Property Tax Records in North Dakota

The average property tax rate in North Dakota as a whole is 0.94%, which is slightly below the national average. With that being said, the North Dakota property tax rate can vary significantly between counties and municipalities, reflecting local government needs and funding priorities.

The assessor in your county will identify your home's market value every year. This value is used to determine the assessed value and taxable value. If your county has a high effective tax rate, you may pay several thousand dollars in taxes every year. The amount that's shown in your tax bill depends on the value of your home. A home with a higher value comes with more taxes.

Once you purchase a property in North Dakota, you'll need to pay taxes annually. Your tax bill should be mailed to you in December. This bill must be paid in two installments, the first of which is due at the beginning of March. The second installment must be paid in full by mid-October.

North Dakota has levied property taxes since it first became a state. However, the state makes significant legislative changes to property tax laws every two years. For example, the 1997 legislative session allowed for a 2% increase in the amount of taxes that were collected by county governments. In 2003, the state began to require counties to sell tax deed properties to the highest bidder.

Before the county can calculate the amount of taxes you owe for the year, a local assessor must first identify the fair market value of your home. An assessor is assigned to each county or jurisdiction. While in-person visits can take place to ensure accurate appraisals, assessors regularly perform mass appraisals.

Once your home's market value is calculated, the assessor will use a unique method to determine the amount of taxes you owe. A home's assessed value equals 50% of its total market value. However, the taxable value is identified by multiplying the assessment value by 9%. For other property classes, you must multiply the assessed value by 10%.

If your home is valued at $400,000, its assessed value will be $200,000. You must then multiply $200,000 by 9%, which equals $18,000. The tax rate in your county will be applied to this amount. It should be displayed in mills. For example, your county might have a tax rate of 40 mills. Since a single mill is equivalent to $1 in tax for every $1,000 in taxable value, your tax bill would amount to $720.

You can also figure out how much you owe by using your county's effective tax rate. If your county has an effective tax rate of 1%, you'll owe $4,000 in yearly taxes. The effective tax rate is always applied to a home's market value. The tax rates in the most populous counties throughout North Dakota are:

Real estate taxes in North Dakota are used by county governments to pay local districts, which include everything from the fire district to the school district. The revenues that your county collects from property taxes cover local services like roads, schools, and parks.

If you want to purchase a home in Fargo or Bismarck, you can research it by looking up the property's tax records. The information in these records is available to the public, which is why it's easy to access.

Most county governments provide a database on their website that allows you to enter the owner's name or property address to find the home you're interested in. Many counties also allow you to search by parcel ID. Depending on where you live, you may need to find the home on a map to access its data. The information that should be available in property tax records includes the following:

In North Dakota, homeowners have a few tax exemptions they can claim. If you qualify and claim one of these property tax exemptions in North Dakota, you might be able to lower your home's taxable value and reduce the amount of taxes you pay for the year. However, every exemption comes with strict requirements that you'll need to meet. For example, you may need to apply by a specific date to receive the tax break.

Homestead Credit: The purpose of this credit is to reduce your North Dakota property taxes. It's available to homeowners who are at least 65 years old or disabled. The amount you receive depends on your household income. With an income below $40,000, your home's taxable value can be reduced by 100% for a maximum exemption of $9,000. A household income of $40,000-$70,000 qualifies you for a 50% exemption.

Primary Residence Credit: If your home serves as your primary residence, you may qualify for a credit of up to $500. Let's say that your annual North Dakota property taxes amount to $2,000. If you qualify for this credit, your taxes could drop to $1,500.

Blind/Disabled Exemption: If you're blind, you can exempt $160,000 from the assessed value of your home. This exemption is also available to people who are totally and permanently disabled. However, the total exemption amount is $120,000.

Disabled Veteran Exemption: Veterans of the U.S. armed forces may qualify for this exemption if they have a disability that comes with a rating of 50% or higher. The maximum reduction of taxable value depends on your disability percentage. At 60%, you'll qualify for an exemption of $4,860. With a 100% disability rating, your exemption will amount to $8,100.

If you're trying to find tax records for a specific property in North Dakota, you have a few resources that you can tap into. For example, most county governments provide online databases that allow you to enter information about a property to access its tax records. Depending on the county, you may need to perform separate searches for property information and tax data.

A simpler way to find tax records for a home that you'd like to buy is with PropertyChecker, which is a third-party tool that gives users access to comprehensive documentation for more than 155 million homes throughout the country. When you use this website, you can locate a property by entering its address or parcel ID. The data you receive from this search should include the following:

The North Dakota government allows homeowners throughout the state to appeal their taxes. When you receive your annual change of assessment notice, you can determine if your home's assessed value is correct. The amount may have increased at a higher rate than it should have. While assessors are typically accurate, they can make mistakes.

Even though the county assessor doesn't need to visit your property every year, your home's assessed value will still be updated annually. This update occurs on February 1 every year. You'll receive a notice if your home's assessed value has increased by 10% or more over the past year. With this notice in hand, you can begin the appeals process.

Step 1: Call your local assessor once you receive the notice. The assessor should visit your property and review the appraisal.

Step 2: If the assessor doesn't change the value of your home, appeal to your local board of equalization. The board should meet in April. Make sure you take evidence with you to the hearing.

Step 3: An additional appeal can be filed with the County Board of Equalization. They will meet in June, during which they'll consider all the evidence that you've filed.

Step 4: The final step of the informal process involves appealing to the State Board of Equalization. While a meeting with the local board isn't necessary to meet with the county board, it must be done if you wish to appeal to the state board.

Step 5: The formal appeals process occurs by filing an abatement with your county auditor by November 1. Your property will be inspected during this process. If the county auditor doesn't provide a favorable answer, you have 30 days to appeal to the Clerk of District Court.

Buying or selling a home in North Dakota means that you'll need to consider factors like the health of the real estate market, the interest rates on mortgage loans, and the property taxes in your county. While the average North Dakota property tax rate is close to the national average, some counties have rates that are as high as 1.25%. If you're buying a home that's valued at $400,000 in a county with an effective tax rate of 1.25%, you'll pay $5,000 in annual taxes. Understanding these costs can help you make more informed decisions and budget effectively for your home purchase.

Most homeowners choose to include their taxes in their monthly mortgage payments. In this situation, your mortgage payments could increase by more than $400 per month. Buyers often research North Dakota property tax records and consider past payments when purchasing homes. If you're trying to sell a home in a county with a high tax rate, buyers might not be as willing to make offers. You can mitigate this issue by providing incentives during negotiations, such as making repairs to the home before the deal closes.

Property taxes are also an essential component of an investor's decision-making process. When an investor purchases a rental, they need to be confident that the property will eventually earn a profit. If the investor can earn more in rental income than they make in payments every month, they can increase the value of their investment portfolio. Property taxes make up a sizable percentage of an investor's monthly payments.

North Dakota also provides investors with the opportunity to acquire real estate by bidding at tax foreclosure sales. As mentioned previously, the first installment of your taxes is due by March 1. The second installment must be paid by October 15. If these payments aren't made in time, your taxes will become delinquent immediately after each due date.

When your taxes become delinquent in North Dakota, your home may eventually be taken through the foreclosure process. If your property taxes remain delinquent for at least two years, your county will send you a notice on June 1 that your tax lien is being foreclosed. You'll then have until October 1 to pay all taxes as well as any interest that has built up over the years. If you don't make these payments on time, the county will receive a tax deed to your property, which means that they will own your home.

You can prevent your county from obtaining ownership of your property by redeeming it before October 1. Even if the county obtains a tax deed to your property, they may eventually sell it, which allows you to buy it back. Counties in North Dakota hold tax sales once every year. Investors from around the state will bid on these properties. The tax deed will be transferred to the winning bidder. A notice of this sale should be published at your county auditor's office or in the newspaper several weeks before the auction takes place. North Dakota tax sales are a great way to snag a solid deal on a property in North Dakota.