The land value of Grand Forks as a whole has increased about 11 percent from last year to this year, according to the city assessor’s office.
That 11 percent is more than double the city’s value increases in recent years. Between 2010 and 2013, the year-to-year increase was between 2 to 6 percent, according to a report from the city assessor’s office.
The total market value of Grand Forks is about $3.8 billion, up from $3.4 billion last year, according to the report.
The city’s total taxable value, which is a portion of the market value calculated by a state-mandated formula and is the amount used for taxes, is about $180 million, up from $162 million in 2013.
This means that if the mill rate, which is the government-set tax rate, stays the same, property taxes will increase.
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City staff members are aware of that concern and will take it into consideration when planning the 2015 budget, Maureen Storstad, city director of finance, told City Council members at the Board of Equalization meeting Monday.
Grand Forks’ recent building boom is likely what caused the increase in property value, said City Assessor John Herz, because every new building is assessed and then similar properties are reassessed, showing the increased value.
The report breaks down the property value increases, showing median numbers for both residential and commercial values.
The median value for commercial property was $330,100 in 2014, up from $308,100 in 2013. For residential, the median value was $160,400 in 2014, up from $149,400 in 2013.
Property taxes
Although people may worry their property taxes are increasing every year, the city assessor’s report shows a decrease in the mill rate over the past 10 years.
According to the report, in 2003, taxes for a residential property with the median value of $93,200 were $2,173. In 2013, the taxes for a property with the median value of $160,400 were $2,335.
But despite that, Grand Forks’ total mill levy for 2013 was second-highest among North Dakota’s largest cities, only lower than Jamestown by less than one mill, according to the report.
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Grand Forks’ total mill levy, which includes taxes paid to the city, state, school district, county and park district, was 367.71 for 2013.
Fargo’s was 325.71, Bismarck’s was 260.81 and Minot’s was 279.16. All three of those cities had a higher taxable value than Grand Forks in 2013.
At the Board of Equalization meeting Monday, council member Terry Bjerke pointed out that Grand Forks’ taxes are higher than these larger cities and said he doesn’t want people’s taxes to go up as their property values spike.
Decisions on whether the mill rate is lowered to compensate for the higher property values will be made in the fall as local government entities set their budgets for 2015.
More info: To see the annual report of the city's assessments click here .
