North Dakota Property Taxes
Overview of North Dakota Property Taxes
All property in North Dakota, unless specifically exempted, is subject to property tax. As is the case with most states, North Dakota property taxes are a major source of funding for city and county governments. They pay for services like schools, law enforcement, infrastructure, and parks. Every year, the state and its local governments collect $9 billion in total revenue. Of that, $1.2 billion or 13.65% of total revenue comes from property taxes. Homeowners in North Dakota pay $11.73 for every $1,000 of home value in property taxes.
The average North Dakota property tax bill adds up to $1,893 which is lower than the average tax bill in neighboring South Dakota. However, the figures fluctuate depending on the location of your property. For instance, homeowners in Benson County pay an average of $547 while those in Burleigh County pay $2,297.
How do North Dakota property taxes work? To determine how much you owe in North Dakota property taxes, your property's value must first be established. Each county has local assessors who are tasked with appraising property in their jurisdiction annually. The property must be appraised at its "true and fair value" or the amount the property would sell for in the open market. Once your property's market value has been established, an assessment ratio is applied to get the assessed value. In North Dakota, properties must be assessed at 50% of the market value. If your home has a market value of $200,000, the assessed value would be $100,000.
The taxable value is then calculated at 9% of the assessed value or 4.5% of the market value. This means for a property worth $200,000, the taxable value would be ($200,000 x 4.5%) $9,000. Tax rates are applied to the taxable value to get your annual North Dakota property tax bill. North Dakota has a single tax rate which is the sum of all tax rates levied by the various local taxing districts in the location of your property. North Dakota property tax rates are expressed in mills where a mill is equivalent to $1 of tax per every $1,000 of taxable value, or $0.001. In a nutshell, taxable value x total tax rates = North Dakota property tax bill.
If you are planning to buy a home in North Dakota and want to understand how much your property tax bill could potentially cost, check out our North Dakota Property Tax Tool to see what your bill would be.
North Dakota Property Tax Due Dates
Under North Dakota laws, local assessors must value property at its market value as of February 1 every year. The Assessors must notify property owners if their assessed value increases by $3,000 and 10% or more on March 1. The County Treasurer sends Notices containing the district budget, true and full value of a homeowner's property and changes in estimated tax and tax levies on August 31. Property tax statements are mailed to homeowners on December 26. It is noteworthy that failure to receive a tax bill does not relieve you of the responsibility to pay North Dakota property taxes.
But when are property taxes due in North Dakota? Taxes are due and payable to the County Treasurer by January 1 of each year following the year of assessment. The taxes are payable without penalty until March 1. The state offers a 5% discount to homeowners who clear their North Dakota property taxes by February 15. If February 15 falls on a weekend, the deadline for a discount is pushed to the next business day. The state also allows you to pay property taxes in two installments. The first half is due by March 1 while the second half is due on or before October 15.
Taxes that remain unpaid after North Dakota property tax due dates result in penalties computed at 3% starting from March 1, May 1, July 1, and October 15. If the second half payments are not paid by October 15, a final 6% penalty is assessed. If the property taxes remain unpaid after three years, the County Auditor/Treasurer serves homeowners with a Notice of Foreclosure of Tax Lien. The county becomes the owner of the property on October 1 of the same year. The property is then sold in a public auction on the third Tuesday in November to recover the delinquent North Dakota property taxes, penalties, interest, and other costs.
North Dakota Property Tax Exemptions
Besides the option to appeal property taxes if you disagree with the assessor's valuation of your property, the state of North Dakota offers several exemptions to qualified homeowners. They include the homestead and senior exemptions. Eligible homeowners benefit from a reduction in their North Dakota property tax bill. However, you must still comply with North Dakota property tax due dates regardless of your eligibility for these exemptions.
North Dakota Homestead Exemption
North Dakota's homestead exemption is called the Homestead Property Tax Credit. Under this provision, qualified homeowners can reduce their North Dakota property tax bill. This exemption benefits homeowners aged at least 65 years as well as permanently disabled homeowners. The amount of taxable value reduced depends on how the homeowner meets certain income limit requirements. You must apply for this exemption with your local assessor.
North Dakota Senior Citizens Exemption
North Dakota's senior exemption is an extension of the homestead property tax credit. Eligible homeowners must be at least 65 years old in the year the application is made and have a total income not exceeding $42,000. Additionally, your assets on the assessment date must not exceed $500,000 including your home's market value. You must also reside and own the property as of February 1 of the year of the application. The North Dakota Century Code has more details regarding requirements.
Other North Dakota property tax exemptions include the Disabled Veterans Property Tax Credit. The credit, enacted by the North Dakota State Legislature in 2009, provides credit for veterans who served in the military and with a disability of at least 50%. Eligible veterans must meet all requirements and apply to the local assessor or the county director of tax equalization by February 1 of the assessment year. Veterans who qualify under his credit reduce the taxable value of their property.
How to Appeal Your Property Taxes in North Dakota
The state of North Dakota allows you to appeal property taxes if you believe the valuation of your property is excessive. A successful appeal can lower your North Dakota property taxes. The first process of appeal is an informal meeting with your local assessor and request that your property is reappraised. The assessor sends an appraiser to reappraise your property, makes any necessary changes, and informs you of the appraisal. If you still think your property valuation is unfair, you may appeal to the local/city Board of Equalization. If you disagree with the local board, you can appeal to the County Board of Equalization which hears property tax appeals in the first 10 days of June. Alternatively, you may bypass the local board and appeal directly to the County Board. Decisions by the County Board can be appealed to the State Board of Equalization. The State Board meets on the 2nd Tuesday in August.
The process of filing an assessment appeal varies across North Dakota though it generally follows the same steps from county to county:
- Obtain your assessment
- Determine if you are overassessed
- Complete forms needed to appeal
- File property tax appeal
- Prepare for hearing
- Attend hearing
- Appeal the decision
How to Appeal Your Property Taxes in Cass County
For a better understanding of how to appeal your property taxes in North Dakota, here is a breakdown of the process in Cass County, the most populous county in North Dakota.
Obtain your assessment
Details about your assessment can be easily obtained from your property tax statement. You may also consult the Cass County Assessor.
Determine if you are over-assessed
The best way to determine if the value placed on your property is a true reflection of its market value is by looking for the sales prices of similar units that have recently sold in your locality. TaxProper's search tool can help you in that regard.
Complete forms needed to appeal
The forms you need to appeal property taxes are available at the Cass County Auditor's Office or County Director of Tax Equalization.
File property tax appeal
You are required to file two copies of the completed appeal forms with the Cass County Auditor.
Prepare for hearing
A successful appeal establishes the true market value of your property. Simply stating that the taxes are too high is not enough. Preparing for an appeal hearing means collecting and organizing evidence supporting your opinion of value. The evidence includes but is not limited to oral testimony from a certified appraiser who has done a recent appraisal of your property, comparable sales, and photographs showing the undesirable aspects of your property e.g. poor access.
The Cass County Board of Equalization requires you to attend the appeal hearing to present evidence and answer questions from members of the Board regarding your property.
Appeal the decision
Decisions by the County Board can be appealed to the State Board of Equalization. However, you must have appeared at both the local/city and County Boards before appealing your assessment to the State Board.
Property Tax Information for North Dakota Counties
The table below provides county-level information about how property taxes work in each North Dakota county.
Want to learn more? Click the county links to learn more about a specific North Dakota county.
|County||Average Home Value||Average Tax Bill||Bill per $1,000|
|Golden Valley County||$134,559||$758||$5.60|
|Grand Forks County||$165,281||$2,567||$15.50|