‘They’re taxing him out’: Minnesota man goes to court after one-bedroom home skyrockets 300% in value

“We built it to keep the costs down because it was all he could afford. Now it’s getting to the point where they’re taxing him out of it,” Reinke told KSTP.

The property is a one-bedroom home with a small living room, small kitchen and large garage on more than 18 acres — 80% of which is wetland that can’t be developed. Recent independent appraisals valued it as low as $270,000.

The family has filed a lawsuit and a court hearing is set for May 7 in St. Paul.

“We’re going to go there with all of our information and all of the quotes that show what the cost is, and we’re hoping to get it lowered back down to where it should be — down to 380, right in there,” Reinke said.

Moneywise received the following statement from Elisha Long, County Assessor at Isanti County:

"Due to the pending litigation, I am unable to discuss specific details regarding the property in question.

To clarify some critical background, however, the percentage increase referenced in the KSTP report appears to use as its starting point the property’s value when it was still unimproved land, prior to any construction taking place. Since the property was improved, the increase in its market value has been consistent with changes in property values throughout Isanti County and reflects typical market trends over the past 12 years."

A widespread problem

Reinke’s frustration is shared by homeowners across the country grappling with assessments that bear little resemblance to what their properties would actually sell for.

According to a Lincoln Institute of Land Policy study, there are dramatic disparities in effective tax rates — with assessment limits and inconsistent appraisal practices shifting tax burdens in ways that often hit individual homeowners hardest.

The study found that the average effective tax rate on a median-valued homestead was 1.213% across 53 major U.S. cities in 2025 — but rates vary based on property tax reliance, local government spending levels, property values and how different property types are classified for taxation.

When assessments outpace actual market values, homeowners end up paying taxes on paper wealth that don’t reflect what a buyer would pay.

How Minnesota’s appeal process works

Minnesota property owners like Reinke who believe their assessment is inaccurate have a way to challenge it, but the window is narrow.

According to the Minnesota Department of Revenue, homeowners can appeal their assessed value or classification if they disagree with the county’s figures. The process typically begins with contacting the assessor directly, possibly appearing before the Local (or County) Board of Appeal and Equalization and ultimately filing a petition with the Minnesota Tax Court before April 30 of the year taxes are payable.