In North Dakota, 'true and full value' refers to what in the property tax assessment process?
Correct Answer
B) The assessor's estimated market value of the property
In North Dakota, 'true and full value' is the county assessor's estimated market value of the property. However, this is not the same as the taxable assessed value. Under NDCC 57-02-27, classification ratios are then applied to the true and full value to determine the taxable assessed value — for example, residential property is assessed at 50% of true and full value. Mill rates are then applied to that assessed value to calculate the property tax owed.
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Related Topics & Key Terms
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Related Concepts
Net Operating Income (NOI) is the revenue a property generates after deducting all operating expenses.
Converting a percentage to a decimal involves dividing the percentage value by 100.
In real estate, property value can be estimated by dividing the Net Operating Income (NOI) by the Capitalization Rate (Cap Rate).
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