Editor’s note: This is the second in a series of articles about important work in Minnehaha County that goes on “behind the scenes.”
By Dave Baumeister, County correspondent
Since a vast majority of people pay their property taxes through home mortgage escrow, much work done by a county office of equalization truly goes on “behind the scenes.”
But with people thinking about those taxes and opt-outs, this office is probably the most important in making a county operate.
In Minnehaha County, “The Equalizer,” Chris Lilla, heads up the Office of Equalization seeing to it that the county has money to operate, but also that those owning property in Minnehaha are treated equitably.
As people were reminded at a recent county commission meeting – “Everybody has to pay taxes.”
And while there may be plenty of loopholes and deductions for income taxes, when it comes to property taxes, except for churches and certain non-profits, everyone does have to pay them.
In his capacity as Director of Equalization, Lilla stresses that his job is to see that people pay “fair” amounts and are not over- or under-charged on their property assessment.
Lilla, who came to Minnehaha from Brookings County where he served as Director of Equalization, deputy director and appraiser, took over the Minnehaha County office at the beginning of this year, just two months before assessment notices went out.
However, Lilla said that the staff of 23 people was up to the task of accomplishing that.
The assessment/property tax process can be complicated, but according to Lilla, there are very definite state deadlines that need to be followed.
Property is always assessed as it is on Nov. 1 of each year. That assessment is carried forward and is used to establish a tax bill starting the following Jan. 1.
The same law requires the office of equalization to send out a notice of the assessed value of a property no later than March 1 of the particular tax year.
Unless the office has been notified otherwise, this notice goes to the person who was the registered owner of that property on Nov. 1 of the previous year, when the assessment was completed.
But while some people seem to think the office of equalization is responsible for taxing, according to Lilla, their part in that process ends with the notice of the assessed value being mailed.
From there, he said, the county auditor’s office takes over to establish a tax bill based on the assessed value of the property.
That office gives that information to the county treasurer, which sends out a tax bill.
In simple terms, a property is assessed at the end of one year, taxes based on that assessment begin the next year, but the bill doesn’t come due until April of the following year.
And Lilla further explained, that while there is a law regarding notice of assessment, there is nothing specific as to when, or even if, a tax bill needs to be sent out.
However, at least in Minnehaha County, the property tax bills usually go out in February.
And Lilla said that the tax billing part, after his office makes the call on assessed value, can be the most difficult thing about his job.
“(It’s hard) dealing with tax payers who don’t understand what we do and why.”
He refers to some views about the office of equalization as coming from “coffee shop talk.”
That is, people in social situations speculating and getting upset about a process before they understand it.
Lilla talked about the history of his office, in that it used to be referred to as the “tax assessor’s office.”
“But that sort of put us in a bad light,” he said. “Our job is not to tax you. Or job is not to bill you.
“Our job is to assess you fair and equal, and we want to do the best job we can.”
And rather than basing that job on speculation, Lilla points out that “there is lots of math and science that goes into what we do.”
He explains that he is a “firm advocate that when people walk into our office that they are treated with courtesy and dignity.”
And while they might not like the answers they get, he hopes that they understand why.
He explained that in the office of equalization, there are certain limits of the law, and he is bound to them.
Lilla said that the process to assess property values uses different computer software programs, but that the main one, Marshall & Swift/CoreLogic, allows for setting up a database that includes drawings of all properties in the counties and take into consideration building costs on a nationwide scale.
After that, there are percentages figured in, either positive or negative, for the differences in various areas for constructions costs and property values based on sale prices, as well as other factors, even including climate variations in different parts of the country.
Although his office might only change specific information on a property every eight to 10 years, when there are building permits, the county knows that a re-assessment may be needed sooner.
But to get a true valuation when changes have been made, people need to contact his office, Lilla said. The equalization office cannot know all the details if people don’t tell them.
To make this clear, Lilla used an example of a person’s property being assessed too high, based on information the county had on the home having a finished basement, but that assessment might be incorrect if the basement had extensive damage due to flooding and should no longer be considered “finished.”
But the only way for his office to know that how they are assessing the property should change is if they are contacted and made aware of any changes.
He did point out, though, that often when areas of people’s houses are damaged and then repaired to their previously assessed condition, there won’t be any changes in valuation.
He also stressed the deadlines he needs to adhere to, and that every year, all property owners should carefully look at their assessments and, if they don’t agree with them, the owner should contact his office.
Lilla said, people might not like the answer they get, but “we want people to walk out with knowledge about the process.”
He went on to clarify that the property valuation process doesn’t necessarily end there. In cases when people don’t like his answer, they have a right to appeal that decision to the county commission.
And if they don’t get the decision they want at that level, they can take the matter to the office of hearing examiners or circuit court.
And Lilla wants county residents to know about the reductions and exemptions available through his office, citing the more common owner-occupied reduction, as well as freezes available to disabled citizens, veterans, energy credits, and many others.
For anyone who has questions about exemptions or their property valuation, the Minnehaha Office of Equalization can be reached at (605) 367-4228.
Because, while the “tax assessor” may have been looked at as a villain in the past, Lilla wants people to think of “The Equalizer” as a hero when it comes to their “behind the scenes” work in helping citizens with property assessment questions.
