The property tax is an ad valorem tax, that is, a
tax based upon value. It’s the primary means by which local government
pays for services it provides, such as police and fire protection, schools,
road, parks, courts, etc. It involves two separate functions, the
assessment function and the budget function. After these functions are
completed, the county auditor calculates the appropriate mill rate and that
rate is applied to each taxable property to determine the property tax.
The assessor is responsible for discovering, listing
and valuing all taxable property. All real property is subject to taxation, unless
expressly exempted by law. All property is valued according to its value
on February 1st of each year. All real property is valued at True and
Full Value. For residential and commercial property, this equals market
value. For agricultural value, it equals its productivity value as
defined by North Dakota statute.
The assessor must notify property owners when the
valuation increases more than 15% and more than $3,000 True and Full Value.
In April of each year, the assessor’s assessments are reviewed by the
city or township boards of equalization. Within the first 10 days of
June, the county reviews the assessments of cities and townships. During August of each year,
the State Board of Equalization reviews the assessments as finalized by the
various counties.
The
assessor, by the fair and accurate valuation of property, ensures that everyone
shares equitably in the total burden of property taxation.
If the assessment is
lower than your estimate, the property may be receiving an exemption or
homestead credit. Also, there may be a
partial assessment or no assessment on any recent improvements. Also, the property may not have been inspected
for some time. Depending upon the
circumstances, the property taxes could increase significantly if the property
assessment becomes adjusted to market value.
If the assessment is
higher than your estimate, it may be that your estimate is subject to
assumption of special assessments.
Otherwise you may want to contact your city or township assessor and
have your assessment reviewed.