It is the duty of the tax director and city assessors to value all taxable tracts and lots listed in the assessment books and all taxable buildings and improvements. It is important for the tax director or city assessor to complete a thorough inspection of the interior and exterior of buildings in order to make an accurate valuation. The property owner may give or deny permission to enter and view the interior of the premises however denying permission to enter forces the tax director or city assessor to make certain assumptions and the value may not be accurate.
The starting point of the assessment of real property is true and full value. For property classified as residential or commercial, true and full value means its market value. For property classified as agricultural, true and full value is based upon the productivity of the soil.
Market value is the price a property would bring if it were offered for sale in the open market for a reasonable length of time and purchased by a willing buyer from a willing seller, both parties being prudent and having reasonable knowledge of the property and neither being under undue pressure to complete the transaction. This is also known as an arm’s length transaction.
The tax director and city assessors track current and past sales in order to be aware of any trends in the market and make any necessary adjustments to the true and full value of taxable properties. These adjustments can be done by neighborhood or by type of house or business.
The tax director and city assessors administer various programs such as the Homestead Credit, Disabled Veteran’s Credit and Property Tax Exemptions as directed by the North Dakota Century Code. The tax director administers the Farm Residence Exemption per North Dakota Century Code.
