Taxes & Levies
Everything You Wanted to Know About Property Taxes......and then some!
By now all taxpayers in Burleigh County should have received their property tax statements. We who work in county government often hear comments that refer to this as the "county" tax bill. Take a closer look at your tax statement and you will see it contains taxes for each of the different governing bodies, each with their own tax levy. The fact is that in the City of Bismarck less than 13% of the total "county" tax bill is controlled by the County.
Some people have the impression that the County has authority over these many taxing entities on the tax statement. In fact, the County Commission has no authority over these political subdivisions. The County does, however, have the statutory responsibility to prepare, collect, and distribute the tax dollars to the respective political subdivisions including the state of ND.
A brief explanation of the tax statement may help you better understand the process. We start with value. True and Full Value is often called market value - or what the local (city or township) assessor determines the property is worth on the market. Assessed Value is 50% or 1/2 of the market value. Taxable Value is 9% of assessed value on residential property and 10% of assessed value on commercial and agricultural property. There often is confusion with the use of the terms market, assessed and taxable. However, state law established and requires their usage. Putting this in numbers using a $100,000 home reveals the following:
$100,000 True & full value (market)
$50,000 Assessed Value
$4,500 Taxable Value
The mill levy is the sum of the mills (tax rate) for all of the taxing entities. One mill equals .001. Multiplying the taxable value by the mill levy gives you the True and Full Value consolidated tax. Using a $100,000 home in Bismarck as an example the consolidated tax is figured as follows:
$ 4,500 Taxable Value
x .49094 mill rate
$ 2,209.23 Consolidated Tax
If you pay your entire tax including special assessments on or before February 15 of each year you will receive a 5% discount on your consolidated tax
Special assessments are included on your tax statement. These are a type of user fee and are based upon specific improvements made for your property and include such things as street improvements, sidewalk, water\sewer lines, etc. The value (cost) of these type of improvements is normally spread over a period of years and paid in annual installments. These installments include payments for the special assessments (original cost) and principal on the borrowing.
As previously stated the County has the statutory responsibility to prepare, collect, and distribute the tax dollars to the respective political subdivisions. This includes the special assessments for cities. The County then disburses the funds collected monthly to each taxing entity. A review of the General Tax Distribution table on your tax statement will show how the tax dollars (excluding special assessments)generated from your property are distributed.
Questions regarding the Market\Assessed\Taxable value or your property should be directed to your local assessor (city or township). If you have not received a tax statement contact your County Treasurer.
I hope this helps explain your tax statement.
Burleigh County Auditor
How Taxes & Mill Levies are established
- Local assessor establishes value for each property (Feb 1 of each year).
- Local Board (city, township) of Equalization reviews, changes, approves local assessors valuations (April of each year).
- County Board of Equalization reviews, changes, approves local boards of equalization recommendations (June).
- State Board of Equalization reviews, changes, approves county board of equalization recommendations (August).
- Each taxing political subdivision completes and submits budget to county auditor by October 10 of each year.
- Mill Levy established. One mill = .001
Mill levy =
funds needed per budget
taxable valuation of subdivision
- Taxes of $100,000.00 home
$100,000 market value
$50,000 assessed value
x 9% residential (10% agricultural & commercial)
$4,500 taxable value
x mill rate
$4,500 taxable value
x .49094 mill rate for city of Bismarck (see levy sheet)
Current Mill Levy Information
Mill Levy (document)
File Size: 162.37 kb
Property Tax 101 by the ND Policy Council