Adjusting a Valuation
Valuations will be adjusted if the valuation provided appears to be in error. State law requires that the valuation on the permit reflect the value of the labor and materials. The Inspections Department is required to establish the final building valuation by comparing the valuation on the application with available cost estimators from the state and other sources, in order that:
- Permit applicants doing similar jobs will pay approximately the same fee, even if some applicants are less than honest with the valuation estimate.
- The City keep an accurate record of the total value of construction occurring in Hopkins.
Per square foot cost values used by the Inspections Department are conservative. You may find that an estimate provided by a contractor will be higher than the value established by the City for the same type of work.
Impact on Property Tax
A common misconception is that the value placed on the application will have an impact on property taxes. The value that a given project adds to a property is determined by an appraisal and may vary widely from the actual cost of the improvement. Depending on the improvement, property values may go up more or less than the actual fair market cost of the improvement.