Glossary of Terms

Commonly-used terms in the assessor's report and their meaning.

Absorption
Absorption measures the change in occupied space from one market period to the next. In this measurement, it is important to distinguish that a building may be “available”, but not vacant (often the case in a sublease circumstance, for example).
Added Improvements (AI)
This is the assessor's estimate of the value of new or recently identified improvements made to a property in the last year.
Electronic Certificate of Real Estate Value (eCRV)
An Electronic Certificate of Real Estate Value(eCRV) documents a property sale in Minnesota. The Minnesota Department of Revenue and the county of sale review eCRV information to verify sale terms and to ensure fair property tax assessments. Buyers must file an eCRV when Minnesota real property is sold or transferred for consideration of more than $3,000. eCRVs are filed electronically through the Minnesota Department of Revenue's eCRV web portal.
Estimated Market Value (EMV)
The value determined by the assessor as the price the property would likely sell for on the open market. State law requires assessors to value property at 100 percent of market value as of January 2nd of the current assessment year.
Homestead Market Value Exclusion (HMVE)
The Homestead Market Value Exclusion (HMVE) excludes a portion of a parcel's estimated market value from taxation. Qualifying properties must have an Estimated Market Value under $413,800 and meet the homestead ownership and occupancy requirements. View qualifications and how to apply for the exclusion
Market Conditions Adjustment
The purpose of market condition adjustments is to determine what the sale price would have been if it occurred at the same point in time as the assessment date. By adjusting each sales price based on a market condition trend, the assessor and the Minnesota Department of Revenue can more accurately measure a county's assessment level because the two values used to calculate the final ratio are representative of the same point in time. Some of the factors that can influence the market condition adjustment are changes in interest rates, supply and demand, employment rates, or the availability of financing. When all sale prices are adjusted to the same point in time, the median ratio better reflects the overall assessment level of that jurisdiction.  
Median Value
A median value is the center value of an ordered set of data. For example, in a set of five properties valued at $300,000, $350,000, $400,000, $550,000, and $600,000, the median value would be $400,000, and the average value would be $440,000. When reviewing a neighborhood's property values, the median value is usually a better reflection of typical property value, since it is less affected by a few high-value or low-value properties in the sample set.
Property Classification
The statutory classification that has been assigned to your property based upon your use of the property. A change in the classification of your property can have a significant impact on the real estate tax payable.
Ratio Studies/Sales Ratio Analysis
This term refers to the process the assessor uses to measure market conditions by comparing the assessor's estimated market value with the sales prices. The Minnesota Department of Revenue also uses the sales ratio analysis to measure the assessor's performance. The Minnesota Department of Revenue annually supplies the County with a summary of criteria to be used for their next ratio study. View additional sales ratio studies information
State Assessed Property
A property where the assessed value is set by the Minnesota Department of Revenue. This is primarily utility properties and railroad properties.
Taxable Market Value (TMV)
Taxable market value refers to the amount of value that is used in calculating taxes. It may differ from the estimated market value since there are several features of the property tax system that will change the share of the value that is taxable when they are applied.
Veteran's Market Value Exclusion
The Veteran's Market Value Exclusion, officially known as the "Homestead Exclusion for Veterans with a Disability, was enacted in 2008. It provides a market value exclusion for property tax purposes for the homestead property of an honorably discharged veteran who has a service‐connected disability rating of 70 percent or higher, as determined by the United States Department of Veterans Affairs." View additional Homestead exclusion information for veterans with a disability