The city council held the annual local board of appeal and equalization meeting on Tuesday night.
An LBAE considers appeals from property owners about the classification or estimated market value assessment of their property.
This board was especially well-attended following Babbitt’s decision to raise the property tax to 20% in December of last year.
Ten applicants appealed to the city council, three via letter and seven in person. Paul Cherry and Patrick Vanderbeek, St Louis County residential appraisers, and Ben Thomas, deputy county assessor, were present to give recommendations to the council on property values.
Don Negley of Negley Properties was the first applicant, appealing to the council on behalf of his rental property. Negley’s property value was previously assessed $292,000, and this year the property jumped to $656,000.
“Is there a way we can do a step-increase over the next three years? Versus doing this all at once because going back to the tenants and saying, ‘Hey, I gotta increase your rent $50 a month,’ it’s going to be a tough pill to swallow,” said Negley.
Negley emphasized he has no problem with the valuation, but, “I just need some time to catch up.”
The council voted to lower Negley’s property value to $475,000.
Edward Hanson appealed next, regarding his property located six miles outside of Babbitt proper. Hanson’s property was previously assessed for $119,900 and was raised to $126,600 this year. As a retiree, Hanson is on a limited income.
“There is no service out there at all…The only service I get out there is cops when you had seven cops, well now you’re down to two cops!” said Hanson.
“The reason why your value sits where it is, we are accounting for quite a bit of conditional issues with the house,” stated Vanderbeek. “We’re not saying it’s had any updates since it’s been built.” The council moved to make no change to the market Roxanne Sader came up next, to appeal her house on 28 Dogwood.
“Home improvement value of $33,500 was added…we haven’t done anything in the past five years.”
The home was previously valued at $181,100, and was increased to $209,200. Some discussion was had amongst the tax assessors, Sader, and Chad Rasmussen, another applicant, about how the siding on Sader’s house was not newly replaced, but old siding that had been painted.
A living room edition was also concluded to have been added to the home prior to five years ago. Vanderbeek recommended dropping the house to $194,300, which the council voted to accept.
Bill Chinn of 82 Elm Blvd. appealed his property value, which was previously valued at $149,100. This year the property was assessed at $181,400. The council voted to lower the property value to $172,500.
Gary Kurpius at 45 Glen Circle appealed his property, which was assessed at $170,500 this year, versus $145,600 last year. The council voted for no change to the property value.
Next was Leah Botts at 42 Hemlock, who’s property had been evaluated for $57,900 this year. However, after Vanderbeek re-inspected the property, he recommended lowering the property to $33,000. The council passed the motion.
Allison Hillman was the next applicant.
“I just bought the house in August, I’m a first-time home-buyer, and to see the number jump from what it was to what it is now…I just don’t think it’s worth that.”
The home is located on 20 Cottonwood and was purchased for $133,500. The assessment placed the property value at $138,700 this year.
The council lowered the property value to its purchase price of $133,500.
Hillman had another issue that could not be fixed in the meeting, regarding a parcel of land located behind her house that has been assigned to her with the burden of tax responsibility.
“Last year this parcel of land was assessed at $300, this year it’s at $4,400…I have no deed or title for this property…Somebody named Fred at the county has dedicated me as the automatic taxpayer.”
The council recommended Hillman to continue working with St Louis County.
Chad Rasmussen was the last in-person applicant regarding his property on 19 Cypress. His property had been previously assessed at $120,700 and this year was raised to $158,800. The council voted to lower the property to $140,000.
Steffan Shoenauer wrote in his appeal to the council, and the council set his property value at $165,000. Mayor Zupancich abstained because the appellant is her brother.
Corinne Schedlbauer wrote in her appeal, and the council moved to make no change to her property value.
Duane Lossing wrote a letter of appeal and the council voted to make no change. Vanderbeek recommended that Lossing can appeal to the county board regarding his property value.
In summary, Council member John Fitzpatrick aptly stated, “The most regressive tax in the world is a property tax.”
Prior to the LBAE, the council moved to approved a Resolution regarding the issuance of a bond for the West Babbitt Development.
