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

Finding the market value or true and full value of residential property involves determining the most probable price expressed in terms of money that a property would bring if exposed for sale in the open market in an arms-length transaction between a willing seller and a willing buyer, both of whom are knowledgeable concerning all the uses to which it is adapted and for which it is capable of being used. The Assessing Division reviews sales of homes in the City to determine market valuation of properties.

Property value is reviewed and adjusted annually to reflect market changes in the City. In addition to market changes, values also change as a result of remodeling, additions, or changes in a property’s 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 the City. 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 annually as of February 1st; also known as the assessment date.

The assessed value refers to a percentage of the market value, according to a state prescribed formula. In the State of North Dakota, 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. Mill levy and property taxes are based on taxable value.

Show All Answers

1. What is Market Value, Assessed Value, and Taxable Value?
2. Who performs the appraisals?
3. What is the purpose of an on-site review?
4. What is the benefit of having an on-site review performed?
5. Why do my property taxes sometimes change?
6. When do any changes take effect?
7. How do I calculate property taxes?
8. What is the mill levy?