Understanding Your Property Tax Statement

Sample Property Tax Statement: 

See below for an explanation of the different areas of the Property Tax Statement.Sample Property Tax Statement

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The parcel number is a unique number associated with your property. This number does not change unless a parcel is split into multiple parcels or combined with another parcel. A split or combination would create a new parcel number.

The statement number is a unique tax bill number assigned to a property each year when the tax bills are generated. This number will change every year.

 

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The Net Consolidated Tax is figured by adding all of the individual taxing entities (City, Park, School, Fire & Etc.) mill levies and taking that mill levy times the taxable value of a property less any state-paid property tax relief. Unfortunately beginning with the 2017 tax year, the ND State Legislature has done away with the 12% state-paid property tax relief program. Below is an example of how Net Consolidated Tax is figured on a residential property:

 

 True & Full Value of Property  $100,000
 Assessed Value (50% of True & Full Value)  $50,000
 Taxable Value (9% of Assessed Value)  $4,500
 Consolidated mill levy (from 2016)  297.51
 Convert to rate (divide mills by 1000)  .29751
 Consolidated Tax Amount ($4,500 X .29751)  $1,338.79

  

Special Assessments are a method used by cities or other taxing entities to pay for infrastructure improvement projects that benefit specific parcels of land. The cost of these projects is divided amongst the properties that benefit from them. Not all parcels have special assessments on them and special assessments may be paid off at any time. Until all special assessments on a parcel have been paid, the county will bill a yearly installment of special assessments on the property tax statement.

Drains are taxes for specific water/drainage projects that benefit specific parcels of land. Drain taxes can function similarly to a special assessment as sometimes there is a balance that can be paid off and differently in that sometimes drain taxes are ongoing maintenance charges that will generally continue as long as the drain is in existence.

Tax Payment Options – Taxes paid in full on or before February 15th of each year receive a 5% discount off of the consolidated property tax amount. Discount is not available on special assessments and drain taxes.

If not paying in full to take advantage of the discount, taxes may be paid in two installments with the first half being due by March 1st and the second half being due by October 15th.

If a tax payment deadline falls on a weekend or county holiday the deadline is the next business day. If mailing in a payment the payment must be postmarked  by the deadline or it will be considered late and subject to normal penalties. It is recommended to take your payment to a main post office to be mailed to ensure it has the correct postmark.

If tax payments are not paid by the installment deadlines the taxes are subject to the following penalties:

            Penalty on 1st installment & Specials                              Penalty on 2nd installment

                        March 1st         3%                                                       October 15th   6%

                        May 1st            6%

                        July 1st              9%

                        October 15th   12%

For taxes owing for prior years, interest is assessed at the rate of 1% per month. Interest is added on the first of the month.

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True and Full Value/Taxable Value  

The TAXABLE VALUATION is that value to which the taxation rate is applied to calculate the amount of tax due. An assessor first sets the TRUE AND FULL VALUE of each taxable property in the county. For residential and commercial property, true and full is market value. For agricultural property, it’s the productivity value. The assessor’s values are reviewed by the local city and township boards of equalization. Those values are further reviewed by the county director of equalization who makes recommendations to the county board of equalization. The state board of equalization finalizes these values. The equalization process ensures that like property is assessed equitably across the various city, township and county boundaries.

The TRUE AND FULL VALUE is reduced by 50% to arrive at the ASSESSED VALUE. The assessed value is then multiplied by 9% to determine the TAXABLE VALUATION of residential property. For all other property, the assessed value is multiplied by 10% to determine TAXABLE VALUATION.

 

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Tax Payments may be made by cash, check or credit card. There is a 2.65% convenience fee with all credit card payments and a flat $1.50 fee for processing e-checks.

Please note that if your mortgage company pays the real estate taxes for your property you will still receive a property tax statement in the mail from our office. This is to let you know what your property taxes are and is for your information only.