The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1912-07-19
EQUALIZATION BY THE
TAX COMMISSION

After the county board of equali-
cation has completed it's work the
county auditor prepares an abstract
of assessment of property in each
of the towns, villages and cities of the
county, showing, in separate col
umns the assessed value of lana,
the assessed value of structures and
improvements thereon, and the as
sessed value of each class of per-
sonal property. This abstract is
on or before the fourth Monday in
August
Prior to 1909 the final equaliZa-
ton of assessed values vested in a
state board of equalization consist
ing of the governor, the state audit
or, the attorney general, and one
member from each judicial district
of the state. This board was
abolished in January, 1909, by act
of the legislature, and the duties and
powers in it were transferred to the
tax commission. .
At the outset of it's work as a
state board of equalization the tax
commission decided to get away as
far as possible from the arbitrary
method of determining values that
had heretofore been followed, es-
pecially in relation to real estate,
and to substitute some method that
off Md of
value for all the counties of the
state. .s . ... s'
After careful study of all known
methods it was concluded that, all
things considered, the so-called
'sales method" afforded the most
reliable measure of true values that
could be devised. This plan COM
mended itself to the commission not
only because of it's apparent intrin-
sic value, but more especially be-
cause it was not an untried ex-
pertinent. 1t had been used in
Wisconsin and in some taxing dis
tricts of other states with very
satisfactory results.
Briefly stated, the "sales method"
consists in obtaining from each
county of the state data showing
all bona fide sales of real estate
during given period with the true
consideration paid for each tract or
lot transferred and the assessed
value of the same as shown by the
last real estate assessment With
this information it is simple mat
ter to determine the percentage of
assessed to true value. .-,
The method is based upon the
proposition that nothing else so fair
ly measures the true value of real
estate as the price actually paid for
it in a normal transaction, and by
normal transaction is meant, an
owner willing but not obliged to sell,
and purchaser willing but not
obliged to buy. 1t is the best meas
ure of value that the commission
has been able to find, because each
sale made under such conditions
represents the judgment of at least
two minds-the seller and the buy
er-as to the true value of a given
piece of property. 1t is universally
recognized by courts as the best
evidence of value, and in the final
analysis is the best of nearly all
expert opinions in such matters.
Having ascertained the actual con-
sideration in all bona fide sales of
property in each town, village and
city of a county during a given Pc
riod, together with the assessed
value of the same, it is simple
mathematical calculation to find the
average ratio or per cent of assess
ed to true value. The formula may
be stated as follows: "As the as
sessed value of the lands sold is to
the consideration paid for them,
so is the assessed true value
thereof"
The next article will show how the
data for the "sales method" is
gathered and what use is made of it.