Board of Equalization - April 14 and May 5, 2020 Minutes

April 14, 2020
The Board of City Commissioners met as the 2020 Board of Equalization at 7:30 o'clock a.m., Tuesday, April 14, 2020, in the City Commission Room at City Hall, Fargo, North Dakota, to consider the 2020 assessments of property in the City of Fargo for tax purposes.
Members present: Gehrig, Grindberg, Piepkorn (via conference call), Strand, Mahoney (via conference call).
Members absent: None.
Member Gehrig presiding.
2020 Property Assessment:
City Assessor Ben Hushka submitted the 2020 Assessment Department Annual Report and Annual Report Supplement – Information Submitted by Appellants. He provided a summary of the various items and explained that the purpose of the Board of Equalization is to equalize the values that have been placed by the Assessment Department for the 2020 tax year. He said the Board of Equalization meeting is to equalize the values and not the amount of increases or decreases and may change the value of any property so as to render taxation uniform. He said Equalization Statutes for County Boards refer to equalization, as does the State Board of Equalization statute. He said all property is subject to taxation in North Dakota, unless it is expressly exempted by statute. It is often misunderstood, he said, and came up this year with the pandemic and market conditions, that statute says all property is to be listed and assessed according to its value every year as of February 1st, so values being equalized for the year 2020 tax year are as of February 1, 2020 and the data used to arrive at these values were primarily 2019 sales. External forces like the current pandemic, market conditions or any other issues that affect value of property will be in the values that will be brought to the Board in 2021, he stated. For taxation purposes, he said, real property is land, improvements to the land, structures and buildings. He said the improvements to the land that are taxable include water, sewer and services to the lot and are often financed by special assessments, although those can be paid off upfront. The fact a property has special assessments is irrelevant in the sense that those improvements have value, he said. He said valuation considers sale price paid and any outstanding debt that is assumed. Valuations are set this time of year and budgets are set in the fall, he said. Once budgets are set, he said, the approved budgets are divided by total taxable value of the City to arrive at the tax rates. He said it is simply a process of dividing the budget amount to arrive at the mill levy or tax rate to generate the taxes. Taxable value in North Dakota is a percentage of market value, he said, the assessors and appraisers come up with an appraised or market value and 50% of that is referred to as assessed value and 10% for commercial property and 9% of assessed value is the actual taxable value. Last year, he said, the budgets were $173,712,317.00 and taxable value was $594,010,112.00, so the math arrives at the mill levy of 292.44. He said the formula then for a $100,000.00 home is $100,000.00 X .5 X.09 to get to taxable value X the mill levy .29244, so it would be $1,316.00 less a
5% early payment discount results in $1,250.00 or a residential tax rate of 1.3%. Commercial property would be the same formula with a different percentage - $100,000.00 X .5 X .10 X.29244 = $1,462.00 less 5% = $1,390 to arrive at a commercial tax rate of 1.4%. He shared a comparison graph of mill levy history over time showing drops in the rate when there was legislative relief and tax credits. He said the estimate of the 2020 total value of all property in the City whether taxable or exempt, is about $16.5 billion, up about 3.8% from last year. Partially exempt property includes daycare/fire protection, residential new construction, homestead/veterans, blind/wheelchair, remodeling, new industry/pilot and Renaissance Zone. He said this year there is a change in the homestead/veterans exemption, which had always been excluded from the taxable value for calculation purposes. Starting with the 2020 tax year that amount will be included in the tax base, he said, and that amounted to about $101 million last year, so there is about an additional $4.5 million in taxable value this year. He said there was $1,006,615.00 in PILOT (Payment in Lieu of Tax) payments in 2019 and despite there being no tax levied on these properties, there were $1 million in tax payments for PILOTs. He said fully exempt property and partially exempt property represent about 20% of all property in the City. The 2020 Fargo taxable value is projected at $623,487,845.00 and value of a mill is $623,488.00, making a 5% increase. Of that 5% increase, he said, about 2.2% is new growth and 2.7% is existing. The State Tax Department and the State Board of Equalization govern and monitor where values should be, he said. A sales ratio study is used, he said, which takes assessed value to sale prices to arrive at a median ratio by class of property. State statute says to appraise at true and full value, he said; however, the State Board of Equalization does allow a tolerance range of within 90-100%. He said if an assessment jurisdiction is out of tolerance within a class of property, all property in in that class would be adjusted. Ending ratios this year, according to the State formula, is 92.9% on commercial and 96.1% on residential and before doing any of the reappraisal efforts this year commercial was at 91.1% and residential was at 93.1%, he said. The ratio study is not only used by the State for compliance, he said, it is the tool assessors and appraisers use to accomplish their work and arrive at values. Every valuation effort done involves consistent running of ratio studies, he said. Another statistic looked at deals with uniformity, he said, the average of every individual ratio from the median. He said there are many variables in what real estate sells for, so appraisers continually run ratio studies. For residential property, he said, the City is divided into five areas that are rotated through to go in and do mass reappraisals, either by running statistics and simply running pricing models or actually going to door-to-door to reinventory the properties. The median sale price of single-family homes has been on the increase in Fargo, he said, and is constantly tracked and compared. He said property information is available online at www.fargoparcels.com.
In response to a question from Member Grindberg about the progress following the discussion last year when residents raised concerns about periods between adjustments and consistency citywide, Mr. Hushka said a problem could be when years pass before reappraisals in an area. He said an owner of newly purchased property below the median sales price may not call about it, while one that is 20% over would likely call to inquire. He said part of the issue is that remodels are done that assessors are not aware of, so are not reflected in the valuations. He said he shared two lists of
informal appeals, one completed and one list being worked on. He said adjustments were made to many of those on the completed list and many are found due to a visit to the property that appraisers had not been in for a time. Sometimes assumptions have to be made due to people not allowing appraisers to come in, he said, and assumptions are made on what is most common and can be incorrect sometimes.
In response to a question from Member Strand about what the small parcel is on the map labeled 2019 Taxable Value by Taxing District, S.D. #2 in Fargo, way south of town in the Kindred School District, Mr. Hushka said that is a subdivision annexed into the City a number of years ago. He said he believes there were plans to do more; however, it has not changed since annexed,
Mr. Hushka said there are no recommendations for action today due to having a number of properties they have not reappraised yet and some appeals have been received as late as yesterday. He said he recommends hearing appeals today and if they are not on the list, he will work with them. He said he recommends reconvening in three weeks, after which the appeals should have been taken care of and he will have recommendations at that time.
John Bower, 12 Broadway North
Mr. Bower said he is the President of the 12-unit condo association and was asked to speak on behalf of the residents. He said in past years, the proposed changes were very drastic and they have questions about how they came to these values. Units 203, 204 and 205 had an increase of 31% and they are the smallest and least enhanced, he said, and Units 301, 201 and 202 have high costs per square foot. He lives in Unit 304, he said, which is comparable to 303 and 305; however, his increase was 10% while his neighbors’ decreased, and the largest ones went down as well. Valuations were felt to be fair and equitable in the past, he said; however, it does not feel fair and equitable now with this re-evaluation and they would like someone to look at it.
Mr. Hushka said he heard from someone on the list and valuations for all the condominiums will be looked at as of now, not what they were before.
Mr. Bower said there are very few sales of condos in the Downtown, so he understand that makes it a difficult job.
Ed Wilt, 1113 2nd Avenue South
Mr. Wilt said his property value went up 22% and he has addressed the Board before and it was reassessed; however, the value seems to keep creeping up. He said what he heard from Mr. Hushka’s presentation is that the City has a budget and through valuations it backs into a number. He said the budget is the City’s fiscal responsibility and, looking at new City Hall, it seems to have gone crazy. He said houses in the Hawthorne neighborhood were built in the 1960s and the old City Hall, which was deemed not feasible to remodel, was built in 1961. This house was built in 1894 and the value goes up each year, mostly due to the City painting a wide brush and, he said, it is not worth the value placed on it. It is near Section 8 Housing which draws an interesting crowd, a property across the street rents to sex offenders, he picks up empty
bottles from the people who travel from Gladys Ray to Downtown each morning and he said he wonders if he pays for the four or five Police squad cars that show up in the area each week dealing with issues. He said the City says it appraises within 90%; however, it pays out 25% over assessed value when it buys out a house in a flood zone. The City needs to look at how things are assessed and he welcomes a visit from an appraiser, he said, or what he would really like would be a check for even 90% of the appraised value. He said he would like to see the City control its spending as he has to, he said, and not to go out and get that number later. More than twenty years ago, the streets were redone and the sewer was lined, he said, so there was an assessment which had not been paid off even five years before the City came again and dug it up to redo the sewer resulting in another assessment. The property was assessed for the quiet zone railroad crossing and now there are assessments for Main Avenue reconstruction. He said people with new houses complain about specials; however, if Fargo would not leapfrog development, which stresses the infrastructure, there may not be such a strain on the budget each year.
Mr. Hushka said Mr. Wilt’s property was not on the list until today and there will be a reappraisal done.
Bill Kloubec, 620 8th Street South
Mr. Kloubec said his initial valuation had a 36% increase and he strongly disagrees with both the first and the revised valuations and requests a more thoughtful review. Considering the present times, he said, he would hold that the true value of almost all real estate is next to nothing since no one is going to pull out their checkbook during these times and buy anything. This pandemic situation may continue for the foreseeable future, he said, and he feels this places an undue burden on himself and his neighborhood. He said on one hand the policy seems to encourage neighborhood development and core neighborhoods, then this comes as negative, unthinking, blanket and Orwellian. He said he does not accept the current assessed value because he feels it does not have any basis in reality. The comparables he was shown were in the Clara Barton neighborhood due to no sales in the Hawthorne neighborhood, he said, and the real estate commission is not subtracted from the sales price, which could mean a 5-6% variation. He said he would encourage City officials to fulfill their responsibilities and find a more equitable methodology or he feels people will get mad and may remove the ability to have property taxes. He said he hopes for an amicable solution. He feels disincentivized even to maintain his property, he said, and there needs to be a better way.
Member Grindberg moved the Board reconvene Tuesday, May 5, 2020 at 7:30 a.m.
Second by Strand. All Members voted aye and the motion was declared carried.
Member Gehrig said what Mr. Hushka said is important. The valuation of your home is part of the equation, he said, and if your valuation goes up a certain amount, that does not mean automatically that the taxes go up that percentage. He said the mills also play a role in that, and this year, overall, there is a 5% increase. He said if nothing were done to the mills and the valuation increase accepted, there would be 5% more in taxes; however, that does not have to be the case. He said it is up to the Board to be responsible with what is levied for mills and many people will be watching closely to see whether mills are increased or decreased.
Member Strand moved that the Board of Equalization adjourn to 7:30 o’clock a.m., Tuesday, May 5, 2020.
Second by Grindberg. All the Members voted aye and the motion was declared carried.
The time at adjournment was 8:20 o’clock a.m.

May 5, 2020
Agreeable with adjournment, the Board of City Commissioners reconvened as the 2020 Board of Equalization at 7:30 o'clock a.m., Tuesday, May 5, 2020, in the City Commission Room at City Hall, Fargo, North Dakota, to consider the 2020 assessments of property in the City of Fargo for tax purposes.
Members present: Gehrig, Grindberg, Piepkorn, Strand, Mahoney.
Members absent: None.
Member Mahoney presiding.
INDIVIDUAL VALUATION APPEALS
Jacqueline Bussie & Matthew Myers, 1105 8th Street South:
Matthew Myers read his revised letter dated May 4, 2020 and asked that it replace previous correspondence. He seeks further consideration to appeal the City’s reappraisal of the property value at 1105 8th Street South, he said; due to the property having a 30 plus percent increase. This is during a global recession and pandemic, he said, and likely assessments will also result in an increase in property taxes. He said while he understood and supported the modest increases in property taxes over the years, this represents a massive, sudden, explosive increase and the timing could not be worse. The Assessment Department defends the hikes as market corrections for undervalued properties, he said; however, the increases seem random and arbitrary, and are calculated on market values in the spring and summer of 2019. Now, he said, this economic downturn will affect actual values in the real estate market. He said his home was appraised last year at about $131 per square foot and this year it is at $170, while a property a few blocks away enjoys a $112 per square foot assessment and another received zero increase. One home on internet realtor sites show its value $82,000 less than City’s appraisal, he said, and City valuations and information seems to differ substantially from realtor websites. He contends in such a historic time of exceptions and sacrifices, property value increases be rescinded and new assessment increases be conducted on a more fair and equitable basis, he said. This is not about the law’s procedural needs he said, it is about peoples actual needs and he thanked the Board for their consideration.
City Assessor Ben Hushka said there is some inaccurate information and numbers in Mr. Myer’s letter. Valuation for assessment, by statute, is as of February 1st of the year, so February 1, 2020, he said. Information used to arrive at values were sales from the prior year, mostly 2019, he said.
Member Piepkorn said he found it interesting that an article in the current Wall Street Journal states home prices are rising during the pandemic due to the supply of homes shrinking.
Mr. Hushka said the value of Mr. Myers’ property last year was $243,500 or 11 percent below their purchase price 9 years ago. The current value of $317,400 is 15 percent over the purchase price, he said, and the residential market since 2011 has increased 55 percent. Sales comparisons justify the value, he said, and his recommendation is to retain the value of $317,400.
Member Strand said there is property tax assistance for hardship cases such as unemployment and that needs to be communicated to the public.
Member Piepkorn moved the value of $317,400 on 1105 8th Street South be retained for the 2020 assessment.
Second by Grindberg. On call of the roll Members Piepkorn, Grindberg, Gehrig, Strand and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Chad Mertz, 1014 20th Street South:
Mr. Hushka said in this case, as in most all of the recommendations, comparable sales of properties similar to the subject’s properties are used. He said Mr. Mertz recently did some remodeling and received the remodeling exemption. The value being recommended is consistent with the sales of similar properties, he stated.
In response to a question from Member Mahoney on when the remodeling exemption comes off, Mr. Hushka said there was about $2,700 value added for the basement bathroom remodel and the exemption is five years.
Member Strand moved the value of $171,500 on 1014 20th Street South be retained for the 2020 assessment.
Second by Gehrig. On call of the roll Members Strand, Gehrig, Grindberg, Piepkorn and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Ryan Schroeder, 3212 14th Avenue South:
Mr. Hushka said this property is a multi-tenant office building built in 1997 with 70,192 square feet with a current value of $805,300, which is about $112 per square foot. Comparable sales show a median sale price at $136 per square foot and comparable median values were near $138 per square foot, he said, making $112 per square foot fair.
Member Piepkorn moved the value of $805,300 on 3212 14th Avenue South be retained for the 2020 assessment.
Second by Grindberg. On call of the roll Members Piepkorn, Grindberg, Gehrig, Strand and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Dan Hallock, 1437 9th Street South:
Mr. Hushka said the value placed on this property is about $150sq.ft. and the Assessor’s Department recommends retaining the value of $208,600.
Member Gehrig moved the value of $208,600 on 1437 9th Street South be retained for the 2020 assessment.
Second by Strand. On call of the roll Members Gehrig, Strand, Grindberg, Piepkorn and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Ed Wilt/McLaughlin, 1113 2nd Avenue South:
Mr. Hushka said Mr. Wilt brought up concerns when he attended the prior meeting, one being some crime in the neighborhood. Mr. Wilt was asked to send interior photos, which have not been received, he said, resulting in the property being valued as in average condition based on an exterior view of the property.
Member Piepkorn moved the value of $158,900 on 1113 2nd Avenue South be retained for the 2020 assessment.
Second by Strand. On call of the roll Members Piepkorn, Strand, Grindberg, Gehrig and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
William and Christine Kloubec, 620 8th Street South:
Mr. Hushka said estimates were done due to not being able to get in the property. The owner sent photos of the attic and basement, he said; however, not of the main area of the house, so the property is being considered as being in average condition.
Member Piepkorn said it would be good if the Board knows when an owner refuses to allow assessors in the property. He said that is part of the legitimacy if they request reassessment, it does not seem right if they do not allow access.
Mr. Hushka said normally that is done; however, this year, in the pandemic, visiting properties was not pursued and that is the reason photographs were requested. He said whether to enter houses is still being considered for this summer’s work.
Member Piepkorn moved the value of $427,000 on 620 8th Street South be retained for the 2020 assessment.
Second by Gehrig. On call of the roll Members Piepkorn, Gehrig, Grindberg, Strand and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Jennifer Berntson, 909 25th Avenue North:
Mr. Hushka said some calculations were reviewed resulting in a correction in value from $227,900 to $178,000.
Member Strand moved the value on 909 25th Avenue North be reduced to $178,000 for the 2020 assessment.
Second by Grindberg. On call of the roll Members Strand, Grindberg, Piepkorn, Gehrig and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Casey Fines, 827 28th Avenue South, Unit A:
Mr. Hushka said the property is a condominium unit and the property was sold as part of an estate for $215,000. He said the current value is at $276,300.00 and the current mortgage on the property is $360,000.
Member Grindberg moved the value of $276,300 on 827 28th Avenue South, Unit A be retained for the 2020 assessment.
Second by Piepkorn. On call of the roll Members Grindberg, Piepkorn, Gehrig, Strand and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Home Depot, 4700 17th Avenue South:
Mr. Hushka said a tax representative agency filed an appeal on the property requesting a value of $7,682,000. The City of Fargo analysis shows a tight range of square foot prices and sales show a wider range, he said; however, the City’s value seems to be in line with similar value on big-box stores.
Member Piepkorn moved the value of $10,298,000 on 4700 17th Avenue South be retained for the 2020 assessment.
Second by Strand. On call of the roll Members Piepkorn, Strand, Grindberg, Gehrig and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Scheels All-Sports, 1551 45th Street South:
Mr. Hushka said a tax representative agency filed an appeal on the property requesting a value of $15,300,000. He said many of the comparables submitted by the applicant were dark stores or were in rural areas. He said after reviewing the property characteristics and working up a new appraisal, a decrease of $2,889,000 to $25,397,000 is recommended. .
In response to a question from Member Piepkorn regarding how the square footage price compares with the Home Depot price, Appraiser James Haley said the Home Depot is about $87 per square foot; however, Scheels is going to be higher due to about 80,000 per square foot of office space located to the west. He said it would be closer to about $140 and could get the specific amount if the Board desires.
In response to a question from Member Strand asking about the changes, Mr. Haley said the changes were related to square footage and items in the basement were repriced. He said there is a woodshop that had been valued as office space so that dollar per square footage was reduced. An updated valuation model was used, he said, matching the other big-box store’s business valuation methodology.
Member Gehrig moved the value be reduced to $25,397,000 on 1551 45th Street South for the 2020 assessment.
Second by Piepkorn. On call of the roll Members Gehrig, Piepkorn, Grindberg, Strand and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Walter Samuel, 6210 27th Street South:
Mr. Hushka said the vacant lot that has an overhead power line easement which hinders the property, which has a current value of $32,800. Mr. Samuel purchased the property in October 2019 for $89,500, he said.
Member Gehrig moved the value of $32,800 on 6210 27th Street South be retained for the 2020 assessment.
Second by Strand. On call of the roll Members Gehrig, Strand, Grindberg, Piepkorn and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
James Bullis, 4656 40th Avenue South:
Mr. Hushka said since the initial Board meeting, information was received from Mr. Bullis on about 115 vacant lots and this property. He said this property is an office building at 4656 40th Avenue South, which has a medical office, a daycare and other office space and was acquired in 2016 by the current owners for $5,320,000 or $162 per square foot. He said the current value is a bit less but close, at $5,247,000.
In response to a question from Member Strand asking for clarification about purchase price and appraised price value, Mr. Hushka said appraisals are arrived at by looking at multiple sales, not every similar property sells for exactly the same. He said there is a range of sale prices for any given property so in appraisal, comparisons are made of sold properties that are similar characteristically and some sale conditions need to be analyzed to see if concessions were made. There is not a definitive number out in the market for sales, he said. The State Board of Equalization looks at a range of the ratio of a City’s value to the sale prices realizing there is no exact number so they allow between 90 and 100 percent. He said the appraisers feel confident if within a reasonable percentage of a sale price within the last few years, especially for a commercial property. Residential is somewhat easier, he said, because there are many more sales of residential property than commercial. He said appraised value is an estimate based on facts and data.
Member Piepkorn moved the value of $5,247,200 on 4656 40th Avenue South be retained for the 2020 assessment.
Second by Grindberg. On call of the roll Members Piepkorn, Grindberg, Strand, Gehrig and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
James Bullis, Vacant Lots:
Mr. Hushka said the list of vacant lots on pages 82 and 83 of the packet are in an area that is being developed. He said services are not completely in for those valued at $12,000-$18,000. He said the appraised value is of the lots as if free and clear of all debt including outstanding special assessments so the list shows the balance of the special assessments. At this point, he said, the outstanding balance of specials are considerably higher than current values; however, when all services are in and everything is developed these lots will be in the $60-$80,000 range such as those at the top of the list which is an area of the two subdivisions that is more developed. The recommendation is to retain the current value for the lots.
In response to a question from Member Grindberg on the size of the lots, Mr. Hushka said there are some curved streets and triangular shaped, varying sized lots. He said at this point, the way vacant lots in a new development are handled, even with full services, is 30% deducted is for the fact they are vacant which considers the absorption time for the developer to move the lots and get them sold. The lots where not all services are in have the 30% reduction for vacancy plus a 50% reduction for the fact services are not completed.
Member Piepkorn moved the value of the lots listed as Nos. 1-112 on pages 82 and 83 be retained for the 2020 assessment.
Second by Grindberg. On call of the roll Members Piepkorn, Grindberg, Strand, Gehrig and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried
Eric and Maria Boren, 6209 Maple Valley Drive South:
Mr. Hushka said the property was purchased in 2019 for $266,000 with an unfinished basement, which has since been finished to 75 percent and a fireplace and bathroom added. He said the recommended value for 2020 is $286,200.
In response to a question from Member Strand on the value of the permit, Mr. Haley said he did not believe there is a permit on record.
Member Grindberg moved the value of $286,200 on 6209 Maple Valley Drive South be retained for the 2020 assessment.
Second by Gehrig. On call of the roll Members Grindberg, Gehrig, Strand, Piepkorn and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Duane Mischel, 7214 and 7266 Eagle Point Drive South:
Mr. Hushka said these two vacant lots were each purchased for $15,000. He said 7214 Eagle Point Drive South has special assessments of $67,900 and 7266 Eagle Point Drive South has a special assessment balance of $70,500. These are valued at what otherwise would be full value less the 30% vacancy reduction, he said.
Member Strand moved the value of $82,000 on 7214 Eagle Point Drive be retained for the 2020 assessment and the value of $74,700 on 7266 Eagle Point Drive South be retained for the 2020 assessment.
Second by Gehrig. On call of the roll Members Strand, Gehrig, Grindberg, Piepkorn and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
List of Value Recommendations and Action on Reviews in Progress to be forwarded to the County Board of Equalization Approved:
Mr. Hushka said the Assessor’s Department will continue to follow up on the list of rechecks in progress and recommends the Board approve the new value column. He said they will continue to work with these between now and the County Board of Equalization on June 1, 2020 and may have recommendations for the County Board at that time. From a timing standpoint, he said, the rolls need to be certified in time for the County Board
Member Strand moved the recommended value changes on the list of rechecks in progress be approved and forwarded to the County Board of Equalization for consideration.
Second by Grindberg. On call of the roll Members Strand, Grindberg, Gehrig, Piepkorn and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Approve 2020 Assessment Roll Valuations as Equalized:
Member Piepkorn moved the 2020 assessment roll valuations of property in the City of Fargo for tax purposes as prepared by the Assessment Department be approved as equalized and that the City Auditor's Office be directed to certify the 2020 assessments to the County.
Second by Gehrig. On call of the roll Members Piepkorn, Gehrig, Strand, Grindberg and Mahoney voted aye.
No Member being absent and none voting nay, the motion was declared carried.
Member Mahoney said if a taxpayer is not happy with the outcome of an appeal, they have an opportunity to appeal to the County level and to the State.
Mr. Hushka said in order to appeal to the State Board of Equalization, an appeal must be on record at both the City and County Boards of Equalization.
Member Mahoney said he knows that appraisers have difficulty getting into some homes and Member Piepkorn is correct in that it is helpful to physically get inside, plus it helps if people want to appeal. He said recently there has been a tremendous market for homes in this area; however, the affects of the coronavirus on the market will take some time to know.
In response to a question from Member Strand asking how a market correction would affect the approach to valuations, Mr. Hushka said sales are constantly monitored and a running number is kept throughout the year. Based on that, he said, reappraisal work is determined and either physical appraisals or adjustments are made throughout the year. He said in North Dakota there is full disclosure of sale prices on a deed, so there is a lot of data to work with.
Member Piepkorn thanked Mr. Hushka and his department for the professionalism and hard work. He said sometimes they bear the brunt of the actions of the Board.
Member Grindberg said Fargo largely buffered the national downturn in 2008 and while the current situation cannot be compared, home ownership is the American dream and one’s best asset is their home. While residential affects are not known, he said, he does believe that significant impacts and a correction will be seen in the commercial real estate market.
Member Strand said perhaps the policy for remodeling exemptions could be expanded. He said he feels it would be beneficial to give an incentive any time a home is improved.
Mr. Hushka said the policy is phased, for residential the property would have to be at least 25 years old and if 40 years or older the exemption is for five years instead of three. Only the amount added for remodeling is exempt. He said a number of property owners do take advantage of it
Member Mahoney declared the 2020 Board of Equalization adjourned.
The time at adjournment was 8:22 o’clock a.m