Morris tribune. [volume] (Morris, Minn.) 1880-2000, 1912-07-26
HOW EQUALIZED.
The Collection of Sales Statistics
and How Used.
NATURALIZATION BY THE
TAX COMMISSION-CONTINUED.

The manner of ascertaining the
percentage of assessed to true value
of real estate by the "sales method"
was briefly explained in the preced-
ing article.
The necessary data or information
for the tabulation of real estate sales
is gathered by representatives of the
tax commission. These representatives
visit each county of the state and
make a list of all transfers of real
estate made by warranty deed during
given period, usually two years.
Care is taken to include only such
transfers as represent bona fide sales,
and in which the consideration stated in
the deed is the actural amount for
which the property was sold. Trans
fers that give only nominal con-
sideration. or that include the ex-
change of one piece of property for
another, or transfers between near
relatives, such as father to son, are
not included in the tabulation.
Each tranfer listed shows the name
of the grantor and grantee. the date
of the conveyance, the consideration,
the book and page of record. a brief
description of the property, and .sthe
assessed value of each description as
shown by the last preceding assess
ment roll.
The sales are compiled and tabu-
lated by assessment districts and by
counties. Separate tabulations are
made for city and village property,
and for farm property, showing in
each case the total number of sales,
the aggregate amount for which the
property was sold, the total assessed
value of the same and the percentage
of assessed to sales value. This par
centage is then applied to all real
estate in the district or county and
becomes the factor by which it's true
Ivalue is determined.
Let use take Mower county as an
ILLUSTRATION. The total number of
transfers US d in compiling the real
estate sales in this county for the
four year period ending December 81,
I1911, was 1909. Of this number
598 sales covered farm property, and
611 sales city and village property.
THE total consideration amounted to
l$4, 781, 465, and the assessed value
in 1910 to 81, 404, ,377, an average
of 29.37 per cent of assessed to sales
value. The average assessed value of
the farm property sold was found to
be 28. 83 per cent, and of city and
village property 31.1O per cent.
| Using these percentages as the factor
the true value of real estate in Mower
county is found to be $32, 664, O32, OF
which amount $27, liza, 745 is repre-.
lsented in farm property, and SIS, 489,
1887 in city and village property.
| The ratio of assessed to sales value
is similarly ascertained in other coun.
ties, and lis used ais the factor for de.
termining the true value of real pro.
iperty in each county Of the state.
These ratios will be applied to the
1912 assessment as equaIized by
county boards Of equalization and will
in a large measure determined what
changes are necessary to fairly
equalize the assessment as between
the different counties of the state.
1t is the policy of the tax commits.
sion to notify the county auditor o1
any contemplated changes in his coun.
Ity, with request that he give the
lsame due publicity. Ample time i.
given any interestea person to file
lobjections, either personally or II
writing, to the proposed changes.
Such objections are fairly and imparti.
Tally considered before final action ii
taken. :, nc. -.
| While the sales method of determin.
ling true value may not be, absolutely
accurate in every instance. it is, al
lalready stated, the best measure o1
value that the. commission has beer
able. to find, About 25O,OOO sales
have been listed and as each transfer
represents the judgment Of two people
the seller. and the buyer-as to the
ivalue of q given piece of of property,
the total sales included in the tabula,
tion represent the combined judgment
j lof 500, 900 people. While the pric.
paid may in some instances have beef
more than the true value of the pro
uerty, it is not unreasonable to sssum,
that there are. just as many instances
in which the sale price was less tina,
: true value, thus, 'one off-setting tn,
! other. r =.
One of the strong points in th,
system is that il applies the sam,
measure 'of value-the same var,
: lstick-to each district and each coun