Equal Eyes OFFICIAL PUBLICATION OF THE MINNESOTA ASSOCIATION OF ASSESSING OFFICERS
MNMAAO.ORG
SPRING 2022 VOLUME 44 NUMBER 167
tax court
Hyatt Regency vs. hennepin county
Tech Bytes
tools that make the job easier
MAAO LEADERSHIP
Vision Government Solutions has maintained a reputation as an innovative provider of CAMA software and services for Assessing Departments since 1975. Vision North Star CAMA is specifically designed for Minnesota and integrates with any Tax System, providing you with the flexibility to choose a combination of best in class solutions for your community.
EDITORIAL COMMITTEE
Lori Thingvold, SAMA Wright County Managing Editor
Jason Jorgensen, SAMA Mille Lacs County Associate Editor Committee Chair
Nancy Gunderson SAMA Jake Pidde, SAMA Stearns County Clay County
Missy Manke, CMA Wright County
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Jamie Freeman, SAMA Hubbard County
Amber Swenson- Hill, SAMA Polk County
INDEX President’s Perspective
4
Commissioner’s Comments
5
MAAP Update
7
Classifieds
8
Top 10
10
What You Get For
20
Out of the Past
21
Transitions
22
Tax Court
24
SBA Minutes
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* 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.
Executive Officers President
Patrick Chapman, SAMA
1st Vice President
Tim Bulger, SAMA
2nd Vice President
Mark Peterson, SAMA
Financial Officer
Chase Peloquin, SAMA
Past President
Patrick Chapman, SAMA
Regional Directors Region 1
Ryan DeCook, SAMA
Region 2
Jennifer Flicek, SAMA
Region 3
Tina Diedrich-VonEschen, SAMA
Region 4
Amber Peratalo, SAMA
Region 5
David Parsons, SAMA
Region 6
Doug Bruns, SAMA
Region 7
Kevin Scheidecker, SAMA
Region 8
Jill Murray, SAMA
Region 9
Joshua Hoogland, SAMA
Committee Chairs Agricultural
Mark Koehn, CMA
GIS
Randy Lahr, SAMA
Conference Content
Jean Popp, SAMA
Editorial
Jason Jorgensen, SAMA
Information Systems
Michael Neimeyer, CMA
Legislative
Mark Peterson, SAMA
Nominating/Research/Planning
Lena Schaefer CMA
Residential
John Conway, SAMA
Rules and Resolutions
Mark Peterson, SAMA
Sales Ratio
Ashley Gunderson, SAMA
Scholarship
UPcoming assessor education 4
Tech Bytes tools that make the job easier 14
Michele Gelo, SAMA
Secretary
Penny Vikre, SAMA
Site Selection
Lisa Thompson-Clarke, CMA
Strategic Planning
Patrick Chapman, SAMA Brett Hall/Ann Miller, SAMA
Tax Court / Valuations Treasurer
Reed Heidelberger, SAMA
U40/10
Troy Halter, CMA
Educational Workgroups Designation Committee Conference Content Curriculum & Assessor Standards Steering Committee
Patrick Chapman, SAMA Jean Popp, SAMA Jessi Glancey, SAMA/Ben Bedard, AMA Mike Wacker, SAMA
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Upcoming Assessor Education
May 2022
June 2022
•
Monday, May 09 - Tuesday, May 10 | Holiday Inn & Suites, Lake Elmo Residential Case Study Workshop & Optional Exam
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Wednesday, May 25 - Thursday, May 26 | Holiday Inn & Suites, St. Cloud 2022 MAAO Summer Seminars
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Monday, June 6 - Tuesday, June 7 | The Park Event Center, Waite Park Basic Ag 101
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Wednesday, June 8 - Thursday, June 9 | The Park Event Center, Waite Park Advanced Ag
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Monday, June 27 - Thursday, June 30 | The Park Event Center, Waite Park Assessment Laws and Procedures (ALP)
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Monday, July 11 - Thursday, July 14 | Holiday Inn & Suites, St. Cloud Basic Appraisal Principles, co-sponsored by the North Star Chapter of the Appraisal Institute
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Monday, August 1 - Thursday, August 4 | Holiday Inn & Suites, Lake Elmo Minnesota Assessment Administration
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Monday, August 15 - Friday, August 19 | Holiday Inn & Suites, Lake Elmo MAAO Basic Income Approach
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Monday, August 22 - Thursday, August 25 | The Park Event Center, Waite Park Basic Appraisal Procedures, co-sponsored by the North Star Chapter of the Appraisal Institute
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Monday, September 19 - Friday, September 23 | The Park Event Center, Waite Park Mass Appraisal Basics
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Sunday, September 25 – Wednesday, September 28 | Radisson Harborview, Duluth MAAO Fall Conference
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Monday, October 10 - Thursday, October 13 and Monday, October 17 - Thursday, October 20 | Online via Zoom – taught virtually with live instruction Assessment Laws and Procedures (ALP)
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Wednesday, October 12 - Thursday, October 13 | Holiday Inn & Suites, Lake Elmo Minnesota Income Property Case Study Workshop & Optional Exam
July 2022
August 2022
September 2022
October 2022
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president’s perspective
Patrick Chapman, SAMA Ramsey County MAAO President
Keep Trying. Stay humble. Trust your instincts. Most Importantly, act. When you come to a fork in the road, take it. - Yogi Berra Hello again! You thought you were rid of me, but I am back! Joe Udermann had to step down. The board has appointed me to take the rest of his Presidency. I am excited for the opportunity to lead this organization again. The AMA deadline is fast approaching. I know may of you have done the work and have been awarded your AMA. Congratulations! To the people who are still working. Keep going you got this! The normal life is on the horizon. I think things are starting settle down on the Covid front. I don’t think we will ever do our jobs exactly the same as before, but we will be closer to normal this year. Some in person meetings and some hybrid ones. It is great how the assessors in Minnesota have adapted and moved forward. I am so proud of all of us. Lastly, Get involved. Our organization needs you! MAAO is only as strong as your participation. Get involved, don’t know how ask me! I will get you connected with someone who can help you. Thank you all, Patrick Chapman, SAMA MAAO President
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Commissioner’s Comments
By Robert Doty MN Revenue Commissioner
Data-driven Foundation Supports Our Work Robert Doty Minnesota Revenue Commissioner
As property tax administrators, we spend a lot of time with data – collecting, collating, crunching, and communicating the results. The Department of Revenue relies on assessors to provide accurate data on property valuations, sales, and other aspects of your work. We use that data for many things. For example, it helps us maintain consistency in assessment, analyze and understand market trends, consider the impact of potential law changes, and calculate a range of property tax aids for local governments across Minnesota. The department shares that information in various forms with the public and elected officials or policymakers at all levels of government. That data helps assessors track market trends that affect your work. Cities, counties, and other taxing entities use it to help set annual property tax levies and budgets. Legislative reports are one way we share property tax data and our analysis of it. We publish some reports each year, while others are one-offs requested by the Legislature. Some recent examples include: •
Property Values and Assessment Practices Report – Covers assessment quality, sales trends, and the effects of property tax laws and changes to them over time.
•
Property Tax Burden (Voss) Report – Analyzes how homestead market values and property taxes vary by income and region across the state.
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Class 4d Affordable Housing Report – Reviews the current use and history of the 4d property classification to help provide housing for low- to moderate-income Minnesotans.
These reports all use data provided by assessors and your counties through PRISM, eCRV, and other means. And all can be great resources for talking with your communities and local officials about property values and taxation trends – just as we do with the governor, legislators, and other state policymakers. Lawmakers and legislative staff use this information to help draft – and refine – proposed law changes. During this year’s legislative session, for example, we presented the Voss Report and Class 4d Property Report in legislative committees. Among the proposals they’re considering are several that would update state tax laws relating to the 4d property classification and the Homestead Credit Refund. The department is tracking a wide range of other potential tax law changes proposed by Gov. Tim Walz and state lawmakers. As always, we’ll continue working the governor and legislators as they discuss and negotiate final tax bills ahead of the session’s end (May 23). A strong budget surplus – projected at $9.25 billion in the February state budget forecast – represents an opportunity to provide tax relief for middle-class Minnesotans and small businesses while making other important investments in our state’s future and those who will help build it.
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commissioner’s comments, continued We collaborate with counties and MAAO before, during, and after session. Together, we help ensure legislators and other officials or stakeholders have accurate data – and a solid understanding of counties’ administrative needs and concerns – as they discuss possible changes. We’ll provide updates and guidance on any law or policy changes that affect your work after the legislative session. Meanwhile, I encourage you to subscribe to our email updates or follow us on social media to get the latest information. To get started, look under Connect With Us at the bottom of any page on our website (www.revenue.state.mn.us).
Ethics for Minnesota Assessors
State law requires all licensed Minnesota assessors to take an Ethics course, sponsored by the department, once in each four-year licensing cycle. For the current cycle, we will offer this course starting in July. We’re updating Ethics to be an interactive online course, rather than an in-person session as in previous years. You’ll be able to access the course on our website and complete it at your own pace. We’re finalizing course materials and will provide more details in the next two months. Assessors must complete the Ethics training and certify you have met this statutory requirement by June 30, 2024. You’ll also receive one continuing education hour for the course. You can check your progress on education requirements for the current licensing cycle online in the Assessor Licensing System. You can find login and other system information on our website by searching with keyword boa. If you have questions about the Ethics course, contact us at proptax.outreach@state.mn.us. If you have questions about education requirements, contact the State Board of Assessors at assessors.board@state.mn.us. Robert Doty is commissioner of the Minnesota Department of Revenue. You can find the reports discussed in this article at www.revenue.state.mn.us/property-tax-reports.
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MAAP UPDATE
By Jenna Takemoto 2022 MAAP President
Hello MAAO Members!
“Spring is when you feel like whistling, even with a shoe full of slush.” — Doug Larson Are you counting the days to this artic blast to end? I sure am! Now, we are all really busy this time of year as we are fast approaching valuation notices & tax statements. I hope that you will take some time out for yourself to be focused & mindful of the positives. The 2022 MAAP Summer Workshop is currently be held August 18, 2022 – August 19, 2022 – of course – pending on CDC Guidelines. We are currently working with Courtyard in Mankato to finalize details. If you would like to attend, please contact a MAAP Board Member for more information. We hope to see you there!
MAAP Officers Jenna Takemoto
Vice President 2021-2022 City of Maple Grove 763-494-6250 meason@maplegrovemn.gov
Angie Mann Secretary/Treasurer 2021-2023 Dakota County 651-438-4202 angela.mann@co.dakota.mn.us
Debbie Maresch Executive Board Member at Large 2020-2022 Carver County 952-361-1963 dmaresch@co.carver.mn.us
Lacy Standke
Tammy Novak
Sue Feldewerd
Marti Sip Conference Coordinator 2021-2023 Norman County 218-784-5487 marti.sip@co.norman.mn.us
Katie Koenings Directory 2021-2023 Kanabec County 320-679-6420 Katie.koenings@co.kanabec.mn.us
Joanne Corrow
Education Board Member at Large 2018-2023 Steele County 507-444-7438 lacy.standke@co.steele.mn.us
Communicator Editor 2021-2023 Stearns County 320-656-3682 susan.feldewerd@co.stearns.mn.us
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Michelle Eason
President 2020-2022 Washington County 763-765-4912 Jenna.Takemoto@co.washington.mn.us
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Education Board Member at Large 2021-2023 Benton County 320-968-5019 tnovak@co.benton.mn.us
Historian Le Sueur County 507-357-8213 jcorrow@co.le-sueur.mn.us
Classifieds Small Town
Amber Swenson-Hill, SAMA Polk County Editorial Committee Member
Park Drive, Pokegama Township Pine County $99,900 Wooded lot with views of Lake Pokegama and the back waters of the Snake River. Approximately .72 acre site with historic hospital building. Current zoning is high density residential. Located between the metro area and Duluth just off Interstate 35, west of Pine City, and near recreational lakes. Available utilities electric, natural gas, shared well, city sewer, and telephone. HOA Dues, $463/ Yearly
https://beacon.schneidercorp.com/Application.aspx?AppID=197&LayerID=2640&PageTypeID=1&PageID=3019
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Assessor Word Find REGION 2
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BLUE EARTH
LeSUEUR
MARTIN
SIBLEY
FARIBAULT
McLEOD
NICOLLET
WATONWAN
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THE TOP 10
Jamie Freeman, SAMA Hubbard County Editorial Committee Member
Considerations when Converting Rental Property to your Primary Residence
For those Landlords out there, who are trying to avoid capital gains when selling rental property, there are few options. Selling your personal residence results in a much better tax deal than selling a rental house. Especially when you can exclude $250,00 in gain from tax for single-filers and $500,000 for married filing jointly. Generally speaking, to turn rental property into a personal residence, you just have to live there for a while. Sounds simple, right? Well… yes, but there’s also more to consider.
1) Ownership and Use: In order to qualify for the primary-home tax break, you must live in the house for at least two of the last five years. They don’t have to be consecutive, but you have to occupy the property as your primary residence for a total of 24 months. For example, if the property was your primary residence and then you rent it out for two years, then you would qualify.
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Top 10, continued
2) Who Qualifies for the Exclusion? Only those who have lived in the property full time for at least two years can claim the capital gains exemption. It doesn’t matter if the house is owned by only one spouse. Both spouses are required to live in the property full-time to take advantage of the exemption.
3) Exceptions: You are not required to actually live in the house every night for two years to earn the tax break. Let’s say you travel south for a couple months during the winter, it doesn’t affect your exemption. Neither does active military duty when you’re stationed at least 50 miles away from home.
4) Special Cases: If you sell before two full years of ownership, you may still qualify for a limited deduction. The IRS allows this if you move for work, move to care for a family member or for a unique situation such as a fire.
5) Don’t Forget about Depreciation Recapture: Rental properties qualify for a depreciation deduction. Most investors can divide the property’s purchase price by 27.5 years and take the annual depreciation. But when the property is sold, Uncle Sam will want his portion of the depreciation back. Depreciation deductions are reported EE on Schedule D of your tax returns and you will pay 25% tax on them.
6) Say Good Bye to Rental Income: One of the most difficult things to deal with is the loss of rental income that you have grown accustomed to.
7) Rental Tax Breaks Disappear: You can also say good bye those rental tax breaks once you stop renting the property out. When the house becomes a primary home, you can no longer write off repairs, maintenance, insurance, property taxes and other expenditures as a business expense.
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EE
Top 10, continued
8) Reduced Property Taxes: Most states grant property tax cuts to residents living in their own home. Minnesota’s homestead exclusion typically lowers your annual property taxes.
9) Moving into Investment Property: There are additional considerations if the property is rented and a tenant is in place with a lease agreement. Residential tenancy laws give tenants various rights, one of which is adequate notice that the owners want to use the property for their residence. You will need to issue current tenants a Notice to Vacate, and be sure to give the tenant the correct notice period required by law.
10) Talk to an Accountant: The IRS has some rules out there that prevent investors from continually buying investment properties and then turning them into a primary residence for capital gains. It’s important to seek advice from an accountant before converting a rental property to residential use. Their professional guidance can help to achieve a conversion that not only follows the law, but also reduces the amount of income tax you will pay in the future.
EE
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Reprinted with Permission from the Appraisal Institute Q4 2021 Issue of Valuation Magazine
Tech Bytes TOOLS THAT MAKE THE JOB EASIER
Apple unveils 4 versions of iPhone 13 with numerous updates and color options Apple’s new iPhone lineup includes its flagship iPhone 13 as well as the Mini, Pro and Pro Max versions — all with the new Bionic A15 chip. The
iPhone 13 and Pro measure 5.78 x 2.82 x 0.30 inches, with a 6.1-inch display, while the Mini is slightly smaller at 5.18 x 2.53 x 0.30 inches with a 5.4-inch display. The Pro Max is 6.33 x 3.07 x 0.30 inches with a 6.7-inch display. Storage capacities range from 128GB to 1TB, depending on model. The iPhone 13 and Mini have an advanced dual-camera system, while the Pro and Pro Max have a triple-lens camera. Color options for iPhone 13 and Mini are red, starlight, midnight, blue and pink. The Pro palette is more subdued, with graphite, gold, silver and Sierra blue. E Prices for the iPhone 13 start at $799; the Mini is $699, the Pro is $999, and the Pro Max is $1,099. Learn more at www.apple.com.
Timekettle translates languages in real time using earbuds and an app Timekettle WT2 Plus is an artificial intelligence– assisted translation device that can translate 40 languages in 93 accents, with 95% accuracy. Compatible with iOS and Android devices, it includes earbuds (in white or gray) controlled by a mobile app that allows simultaneous real-time translation in “Simul mode” (each person uses one earbud from a pair), “Touch mode” (physically touching earbuds to activate), and “Speaker mode” (routing output through a phone speaker). Timekettle also features an offline translation function. The battery has a claimed five-hour life on one charge and 15 hours with the charging case. E Timekettle WT2 Plus sells for $179. Learn more at www.timekettle.co.
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www.appraisalinstitute.org
Write free of distractions with Freewrite Traveler Dedicated digital typewriters — which were popular before everyone had a laptop, tablet or smartphone — are making a comeback, and Freewrite’s Traveler serves a single function: writing. There is nothing else to distract the writer. The portable unit has a full-size mechanical scissor-switch keyboard and an e-ink screen in a package measuring 11.3 x 5 x 0.97 inches and weighing just 1.6 pounds. Writing projects — up to three at a time — are stored in the cloud (Google Drive, Dropbox, Evernote) or on a flash drive. E The Traveler sells for $449. Learn more at https://bit.ly/freewrite-traveler.
Bitdefender shields users from all manner of cyberthreats Bitdefender is a long-established cybersecurity platform that offers real-time comprehensive data protection, including vulnerability assessment, antivirus protection, advanced threat defenses, ransomware and unsafe website protection, anti-phishing, antifraud, and antispam. Privacy protections include a virtual private network, anti-tracking, microphone and webcam tracking, password manager, and file shredder.
Take notes — or edit, sort and share them — with the Supernotes app
E Bitdefender works for home, small business and enterprise systems, and is available for Windows, Android, MacOS, iOS, and multiplatform environments. There is a variety of packages; prices for home start at $29.99 for the first year, and for businesses at $77.69 for the first year. A 30-day free trial is offered. Learn more at www.bitdefender.com.
Supernotes is a note-taking app that allows users to create and edit flashcards on which they can record ideas, make task lists, add images and perform mathematical equations (using LaTeX). The notecards can be organized according to user needs and then easily searched and sorted (tagging, keywords). They can also be shared with others. Supernotes is available for Windows, MacOS and Linux. E A free version provides users with 40 notecards. Unlimited notecards are available for $11 per month. Learn more at https://supernotes.app.
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Print almost anything from anywhere with Canon’s portable printer Printing on the go is possible with Canon’s Pixma TR150 portable inkjet printer, which weighs only 5.1 pounds and measures 12.7 x 7.3 x 2.6 inches. It can print sheets up to 8.5 x 11 inches; an included battery pack accommodates up to 330 document pages or photos per charge, printing wirelessly using a companion app, Apple’s AirPrint or Google Cloud Print. It is compatible with Windows, MacOS, iOS, Android, Windows Mobile and FireOS. E The Pixma TR150 sells for $379.99 from Canon; it may be available for less from other retailers. Learn more at https://bit.ly/canon-tr150.
uBlock Origin is a ‘wide-spectrum’ ad/tracker/malware blocker uBlock Origin is a free and open-source crossplatform browser extension for “wide-spectrum” content-filtering, including ad blocking. The extension is available for several browsers, including Chrome, Chromium, Edge, Firefox, Opera, Pale Moon and versions of Safari prior to 13. It enables popular filter lists, such as those used by AdBlock, but it also blocks pop-ups, autoplay videos, malware and trackers. E uBlock Origin (not to be confused with uBlock, which solicits donations) is available for free. Learn more at https://github.com/gorhill/uBlock.
TP-Link’s wireless range extender is ready for Wi-Fi 6 TP-Link’s RE505X/AX1500 plug-in extender was already one of the best-regarded devices in its class. Now it has cutting-edge Wi-Fi 6 standard, which reduces dead zones by extending the signal range to about 1,500 square feet, offering speeds up to 1,200Mbps at 5Ghz and 300Mbps at 2.4Ghz, 34 VALUATION • Q4 2021
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with adaptive path selection to automatically choose the fastest connection to the router. Additionally, it supports OneMesh technology, but requires a compatible modem. E The TP-Link sells for $89.99. Learn more at https://bit.ly /tp-range-extender.
Otter transcription app frees you from paper notes Otter is an artificial intelligence–assisted voice transcription app with automated speech-to-text and editing features, including live transcription, transcription of imported audio files, speaker ID and keywords. Its collaborative features include search by speakers, date range and keywords; real-time annotation; and editable text and speaker tags. Otter works with Zoom, Webex, Microsoft Teams and Google Meet. The app is available for iOS and Android devices, and there is a web interface. E An introductory plan offering 600 minutes per month is free. The Basic plan is $8.33 per month for 6,000 minutes, and the Business plan is $20 per user per month for 6,000 minutes. Learn more at https://otter.ai. www.appraisalinstitute.org
Skyline X: Professional drone, reasonable price The Skyline X Drone is a high-performance, easily controlled quadcopter with foldable, flexible blades for compact storage. It has a range of nearly 2.5 miles and can fly at up to 42.5 miles per hour, recording up to 19 minutes of HD/120frames-per-second video before requiring a charge. Its features include a 12-megapixel camera, a gravity sensor for image stabilization and altitude holding, slo-mo, and a panorama mode with a range of 3,000 feet. E The Skyline X sells for $99.99. Learn more at https://bit.ly/skyline-x.
having to install software and is fully compatible with other email providers so users send and receive emails as normal. E ProtonMail is available for free in the Apple App Store and the Google Play Store. Learn more at https://protonmail.com.
ProtonMail’s end-to-end email security is protected by the Swiss ProtonMail is a leading secure email platform — one considered so safe that journalists use it to communicate with confidential sources. It originated at the European Organization for Nuclear Research, known as CERN (the same place the World Wide Web was conceived and developed), and its security features include SSL connections, end-to-end encryption, and storage on physical servers rather than in the cloud. The servers are located in Switzerland to take advantage of protections afforded by that nation’s strict privacy laws. ProtonMail can be used on any device without
For conference call quality, Logitech’s C920s Pro HD webcam has you covered These days, a good webcam is more important than ever. The C920s Pro HD from Logitech offers full HD video at 1080 pixels or 720 pixels, autofocus, dual-mic stereo audio, a five-element glass lens and — importantly — a privacy cover. The unit measures a compact 1.70 x 3.70 x 2.80 inches and weighs 5.71 ounces. It is compatible with Windows 7 and up, MacOS 10.10 and up, and ChromeOS. E The C920s sells for $59.99. Learn more at https://bit.ly/C90-S.
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Cool Tools Software and gadgets for valuation professionals • by Wayne Pugh, MAI
Use the Pocket app to save and sort content and data Have you seen articles or content online and thought, I’d love to save this information for later? If so, then I recommend the Pocket app. Pocket is a leading “read it later” service that lets you save articles, videos, images, webpages and tweets. With more than 20 million users and 2 billion pieces of media saved, the app has a rating of 4.8 stars out of 5 in the Apple App Store, based on more than 22,000 reviews.
Using Pocket
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feature enables you to have a story, article or blog post read to you. An in-app search button can help you find content you’ve saved.
Getting Pocket Pocket works with most devices and can be downloaded from the Apple App Store, Mac App Store, Google Play and Amazon Apps. It also works with most browsers, including Mozilla Firefox, Google Chrome, Safari, Opera and Microsoft Edge. There is a free version and a paid, ad-free premium version that costs $4.99 per month or $44.99 annually. I recommend creating a free account first to get familiar with it and then decide if you want the features of the premium version, which include search options and highlighting. Any content stored in the Pocket app is accessible on your phone, tablet or computer — even when you’re offline. And
saved content remains available to you even if it has been removed from its original source.
Bottom line Pocket is an excellent tool to help appraisers store and organize relevant information — be it business or personal. I’ve set up Google Alerts on multiple real estate topics, and Pocket has been a great way to store the content I’ve found on property sales, zoning changes and market studies, just to name a few.
About the Author R. Wayne Pugh, MAI, is CEO of real estate consulting and appraisal firm R. Wayne Pugh and Co., the head of Software for Real Estate Professionals Inc. and a principal member of Real Estate Counseling Group of America. He formerly served as president of the Appraisal Institute and as chair of the Louisiana Real Estate Appraisers Board.
E The free version of the Pocket app allows you to save, read, watch and listen to content. The paid version adds a permanent library of everything you’ve saved, allows you to tag items, and offers a fulltext search, unlimited ability to highlight and a choice of premium fonts. Learn more at https://getpocket.com.
All prices subject to change.
Pocket allows you to save items of interest to you, whether it’s the latest news, magazine articles, real estate data, YouTube videos, recipes or a movie review. These remain available to read, view or listen to indefinitely. Start by clicking on the share button or icon on the material you’re reading or watching, and then select Save to Pocket. The app will sort saved items from newest to oldest; users can further sort and organize them. Articles saved in Pocket open in article view or web view. Article view is the app’s signature reading mode, and it strips out ads, sidebars and other potentially distracting content. You can also adjust the reading background, font and font size, and highlight passages that you want to remember. Web view opens items in their original format, as they appear when opened in a web browser. In addition, Pocket’s listen-to
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What You Get For a former convent
Amber Swenson- Hill, SAMA Polk County Editorial Committee Member
23616 US HWY 2 SW, CROOKSTON POLK COUNTY SOLD: JUNE 2019 FOR $305,000 Previously used as a convent, then a chemical dependency recovery center, this property now sits vacant. Around 50,000 square feet with twenty-six bedrooms, large dining room with commercial kitchen, large chapel, large meeting spaces, six offices, and other living spaces. Baths: Six full bath, twenty-five sinks, seven half baths, shower room with five showers. At the time of sale the property was 156.14 acres multi parcel sale. The property has recently been relisted for $699,000 for 9 acres.
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out of the past Remembering Yesterday
5 Years Ago—2017 5 Years Ago—2016 During this year’s MN State Fair, Revenue led a campaign called #OurMN, a social media effort to highlight what we get for our tax dollars. MAAO President Nancy Wojcik wrote on the many challenges assessment offices are facing in recruiting and retaining employees.
10 Years Ago—2011 Lane Thor, Julie Hackman, Ryan Short, and Mark Meili were awarded SAMA designations. Judy Hahn retired from Sibley County after 23 years of service. Member clicks just released the new iPhone and iPad app for the MAAO website. Representative Michele Bachmann announced run for U.S. presidency
15 Years Ago—2006 Jacquelyn Betz, MDOR, was the Associate Editor for Equal Eyes. Gloria Erickson retired from Pennington County Assessor after 30 years of service.
20 Years Ago—2001 September 11 remembrance.
25 Years Ago – 1996 Tom May was hired as the Hennepin County Assessor. Lorna Thomas was awarded her SAMA. Mike Sheehy was a candidate for the 2nd Vice President. Madeleine Albright is appointed as the first female US Secretary of State.
30 Years Ago – 1991 Dorothy McClung was seated as the Commissioner of Revenue Membership for MAAO increased by 14 people raising the overall members to 494. Roger Storey received his award for 2 years of service from MAAO. Median household income is $30,126. A record-breaking snowstorm hits Minnesota on November 1 depositing twenty-four inches of snow in twenty-four hours.
35 Years Ago – 1986 Paul Knutson was victorious in the Championship Volleyball Playoffs, but received broken ribs in the process. The State Board of Assessors focused on licensure levels at their meeting.
45 Years Ago – 1976 Jimmy Carter becomes the 39th president of the United States with Minnesota Senator Walter Mondale as his vice-president. Mondale would later run for president in 1984, losing to Ronald Reagan.
70 Years Ago – 1951 Over 82% of iron ore extracted from United States mines during this year originates in Minnesota.
100 Years Ago – 1921 WLB, the first Minnesota radio station, formed at the University of Minnesota.
The “Crocodile Hunter” Steve Irwin was killed by a stingray on September 4.
In Commissioner’s Comments Cynthia Bauerly discussed there being a lot of interest in state assessed property. This included taxpayers who disagree with assessed value that appeal to Minnesota Tax Court. It was stated they were open to proposals that could address potential refund costs if value were reduced in litigation that would be fair to all Minnesota taxpayers, counties, and the state. According to the department’s latest Property Values & Assessment Practices Report seasonal recreational residential values, in contrast to other classes, had a larger increase than the previous year, rising 2.9% (compared to 2.6% the year before). 15 Years Ago—2007 Don Holm retired as Clearwater County Assessor. Governor Tim Pawlenty appointed Ward Einess as the Commissioner of Revenue and Dan Salomone as Deputy Commissioner.
Amber Swenson-Hill, SAMA Polk County Editorial Committee Member
John Hagen and Jacque Betz from the Department of Revenue Property Tax Division met with the State Board of Assessors to discuss the request from the MAAO Weeklong Course Committee to allow the PACE course as a substitution for Minnesota Assessment Administration.
20 Years Ago—2002 Pat Stotz from Mill Lacs County was seeing huge increases in market values throughout the last few years. The fast growth of meth labs in Minnesota was creating a safety issue for appraisers during their field work. Robert Wilson was President of MAAO. During his term as President, the precious Virginia Cup disappeared and was replaced by the Minnesota Cup. Officials at Grubb & Ellis’ Minneapolis Office reported that the U.S. office market ended 2001 with a 14.5 percent vacancy rate, including sublease space, which was the highest in eight years. The national unemployment ratio was at 5.8%.
25 Years Ago – 1997 Southern Minnesota and the Red River Valley underwent serious spring flooding. Vice President Al Gore inspected the flood damage in the Moorhead area, and Commissioner of Revenue James Girard honored all the volunteers who took part in the reassessments.
The International Association of Assessing Officer’s announced their latest professional designation, the Assessment Administration Specialist (AAS), to be awarded to those IAAO members who demonstrate professional competency in the administration of property assessment systems.
30 Years Ago – 1992 The Department of Revenue announced that Dale Lambrecht left the department to begin working with Strumstad and Associates, well known property tax consultants in St. Paul. Department of Revenue Commissioner, Dorothy McClung, appointed Big Stone County Assessor Lila Benson to serve a four-year term on the Minnesota State Board of Assessors. In a contest run by a local radio station in conjunction with Bosses Day, Moorhead City Assessor Marvin Anderson was selected as one of the top ten “Turkeys of the Year” after being nominated by members of his staff in the assessor’s office. Department of Revenue Regional Representative Harlan Simonson retired after serving in the position for 26 years.
45 Years Ago – 1977 The State Board of Assessors adopted a recommendation that all assessors of cities and counties with populations over 30,000 people be accredited by January 1, 1981.
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transitions Best Wishes Upon Retirement
Nancy Gunderson, SAMA, Clay County Editorial Committee Member
News from Region 1
grateful for their dedication, talent, and outstanding work.
Mark Krupski to retire from Olmstead County.
I would be remiss if I did not mention how thankful I am for the trust placed in me by the Olmsted County Board and Administrators and their consistent support.
You don’t stop cycling when you get old, you get old when you stop cycling. I don’t know if that is true or not, but I certainly hope so! One word stands out as I think about my 32 years serving Olmsted County. Gratitude. I am so grateful to have had this opportunity to serve as an Appraiser, County Assessor and Director of the Olmsted County Property Records & Licensing. Other duties as Director include serving as the County Recorder, Auditor and Treasurer. Advancement in technology has impacted my career dramatically. When I started, I shared a ‘dummy terminal’ (look up only) that rested upon a lazy-Susan that I shared with my coworker. That was in April of 1990. Since that time our software has migrated from main frame to AS400 to the cloud using SaaS (software as a service). Today, our appraisers use tablets in the field to take photos that require no indexing utilizing Tyler’s Field Mobile application. street level photography, oblique aerial images, GIS and state of the art sketching tools are examples of technological advancements and improvement in the assessing industry. As a member of the MAAO and IAAO I have enjoyed the benefit of top-notch education, statewide, national, and international networking and so much more. I owe much if not all my success to my team of managers, supervisors, and personnel. As I matured in my role as Director, I grew in my ability to recruit and retain talented personnel and delegation. I was successful in obtaining appropriate resources for them to do their jobs and let them do what they do best. That is where that word ‘Gratitude’ comes in. I am so very, very
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Now for the good stuff! What to do in retirement. My goodness, there are so many fun things that my wife and I hope to do. More hikes and whitewater wooden dory trips in the Grand Canyon. RAGBRAI this summer, a trip this fall to Crater Lake, maybe another trip to Maui, Alaska, Maine, etc. etc. A few home projects are on the list and best of all, spending more time with our five grandchildren. It doesn’t get better than this. Thank you MAAO for all that you do and being a part of my life. Cycling in Maui
Colorado River, Grand Canyon
News from Region 2
News from Region 9
Tom Widmer, Senior Appraiser with Le Sueur County set to retire April 29th.
Scott Varner, City of Anoka Assessor to retire.
Lorna Sandvik, Nicollet County Assessor will be retiring April 29th. Lorna will be featured in the summer issue.
Peggy Nordrum, Anoka County to retire. Jill Gontarek, Deputy County Assessor, Ramsey County is set to retire April 29th after 46 years of service.
A thank you and best wishes to these individuals on their up-coming retirements from the assessing profession.
Thank You and Best Wishes
Mark – Tom – Lorna Scott – Peggy - Jill
Mark Tom Lorna Scott Peggy Jill
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TAX COURT (1) Jake Pidde, SAMA, Stearns County Editorial Committee Member
Hyatt Regency vs. Hennepin County
24
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STATE OF MINNESOTA
TAX COURT
COUNTY OF HENNEPIN REGULAR DIVISION ______________________________________________________________________________ FINDINGS OF FACT, CONCLUSIONS OF LAW, AND ORDER FOR JUDGMENT
1300 Nicollet, L.L.C., Petitioner, vs.
File Nos.
County of Hennepin, Respondent,
27-CV-17-06284 27-CV-18-06407 27-CV-18-12727
Filed: March 16, 2022
Radisson Hospitality, Inc. et al., Intervenors. ______________________________________________________________________________ This matter came on for trial before The Honorable Bradford S. Delapena, Judge of the Minnesota Tax Court. Thomas R. Wilhelmy, Judy S. Engel, and Gauri S. Samant, Fredrikson & Byron, P.A., represent petitioner 1300 Nicollet, L.L.C. Rebecca L. Holschuh, Sara L. Bruggeman, and Jeffrey M. Wojciechowski, Assistant County Attorneys, represent respondent Hennepin County. Michelle S. Grant, Dorsey & Whitney LLP, represents intervenor Radisson Hospitality, Inc. Mark R. Bradford and Aram V. Desteian, Bassford Remele, represent intervenor Host Hotels & Resorts, Inc. Douglas B. Altman, Altman & Izek, represents intervenor Ivy Equity Partners, LLC.
1 Spring 2022 / Equal Eyes
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This consolidated property tax matter concerns the fee simple market value of the taxable real property of the Hyatt Regency Minneapolis hotel located in downtown Minneapolis as of January 2, 2016, 2017, and 2018 (for Pay-17, Pay-18, and Pay-19 taxes). The court, having heard and considered the evidence adduced at trial and the arguments of counsel, and upon all the files, records, and proceedings herein, now makes the following: FINDINGS OF FACT 1 1.
Petitioner 1300 Nicollet, L.L.C., has sufficient interest in the property to maintain
this petition; all statutory and jurisdictional requirements have been fulfilled; and the court has jurisdiction over the subject matter of the action and the parties thereto. 2.
The subject property is the Hyatt Regency Minneapolis hotel, located at 1300
Nicollet Mall in downtown Minneapolis. 3.
The subject site has a land area of 2.854 acres, and is zoned B4S-1, Downtown
Service District. It is improved with a 23-story hotel containing 645 rooms and 829,294 square feet of building area. 4.
The subject sits at the southern terminus of the Downtown Minneapolis Skyway
System, furnishes access to the Nicollet Mall, and provides skyway access to the Minneapolis Convention Center. 5.
The Hyatt is a full service convention hotel. Onsite amenities include the Prairie
Kitchen and Bar, Vitali’s Bistro, the MPLS Market convenience store, and onsite catering. In addition to the approximately 78,000 square feet of meeting and banquet space on the subject
1
We set forth in the numbered paragraphs below only select findings and conclusions taken from the following memorandum, which includes additional findings and conclusions. See Minn. R. Civ. P. 52.01 (authorizing findings and conclusions to be set forth in a memorandum); id., 1985 comm. cmt. (indicating that findings and conclusions need not be identified in separately numbered paragraphs).
26
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2
parcel itself, the hotel leases on the ground floor of the adjacent parking ramp parcel approximately 30,000 square feet of additional meeting space called the Exhibition Hall. 6.
Although the subject has no on-site parking, there is a public parking ramp on the
adjacent parcel that hotel guests may use. 7.
Petitioner 1300 Nicollet, L.L.C., owns the real property located at 1300 Nicollet
8.
By means of a Hotel Management Agreement, 1300 engaged Hyatt Corporation
Mall.
to operate on 1300’s behalf a hotel business under the Hyatt Regency brand for a term of twenty years. The Agreement became effective on March 22, 2011, and remained in effect on all three assessment dates. 9.
Convention hotels like the Hyatt appeal to investors largely owing to revenue
from the venue-rental and food service operations conducted in their meeting and banquet spaces. 10.
The hotel itself operates the Prairie Kitchen and Bar and Vitali’s Bistro. It
likewise operates the MPLS Market convenience store. Consequently, the hotel includes the income and expenses of each within its overall income and expenses. 11.
1300 agreed to pay Hyatt a Base Fee equal to 3% of gross receipts for each fiscal
year, plus an incentive fee. The parties’ agreement defines “gross receipts” so as to include, in part, all revenues derived from the sale food and beverages. The hotel business operated at the subject thus includes not only the provision of rooms, but also the sale of food and beverages. 12.
Four percent of the hotel’s gross receipts is placed in an account titled FFE
Reserve, which functions as a replacement reserve. Funds from this account were used to benefit the entire hotel operation, including the hotel’s Food & Beverage Division.
3
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13.
Revenue from all meeting and banquet space rentals was attributed to the Food &
Beverage Division, even if the rental did not include a food and beverage purchase. 14.
The hotel divides its expenses into the following categories:
Departmental
Expenses, Undistributed Operating Expenses, Management Fees, and Fixed Expenses (including a replacement reserve). 15.
Expenses contained within the hotel’s Undistributed Operating Expenses
benefitted the entire hotel operation, including the hotel’s Food & Beverage Division. 16.
The subject property was assessed at $53,750,000 as of January 2, 2016, and at
$70,540,000 as of January 2, 2017, and 2018. 17.
1300’s expert appraiser, Mr. David C. Lennhoff, MAI, CRE, FRICS, AI-GRS,
appraised the subject at $39,700,000 as of January 2, 2016; at $39,300,000 as of January 2, 2017; and at $35,200,000 as of January 2, 2018. 18.
The County’s expert appraiser, Mr. Peter F. Korpacz, MAI, CRE, FRICS,
appraised the subject at $110,000,000 as of January 2, 2016; at $115,000,000 as of January 2, 2017; and at $105,000,000 as of January 2, 2018. 19.
The cost approach does not produce reliable value indications for any of the
assessment dates. 20.
The sales comparison approach does not produce reliable value indications for
any of the assessment dates. 21.
The subject’s market value under the income capitalization approach as of
January 2, 2016, is $71,702,822. 22.
The subject’s market value under the income capitalization approach as of
January 2, 2017, is $72,123,323.
4
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23.
The subject’s market value under the income capitalization approach as of
January 2, 2018, is $68,880,522. 24.
The subject is entitled to equalization relief in relation to the 2017 assessment
25.
Commercial properties in Minneapolis were assessed at a median ratio of 89.2%
date.
of their market value in 2017. 26.
The subject’s market value as of January 2, 2016, is $71,703,000.
27.
The subject’s market value as of January 2, 2017, is $67,940,000.
28.
The subject’s market value as of January 2, 2018, is $68,881,000. CONCLUSIONS OF LAW
1.
Petitioner submitted sufficient evidence to rebut the prima facie validity of the
assessments. 2.
Income and expenses related to the Exhibition Hall and parking facility must be
excluded from the hotel’s overall income and expenses in the income capitalization approach, because both the Exhibition Hall and the parking facility reside on an adjacent tax parcel rather than the subject parcel. 3.
The measure of equalization relief applicable to the subject property for the 2017
assessment date is 5.8% (95% - 89.2%). 4.
The assessor’s estimated market value for the subject property as of
January 2, 2016, understates its market value as of that date. 5.
The assessor’s estimated market value for the subject property as of
January 2, 2017, overstates its market value as of that date. 6.
The assessor’s estimated market value for the subject property as of
January 2, 2018, overstates its market value as of that date. 5
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ORDER FOR JUDGMENT 1.
The assessed value of the subject property as of January 2, 2016, shall be
increased from $53,750,000 to $71,703,000. 2.
The assessed value of the subject property as of January 2, 2017, shall be
decreased from $70,540,000 to $67,940,000. 3.
The assessed value of the subject property as of January 2, 2018, shall be
decreased from $70,540,000 to $68,881,000. 4.
Real estate taxes due and payable in 2017, 2018, and 2019 shall be recomputed
accordingly and refunds, if any, paid to petitioner as required by such computations, together with interest from the original date of payment. IT IS SO ORDERED. THIS IS A FINAL ORDER. ENTRY OF JUDGMENT IS STAYED FOR 30 DAYS. LET JUDGMENT BE ENTERED ACCORDINGLY. BY THE COURT:
Bradford S. Delapena
Digitally signed by Bradford S. Delapena Date: 2022.03.16 09:50:26 -05'00'
Bradford S. Delapena, Judge MINNESOTA TAX COURT Dated: March 16, 2022 MEMORANDUM I.
INTRODUCTION This matter concerns the market value of the taxable real property of the Hyatt Regency
Minneapolis hotel as of three assessment dates. When valuing real property for tax purposes, care must be taken not to include exempt personal property, including intangible assets. See Jennie-O Foods v. Cnty. of Stearns, Nos. C8-99-1236R & C5-00-1332R, 2000 WL 1733568, at *5 (Minn. T.C. Nov. 21, 2000). For hotels, however, valuing only real property is difficult:
6
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Certain types of real estate improvements are designed and constructed solely for use in a business operation. Examples include a … hotel.… Often, this type of real property is sold together with the business. In real property valuation, the business entity is referred to as a going concern, which can include [1] real property, [2] tangible personal property (such as furniture, fixtures, and equipment), and [3] intangible assets (such as franchise agreements, other business contracts, and business goodwill). Appraisal Institute, The Appraisal of Real Estate 663 (15th ed. 2020) [hereinafter TARE]. Specifically because hotels sell as going concerns, id., at 663, “establishing a reasonable allocation of the value opinion among the realty and non-realty components can be challenging.” Id. at 664; see also Windward Marine, Inc. v. Cnty. of Hennepin, No. TC-3636, 1985 WL 3199, at *1 (Minn. T.C. Apr. 16, 1985) (recognizing “the unique and complex problem of separating out the real estate from any personal property, goodwill or business value”). The challenge stems from current hotel ownership practice, under which the hotel owner owns both the hotel building and the hotel business (engaging a third party such as Hyatt to operate that business): During the 1970s, the hotel lease arrangement … was replaced by the hotel management contract, where the property owner retained the fee simple estate in the real estate and paid the hotel operator a management fee and … franchise fees … for operating the day-to-day hotel business operations. The net operating income after all hotel-related property expenses was retained by the hotel property owner. 2 Net operating income to the owner thus includes both: (a) income to the real property (rent); and (b) income to the business operated there (to the various assets owned by the business). The direct variant of the income capitalization approach—on which both parties rely— divides a single year’s net operating income by a discount rate to produce a value indication
2
Ex. A1, at 21. Citations are to PDF pages rather than internal document pages. 7
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(NOI ÷ rate = value). 3 Cont’l Retail, LLC v. Cnty. of Hennepin, 801 N.W.2d 395, 402 (Minn. 2011). If this approach is to value real property only, net operating income to the going concern must be allocated to the asset classes within the going concern, and only the portion attributable to the real property must be capitalized. Thus, “the scope of work for appraisals prepared for ad valorem taxation … may encompass an allocation or a separate valuation of the real property component.” TARE, at 663. Two hotel valuation methods purport to segregate real property value from business value. 4
Mr. David C. Lennhoff, 1300’s appraiser, employs the Parsing Income Method. 5
Mr. Peter F. Korpacz, the County’s appraiser, uses the Management Fee Approach. 6 The two methods are similar in that they both attempt to isolate income to the real property (which is then capitalized to produce a value indication). They differ substantially, however, in their treatment of intangible assets, and generated quite disparate results here. Whereas Lennhoff valued the subject property at $39,700,000 as of January 2, 2016, 7 Korpacz’s income capitalization value was $106,700,000. 8
3
If (stabilized) net operating income is $100,000 and the discount rate is 10%, direct capitalization generates a value indication of $1,000,000 ($100,000 ÷ 0.10 = $1,000,000). 4
Ex. A1, at 21-22.
5
Tr. 507.
6
Tr. 1040-41. In a methodological overview, Mr. Korpacz asserts that he uses the “Rushmore Method,” and that Mr. Lennhoff uses the “Lennhoff Method.” Ex. A1, at 21-24. So as to use only one name for each appraiser’s method, we adopt those used by TARE, and thus refer to the Parsing Income Method and the Management Fee Approach. See TARE, at 675-77 (discussing both). We will nevertheless have occasion to cite the works of Mr. Stephen Rushmore, long a distinguished commentator on hotel valuation. 7
Ex. 1, at 3.
8
Ex. A1, at 11. Respective values for the remaining valuation dates are comparable. 8
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TAX COURT (2) Jake Pidde, SAMA, Stearns County Editorial Committee Member
Camping World vs. Anoka County
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33
STATE OF MINNESOTA
TAX COURT
COUNTY OF ANOKA
REGULAR DIVISION
______________________________________________________________________________ ORDER GRANTING COUNTY’S MOTION TO DISMISS
CWI, Inc, and Camping World RV Sales, LLC, Petitioners, vs.
File Nos. 02-CV-20-2380, 02-CV-21-1975, 02-CV-20-2384, 02-CV-21-1976
County of Anoka, Respondent.
Filed:
January 27, 2022
_____________________________________________________________________________ This consolidated matter came on for trial before the Honorable Wendy S. Tien, Chief Judge of the Minnesota Tax Court. Andrew D. Parker , Parker Daniels Kibort LLC, represents petitioners CWI, Inc. and Camping World RV Sales, LLC. Jason J. Stover and Christine V. Carney, Assistant County Attorneys, represent respondent Anoka County. Respondent moves to dismiss the petitions on the ground that petitioners failed to timely disclose income and expense information as required by Minn. Stat. § 278.05, subd. 6(a) (2020). The County’s motion is granted. The court, having heard and considered the arguments of counsel, and upon all of the files, records, and proceedings herein, now makes the following: ORDER FOR JUDGMENT 1. Anoka County’s motion to dismiss is granted as to all claims for relief in File No. 02-CV-20-2380. 1
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2. Anoka County’s motion to dismiss is granted as to all claims for relief in File No. 02-CV-20-2384. 3. Anoka County’s motion to dismiss is granted as to all claims for relief in File No. 02-CV-21-1975. 4. Anoka County’s motion to dismiss is granted as to all claims for relief in File No. 02-CV-21-1976. IT IS SO ORDERED. THIS IS A FINAL ORDER. ENTRY OF JUDGMENT IS STAYED FOR 15 DAYS. LET JUDGMENT BE ENTERED ACCORDINGLY. BY THE COURT:
Wendy S. Tien
Digitally signed by Wendy S. Tien Date: 2022.01.27 12:15:07 -06'00'
Wendy S. Tien, Chief Judge MINNESOTA TAX COURT Dated: January 27, 2022 MEMORANDUM I.
FACTUAL BACKGROUND On May 28, 2020, petitioners CWI, Inc. (“CWI”) and Camping World RV Sales, LLC
(“Camping World”) (collectively “petitioners”) filed property tax petitions alleging that the estimated market value of two subject properties as of the 2019 assessment date, for taxes payable in 2020, exceeded their actual market value, and that the subject properties were unequally assessed. 1 On April 30, 2021, petitioners filed property tax petitions alleging that the estimated market value of two subject properties as of the 2020 assessment date, for taxes payable in 2021,
1
Petition 1, box 7 (filed May 28, 2020, in Nos. 02-CV-20-2380 & 02-CV-20-2384). Both petitions are identical except for the description of the subject property. 2
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exceeded their actual market value, and that the subject properties were unequally assessed. 2 All four petitions describe the respective subject properties as income-producing. 3 On October 22, 2021, Anoka County filed a motion to dismiss with respect to both of The Andersons next argue they overcame their burden by showing land sales in Wright
County were impacted by nonagricultural factors, which is prohibited by an accurate Green Acres
value.24 Minn. Stat. § 273.111, subd. 4 (“[T]he assessor shall not consider any added values resulting from nonagricultural factors”). Mr. Anderson testified: (1) that Wright County has seen a decrease in tillable land; (2) that some Wright County land sales are impacted by nonagricultural
factors, such as foreclosures or the desire to own a large parcel of land to accompany one’s residence; and (3) that the comparable sales of the County’s appraisals were impacted by nonagricultural factors.25
There is no dispute that farmland in Wright County is diminishing because it is being put
to other uses, such as commercial or residential.26 This transition, however, does not invalidate Green Acres values, because the Andersons failed to show that the cited nonagricultural sales
undermined the method used to derive the subject properties’ Green Acres values. As to Mr. Anderson’s testimony that the County’s appraisals considered nonagricultural land sales, the Andersons point to evidence later put on by the County, evidence this court is not allowed to
consider. See Court Park Co., 907 N.W.2d at 645. In any event, and as mentioned previously, the County’s appraisals valued the subject properties’ market value, not its Green Acres value. As a
result, the County’s appraisals do not challenge the Green Acres methodology used to value the subject properties.
under the Green Acres statute, this shows the on-going confusion about what values the Andersons were challenging, and not bias on the part of the County. 24
Pet’rs’ Post-Trial Br. 9-11.
25
Trial Tr. 30, 31, 50.
26
Trial Tr. 30.
12
CWI’s petitions, alleging CWI failed to comply with the requirements of Minnesota Statutes section 278.05, subdivision 6 (2021) (the “mandatory disclosure rule”), relating to income-producing property. 4 Anoka County filed identical motions to dismiss with respect to both of Camping World’s petitions on October 22, 2021. 5 According to both parties, petitioners made no disclosures of records in connection with any of the petitions. 6 Petitioners contend their disclosures comply with requirements of the mandatory disclosure rule because, as tenants of the subject properties, they do not possess or maintain documents or information that are responsive to the mandatory disclosure rules. 7 The County alleges, however, and petitioners do not dispute, 8
2
Petition 1, box 7 (filed Apr. 30, 2021, in Nos. 02-CV-20-2380 & 02-CV-21-1975). Both petitions are identical except for the description of the subject property. All four petitions in the CWI and Camping World cases are collectively the “petitions”). 3
Pets. box 4.b.
4
Resp’t’s Mot. Dismiss (filed Oct. 22, 2021) (Nos. 02-CV-20-2380 & 02-CV-21-1975) (collectively “CWI Mot. Dismiss”). 5
Resp’t’s Mot. Dismiss (filed Oct. 22, 2021) (Nos. 02-CV-20-2384 & 02-CV-21-1976) (collectively “Camping World Mot. Dismiss”). 6
Decl. Jason J. Stover ¶¶ 3-4 & Exs. B-C (Oct. 22, 2021) (Nos. 02-CV-20-2380 & 02CV-21-1975) (collectively “Stover CWI Decl.”) (referencing No. 02-CV-19-2260); Decl. Jason J. Stover ¶¶ 3-4 & Exs. B-C (Oct. 22, 2021) (Nos. 02-CV-20-2384 and 02-CV-21-1976) (collectively “Stover Camping World Decl.”) (referencing No. 02-CV-19-2261); Decl. Tricia Mollen ¶ 4 (Nov. 12, 2020 [date in original]) (Nos. 02-CV-20-2380 and 02-CV-21-1975) (collectively “Mollen CWI Decl.”) (referencing No. 02-CV-19-2260); Decl. Tricia Mollen ¶ 4 (Nov. 12, 2020 [date in original] (Nos. 02-CV-20-2384 and 02-CV-21-1976) (collectively “Mollen Camping World Decl.”) (referencing No. 02-CV-19-2261). 7
Pet’r’s Mem. Law. Opp. Mot. Dismiss 1 (filed Nov. 12, 2021) (Nos. 02-CV-20-2380 & 02-CV-21-1975) (“CWI Opp.”); Pet’r’s Mem. Law. Opp. Mot. Dismiss 1 (filed Nov. 12, 2021) (Nos. 02-CV-20-2384 & 02-CV-21-1976)(“Camping World Opp.”). 8
Mollen CWI Decl. ¶ 6; Mollen Camping World Decl. ¶ 6. 3
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that in connection with previously-filed 2019 petitions, 9 petitioners made disclosures in accordance with the mandatory disclosure rule. 10. A hearing on the County’s motion to dismiss was held on November 23, 2021. 11 II.
GOVERNING LAW The mandatory disclosure rule specifies that, in cases where the petitioner contests the
valuation of income producing property, certain information must be provided to the county assessor no later than August 1 of the taxes-payable year. Minn. Stat. § 278.05, subd. 6(a). Failure to submit the required documentation by the August 1 deadline results in automatic dismissal of the petition unless an exception applies. Id., subd. 6(b); Wal-Mart Real Estate Bus. Tr. v. Cnty. of Anoka, 931 N.W.2d 382, 384 (Minn. 2019). The mandatory disclosure rule requires the petitioner to timely provide all the following information: (1) a year-end financial statement for the year prior to the assessment date; (2) a year-end financial statement for the year of the assessment date; (3) a rent roll on or near the assessment date listing the tenant name, lease start and end dates, base rent, square footage leased and vacant space;
9
Stover CWI Decl. ¶ 2 & Ex. A; Stover Camping World Decl. ¶ 2 & Ex. A.
10
Stover CWI Decl. ¶ 2 & Ex. A; Stover Camping World Decl. ¶ 2 & Ex. A; Mollen CWI Decl. ¶ 6; Mollen Camping World Decl. ¶ 6. The parties did not expressly agree to incorporate these prior disclosures into any of the currently required mandatory disclosures. 11
The motions were filed and briefed separately with respect to CWI and Camping World. The existence of common questions of law and fact was evident and the parties, and this court, agreed to consolidate them for purposes of hearing. Accordingly, these matters are consolidated solely for purposes of decision on the County’s motions to dismiss CWI’s and Camping Worlds’ petitions. Minn. R. Civ. P. 42.01 (authorizing the court to make such orders concerning proceedings concerning common issues of law or fact “as may tend to avoid unnecessary costs or delay”). No other consolidation order has been entered. 4
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(4) identification of all lease agreements not disclosed on a rent roll in the response to clause (3), listing the tenant name, lease start and end dates, base rent, and square footage leased; (5) net rentable square footage of the building or buildings; and (6) anticipated income and expenses in the form of a proposed budget for the year subsequent to the year of the assessment date. Minn. Stat. § 278.05, subd. 6(a). The mandatory disclosure rule sets forth an affirmative statutory requirement that the petitioner furnish information to the county assessor concerning income producing property. See Wal-Mart, 931 N.W.2d at 386-87. The purpose of the rule is to “provide information that would be useful to the determination of value,” Kmart Corp. v. Cnty. of Becker, 639 N.W.2d 856, 859 (Minn. 2002), and ensure the “taxing authority receives all information a petitioner actually possesses relevant to application of the income approach to valuing real property.” Sadat v. Cnty. of Scott, No. 70-CV-12-8404, 2015 WL 410434, at *1 (Minn. T.C. Jan. 29, 2015) (citing Irongate Enters., Inc. v. Cnty. of St. Louis, 736 N.W.2d 326, 330-31 (Minn. 2007)); see also Wal-Mart, 931 N.W.2d at 387 (discussing relevance of the income approach). A petitioner also may avoid dismissal for failure to provide mandatory disclosures by August 1, if the failure was due to the unavailability of the information at the time the information was due. Minn. Stat. § 278.05, subd. 6(b)(1). Although the Minnesota Rules of Evidence and Civil Procedure shall govern procedures in this court, Minn. Stat. § 271.06, subd. 7 (2021), the mandatory disclosure rule provides “an extraordinary remedy unlike our traditional rules of discovery.” Kmart, 639 N.W.2d at 859. Delay in providing information required by section 278.05, subdivision 6, need not cause actual prejudice to result in dismissal. Id. (citing BFW Co. v. Cnty. of Ramsey, 566 N.W.2d 702, 704-05 (Minn. 1997)).
5
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“[T]he importance of the income-producing nature of the property is in arriving at a reliable market value for tax purposes.” Nw. Airlines, Inc. v. Cnty. Of Hennepin, 632 N.W.2d 216, 220 (Minn. 2001). Accordingly, a petitioner may not decline to provide information required by the mandatory disclosure rule on the subjective grounds it believes such information to be irrelevant or incomplete. 78th St. OwnerCo, LLC v. Cnty. of Hennepin, 813 N.W.2d 409, 413-15 (Minn. 2012) (noting that allowing a petitioner to withhold information required by the statute “would impermissibly shift the burden of proof” in a tax appeal to the county). Nor may a petitioner provide incomplete information and shift the burden of proof to the county to conduct further discovery concerning its accuracy or completeness. Kmart, 639 N.W.2d at 860 (explaining such burden-shifting “directly contradicts the allocation of the burden of proof to the petitioner in a chapter 278 proceeding”). III.
ANALYSIS The purpose of the mandatory disclosure rule is “to provide information that would be
useful to the determination of value.” Kmart, 639 N.W.2d at 859; see also 78th St. OwnerCo, 813 N.W.2d at 413. The petitions state, and the parties do not dispute, that the subject properties are income-producing. 12 The sole question is whether petitioners complied with the requirements of the mandatory disclosure rule or may avoid dismissal because the failure to provide the information was due to its unavailability. Minn. Stat. § 278.05, subd. 6(b)(1) (providing an exception to dismissal if “the failure to provide [information] was due to the unavailability of the information at the time that the information was due[.]”).
12
Pets. box 4.b. 6
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39
A. “Unavailability” – Statutory Interpretation The parties disagree over the meaning of the word “unavailability” for purposes of the mandatory disclosure rule. The County contends the information required by the mandatory disclosure rule is not unavailable because petitioners are the sole tenants with respect to each of the subject properties and by necessity possess the information necessary to comply with the mandatory disclosure rule. 13 Specifically, the County contends that petitioners are the sole tenants of their respective subject properties and cannot “in good faith” lack information about the name of the tenant operating the subject properties, the start and end dates of their own leases or their base rents under those leases, as well as the expenses incurred by the subject properties under those leases. 14 Petitioners contend that information necessary to comply with the mandatory disclosure rule was unavailable based on two rationales. First, petitioners contend they are only obliged to provide information they “actually possess,” and they do not “actually possess” the information
13
Resp’t’s Mem. Law Supp. Mot. Dismiss 1-2 (filed Oct. 22, 2021, in Nos. 02-CV-202380 & 02-CV-21-1975); Resp’t’s Reply Br. Supp. Mot. Dismiss 1 (filed Nov. 18, 2021, in Nos. 02-CV-20-2380 & 02-CV-21-1975). Respondent also filed memoranda of law and reply briefs in the Camping World cases, which are identical to those filed in the CWI cases apart from reference to Camping World rather than CWI, an explanatory parenthetical in the memoranda, and consequent minor adjustment of text across page numbers. Resp’t’s Mem. Law Supp. Mot. Dismiss 1-2 (filed Oct. 22, 2021, in Nos. 02-CV-20-2380 & 02-CV-21-1975); Resp’t’s Reply Br. Supp. Mot. Dismiss 1 (filed Nov. 18, 2021, in Nos. 02-CV-20-2384 & 02-CV-21-1976). Respondent’s memoranda are collectively “Resp’t’s Mem.” and Respondent’s reply briefs are collectively “Resp’t’s Reply Br.”, with page numbers referring to the CWI filings. 14
Resp’t’s Reply Br. 1 (stating that petitioners provided a copy of the CWI and Camping World leases with their 2019 mandatory disclosures); Stover CWI Decl. ¶ 2 & Ex. A (copy of Amended and Restated Lease Agreement between Store Master Funding VI, LLC and CWI, Inc. dated Aug. 28, 2018) (“CWI Lease”); Stover Camping World Decl. ¶ 2 & Ex. A (copy of Lease Agreement between Camping World RV Sales, LLC and G.F. Coates Properties, LLC dated Nov. 7, 2018) (“Camping World Lease”). 7 40
Spring 2022 / Equal Eyes
necessary to comply with the mandatory disclosure rule, 15 nor do they have access to such information as tenants of the subject properties’ owners. 16 Their supporting affidavits, provided by the senior real estate asset manager for their parent entity, 17 state that CWI and Camping World do not “keep, maintain, or have access to the documents that are responsive to the mandatory disclosure requirements.” 18 The affiant states further that CWI [and Camping World] do not “keep any record of expenses directly associated with the operation of any real estate wherein the business operates as a tenant.” 19 Based on these averments, petitioners contend the information required by the mandatory disclosure rule is “unavailable.” Second, petitioners argue they “[do] not need to create documents that are not kept in the ordinary course of business, and the Petitioner here does not keep certain documents in its possession, custody or control in the ordinary course of business.” 20 Concerning the meaning of the term “unavailability,” the court often considers dictionary definitions to determine the plain meaning of a word. Shire v. Rosemount, Inc., 875 N.W.2d 289, 292 (Minn. 2016). “Available” means “that one can avail oneself of; that can be used,” as well as 15
Pet’r’s Mem. Law Opp. Mot. Dismiss 2 (filed Nov. 12, 2021, in Nos. 02-CV-20-2380, 02-CV-21-1975). Petitioner Camping World also filed memoranda of law in the Camping World cases which are identical to those filed in the CWI cases apart from reference to Camping World rather than CWI and consequent minor adjustment of text across page numbers. Petitioner’s memoranda of law are collectively “Pet’r’s Opp.” With page numbers referring to the CWI filings. See also Tr. 17 (Nov. 23, 2021) (argument of petitioners’ counsel that “[u]navailability means that the information responsive to 278.05, is either -- like in Kmart, it's intermixed with other information that, to extrapolate it, would, you know, require significant time and expense to do that.”). 16
Pet’r’s Opp. 4-5; Mollen CWI Decl. ¶¶ 4-5; Mollen Camping World Decl. ¶¶ 4-5.
17
Mollen CWI Decl. ¶ 2; Mollen Camping World Decl. ¶ 2.
18
Mollen CWI Decl. ¶ 4; Mollen Camping World Decl. ¶ 4.
19
Mollen CWI Decl. ¶ 5; Mollen Camping World Decl. ¶ 5.
20
Tr. 12-13 (argument of petitioners’ counsel that they “do[] not need to create documents” and that “the statute itself appears to be written more towards the -- the landlord than the tenant.”). 8
Spring 2022 / Equal Eyes
41
“accessible; usable.” Available, Webster’s New World College Dictionary (5th ed. 2014). See also Am. Heritage Dictionary (2d. Coll. ed. 1985) (defining “available” as “accessible for use; at hand”). “Un-” is a prefix “added to verbs to indicate a reversal of the action and to nouns to indicate a removal or rlease of the thing mentioned or from the condition, place, etc. indicated[.]” Un-, Webster’s. In other words, information is unavailable if it is not accessible or not obtainable, not merely because it is not in possession. When a word or phrase has a plain meaning, the court presumes that the plain meaning is consistent with legislative intent and engages in no further statutory construction. Minn. Stat. § 645.16; State v. Struzyk, 869 N.W.2d 280, 284-85 (Minn. 2015). Consistent with this interpretation, the supreme court has rejected petitioners’ argument that information is unavailable for purposes of subdivision 6(b)(1) simply because a petitioner does not actually possess it. Rather, a petitioner must demonstrate a lack of access to the required information. Wal-Mart, 931 N.W.2d at 389 (“The only defense raised by the Trust to the lack of disclosure is its contention that it did not possess the required information. Yet, the Trust does not dispute that it had access to the information relevant to the disclosure requirements.”). Concerning the obligation to create documents that are not in petitioners’ possession to comply with the mandatory disclosure rule, 21 the court interprets statutory text according to its plain meaning. Minn. Stat. §645.16 (2021); Shire\, 875 N.W.2d at 292; Schatz v. Interfaith Care Ctr., 811 N.W.2d 643, 649 (Minn. 2012). Subdivision 6(b)(1) states that “[f]ailure to provide the information required in paragraph (a) shall result in the dismissal of the petition, unless (1) the failure to provide it was due to the unavailability of the information at the time the information was due.” Minn. Stat. § 278.05, subd. 6(b)(1). Accordingly, the plain language of subdivision 6
21
Pet’r’s Opp. 2-3 (citing Wal-Mart, 931 N.W.2d at 389). 9
42
Spring 2022 / Equal Eyes
does not refer to documents. Rather, it requires a petitioner to provide information unless that information is unavailable. See Shire, 875 N.W.2d at 292 (requiring the court to give effect to the plain language of the statute). Furthermore, the supreme court has specifically rejected petitioners’ argument, observing “[i]f a petitioner does not have the precise documents mentioned in the statute, it is still obligated to provide the information that it does have if it is kept in a different format.” Wal-Mart, 931 N.W.2d at 389 (citing 78th St. OwnerCo, LLC, 813 N.W.2d at 415-16) (emphasis added). The motions to dismiss are granted. In the case of the Pay 2020 petitions, the undisputed facts demonstrate that petitioners actually possessed information required by subdivision 6(a)(1) and did not provide it. In the case of the Pay 2021 petitions, the petitioners’ averments do not establish that petitioners lacked access to information required by the mandatory disclosure rule. Moreover, the County’s affidavit demonstrates that petitioners actually possessed at least some required information and did not provide it. B. Pay 2020 Petitions (02-CV-20-2380 and 02-CV-20-2384) The plain language of the mandatory disclosure rule requires petitioners to provide “a yearend financial statement for the year prior to the assessment date.” Minn. Stat. § 278.05, subd. 6(a)(1). The County avers, however, and petitioners do not dispute, that in connection with petitions filed for both subject properties as of the 2018 assessment date, for taxes payable in 2019, the petitioners provided mandatory disclosures, including a year-end financial statement for 2019. 22 Minn. Stat. § 278.05, subd. 6(a)(2) (requiring disclosure of a year-end financial statement for the year of the assessment date).
22
Decl. ¶ 6.
Stover CWI Decl. ¶ 2 & Ex. A; Stover Camping World Decl. ¶ 2 & Ex. A; Mollen CWI 10 Spring 2022 / Equal Eyes
43
State Board of Assessors Meeting Minutes St. Michael City Center Tuesday, November 16, 2021
Vice Chairperson Joy Kanne convened the meeting at 8:30am. Board members in attendance: Andrea Fish Matt Gersemehl Jane Grossinger
Joy Kanne Mike Reed Lori Schwendemann
Gary Amundson joined the meeting virtually. Gregg Larson & Charlie Blekre were unable to attend. Agenda for the November 16, 2021 meeting was reviewed. Andrea Fish moved to approve the agenda. Lori Schwendemann seconded the motion. The motion carried. Minutes of the September 21, 2021 meeting were reviewed. Jane Grossinger moved to approve the minutes. Lori Schwendemann seconded the motion. The motion carried.
Updates •
Form Report Update: Submitted Reports
Approved Reports
Rejected Reports
Reports being Graded
January 1, 2020 – December 31, 2020 January 1, 2021 thru March 9, 2021 March 10, 2021 thru May 11, 2021 May 12, 2021 thru July 13, 2021
41 14 8 26
41 14 8 25
0 0 0 1
0 0 0 0
July 14, 2021 thru September 21, 2021 September 22, 2021 thru November 16, 2021
17 13 78
17 6 70 Have not applied for AMA
0 5 6
0 2 2
Dates
Passed Reports (1/1/2021 – 11/16/2021) 70 •
44
Received AMA 46
24
Form Report Grader: Ryan Johnson completed all of the training and has been added as a form report grader.
Spring 2022 / Equal Eyes
Board of Assessors November 16, 2021
Meeting Minutes Page 2 of 8
Updates (cont.) •
MAAO Equal Eyes & Licensing Process: The following was put in the October edition of MAAO’s Equal Eyes publication: “The State Board of Assessors made a motion at their September board meeting that the board’s Administrator may make decisions to approve or deny all CMA, CMAS, and AMA licenses based on Rule requirements. All CMA, CMAS, and AMA applications that have met the required licensing requirements and fees will be processed by the board’s Administrator. A board meeting is no longer required to process these types of applications.”
•
MN Open Meeting Law: Kyle Gustafson provided the board with the new guide for the open meeting law that was just published by House Research.
•
Board Bylaws: The board’s bylaws have been placed in each of the board members’ binders.
•
Reinstatement Policy: The board’s website and board members’ binders have been updated with the new policy adopted at the board’s September meeting.
•
MAAO Executive Board Meeting Update: Jane Grossinger provided the following updates. o MAAO Executive Board Meeting was held on September 26th at Breezy Point Lodge, prior to the MAAO Conference. Jane reported that license applications will not have to wait for a Board meeting for approval, except the SAMAs which need an oral interview. Also, that we would be going to “meet & greet” regions that did not have a State Board member in their region. o MAAO Executive Board Meeting was held on November 3rd in St. Cloud, and Jane attended the meeting virtually. Jane reported that the State Board had not met since the Fall Conference, so there were no new business updates. Jane also noted that Gregg Larson, current Board Chair and Public representative for 16 years will be retiring from the Board. There was much discussion at this meeting about the education that will be available prior the AMA deadline in the summer, and that there is a need for a weeklong property-specific course to be offered earlier in 2022.
•
MAAO Education Committee – Conference Content Meeting: Jane Grossinger provided the following update. o MAAO Education Committee (Conference Content) met on October 28 th in Baxter, MN. Jane attended the meeting virtually, reporting that the State Board met on the 21 st of September, reporting that license applications will not have to wait for a Board meeting for approval, except the SAMAs which need an oral interview. Jane also shared that Regions may want to consider having educational opportunities at their region meetings, having a quest speaker, etc. for at least 1 hour of CEU. Pre-approval of the seminar is preferred. Mike Wacker reported that the Steering committee will have Tim Mitchell attend the November State Board of Assessor’s meeting to discuss what courses will be needed in the future. In 2022, there will be a two-day assessor training boot camp and a two-day basic income course is being discussed. The Committee also brainstormed topics for the Fall Conference and Summer Seminars. They have a preliminary list of 30 classes.
Spring 2022 / Equal Eyes
45
Board of Assessors November 16, 2021
Meeting Minutes Page 3 of 8
Updates (cont.) •
MAAO Fall Conference: Jane Grossinger shared that she gave a report for the State Board with similar information and that there would be more discussion about the Assessment Personnel education survey after the results were reviewed further. Jane attended the GIS seminar and thought the panel was very good. Lori Schwendemann shared that all of the classes she attended were very good. Matt Gersemehl attended the Tax Court seminar and thought the tax court judges did a great job of explaining how to testify to them and be comfortable.
•
MAAO Region Meetings: Matt Gersemehl and Joy Kanne attended Region 2 and Region 5. Matt reported that the CMA topic came up at both meetings. The board, MAAO and DOR need to continue to discuss what assessment staff need for education, and to consider a road map for tech and clerical staff. Matt is also researching other states for their licensing and designations. A report will come out in 2022 from IAAO.
Board of Assessors July 13, 2021
Meeting Minutes Page 2 of 6
Approved Licensure Course Request • Practical Applications in Appraising Green Commercial Buildings: Lisa Olmen requested the board review this virtual course, sponsored by Appraisal Institute, to be considered as equivalent to a Property Type Specific course and 15 continuing education hours. The course was offered on June 23-24, 2021, prior to the board’s July 13, 2021 board meeting. The board members reviewed the course materials via email, and communicated that they all approved this course, as equivalent to a Property Type Specific course and 15 continuing education hours.
Request for Continuing Education • An Introduction the Theory & Practice of Regulation Seminars: Holly Soderbeck requested the
board review these online seminars, sponsored by National Regulatory Research Institute, for 8 continuing education hours. Jane Grossinger made a motion to approve the seminars. Matt Gersemehl seconded the motion. The motion carried.
Request for Licensure Course • Basic Income Approach: Amanda Dutcher, MAAO Education Coordinator, requested the board review this course, sponsored by MAAO, to be considered as an income course and 30 continuing education hours. Matt Gersemehl made a motion to approve this course. Mike Reed seconded the motion. The motion carried
Application for Certified Minnesota Assessor
Andrea Fish made a motion to award the Certified Minnesota Assessor license to the following individuals. • • • •
McKenna Cech, Freeborn County Dan Cook, Mahnomen County Emily Nelson, Meeker County James Warden, Isanti County
•
Andrea Wellnitz, Watonwan County
•
Eric Wuotila, Chisago County
Gary Amundson seconded the motion. The motion carried.
Application for Temporary Minnesota Assessor
Andrea Fish made a motion to award the Temporary Minnesota Assessor license to the following individual.
• Alex Oldefendt, City of Eden Prairie
Lori Schwendemann seconded the motion. The motion carried.
4
Jane Grossinger and Lori Schwendemann attended Region 8. There were no specific questions for the State Board. Discussion about the Marvin Windows Tax Court case, property valuations, and the PACE Courses. Jane and Lori will be attending Region 7 meeting on November 19 th. •
Mass Appraisal Basics Course: The class went very well. They added a new activity to the last day, which ended up being a little to challenging, and they decided that they need to redo the activity for the next class.
•
Complaint Summary: Since September 2021, the Department of Revenue has not received any additional complaints. At this time, all investigations have been closed, and no new cases have been opened.
•
Assessor Licensure Standards: No activity since September; waiting on the leadership standards.
•
MAAO Curriculum & Assessor Standards Committee: The committee completed the first round of the review for Mass Appraisal Basics and are working on the second phase of review. The newest version of the Mass Appraisal material was used in the September offering.
Discussion Items •
Proposed 2022 Board Meeting Schedule: The board selected the meeting dates for 2022.
•
Board Work Plan: The board reviewed the items on their work plan and discussed what actions needed to be taken.
•
New Ethics Course: Jessi Glancey requested that a few board members be involved in developing the new Ethics course to brainstorm and possibly bring some insight to the material they will teach in Ethics, specifically, around the code of conduct and investigations. Joy Kanne and Andrea Fish volunteered to assist with the development of the Ethics course.
•
Application Process: The board discussed the application process for the Temporary and SAMA license requests because these two license types were not in the motion from the September board meeting. Andrea Fish made a motion to give the board’s administrator the authority to approve Temporary licenses. Lori Schwendemann seconded the motion. The motion carried. All SAMA licenses will be reviewed by the board at their board meetings.
•
Assessor Experience: After much discussion, the board will require an employment verification letter from the Auditor and Treasurers offices, detailing the specific job duties to determine if any experience in that environment will be considered assessment experience for licensure. 3
46
Spring 2022 / Equal Eyes
Board of Assessors November 16, 2021
Meeting Minutes Page 4 of 8
Discussion Items (cont.) •
Trainee Registration Deadline: The board reviewed Rule 1950.1020 and discussed if there would be any consequences to those who do not register with the board within 30 days of hire. Andrea Fish made a motion that if it is appropriate based on procedures, to send a letter to the County Assessor. Mike Reed seconded the motion. The motion carried.
•
Upgrading SAMA License by 7/1/2022: Based on the board’s reinstatement policy, what will an assessor be required to do in order to upgrade from the CMAS license back to their SAMA license level? o Based on this one situation, the board will require this assessor to take the 30-hour management and leadership course to meet the PACE requirement for the previous 4year cycle. The CEHs earned from completing the 30-hour management and leadership course will be applied to the previous 4-year cycle. Jane Grossinger made the motion to approve. Lori Schwendemann seconded the motion. The motion carried.
•
Public Board Member: The board determined that they needed to nominate a new board chair, because the current public member Gregg Larson, will be retiring prior to the board’s January meeting. The board moved forward with the following nominations. o Nomination for Chair: Lori Schwendemann made a motion to nominate Matt Gersemehl as chair. Mike Reed seconded the nomination. The motion carried. Matt Gersemehl is the chair for 2022. o Nomination for Vice Chair: Mike Reed made a motion to nominate Joy Kanne for vice chair. Matt Gersemehl seconded the nomination. The motion carried. Joy Kanne is the vice chair for 2022.
•
Assessment Personnel Training and Education Practices Survey Results: Jane Grossinger, Lori Schwendemann, & Matt Gersemehl will review the results of the survey and bring their ideas to the next board meeting.
•
Future Rule Changes: Mike Reed and Matt Gersemehl will review the board’s rules and suggested changes and bring their recommendations to the next board meeting.
•
Inactive Licenses: The board will discuss options for defining “inactive” licenses. This discussion is tabled until the January board meeting.
•
Commercial Course Options: Matt Gersemehl reported that he is waiting for recommendations from a colleague.
•
IAAO Course Review: Matt Gersemehl presented his findings and five of the courses still qualify based on assessment standards. Matt will have course write ups and recommendations available at the January meeting.
•
Residential Appraisal Course: Joy Kanne reported that there was nothing to present at this time.
Spring 2022 / Equal Eyes
47
Board of Assessors November 16, 2021
Meeting Minutes Page 5 of 8
Approved Continuing Education Hours Requests
48
•
2021 IAAO Annual Conference: Brenda Hansford & Dave Buswell requested the board review this online conference, sponsored by IAAO for continuing education. The board’s continuing education committee approved this conference for 1-12 continuing education hours.
•
2021 State Assessed Property Fall Forum: Holly Soderbeck requested the board review this virtual seminar, sponsored by Department of Revenue, offered on November 17, 2021 for continuing education. The board’s continuing education committee approved this seminar for 4.5 continuing education hours. This seminar will be part of the PACE education requirement.
•
15th Annual Retail & Restaurant Summit: Ashley Gunderson requested the board review this summit, sponsored by MN Real Estate Journal, offered on November 18, 2021 for continuing education. The board’s continuing education committee approved this summit for 4 continuing education hours.
•
23rd Annual Industrial & Economic Development Summit: Ashley Gunderson requested the board review this summit, sponsored by MN Real Estate Journal, offered on November 12, 2021 for continuing education. The board’s continuing education committee approved this summit for 4 continuing education hours.
•
Administering New Laws: Jessi Glancey requested the board review this virtual seminar, sponsored by Department of Revenue – Property Tax Outreach, that will be offered on December 1, 2021 for continuing education. The board’s continuing education committee approved this seminar for 3 continuing education hours. This seminar will be part of the PACE education requirement.
•
Exemption – Preparing for an Exempt Year: Jessi Glancey requested the board review this online seminar, sponsored by Department of Revenue – Property Tax Outreach, offered on October 27, 2021 for continuing education. The board’s continuing education committee approved this seminar for 3 continuing education hours. This seminar will be part of the PACE education requirement.
•
Land-Ownership, Titles, Deeds & Descriptions: Roxane Alden requested the board review this online course, sponsored by McKissock for continuing education. The board’s continuing education committee approved this course for 3 continuing education hours.
•
Legal Descriptions: Roxane Alden requested the board review this online course, sponsored by McKissock for continuing education. The board’s continuing education committee approved this course for 3 continuing education hours.
•
Marshall & Swift Commercial Cost Approach: Jodi Lindberg requested the board review this online course, sponsored by Columbia Institute for continuing education. The board’s continuing education committee approved this course for 14 continuing education hours.
•
Winter Housing Update: Matt Gersemehl requested the board review this seminar, sponsored by MAAO – Region 9, that will be offered on December 9, 2021 for continuing education. The board’s continuing education committee approved this seminar for 3 continuing education hours.
Spring 2022 / Equal Eyes
Board of Assessors November 16, 2021
Meeting Minutes Page 6 of 8
Denied Continuing Education Hours Requests •
15th Annual Senior Housing Summit: Ashley Gunderson requested the board review this summit, sponsored by MN Real Estate Journal for continuing education. The board’s continuing education committee denied this summit for 4 continuing education hours. The consensus of the CEH committee was that this summit did not have enough relevant assessment related education to consider it for continuing education.
Appointments with the Board • Tim Mitchell, MAAO Education Steering Committee: Tim presented a handout with the items the education steering committee would like to address in the future. One of the items was a new online technology called Owl. The board discussed the lack of instructors, how to encourage assessors to be instructors, possibly offer incentives like paying them for their time, more recognition, have written expectations for instructors, and/or giving additional CEHs for developing courses. The board also would like to see more 15-hour property type-specific courses offered prior to July 1, 2022 for those assessors that need to get their AMA by this deadline date.
Approved Applications for Certified Minnesota Assessor •
Amy Albers, Pope County
•
Dennis Bannister, Jackson County
•
Joseph Estlie, Hennepin County
•
Tara Kochendorfer, Dakota County
•
Sarah Lanier, Cottonwood County
•
Selena Lopez Cardenas, Murray County
•
Wayne Maras, Cottonwood County
•
Ashley Riel, Wilkin County
•
Ed Zimny, Crow Wing County
•
Brent Zinda, Crow Wing County
Approved Applications for Accredited Minnesota Assessor •
Scott Adams, Rock County
•
Richard Bryan, Ramsey County
•
Carice Golberg-Cummins, Hubbard County
•
Brian Grahek, St Louis County
•
David Grev, Cottonwood County
•
Rachel Jacobs, Rock County
•
Amanda Johnston, Crow Wing County
6
Spring 2022 / Equal Eyes
49
Board of Assessors November 16, 2021
Meeting Minutes Page 7 of 8
Approved Applications for Accredited Minnesota Assessor (cont.) •
Stephan Martynow, City of Minneapolis
•
Lisa Olmen, Hennepin County
•
Patrick Orent, St Louis County
•
Perry Ponshock, St Louis County
•
Gregory Schmitt, Olmsted County
•
Amos Vogel, Local Assessor in Brown County
•
Jeffery Wagner, Wabasha County
•
Kimberly Wee Sit, Redwood County
Applications for Senior Accredited Minnesota Assessor Andrea Fish made a motion to award the Senior Accredited Minnesota Assessor license to the following individuals. • •
Kim Kirchoff, Renville County Jean Nelson, Lincoln County
Jane Grossinger seconded the motion. The motion carried. Mike Reed made a motion to award the Senior Accredited Minnesota Assessor license to the following individual. •
Alisa Jacobsen, Lake of the Woods County; SAMA Oral Interview
Lori Schwendemann seconded the motion. The motion carried. Jane Grossinger made a motion to award the Senior Accredited Minnesota Assessor license to the following individual. •
Brian Messer, City of Minneapolis; SAMA Oral Interview
Mike Reed seconded the motion. The motion carried. Andrea Fish made a motion to award the Senior Accredited Minnesota Assessor license to the following individual. •
Katelyn Nytes, Scott County; SAMA Oral Interview
Mike Reed seconded the motion. The motion carried. Jane Grossinger made a motion to invite Jeremy Gleason to return for a second interview. Mike Reed seconded the motion. The motion carried.
50
Spring 2022 / Equal Eyes
Board of Assessors November 16, 2021
Meeting Minutes Page 8 of 8
The vice chairperson set the next meeting date as January 13, 2022, at the St. Michael City Center in St. Michael, MN at 8:30 am. Lori Schwendemann made a motion to pay the expenses for the meeting. Andrea Fish seconded the motion. The motion carried. Matt Gersemehl made a motion to adjourn the meeting. Lori Schwendemann seconded the motion. The motion carried.
The meeting minutes of January 13th are posted on the following page
Spring 2022 / Equal Eyes
51
State Board of Assessors Meeting Minutes Webex Meeting Thursday, January 13, 2022 Chairperson Matt Gersemehl convened the meeting at 8:30am. Charlie Blekre moved to open the meeting. Mike Reed seconded the motion. The motion carried. Board members in attendance: Gary Amundson Charlie Blekre Andrea Fish Matt Gersemehl
Jane Grossinger Joy Kanne Mike Reed Lori Schwendemann
Agenda for the January 13, 2022 meeting was reviewed. Jane Grossinger moved to approve the agenda. Joy Kanne seconded the motion. The motion carried. Minutes of the November 16, 2021 meeting were reviewed. Charlie Blekre moved to approve the minutes. Andrea Fish seconded the motion. The motion carried. Brittany McCormick and Patrick Chapman attended the meeting.
Updates •
Form Report Update: Submitted Reports
Approved Reports
Rejected Reports
Reports being Graded
July 1, 2013 – December 31, 2019 January 1, 2020 – December 31, 2020 January 1, 2021 thru March 9, 2021 March 10, 2021 thru May 11, 2021 May 12, 2021 thru July 13, 2021
192 41 13 11 20
192 41 13 11 19
0 0 0 0 1
0 0 0 0 0
July 14, 2021 thru September 21, 2021
19
17
2
0
September 22, 2021 thru November 16, 2021 November 17, 2021 thru December 31, 2021 Totals for 2021 January 1, 2022 – January 13, 2022
10 5 78 0
7 1 69 0 Have not applied for AMA
3 0 6 0
0 4 3 0
Dates
Passed Reports (1/1/2021 – 11/16/2021) 75
52
Spring 2022 / Equal Eyes
Received AMA 52
23
Board of Assessors January 13, 2022
Meeting Minutes Page 2 of 5
•
Minnesota Campaign Finance Board: A letter was sent in late December notifying board members of the requirement to recertify required information between January 1, 2022 and January 25, 2022.
•
CEH Committee: Hit a milestone by reviewing their 300th course in November since the CEH committee members decided to start numbering the requests in May 2014.
•
AMA by July 1, 2022: The board reviewed the list of assessors that need to get their AMA by July 1, 2022.
•
Trainee Registration Deadline: A reminder letter was sent to Cottonwood County about the requirement to register trainees with the board.
•
Assessment Experience: The Board of Assessors officers reviewed an assessment experience letter for work completed in an Auditor/Treasurer office requested by the Houston County Assessor, and unanimously decided the following: Based on the description of job duties, this experience does not qualify as one year assessment-related experience for purposes of achieving Certified Minnesota Assessor licensure.
•
MAAO Region Meeting: Jane Grossinger and Lori Schwendemann attended Region 7 meeting on November 19, 2021. They reported that it was a good meeting with some spirited comments, and there is some confusion on what CMAs can and can’t do. They also questioned if the board would give CEHs for property tours, such as a dairy barn or a commercial / industrial property. The CEH committee of the board will review any requests for CEHs that come from these region meetings for approval or denial of CEHs.
•
MAAO Executive Board Meeting Update: No meetings since the board’s November 16th board meeting.
• Complaint Summary: Since November 2021, the Department of Revenue has not received any additional complaints. At this time, all investigations have been closed, and no new cases have been opened.
•
Assessor Licensure Standards: The CMA & SAMA standards are completed; the committee is working on packaging all three standards into three final products. They should be done by midFebruary, at the latest.
•
MAAO Curriculum & Assessor Standards Committee: No update at this time.
Discussion Items •
First Year Exposure Checklist: The board discussed changing the format of the checklist and add a signature line for the county assessor or licensed supervisor to sign off on the form. Jane Grossinger volunteered to work on the changes and bring to the March board meeting.
•
Licensure Education Policy: The board reviewed the suggested change to the Management & Leadership course policy. Add the following sentence to part “d” in the current policy: To get credit for meeting the licensure course requirement, the student must attend the entire course. Andrea Fish made a motion to add the suggested language. Gary Amundson seconded the motion. The motion passed.
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Board of Assessors January 13, 2022
Meeting Minutes Page 3 of 5
•
Assessor Licensure Standards: The board discussed the future for the standards, and decided to review the final version at the March board meeting. The board will also create a committee to review the standards on a yearly basis.
•
Inactive Licenses: After receiving feedback that assessors whose licenses will not be active after July 1, 2022 (specifically CMAs who do not achieve AMA) would prefer terminology other than “inactive” to describe those licenses, the board discussed its openness to alternate language. The board expressed its openness to suggestions from impacted CMA assessors.
•
CMAs affected by the AMA Law: After much discussion, it was decided to put something together for the board’s April newsletter.
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Assessment Personnel Training and Education Practices Survey Results: Matt Gersemehl presented the findings of the survey. They show that education is truly valued for all staff members. The board decided that Jane Grossinger would discuss this at the next MAAO Executive Board meeting and hopefully a committee would be created to include the board members, MAAP and DOR for further discussion.
•
Future Rule Changes: The board went through each rule change and discussed revisions. The list will be updated and reviewed at the March board meeting.
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Commercial Course Options: Matt Gersemehl received feedback from Brett Hall, and he would be interested in writing a commercial course for the 15-hour property type specific course.
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IAAO Course Review: Matt Gersemehl presented the course descriptions and recommendations for the IAAO courses he reviewed. All but one has been approved by the board; it was suggested that the course be submitted to the board’s CEH committee for review.
•
Board Work Plan: The board reviewed the 2022 work plan.
Approved Continuing Education Hours Requests •
In House Ag Training: Lynne Freezy requested the board review this training sponsored by Washington County, that was held on September 2, 2021, for continuing education. The board’s continuing education committee approved this training for 8 continuing education hours.
•
Twenty Cost-Effective Home Improvements: Jeff Johnson requested the board review this online seminar sponsored by Kaplan for continuing education. The board’s continuing education committee approved this seminar for 3.75 continuing education hours.
Denied Continuing Education Hours Requests •
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2021 Office Summit: Ashley Gunderson requested the board review this summit sponsored by MN Real Estate Journal, that was held on December 3,2021, for continuing education. The board’s continuing education committee denied this summit for 4 continuing education hours. The consensus of the CEH committee was that this summit did not have enough relevant assessment related education to consider it for continuing education.
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Board of Assessors January 13, 2022
Meeting Minutes Page 4 of 5
Applications for Senior Accredited Minnesota Assessor Mike Reed made a motion to award the Senior Accredited Minnesota Assessor license to the following individual. •
Damaris Ledesma, Department of Revenue
Andrea Fish seconded the motion. The motion carried with one member opposed. Joy Kanne made a motion to award the Senior Accredited Minnesota Assessor license to the following individual. •
David Sitek, Ramsey County
Lori Schwendemann seconded the motion. The motion carried. Mike Reed made a motion to award the Senior Accredited Minnesota Assessor license to the following individual. •
Mike Czech, Kandiyohi County
Jane Grossinger seconded the motion. The motion carried. Jane Grossinger made a motion to invite Jeremy Gleason to return for a third interview. Andrea Fish seconded the motion. The motion carried with one member opposed.
Approved Applications for Certified Minnesota Assessor • • • • • •
Jon Gilbertson, Kandiyohi County Vicki Mandt, Grant County David Moore, Sherburne County Larry Rock, Renville County James Ryan, Anoka County Kathryn Smith, Olmsted County
Approved Applications for Accredited Minnesota Assessor • • • • • • •
Chad Benda, Jackson County Cheryl Clevenger, Waseca County Andrew Dessellier, Polk County Shana Jackson, Nicollet County Joseph Odell, St Louis County Jon Osterberg, St Louis County Anthony Troumbly, Itasca County
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Board of Assessors January 13, 2022
Meeting Minutes Page 5 of 5
The chairperson set the next meeting date as Tuesday, March 8, 2022, at the St. Michael City Center in St. Michael, MN at 8:30 am. Lori Schwendemann made a motion to pay the expenses for the meeting. Mike Reed seconded the motion. The motion carried. Charlie Blekre made a motion to adjourn the meeting. Lori Schwendemann seconded the motion. The motion carried.
MAAO SUMMER SEMINARS MAY 25-26, 2022 HOLIDAY INNn & SUITES 75 37TH AVENUE, ST. CLOUD, MN MNMAAO.ORG 56
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2022 IAAO Annual Conference The 2022 IAAO Annual Conference will take place August 28 - 31 in Boston, Massachusetts at the Sheraton Boston Hotel and the Hynes Convention Center. The full conference schedule will be announced in the spring. Be sure to check back for more details as they are announced. Hotel The headquarter hotel for the annual conference will be the Sheraton Boston Hotel and room rates will be $199 for single/double occupancy; $229 triple; and $259 quad. To reserve a room please visit the Conference Hotel page. Call for Presentations The Call for Presentations for the 2022 Annual Conference opened in December and more information is available at www.iaao.org/Boston. You can also view the Call for Presentations insert from the November/December Fair+Equitable magazine for more details. Registration Registration for the annual conference will open in the spring and registration fees are below. The Early Bird registration deadline is Friday, July 15. After that rates increase to the Regular rate through Friday, Aug. 12. After Aug. 12 fees are the Onsite rate.
Registration Type
Early Bird
Regular
Onsite
IAAO Member Full Registration
$730
$900
$1,125
Nonmember Full Registration
$925
$1,150
$1,350
IAAO Member Single Day Registration
$350
$450
$525
Nonmember Single Day Registration
$525
$600
$690
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Congratulations to Mike Sheplee, Martin County MAAO Member of the Year 2021
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Spring 2022 / Equal Eyes