Dreaded tax valuations arrive

Spring brings many things: Gordy’s opening, mud, birds, more snow … and two mailings from the county assessor’s office. Property tax statements for 2022 are arriving in mailboxes — wrapped in official-looking county envelopes — and so are property valuations for 2023, bright yellow letters that are hard to miss.

County assessor Kyle Holmes said it’s the property valuation, or assessed value, that may seem startling to homeowners and others because the estimated market value of almost all residential and commercial properties is going up by at least 30-35 percent for 2023. That means if a home was worth $150,000 last year, it will be worth close to $195,000 in 2023, according to the county assessor’s office.

That does not mean that taxes on a property will go up by 30 percent. It just means the property is worth more.

The assessor compared it to a pie. Because everyone’s valuations are going up, that should mean their “piece of the property tax pie” remains close to the same next year, provided local governments hold the line on budgets for 2023.

So far, the county has mailed two of four batches of property valuations. Cloquet residents can expect theirs in about 10 days. Others still to come include Barnum and Kettle River, and Skelton, Blackhoof and Atkinson townships in Week 3, along with all remaining small cities and unorganized townships in Week 4.

His office has gotten plenty of calls so far. “Most people are worried about taxes going up,” but once they realize the valuation increase is across the board, “they’re OK,” Holmes said. “For the most part, people understand the market is ridiculous now.”

He said property values change from year to year based on market value, even if there have been no improvements to a property. The county assessor must value a property at 100 percent of its market value on Jan. 2 each year.

The county assessor’s office looks at good sales of homes in the same jurisdiction to determine values. Thomson Township is compared only to Thomson Township, Cloquet to Cloquet, Barnum to Barnum, and so on. Holmes said good sales, as defined by the state, don’t include sales between family members, foreclosures, etc.

“We’re not going to other counties, but all counties are seeing a similar increase [in valuation],” Holmes said. “The overall market is increasing, not just in a given township or county. It’s everywhere.”

Property costs are still ticking up across the country and in Carlton County, Holmes said. He said people ask him when it’s going to crash.

“I don’t know,” he said. “I’m hoping it slows down, but there’s so much pent-up demand and not enough supply. It’s the perfect storm.”