home link Are your property taxes too high? Winning your property tax appeal Broken Promises: Why do property tax appeals fail to reduce your taxes? Appraisal Services Who is Land for Sale, Inc.? Here's the Dirt - Newsletter Tax Appeal Success Stories Minnesota's Property Tax System: A Quiz Are your property taxes too high? Winning your property tax appeal Broken Promises: Why do property tax appeals fail to reduce your taxes? Appraisal Services Who is Land for Sale, Inc.? Here's the Dirt - Newsletter

Property Tax Appeal Success Stories

To date, Laurie Karnes has achieved property tax reductions in these Minnesota Counties:

  • Anoka
  • Benton
  • Carver
  • Crow Wing
  • Dakota
  • Hennepin
  • Isanti
  • Le Sueur
  • McLeod
  • Olmsted
  • Ramsey
  • Scott
  • Sherburne
  • Stearns
  • Washington
  • Wright

Any Minnesota County will be considered for tax appeal.


$900,000 in Property taxes were reduced 50% for a Fortune 500 Company Campus.


Industrial land reduced by 85%

The property owner previously hired a property tax consultant who was successful at reducing the assessed value on their factory, but didn't see any need to appeal the land.

Laurie Karnes saw the land was valued way too high and achieved an 85% reduction, resulting in an annual tax savings of $40,000.

Tax appeal success story


Property Taxes Reduced 95% in Anoka County

CLASSICATION can impact your property taxes more than VALUATION. A parcel in Anoka County was Reclassified from Commercial to Residential and the assessed value was reduced from $421,300 TO $44,600. The property taxes were reduced from $12,979 to $672.


Finished Townhome Lots reduced by 67% in Hennepin County

An active townhome development was assessed at $4.5 million for the unbuilt lots. Laurie's research and analysis reduced the valuation to $1.5 million.


Credit Union saves $151,000

A credit union, engaged me to tax appeal their branch in a 3rd ring suburb. The assessed value was $265 a square foot.

The assessor came back with a modest settlement offer using this comparable sale of a bank branch about a mile away in the same city:


Credit Union Client

Comparable Sale of a Bank Branch

Year Built

2007

2007

Location

City X

City X

Traffic Count

33,000

42,500

Assessed Value/Sale Date

2012

2012

Assessed Value/Sale

$/SqFt

$265

$216

On the surface these look like similar locations, but they are not. The comparable Bank Sale is located in the absolute best location in City X.

It took me many rounds of back and forth and lots of various data to persuade the assessor that:

  • the Credit Union's floor plan was dysfunctional
  • and, despite the traffic count and easy access, its in a poor location for a retail user.

The negotiated settlement ended up at $104/square foot: less than 1/2 the comparable Bank sale:


Credit Union Client

Comparable Sale of a Bank Branch

Year Built

2007

2007

Location

City X

City X

Traffic Count

33,000

42,500

Assessed Value/Sale Date

2012

2012

New Assessed Value

$/SqFt

$104

$216

The result was a 60% reduction in 2013 and a total tax reduction with interest for 2013-2016 of $151,000.

But if that wasn't cool enough, the new valuation for the credit union building is $5,000 LESS than they paid for the land in 2007.


Auto Body Shop Reduced Property Taxes by $80,000 over 3 years

Like the credit union, this property was also built in 2007--right before the recession. The assessed value was tied to the properties land purchase and construction costs. As we saw with the credit, cost does not equal value. This is the result of the property tax appeal done by Land For Sale, Inc:


Taxes on Commercial Land Reduced $567,000

These are shovel ready commercial lots that have no exposure to traffic.

The property owner, a Fortune 500 Company, occupies adjacent buildings on the campus and their headquarters building has good exposure. But these vacant parcels are internal to the campus and no one can see them driving by.

The land was guided exclusively for office in a market with many large blocks of vacant office space and low rents that don't support new construction. The lots were difficult to value because office users/developers don't typically buy land with no exposure and there weren't any true comparable sales.

The tax appeal covered the years 2012-2016 and resulted in $567,000 reduction in taxes + interest paid on taxes previously paid.


Are your property taxes too high?Winning your property tax appealBroken Promises: Why do property tax appeals fail to reduce your taxes?Appraisal ServicesWho is Land for Sale, Inc.?Here's the Dirt - NewsletterTax Appeal Success StoriesMinnesota's Property Tax System: A Quiz

 

Land For Sale, Inc.  •  763-420-4757
P.O. Box 2316  •  Maple Grove, MN 55311
Laurie E. Karnes, Broker/Owner/Appraiser
[email protected]

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