Property Tax Basics
How are my property taxes calculated?
The information provided below is intended to help you understand property taxes in general, the often confusing "mill,” and how your property tax bill is calculated. This is an example only - tax statements vary!
There are three moving parts involved in determining your property taxes:
Value of a mill (tax rate)
The taxable value of your property
Budgets of taxing entities (or districts) and their requested levy
Value of a Mill (tax rate)
A “mill” is simply 1/1000th of anything:
- 1/1000th of one meter is a millimeter
- 1/1000th of one gram is a milligram
On your property tax bill, the value of a mill is 1/1000th of your Taxable Value.
Taxable Value
Taxable Value is a percentage of the True & Full value of your property.
Residential
Taxable Value = True & Full x 4.5%
Commercial & Agricultural
Taxable Value = True & Full x 5%
Taxing Entities (or Districts)
When you pay your property tax bill, you are actually paying several different taxing entities or districts. These are your various forms of local government, such as your county, city, township, school board, park board and any other entity that is allowed to levy property taxes. Each entity is governed by different elected officials. Citizens with concerns about local funding should contact these officials.
Taxing Entity |
Mills |
School District | 115 |
County | 36 |
City | 15 |
Park District | 15 |
Rural Fire | 5 |
Rural Ambulance | 12 |
UND Medical School (State) | 1 |
Soil Conservation District | 1 |
Total | 200 mills |
Putting it all together
The amount of tax you pay (what is provided on your tax statement) is determined by the number of mills each taxing entity levies and the value of a mill for your property.
Here’s an example of a property tax calculation for a residential property with a True & Full value of $200,000 and using the number of mills in the table to the left.
Determine taxable value: $200,000 X 4.5% = $9,000
Determine value of each mill: $9,000 / 1,000 = $9.00
Determine total property tax: 200 mills X $9.00 = $1,800
*Note: The UND Medical School receives one mill from every property tax payer. This is the only property tax assessed by the state.