Understanding Property Taxes

Taxable Value:

Calculated by multiplying the “True & Full” value of your property x 4.5% (Residential) or x5.0% (Ag & Commercial)

Ex: A home worth $200,000 x .045 = $9,000

Mill Rate/Mill Levy:

1 mill = .001

To determine the mill levy, you must determine what the sum of the mills(tax rate) for all taxing entities are and add them together.

Ex: $9,000(from above)x.001 (1 mill)=$9.00

Taxing Entities:

When you pay your property tax bill, you are actually paying several different local government taxes, each assessed separately by local government authorities. Not everyone in the county lives in the same city (or in a city at all), nor do they all live in the same school district or park district, so property tax bills can get pretty complicated.

The example below is NOT intended to be typical, but uses nice round figures to demonstrate the point:

Taxing Entity

Mills

School District

115

County

60

City

40

Township

10

Park District

15

Water District

5

Library Board

1

Rural Fire/Ambulance

3

UND Medical School

1

TOTAL

250

Putting it all together:

To combine our two examples from above, the NUMBER of mills(250) times the VALUE of each mill ($9) is the total tax. So it would be 250 x $9 = $2,250

We hope these definitions and the simplified illustration help make property tax calculations a little easier to understand.

*This information is provided by the North Dakota Association of Counties*

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