A lawsuit alleging that Minneapolis is over-assessing home values in foreclosure-prone areas of the city has been shifted to the Minnesota Tax Court.
The suit, filed by homeowners, was shifted at the request of Hennepin County by District Judge Joseph Klein in an order dated Friday.
Mark Chapin, a deputy county attorney, said the development is likely to speed consideration of the matter because the three-judge TaxCourt has expertise in tax issues. The county, which argues that it should not be named in the suit, and the city both plan to seek dismissal of the allegations. The homeowners' lawyers couldn't be reached.
The litigation asserts that the city has set property values across the North Side and in the Phillips community of south Minneapolis an average of 50 percent higher than the price the homes' owners paid for them the previous year. The suit asks for reassessments and tax credits potentially worth millions to residents of foreclosure-battered neighborhoods. The city argues that the claims are based on misunderstanding of the property tax system.
STEVE BRANDT
