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City assessor warns of rising tax‑court petitions as department accepts a small cut in recommended budget
Summary
Rebecca Malmquist, City Assessor, briefed the Budget Committee on Sept. 16 about staffing, valuation work required by state statute, rising tax‑court petitions and a $25,000 recommended reduction in the assessing office budget for 2026.
Rebecca Malmquist, City Assessor for the City of Minneapolis, told the Budget Committee on Sept. 16 that the assessing office is largely personnel‑driven, that Minnesota law requires annual valuation as of Jan. 2, and that the department faces a marked increase in property values under appeal to tax court.
Why it matters: The assessing office implements statutory valuation and local board processes that directly affect property tax outcomes. A growing volume and faster timetable for tax‑court litigation could increase liability for the city and shape future budgets and staffing needs.
Malmquist said the office is fully staffed at 38 employees with one resignation expected at the end of the month and that salaries, wages and fringe benefits make up roughly 83.6% of the department—s requested budget. She reported that the 2026 recommended budget represents a 3.1% increase (about $222,000) to the department, arriving at a total requested budget of approximately $7,400,000. The department recommended absorbing a $25,000 reduction by taking funds from professional services and contractual lines rather than personnel.
On litigation risk, Malmquist told the committee the amount of value under petition in tax court has increased dramatically over the past five years and said the office currently has "over $13,000,000,000 under appeal," which she described as about 20% of the city—s tax base. She said tax‑court timetables have accelerated in some cases, shortening preparation windows to less than six months and increasing operational strain on assessor staff.
Malmquist reviewed departmental priorities—property tax administration, property valuations (the Jan. 2 valuation requirement set by state statute), customer service and workforce development—and highlighted recent achievements including full staffing, improved performance on assessment equity measures and growth in staff licensure. She noted continued investments in field mobile technology and legislative engagement in St. Paul.
Discussion and next steps: Committee members did not take formal action during the presentation; the chair directed the clerk to file the report. Malmquist said the office would absorb the recommended $25,000 reduction from non‑personnel lines and did not anticipate that it would change resident outcomes.
No motions or votes were recorded on the assessing office presentation during the Sept. 16 meeting.
