Property Valuation
In Minnesota, the assessed value for property tax purposes is typically what percentage of estimated market value for residential property?
A50%
B75%
C85%
D100%✓ Correct
Explanation
In Minnesota, residential property is generally assessed at 100% of estimated market value for property tax purposes. However, the actual tax is calculated using class rates that apply a percentage of market value to determine the tax base.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
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