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Finance - Property Assessment

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1. What is Market Value, Assessed Value, and Taxable Value?

Finding the Market Value or True and Full Value of residential property involves determining the price most people would pay for it in its present condition. The City Assessing Division reviews sales of homes in Bismarck to determine market valuation. Each year every property value is reviewed and adjusted to reflect market changes. In addition to market changes, values also change as a result of remodeling, additions, or changes in condition. On site inspections of properties that have sold and properties that have undergone changes assist our appraisers in determining values for each taxable parcel in Bismarck. This is an ongoing process of gathering and reviewing information, measuring and listing new construction, and analyzing sales to provide accurate and current values annually. All valuations are determined as of February 1st of each year; this is called the Assessment Date.

The Assessed Value refers to a percentage of the assessor's market value, according to a state prescribed formula. In North Dakota, the assessed value is 50% of the market value.

The Taxable Value is determined by multiplying the assessed value by 9% for residential and 10% for all other property classes.

2. Who performs the appraisals?

The City of Bismarck Assessing Division employs certified assessment appraisers who are trained according to state law. Appraisers are trained to look for specific amenities such as style, size, location, condition, and other factors that affect value. Statistical analysis of current sales in your neighborhood as well as review of cost models are used by appraisers to estimate market values.

At times, the City of Bismarck also employs data collection personnel who are trained to inspect, measure, and list the property features that appraisal personnel will analyze in determining value.

3. Why do my property taxes sometimes change?

There are several factors that can affect property taxes. The most common factors are changes in the market value and changes in the mill levy. Market value changes, up or down, can be a result of changing market trends, condition of the property, or remodeling and/or additions to the property.

Mill levy changes are determined by each political subdivision (city, county, school, park) setting their annual budgets. Those total figures are then divided between taxpayers based on value and type of property owned. If your property is currently valued at or near market value, you should expect little or no change in the True and Full Value of your home. However, the property taxes you pay may change if the mill levy changes as determined by the city, county, school or park board.

4. When do any changes take effect?

All valuations are determined as of February 1st of each year; this is called the Assessment Date. The tax statement you receive each year in December reflects value placed on your property the previous February 1st. This statement in December will reflect any tax changes that resulted from a market value change or mill levy change.

5. How do I calculate property taxes?

To calculate annual taxes for a property, the taxable value is multiplied by the Mill Levy.

Market Value 100,000
Assessed Value (50% of Market Value) 50,000
Taxable Value (Assessed Value Multiplied by 9% residential tax rate) 4,500
Annual Tax (Taxable Value multiplied by the *Mill Levy) 1,845
*Note: 2009 Mill Levy - .31873 (318.73 divided by 1,000)
The mill levy is subject to change annually.
The tax rates are 9% for residential property and 10% for commercial property.

6. What is the mill levy?

The mill levy is the tax rate that is applied to the taxable value of your property. A mill is 1/10 of $.01 or $.001 (one thousandth). A mill levy is the number of dollars a taxpayer must pay for every $1,000 of taxable value. The Burleigh County Auditor determines the mill levy annually based on city, county, school, and park budgets. Mill levy changes are determined in November of each year. Info on how taxes and mill levies are established