Small Town News

Valuation increases equals pocket change decreases

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The highly anticipated decision by the North Dakota State Board of Equalization was announced last week, and its ramifications will be felt throughout Rolette County.

At issue was a state mandate which requires taxable valuation of property in a city to be within 95-100 percent of market value. In Rolla, the 2008 valuations are at 83 percent, while the county as a whole was at 89 percent.

In April, 200 residents in Rolla received notices that their valuations would increase by more than 10 percent. Rather than make any changes as recommended by the city's tax assessor, William Fritz, the Rolla City Council voted to continue using last year's valuations and write a letter to the state equalization board promising to adjust the values next year.

The Rolette County Board of Commissioners then agreed with the Rolla City Council, essentially removing the ultimate decision from local officials' hands.

Two members of the equalization board were in Rolla last month to review the sales ratio statistics.

A recommendation was then presented and accepted by the state board of equalization last Tuesday that calls for a 15 percent increase to Rolla City residential land and structure values as determined for 2008.

So what does the increase mean for the value of a home in Rolla? As an example, one home in Rolla valued at $30,000 in 2008 would have seen an increase of 67.81 %, or an increase of nearly $17,000, had the 2009 assessments been accepted by the city. With the 15 percent increase, the value of the home will be closer to $33,750. Another example showed a home valued in 2009 at $42,485, compared to $21,709 in 2008, a 95 percent increase. A 15 percent increase of the $21,709 is closer to $3,300.

On the other side of the coin, those homes and structures in the city which were valued in the 2009 assessments as closer to market value, less than 10 percent increase, will be increased by 15 percent.

According to Rolette County Tax Director, Diane Schwandt, it's difficult to know how much taxes will increase because of a number of factors. Chief among them are how many dollars schools will request from the county. A property tax relief bill passed by the N.D. State Legislature is expected to ease the tax burden.

In Rolla, for example, the school district is expected to request approximately 70 fewer mills. If that is the case, the effects of the increase in assessed value could be minimized.

Schwandt used a home worth around $55,000 as an example: If the county, city and school mill levy were to remain the same, taxes on that property would increase nearly $210 a year. If, however, the school lowers the mill request by 70 mills, taxes would essentially equal what they were in 2008.

State Supervisor of Assessments. Marcy Dickerson, said the board's decision Was simply based on numbers.

"The consideration by the board was based on the evidence on the sales that took place and they indicated Rolla is 15 percent low. All adjustments are based on sales ratio statistics," Dickerson said.

Dickerson added the state board has issues with cities or even entire counties not being in compliance every year, but indicated Rolla's situation was different.

"This case was not really that common. The situation in Rolla where they had approved the 2008 values and would move forward was unusual," Dickerson said, referring to the city's decision to forgo the 2009 assessments and use the 2008 figures.

Schwandt said the decision by the state board wasn't a surprise.

"The state has to follow the Century Code and that's what they are doing," Schwandt said.

The blanket increase was not something Brandon Elick, a city councilman and member of the assessment committee, said tie was expecting.

"I'm not happy with what the state has done but I can understand why they did it," Elick said. "Our intent is to reevaluate all property before 2011 to get it more fair for everybody."

Although the state's decision concerning Rolla wasn't a complete surprise, their other recommendations were.

In-addition to Rolla, the state board called for a 10 percent increase for land and structure values within the city of Rolette.

A review of sales ratio statistics was also done in Dunseith. The board decided a blanket increase, to assessments in Dunseith would not correct the inequities that exist in that city.

"I hope they do what they plan to do and that is reassess the city and do a good job with that," Dickerson said. "We want the values of the homes to be at market value."

Councilman Dennis Berg, who 'was against the 2009 valuations, said taxpayers will have to live with the board's decision for 2009, but improvements will be made.

"I think there are a lot of other residential properties outside of Rolla that have values that are too low and they need to be raised also," said Berg. "We'll move forward from this and reevaluate our property for 2010."

No requirement exists to notify property owners concerning comprehensive valuation increases. Specific questions by property,, owners can be directed to Diane "Schwant, the Rolette County Tax Director.

"I'm not happy with what the state has done but I can understand why they did it." Rolla City Councilman Brandon Elick



Copyright 2009 Turtle Mountain Star, Rolla, North Dakota. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from SmallTownPapers, Inc.

© 2010 Turtle Mountain Star Rolla, North Dakota. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from DAS.

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