Tick Tock It's Time to Get Your AMA - Tips inside this issue - SUMMER 2021 VOLUME 43 NUMBER 165 - Minnesota Association of ...
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Equal Eyes
OFFICIAL PUBLICATION OF THE MINNESOTA ASSOCIATION OF ASSESSING OFFICERS MNMAAO.ORG
SUMMER 2021
VOLUME 43 NUMBER 165
Tick Tock
It’s Time to
Get Your AMA
Tips inside
this issue
MAAO
LEADERSHIP
Executive Officers
President Patrick Chapman, SAMA
1 Vice President
st
Joe Udermann, SAMA
2nd Vice President Tim Bulger, SAMA
Imagine partnering with a pioneer in the Financial Officer Chase Peloquin, SAMA
industry – a company who has empowered Past President Daryl Moeller, SAMA
appraisal and tax professionals for more
than 80 years. We connect communities by Regional Directors
empowering your organization to achieve Region 1 Ryan DeCook, SAMA
increased efficiency, productivity, and accuracy. Region 2 Jennifer Flicek, SAMA
Take ownership of your future and succeed Region 3 Jean Sowada-Popp, SAMA
in delivering fair, equitable, and defendable Region 4 Amber Peratalo, SAMA
taxation with Tyler. tylertech.com/appraisal Region 5 David Parsons, SAMA
Region 6 Doug Bruns, SAMA
Region 7 Chris Odden, SAMA
EDITORIAL COMMITTEE Region 8 Mary Jo Otten, SAMA
Region 9 Joshua Hoogland, SAMA
Committee Chairs
Agricultural Mark Koehn, CMA
CAMA and GIS Randy Lahr, SAMA
Conference Coordinator Paul Knutson, SAMA, RES
Editorial Jason Jorgensen, SAMA
Information Systems Michael Neimeyer, CMA
Lori Thingvold, SAMA Jason Jorgensen, SAMA Jamie Freeman, SAMA
Wright County Wadena County Hubbard County Legislative Mark Peterson, SAMA
Managing Editor Associate Editor Membership Coordinator Rebecca Malmquist, SAMA, RES
Committee Chair
Nominating and Procedures Michelle Snobl, AMA
Residential John Conway, SAMA
Rules and Resolutions Joe Udermann, SAMA
Sales Ratio Dell Sanko, CMA
Scholarship Carrie Borgheiinck, SAMA
Secretary Penny Vikre, SAMA
Site Selection Lisa Clarke, CMA
Amber Swenson- Hill, SAMA
Strategic Planning Michelle Moen, SAMA
Nancy Gunderson SAMA Jake Pidde, SAMA
Clay County Stearns County Polk County Summer Seminar Coordinator Kim Jensen, SAMA, CAE
Tax Court / Valuations Ann Miller, SAMA
Treasurer Reed Heidelberger, SAMA
U40/10 Troy Halter, CMA
Educational Workgroups
Assessor Development Patrick Chapman, SAMA
Course Management Tina Diedrich-Von Eschen, SAMA
Missy Manke, CMA Holly Soderbeck, SAMA Angie DeBoer, CMA Course Curriculum & Standards Sherri Kitchenmaster/Jessi Glancey, SAMA
Wright County MN Dept of Revenue Martin County Education Coordinator/Online Admin. Emily Squyres
2 Summer 2021 / Equal Eyes
The Clock is Ticking 16 INDEX
AMA Deadline Information
President’s Perspective 5
MAAP Update 7
26
Classifieds 9
Top 10 20
What You Get For 24
Out of the Past 25
Transitions 30
Global Assessment - Brazil Tax Court 31
* 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.
Summer 2021 / Equal Eyes 3
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!
4 Summer 2021 / Equal Eyes
president’s
perspective By Patrick Chapman, SAMA
Ramsey County
MAAO President
“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
In recent years the MAAO has a big mark on MAAO. All 3 were it in again and the grader gets another
started a new committee and this instrumental in my development as 4-6 weeks. Time adds up quickly.
committee is dedicated to engaging an assessor. Keith is a long-standing The board is scheduled to meet in
the younger and newer members of member of the Minnesota State May of 2022, not June. It will be
MAAO. It is the under 40 years of Board of Assessors and an advocate beneficial to look at the deadline as
age, under 10 years of experience, for the assessing profession in every the May meeting. Remember that the
known simply as the U40/10. This essence of the word. Steve, a teacher, board had a change to the education
committee has worked very hard mentor and a voice of the assessor. He requirement so you may need the
at our events to raise money for stood up for assessing every chance 15-hour property specific course.
the things we need like the family he got. Paul, the man who puts it Look at the Minnesota State board
member scholarship and most of our all together for this organization. web site to see the list of classes
Information Technology needs. They He has done such a good job with that qualify; there are a number of
did another great job at this year’s keeping assessors in touch with in person options and online options.
summer seminar without the befit of our conferences and acting as the Just want to close by telling you all
most of them being there. They had Unofficial MAAO MC. I would how good it feels to be starting to get
great items for the raffle and things like to thank these three gentlemen back to some normal activity. This
worked very well. Thank you to Troy personally for all they have done for challenge that we are facing is only
Halter and the whole committee. me and all they have done for the going to make us stronger. Thank you
With their efforts, and Daryl Moeller Minnesota Association of Assessing to all of you for preserving!
selling, we raised $3,020! Officers. You may still see their faces
around a conference or a classroom, Patrick Chapman, SAMA
Another ad hoc committee that is please make sure and thank them as President MAAO
similar is the self-named Over 60 they are three of the reasons our
years of Age, Over 40 in MAAO. This organization is so strong.
committee has been on a retirement
streak. Founding members Keith A last note is that the AMA deadline
Albertson, Paul Knutson and is now. If you need to be upgraded
Steve Hacken all retired this year. to AMA by June 30 of 2022, your
I know there are more members deadline is now. If you turned in your
but these three in particular I would report today it takes 4-6 weeks to get
like to recognize. All 3 are former graded then if you need revision you
Presidents of MAAO. All 3 have left may take 2 weeks to do that, then turn
Summer 2021 / Equal Eyes 5
Introducing...
Your MAAO
Education Coordinator Team
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
educationcoordinator@mnmaao.org
6 Summer 2021 / Equal Eyes
MAAP
UPDATE 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
Summer 2021 / Equal Eyes 7
MAAP By Jenna Takemoto
UPDATE
2019-2020 MAAP President
2021 MAAP Workshop and Membership Renewal Form
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
Jessica.Arneson@co.washington.mn.us with payment to follow.
8 Summer 2021 / Equal Eyes
Classifieds Amber Swenson-Hill, SAMA
Polk County
Editorial Committee Member
5570 Maple Heights Rd, Greenwood, MN 55331
$15,000,000
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 front
squarefeet
feetofoflake
lakefrontage
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.
Summer 2021 / Equal Eyes 9
The Scholarship Edition
Where Are They Now?
Written by Carrie Borgheiinck, SAMA
Hennepin County
Tina Diedrich-VonEschen,
Kanabec County Assessor
H ave 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.
10 Summer 2021 / Equal Eyese Dae Dan Franklin
The Scholarship Scholar-
Edition: Where Are They Now? continued
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
Augustofof2016.
2016.
Summer 2021 / Equal Eyes 11The Scholarship Edition: Where Are They Now? continued
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.
EE
12 Summer 2021 / Equal EyesSummer Seminars
Summer 2021 / Equal Eyes 13May 26-27, 2021 14 Summer 2021 / Equal Eyes
Where
Am
I?
answer on back cover
Summer 2021 / Equal Eyes 15Written by Patrick Chapman, SAMA
Ramsey County
MAAO President
State Board of Assessors Grading Chairman
with 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
16 Summer 2021 / Equal EyesTips 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 5) draw Your Own a 38% deprecation on a house, I
Guide / Take the Conclusions would anticipate that the effective
Seminar age would be around 35 years or
Data is data and opinions are so. If you have 47% deprecation, I
Use Residential Form Report guide not. If someone in your office would think around 45 years or so.
on the MAAO website (free for found two houses that support an
members) take seminar adjustment for a garage, and you
7) Get Math
Together Prior
2) Use the Case to Assembling
Study Exam the Report
Guide / Take
the Seminar Get all the math
together then start the
Use Residential Case process of assembling
Study Exam guide on the report. The report is
the MAAO website in a manner to deliver
(free for members) take the information. It is
seminar not start at page one
and fill it out to the end.
3) Find your
Data 8) Order of
Work
Find an area with
adequate data, land Order of work for the
sales, comp house report:
sales, you may need to go to a have a similar property you can use
nearby community. More data can 1. Market conditions
that data adjusted for your market
make this a lot easier. adjustment
conditions. This is not plagiarism.
If you use their thoughts that is.
2. Comp Selection, improved
Come to your own conclusions.
4) Select Comps First and vacant land
Select your comps and data first 3. Subject selection
6) Depreciation Rule of
then select your subject. Find out
Thumb
what data the area has and do not 9) Adjustments
use your aunts house just because For market extraction of
you can get in easy to inspect that deprecation. A rule of thumb is Do the math work for the sales
property. Let the sales data tell you that houses generally deprecate at comparison approach at least
what your subject looks like. If you about 1% per year so when you are 2 adjustments must be market
have all split entry data don’t do a making effective age choices let derived. The other adjustments
2-story house. that be your guide. If you develop can be depreciated cost or from
Summer 2021 / Equal Eyes 17a CAMA source, but document (rate), then the finished at 400 x 12) Assemble Report
the source. No adjustment can be $40 (rate) and add those together AFTER All Data
completely unsupported. for the basement total cost. Analysis
After all data analysis is done then
10) Cost Approach 11) Income Approach start the assembly of the report.
Know how the cost manual works. Income can be the most
If you have question, ask someone. challenging. You can use rent from 13) Proofread
The most common error is that one source and sales from another
people do not know how to do a to come up with the market if you Have someone proofread
basement replacement cost. The do not have rental sales. Rambler it!!!!!!!!!!!!!!!!!!!
proper way is to build the entire A sold for $100K and a similar
basement before you fill in the rambler B rented in the same
finish. If you have a 960 sf rambler neighborhood for $750. You can
with 400 sf of basement finish,you use those two points of data to
do the full unfinished 960 x $20 develop GRM and rent data.
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
18 Summer 2021 / Equal EyesState Board of Assessors AMA Requirement List
NOTE: Visit the website for the most up to date iformation
https://www.revenue.state.mn.us/accredited-minnesota-assessor-ama
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.
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:
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
Summer 2021 / Equal Eyes 19THE TOP 10
Increases in
building materials
Jamie Freeman, SAMA
Hubbard County
Editorial Committee Member
Top in
The Top 10 increases 10 building materials
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.
20 Summer 2021 / Equal EyesTop 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.
Summer 2021 / Equal Eyes 21Top 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.
22 Summer 2021 / Equal EyesTop 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.
EE
Summer 2021 / Equal Eyes 23What You Get For
Amber 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)
24 Summer 2021 / Equal Eyesout of the past
Remembering Yesterday Amber Swenson-Hill, SAMA
Polk County
Editorial Committee Member
5 Years Ago—2016 • In August deadly storms 35 Years Ago – 1986
swept across the northern
5 Years Ago—2016 • In August deadly storms 35 Years Ago – 1986
swept across the northern
• This year we changed to an Plains, bringing tornadoes • Scott Renne was the MAAO
online form for all Local & that ripped roofs off houses Education Committee
County Boards of Appeal & and hail that smashed car Chairman and Chairman of
Equalization to report and windshields. On man was the MN State Board of
certify their results. killed when a tornado his Assessor’s Education
• The Willmar City Assessor’s home in Minnesota, an in Committee.
Office closed, and the Wisconsin, lightning • Scott Lindquist Revised
Kandiyohi County apparently killed a dozen Course H into a
Assessor’s Office began to cows and struck a woman “Mathematics for
provide assessing services she left a supermarket. Appraisers” perspective.
to the City of Willmar.
20 Years Ago—2001 70 Years Ago – 1951
10 Years Ago—2011
• Jeff Johnson and Curt Becker • Over 82% of iron ore
• Steve Hacken became a celebrated fifteen years with extracted from the United
new instructor for Mass the IAAO. States mines during this year
Appraisal Basics. • The “three strike” policy was originates in Minnesota.
• July, Minnesota ended a implemented to help areas
state government that had less than the six
80 Years Ago – 1941
shutdown after 20 days, sales minimum. • First tax on taconite, a black
millions in lost revenue and
magnetic iron-bearing ore, in
frustration on the part of 25 Years Ago – 1996
effect in Minnesota.
residents and lawmakers.
• Matt Smith was • Singer Bob Dylan born in
15 Years Ago—2006 Commissioner of Revenue Duluth.
• Robert Meester was the
• Effective July 1st the Code 85 Years Ago – 1936
MAAO president.
of Conduct and Ethics • IAAO’s homepage became • Temperatures remained
became part of the fully functional on the below zero for a record
Assessment Laws, History, internet in March. thirty-six days beginning on
and Procedures
January 18. Later in the
Coursework. 30 Years Ago – 1991
summer Moorhead ties a
• Macie Moreland, Kyle
Holmes, and Tony • Louise Thureen was the state record high official
Rasmuson were awarded Equal Eyes Editor assisted by temperature of 114 degrees
SAMA designation and Jack Assoc. Editor Marvin Fahrenheit, previously set in
Renick was awarded with Anderson. Beardsley in 1927.
his AMA designation. • Clarence Ward retired from
• An annual US report put Becker County after thirteen
Minnesota at the top of its years as Assessor.
health rankings for the • The Minnesota Twins win the
fourth straight year while World Series.
concluding that the nation’s
health improved slightly.
• This year we changed to an Plains, bringing tornadoes • Scott Renne was the MAAO
online form for all Local & that ripped roofs off houses Education Committee
County Boards of Appeal & and hail that smashed car Chairman and Chairman of
Equalization to report and windshields. On man was the MN State Board of
certify their results. killed when a tornado his Assessor’s Education
• The Willmar City Assessor’s home in Minnesota, an in Committee.
Office closed, and the Wisconsin, lightning • Scott Lindquist Revised
Kandiyohi County apparently killed a dozen Course H into a
Assessor’s Office began to cows and struck a woman “Mathematics for
provide assessing services she left a supermarket. Appraisers” perspective.
to the City of Willmar.
20 Years Ago—2001 70 Years Ago – 1951
10 Years Ago—2011
• Jeff Johnson and Curt Becker • Over 82% of iron ore
• Steve Hacken became a celebrated fifteen years with extracted from the United
new instructor for Mass the IAAO. States mines during this year
Appraisal Basics. • The “three strike” policy was originates in Minnesota.
• July, Minnesota ended a implemented to help areas
state government that had less than the six
80 Years Ago – 1941
shutdown after 20 days, sales minimum. • First tax on taconite, a black
millions in lost revenue and
magnetic iron-bearing ore, in
frustration on the part of 25 Years Ago – 1996
effect in Minnesota.
residents and lawmakers.
• Matt Smith was • Singer Bob Dylan born in
15 Years Ago—2006 Commissioner of Revenue Duluth.
• Robert Meester was the
• Effective July 1st the Code MAAO president.
85 Years Ago – 1936
of Conduct and Ethics • IAAO’s homepage became • Temperatures remained
became part of the fully functional on the below zero for a record
Assessment Laws, History, internet in March. thirty-six days beginning on
and Procedures
January 18. Later in the
Coursework. 30 Years Ago – 1991
summer Moorhead ties a
• Macie Moreland, Kyle
• Louise Thureen was the state record high official
Holmes, and Tony
Equal Eyes Editor assisted by temperature of 114 degrees
Rasmuson were awarded
Assoc. Editor Marvin Fahrenheit, previously set in
SAMA designation and Jack
Anderson. Beardsley in 1927.
Renick was awarded with
his AMA designation. • Clarence Ward retired from
• An annual US report put Becker County after thirteen
Minnesota at the top of its years as Assessor.
health rankings for the • The Minnesota Twins win the
fourth straight year while World Series.
concluding that the nation’s
health improved slightly.
Summer 2021 / Equal Eyes 25Global
Assessment
Brazil
Written By
Angie DeBoer, CMA, Martin County
Editorial Committee Member
26 Summer 2021 / Equal EyesGlobal Assessment Brazil
Demographics
Officially 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.
Geography
Brazil 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
in the car market and is the second largest and the Congress is made up of
exporter of processed foods. The world’s the Chamber of Deputies and the
its uniqueness, Brazil is the longest country largest healthcare cooperative, Unimed is
in the world and is also the only country also located in Brazil.
Federal Senate. Brazil is considered
in the world to have both the equator and a democracy.
the Tropic of Capricorn running through
it. There are areas of oceanic archipelagos,
hills, mountains, plains, highlands and Real Estate
scrublands. Brazil is also home to the The typical home is Brazil is valued at
Transportation
world’s second-longest river, the Amazon $123,451. This value is seasonally adjusted Roads are the primary mode of
River. and only takes into account the middle transportation in Brazil when it comes
price tier of homes. In Brazil, home values to freight and passenger traffic. Most of
have increased 7.5% over the past year. the railway that is in existence has been
Economy Foreign ownership of property is actually privatized and has been declining since
encouraged in Brazil so non-residents have 1945 when emphasis shifted to prioritizing
Brazil has the world’s ninth largest the same rights as residents when it comes highways. Brazil has the second largest
economy and the largest in Latin America. to owning real estate. number of airports in the world behind the
The country has been the world’s largest United States with approximately 2,500.
producer of coffee for the last 150 years. Freight is transported through waterways
Brazil has a diversified economy in the Administrative Divisions and there are some areas in Brazil such
areas of agriculture, industry and a wide as the industrial zones of Manaus that can
Brazil is a federation composed of 26 states,
range of services. Being one of the largest only be reached by water.
one federal district and 5570 municipalities.
producers of animal proteins in the world,
States collect their own taxes and receive
it is no surprise that in 2019, Brazil was
their own share of taxes that are collected
the largest exporter of chicken meat in Tourism
on a federal level. Brazil has an elected
the world. It was also the second largest
president who has a four-year term with
producer of beef, third largest producer of
the possibility of re-election for a second, Brazil’s nature areas are its most
milk, fourth largest producer of pork, and popular tourist attractions as it is
successive term. The president is both the
seventh largest producer of eggs. Brazil
head of state and head of government of the home to the Amazon Rainforest.
also is second in the world in iron ore
extraction and leads the world in producing
union and appoints the Ministers of State, There are beaches and dunes in the
amethyst, topaz and agates. In the who assist in government. Legislative Northwest Region, beaches in Rio
industrial realm, Brazil ranks fourth largest houses are the main source of law de Janeiro, cultural tourism in Minas
Summer 2021 / Equal Eyes 27Global Assessment Brazil 28 Summer 2021 / Equal Eyes
Global Assessment Brazil
Taxation – from 4% to 17.42%. Large companies
Gerais and business trips to Sao Paulo. can choose whether to calculate income tax
In 2018, Brazil was the 48th most visited Property Tax: This tax is established by on actual profits or presumed profits and
country which brought in revenues of $5.9 local municipalities and the amounts any differences will either be made up in
billion. normally range from 0.5% to 1.5% of the March of the following year or claimed as
assessed value. This rate can also vary with a tax credit.
the property’s location and its actual use.
Employment Tax on Rental Income: Some foreign tax
Income Tax: Brazil has a progressive relief and credits can be allowed under
The latest unemployment rate is at 13.67 individual income tax system in which specific tax treaties, but tax is charged on
percent and the lowest recorded is 4.3 the rate varies from 0% to a maximum of worldwide income for residents of Brazil
percent, while the highest is right now. 27.5% and shared out into three brackets at 15%.
The average retirement age for men is 65 which apply to monthly income amounts
and for women it is 62 with a varying labor on a yearly basis. The fiscal year begins Capital Gains Tax: Capital gains taxes
force participation rate coming in at 62.10 on January 1st and ends on December 31st. are generally subject to tax at 15% for all
percent (all-time high) in May of 2019 to Brazilian residents and non-residents have
Corporate Tax: This tax rate varies with the the pay 15% on capital gains relating to
54.70 percent in July of 2020 (record low). type of activity – industry, commerce, etc. property at the moment the gain is obtained.
EE
3BR 3 BA in Rio de Janeiro 3BR 2BA Townhouse in Sao Paulo
3,745 sq. ft. 1,453 sq. ft.
$701,990 $266,756
3 BR 1 BA Rural Santa Catarina
3,229 sq. ft.
$61,043
Summer 2021 / Equal Eyes 29transitions
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
This Photo by Unknown Author is licensed under CC BY-SA
The MAAO membership wishes you both all the
best in this new chapter of your lives.
30 Summer 2021 / Equal EyesTAX COURT
lowe’s home centers, LLC
vs.
village of plover, wi Jake
STATE OF MINNESOTA
COUNTY OF RAMSEY
vs.
Pidde, SAMA, Stearns County
Enbridge Energy, Limited Partnership,
Appellant-Petitioner,
Commissioner of Revenue,
Appellee-Respondent.
appellant-petitioner Enbridge Energy, Limited Partnership.
Jennifer A. Kitchak, Assistant
Editorial Committee Member
appellee-respondent Commissioner of Revenue.
Minnesota
REGULAR DIVISION
______________________________________________________________________________
FINAL APPORTIONABLE
MARKET VALUE AND
ORDER FOR JUDGMENT
Attorney
TAX COURT
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
General, represents
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
1
STATE OF MINNESOTA TAX COURT
COUNTY OF RAMSEY REGULAR DIVISION
______________________________________________________________________________
Enbridge Energy, Limited Partnership, FINAL APPORTIONABLE
MARKET VALUE AND
Appellant-Petitioner, ORDER FOR JUDGMENT
vs.
Commissioner of Revenue, Docket Nos. 8579-R, 8631-R, 8771-R
Appellee-Respondent. 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
1
Summer 2021 / Equal Eyes 31TAX COURT, continued
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, 2012 2013 2014
subp. 3
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.
2
32 Summer 2021 / Equal EyesTAX COURT, continued
Minnesota Excludable Property,
8100.0500, subp. 1
Cost of Non-Depreciable Excludable $82,493,381 $110,262,657 $110,884,671
Property
Cost of Depreciable Excludable Property $87,049,760 $86,448,616 $85,129,502
Depreciation on Depreciable Excludable $19,199,782 $19,693,254 $17,912,099
Property
Cost Less Depreciation of Excludable $67,849,978 $66,755,362 $67,217,403
Property
Total Excludable Property (Cost Less $150,343,359 $177,018,019 $178,102,074
Depreciation)
Value of Excludable Property to be $97,132,033 $99,671,766 $82,957,631
Deducted from Minnesota Allocable
Value
11. EELP’s apportionable market value as of January 2, 2012, was $888,611,757
($985,743,790 - $97,132,033).
12. EELP’s apportionable market value as of January 2, 2013, was $816,278,086
($915,949,852 - $99,671,766).
13. EELP’s apportionable market value as of January 2, 2014, was $809,630,013
($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.
9. The court having reduced the system unit-value of EELP’s pipeline operating
system as of January 2, 2013, to $3,216,940,619, and having adjusted the value attributable to
Minnesota to $915,949,852, the Commissioner shall adjust the Minnesota apportionable value to
$816,278,086, and shall reapportion the value accordingly among the affected counties.
3
Summer 2021 / Equal Eyes 33TAX COURT, continued
10. The court having reduced the system unit-value of EELP’s pipeline operating
system as of January 2, 2014, to $3,501,716,925, and having adjusted the value attributable to
Minnesota to $892,587,644, the Commissioner shall adjust the Minnesota apportionable value to
$809,630,013, and shall reapportion the value accordingly among the affected counties.
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.
BY THE COURT:
Jane N. Digitally signed by
Jane N. Bowman
Bowman Date: 2021.05.06
09:50:38 -05'00'
Jane N. Bowman, Judge
DATED: May 6, 2021 MINNESOTA TAX COURT
4
34 Summer 2021 / Equal EyesTAX COURT, continued
Exhibit A – Calculation of Excludable Property Value
2012 2013 2014
Plant Depreciation Percentage, 8100.0500, subp. 3
A Total System Plant 1 6,208,511,953 7,119,018,355 9,086,870,337
2
B Non-Depreciable Plant (CWIP + Land) 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 Depreciation 3 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 Value 4 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 Property 5 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
Value of Excludable Property to be Deducted from
N 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.
Summer 2021 / Equal Eyes 35Vanguard 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. 36 Summer 2021 / Equal Eyes
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
Official Publication of the Minnesota Association of Assessing Officers
mnmaao.org
Summer 2021 / Equal Eyes 37You can also read
