing, roofing, insulation, wall coverings, windows, composite planks and rails, floor and structure wraps.

It is currently unclear if prices for building materials will decrease in 2021. Many would agree, however, that building a home in the U.S. has never been more expensive.


What You Get ForAmber Swenson- Hill, SAMA

Polk County Editorial Committee Member

3209 Galleria #1802, Edina

$5,300,000 SOLD: December 2020 for $5,047,500

Equal Eyes Winter Issue 2021

24729 Dodd Boulevard - Lakeville $2,500,000

SOLD: November 2020 for $1,520,000 (9.98 Acres) Equal Eyes Fall Issue 2020

3784 Wescott Cir, Eagan $1,395,000

SOLD: October 2020 for $1,185,000 Equal Eyes Summer Issue 2020

294 Summit Avenue Saint Paul $2,495,000

SOLD: July 2020 for $1,250,000 Equal Eyes Winter Issue 2019

(Sale rejected due to nontypical market)


Amber Swenson-Hill, SAMA

Polk CountyEditorial Committee Member

out of the past Remembering Yesterday

5 Years Ago—2016 • This year we changed to an online form for all Local & County Boards of Appeal & Equalization to report and certify their results. • The Willmar City Assessor’s Office closed, and the Kandiyohi County Assessor’s Office began to provide assessing services to the City of Willmar. 10 Years Ago—2011 • Steve Hacken became a new instructor for Mass Appraisal Basics. • July, Minnesota ended a state government shutdown after 20 days, millions in lost revenue and frustration on the part of residents and lawmakers. 15 Years Ago—2006 • Effective July 1st the Code of Conduct and Ethics became part of the Assessment Laws, History, and Procedures Coursework. • Macie Moreland, Kyle Holmes, and Tony Rasmuson were awarded SAMA designation and Jack Renick was awarded with his AMA designation. • An annual US report put Minnesota at the top of its health rankings for the fourth straight year while concluding that the nation’s health improved slightly.

• In August deadly storms swept across the northern Plains, bringing tornadoes that ripped roofs off houses and hail that smashed car windshields. On man was killed when a tornado his home in Minnesota, an in Wisconsin, lightning apparently killed a dozen cows and struck a woman she left a supermarket. 20 Years Ago—2001 • Jeff Johnson and Curt Becker celebrated fifteen years with the IAAO. • The “three strike” policy was implemented to help areas that had less than the six sales minimum. 25 Years Ago – 1996 • Matt Smith was Commissioner of Revenue • Robert Meester was the MAAO president. • IAAO’s homepage became fully functional on the internet in March. 30 Years Ago – 1991 • Louise Thureen was the Equal Eyes Editor assisted by Assoc. Editor Marvin Anderson. • Clarence Ward retired from Becker County after thirteen years as Assessor. • The Minnesota Twins win the World Series.

35 Years Ago – 1986 • Scott Renne was the MAAO Education Committee Chairman and Chairman of the MN State Board of Assessor’s Education Committee. • Scott Lindquist Revised Course H into a “Mathematics for Appraisers” perspective. 70 Years Ago – 1951 • Over 82% of iron ore extracted from the United States mines during this year originates in Minnesota. 80 Years Ago – 1941 • First tax on taconite, a black magnetic iron-bearing ore, in effect in Minnesota. • Singer Bob Dylan born in Duluth. 85 Years Ago – 1936 • Temperatures remained below zero for a record thirty-six days beginning on January 18. Later in the summer Moorhead ties a state record high official temperature of 114 degrees Fahrenheit, previously set in Beardsley in 1927.

5 Years Ago—2016

• This year we changed to an online form for all Local & County Boards of Appeal & Equalization to report and certify their results.

• The Willmar City Assessor’s Office closed, and the Kandiyohi County Assessor’s Office began to provide assessing services to the City of Willmar.

10 Years Ago—2011

• Steve Hacken became a new instructor for Mass Appraisal Basics.

• July, Minnesota ended a state government shutdown after 20 days, millions in lost revenue and frustration on the part of residents and lawmakers.

15 Years Ago—2006

• Effective July 1st the Code of Conduct and Ethics became part of the Assessment Laws, History, and Procedures Coursework.

• Macie Moreland, Kyle Holmes, and Tony Rasmuson were awarded SAMA designation and Jack Renick was awarded with his AMA designation.

• An annual US report put Minnesota at the top of its health rankings for the fourth straight year while concluding that the nation’s health improved slightly.

• In August deadly storms swept across the northern Plains, bringing tornadoes that ripped roofs off houses and hail that smashed car windshields. On man was killed when a tornado his home in Minnesota, an in Wisconsin, lightning apparently killed a dozen cows and struck a woman she left a supermarket.

20 Years Ago—2001

• Jeff Johnson and Curt Becker celebrated fifteen years with the IAAO.

• The “three strike” policy was implemented to help areas that had less than the six sales minimum.

25 Years Ago – 1996

• Matt Smith was Commissioner of Revenue

• Robert Meester was the MAAO president.

• IAAO’s homepage became fully functional on the internet in March.


• Louise Thureen was the Equal Eyes Editor assisted by Assoc. Editor Marvin Anderson.

• Clarence Ward retired from Becker County after thirteen years as Assessor.

• The Minnesota Twins win the World Series.


• Scott Renne was the MAAO Education Committee Chairman and Chairman of the MN State Board of Assessor’s Education Committee.

• Scott Lindquist Revised Course H into a “Mathematics for Appraisers” perspective.


• Over 82% of iron ore extracted from the United States mines during this year originates in Minnesota.


• First tax on taconite, a black magnetic iron-bearing ore, in effect in Minnesota.

• Singer Bob Dylan born in Duluth.


• Temperatures remained below zero for a record thirty-six days beginning on January 18. Later in the summer Moorhead ties a state record high official temperature of 114 degrees Fahrenheit, previously set in Beardsley in 1927.


Global Assessment

Brazil

Written ByAngie DeBoer, CMA, Martin County

Editorial Committee Member


DemographicsOfficially the Federative Republic of Brazil, but more commonly known as Brazil, this country is the world’s fifth-largest in area (3,287,956 sq. miles) and sixth-largest in population with 210,147,125 people (2019 estimate). Brazil is one of the world’s most ethnically diverse nations with nearly half the population (43.13%) being mixed race. Another 47.73% are White, 7.61% are Black, 1.09% is East Asian and .43% is Indigenous. This diversity is due to a century of mass immigration but despite its diversity, Brazil is also dominantly Christian based (88.8%). Brazil’s capital city is Brasilia, and its largest city is Sao Paulo. The official language in Brazil is Portuguese which makes it the largest country and the only one in the Americas to have Portuguese for its official language.

GeographyBrazil makes up the majority of the interior of South America as well as the eastern coastline. It also has the unique characteristic of sharing a border with every other country in South America except two: Ecuador and Chile. Adding to its uniqueness, Brazil is the longest country in the world and is also the only country in the world to have both the equator and the Tropic of Capricorn running through it. There are areas of oceanic archipelagos, hills, mountains, plains, highlands and scrublands. Brazil is also home to the world’s second-longest river, the Amazon River.

EconomyBrazil has the world’s ninth largest economy and the largest in Latin America. The country has been the world’s largest producer of coffee for the last 150 years. Brazil has a diversified economy in the areas of agriculture, industry and a wide range of services. Being one of the largest producers of animal proteins in the world, it is no surprise that in 2019, Brazil was the largest exporter of chicken meat in the world. It was also the second largest producer of beef, third largest producer of milk, fourth largest producer of pork, and seventh largest producer of eggs. Brazil also is second in the world in iron ore extraction and leads the world in producing amethyst, topaz and agates. In the industrial realm, Brazil ranks fourth largest

in the car market and is the second largest exporter of processed foods. The world’s largest healthcare cooperative, Unimed is also located in Brazil.

Real EstateThe typical home is Brazil is valued at $123,451. This value is seasonally adjusted and only takes into account the middle price tier of homes. In Brazil, home values have increased 7.5% over the past year. Foreign ownership of property is actually encouraged in Brazil so non-residents have the same rights as residents when it comes to owning real estate.

Administrative DivisionsBrazil is a federation composed of 26 states, one federal district and 5570 municipalities. States collect their own taxes and receive their own share of taxes that are collected on a federal level. Brazil has an elected president who has a four-year term with the possibility of re-election for a second, successive term. The president is both the head of state and head of government of the union and appoints the Ministers of State, who assist in government. Legislative houses are the main source of law

and the Congress is made up of the Chamber of Deputies and the Federal Senate. Brazil is considered a democracy.

TransportationRoads are the primary mode of transportation in Brazil when it comes to freight and passenger traffic. Most of the railway that is in existence has been privatized and has been declining since 1945 when emphasis shifted to prioritizing highways. Brazil has the second largest number of airports in the world behind the United States with approximately 2,500. Freight is transported through waterways and there are some areas in Brazil such as the industrial zones of Manaus that can only be reached by water.

TourismBrazil’s nature areas are its most popular tourist attractions as it is home to the Amazon Rainforest. There are beaches and dunes in the Northwest Region, beaches in Rio de Janeiro, cultural tourism in Minas

Global Assessment Brazil




Gerais and business trips to Sao Paulo. In 2018, Brazil was the 48th most visited country which brought in revenues of $5.9 billion.

EmploymentThe latest unemployment rate is at 13.67 percent and the lowest recorded is 4.3 percent, while the highest is right now. The average retirement age for men is 65 and for women it is 62 with a varying labor force participation rate coming in at 62.10 percent (all-time high) in May of 2019 to 54.70 percent in July of 2020 (record low).

TaxationProperty Tax: This tax is established by local municipalities and the amounts normally range from 0.5% to 1.5% of the assessed value. This rate can also vary with the property’s location and its actual use.Income Tax: Brazil has a progressive individual income tax system in which the rate varies from 0% to a maximum of 27.5% and shared out into three brackets which apply to monthly income amounts on a yearly basis. The fiscal year begins on January 1st and ends on December 31st. Corporate Tax: This tax rate varies with the type of activity – industry, commerce, etc.

– from 4% to 17.42%. Large companies can choose whether to calculate income tax on actual profits or presumed profits and any differences will either be made up in March of the following year or claimed as a tax credit.Tax on Rental Income: Some foreign tax relief and credits can be allowed under specific tax treaties, but tax is charged on worldwide income for residents of Brazil at 15%.Capital Gains Tax: Capital gains taxes are generally subject to tax at 15% for all Brazilian residents and non-residents have the pay 15% on capital gains relating to property at the moment the gain is obtained.

3BR 2BA Townhouse in Sao Paulo 1,453 sq. ft. $266,756

3 BR 1 BA Rural Santa Catarina 3,229 sq. ft.

$61,043

3BR 3 BA in Rio de Janeiro 3,745 sq. ft.

$701,990


EE


transitions

Best Wishes Upon Retirement

Nancy Gunderson, SAMA, Clay County Editorial Committee Member

News from Region 1…

Rice County Assessor, Paul C. Knutson retired June 4, 2021

News from Region 6 …

Faye Haugen, appraiser with Pope County, retired March 12, 2021

The MAAO membership wishes you both all the best in this new chapter of your lives.

This Photo by Unknown Author is licensed under CC BY-SA


Jake Pidde, SAMA, Stearns County Editorial Committee Member

1

STATE OF MINNESOTA TAX COURT COUNTY OF RAMSEY REGULAR DIVISION ______________________________________________________________________________ Enbridge Energy, Limited Partnership, Appellant-Petitioner, vs. Commissioner of Revenue, Appellee-Respondent.

FINAL APPORTIONABLE MARKET VALUE AND ORDER FOR JUDGMENT

Docket Nos. 8579-R, 8631-R, 8771-R Filed: May 6, 2021

______________________________________________________________________________

These consolidated matters came before The Honorable Jane N. Bowman, Judge of the

Minnesota Tax Court, to determine the final apportionable market value of EELP’s pipeline.

Paul B. Kilgore, Fryberger, Buchanan, Smith & Frederick, P.A., represents

appellant-petitioner Enbridge Energy, Limited Partnership.

Jennifer A. Kitchak, Assistant Minnesota Attorney General, represents

appellee-respondent Commissioner of Revenue.

EELP owns and operates an interstate petroleum pipeline system, known as the Lakehead

system, in Minnesota and throughout the upper Midwest and elsewhere. The court previously

determined the pipeline’s unit value and the amount of that value attributable to Minnesota as of

January 2, 2012, January 2, 2013, and January 2, 2014. Enbridge Energy, Ltd. P’ship v. Comm’r

of Revenue, No. 8579-R et al., 2021 WL 935006, at *1 (Minn. T.C. Mar. 9, 2021).

Minnesota Rule 8100, which governs the valuation of formula-assessed pipeline property,

provides in relevant part: “After the Minnesota portion of the unit value … is determined, any

property which is non-formula-assessed or which is exempt from ad valorem tax, is deducted from

the Minnesota portion of the unit value.” Minn. R. 8100.0500, subp. 1. This deduction produces

apportionable market value, the value to be distributed among the various Minnesota taxing

TAX COURT lowe’s home centers, LLC vs. village of plover, wi

1

STATE OF MINNESOTA TAX COURT COUNTY OF RAMSEY REGULAR DIVISION ______________________________________________________________________________ Enbridge Energy, Limited Partnership, Appellant-Petitioner, vs. Commissioner of Revenue, Appellee-Respondent.

FINAL APPORTIONABLE MARKET VALUE AND ORDER FOR JUDGMENT

Docket Nos. 8579-R, 8631-R, 8771-R Filed: May 6, 2021

______________________________________________________________________________

These consolidated matters came before The Honorable Jane N. Bowman, Judge of the

Minnesota Tax Court, to determine the final apportionable market value of EELP’s pipeline.

Paul B. Kilgore, Fryberger, Buchanan, Smith & Frederick, P.A., represents

appellant-petitioner Enbridge Energy, Limited Partnership.

Jennifer A. Kitchak, Assistant Minnesota Attorney General, represents

appellee-respondent Commissioner of Revenue.

EELP owns and operates an interstate petroleum pipeline system, known as the Lakehead

system, in Minnesota and throughout the upper Midwest and elsewhere. The court previously

determined the pipeline’s unit value and the amount of that value attributable to Minnesota as of

January 2, 2012, January 2, 2013, and January 2, 2014. Enbridge Energy, Ltd. P’ship v. Comm’r

of Revenue, No. 8579-R et al., 2021 WL 935006, at *1 (Minn. T.C. Mar. 9, 2021).

Minnesota Rule 8100, which governs the valuation of formula-assessed pipeline property,

provides in relevant part: “After the Minnesota portion of the unit value … is determined, any

property which is non-formula-assessed or which is exempt from ad valorem tax, is deducted from

the Minnesota portion of the unit value.” Minn. R. 8100.0500, subp. 1. This deduction produces

apportionable market value, the value to be distributed among the various Minnesota taxing


TAX COURT, continued

2

districts in which pipeline property is located. Minn. R. 8100.0600, subp. 1. Having determined

only the Minnesota portion of unit value—rather than apportionable market value—as of each

assessment date, the court instructed the Commissioner to calculate the value of EELP’s property

“which is non-formula-assessed or which is exempt from ad valorem tax [and] is deducted” under

Minn. R. 8100.0500. Enbridge Energy, 2021 WL 935006, at *2.

On April 9, 2021, the Commissioner submitted calculations, found at Exhibit A.1 On April

12, 2021, EELP responded that it “has no objection to the Commissioner’s calculations.” 2 The

court agrees with the parties, adopts the calculations submitted by the Commissioner, and

determines final apportionable market value.

Based upon all the files, records, and proceedings herein, the court now makes the

following:

FINDINGS OF FACT3

10. The court adopts the Commissioner’s calculations of the value of EELP’s

non-formula-assessed and exempt property, found in Exhibit A, as reproduced below:

Plant Depreciation Percentage, 8100.500, subp. 3

2012 2013 2014

Total System Plant $6,208,511,953 $7,119,018,355 $9,086,870,337 Non-Depreciable Plant (CWIP + Land) $514,351,280 $948,330,650 $1,629,897,513 Depreciable Plant $5,694,160,673 $6,170,687,704 $7,456,972,824 Accumulated Depreciation $1,255,911,035 $1,405,703,944 $1,569,025,233 Plant Depreciation Percentage 22.0561% 22.7803% 21.0410%Ratio of System Unit Value and Cost Less Depreciation, 8100.0500, subp. 3

System Unit Value $3,199,718,866 $3,216,940,619 $3,501,716,925 Net Book Value of Plant $4,952,600,918 $5,713,314,411 $7,517,845,104 Ratio of System Unit Value to Net Plant 64.6068% 56.3060% 46.5787%

1 Letter from Jennifer A. Kitchak to Lisa Pister & Ex. A (Apr. 9, 2021). 2 Letter from Paul B. Kilgore to Lisa Pister (Apr. 12, 2021). 3 The findings of fact and order numbering will begin where we left off in the previous

order. See Enbridge Energy, 2021 WL 935006, at *1-2.



3

Minnesota Excludable Property, 8100.0500, subp. 1

Cost of Non-Depreciable Excludable Property

$82,493,381 $110,262,657 $110,884,671

Cost of Depreciable Excludable Property $87,049,760 $86,448,616 $85,129,502 Depreciation on Depreciable Excludable Property

$19,199,782 $19,693,254 $17,912,099

Cost Less Depreciation of Excludable Property

$67,849,978 $66,755,362 $67,217,403

Total Excludable Property (Cost Less Depreciation)

$150,343,359 $177,018,019 $178,102,074

Value of Excludable Property to be Deducted from Minnesota Allocable Value

$97,132,033 $99,671,766 $82,957,631

11. EELP’s apportionable market value as of January 2, 2012, was $888,611,757

($985,743,790 - $97,132,033).


($915,949,852 - $99,671,766).


($892,587,644 - $82,957,631).

ORDER

8. The court having reduced the system unit-value of EELP’s pipeline operating

system as of January 2, 2012, to $3,199,718,866, and having adjusted the value attributable to

Minnesota to $985,743,790, the Commissioner shall adjust the Minnesota apportionable value to

$888,611,757, and shall reapportion the value accordingly among the affected counties.







4





11. The Commissioner shall equalize the reapportioned values as required by law.

12. Taxes due and payable in 2013, 2014, and 2015 shall be recomputed accordingly

and refunds, if any, paid to EELP as required by such computations, together with interest from

the original date of payment.

IT IS SO ORDERED. THIS IS A FINAL ORDER. LET JUDGMENT BE ENTERED

ACCORDINGLY.

DATED: May 6, 2021

BY THE COURT:

Jane N. Bowman, Judge MINNESOTA TAX COURT

Jane N. Bowman

Digitally signed by Jane N. Bowman Date: 2021.05.06 09:50:38 -05'00'



Exhibit A – Calculation of Excludable Property Value

2012 2013 2014Plant Depreciation Percentage, 8100.0500, subp. 3

A Total System Plant1 6,208,511,953 7,119,018,355 9,086,870,337

B Non-Depreciable Plant (CWIP + Land) 2 514,351,280 948,330,650 1,629,897,513

C Depreciable Plant 5,694,160,673 6,170,687,704 7,456,972,824 A – B

D Accumulated Depreciation3 1,255,911,035 1,405,703,944 1,569,025,233

E Plant Depreciation Percentage 22.0561% 22.7803% 21.0410% D ÷ C

Ratio of System Unit Value and Cost less Depreciation, 8100.0500, subp. 3

F System Unit Value4 3,199,718,866 3,216,940,619 3,501,716,925

G Net Book Value of Plant 4,952,600,918 5,713,314,411 7,517,845,104 A – D

H Ratio of System Unit Value to Net Plant 64.6068% 56.3060% 46.5787% F ÷ G

Minnesota Excludable Property, 8100.0500, subp. 1

I Cost of Non-Depreciable Excludable Property5 82,493,381 110,262,657 110,884,671

J Cost of Depreciable Excludable Property6 87,049,760 86,448,616 85,129,502

K Depreciation on Depreciable Excludable Property 19,199,782 19,693,254 17,912,099 E * J

L Cost Less Depreciation of Excludable Property 67,849,978 66,755,362 67,217,403 J – K

M Total Excludable Property (Cost less Depreciation) 150,343,359 177,018,019 178,102,074 I + L

NValue of Excludable Property to be Deducted from Minnesota Allocated Value 97,132,033 99,671,766 82,957,631 M * H

1 Nov. 5, 2019 Order at 94-95. 2 Ex. J1 at line 64; Ex. J4 at line 24; Ex. J7 at line 23. 3 Nov. 5, 2019 Order at 71. 4 March 9, 2021 Order at 22. 5, 6 Nov. 5, 2019 Order at 99.


Vanguard Appraisals, Inc. was formed in 1968 as a Mass Appraisal Company. CAMAvision©, our software product, is flexible, efficient, and accurate to be the system of choice by assessors. It is installed in 25 Minnesota jurisdictions and over 325 jurisdictions across the Midwest.


Official Publication of the Minnesota Association of Assessing Officers mnmaao.org

Where Am I?Rocky Taconite is located in Silver Bay, MN

Rocky is made of quarter-inch-thick iron hammered into spheres (up close you can see the texture from the hammering), holds a pick in his gloved hand, and wears a miner’s hat. He stands on a boulder of taconite, the ore that saved America’s steel industry

http://www.mnmaao.org

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Equal Eyes