Rising: Residential property values to rise in Stutsman County
Residential property values in Stutsman County outside Jamestown are set to rise between 10 and 48 percent in most townships and cities in Stutsman County, thanks to increases in home sale prices in those areas.
“The housing market has gone through the roof,” said Dustin Bakken, Stutsman County tax director. “It’s basically supply and demand. There’s not a whole lot of houses for sale and people still want to buy them, so prices are going to increase.”
Unlike agricultural property, which is valued according to soil type and use, the values used for taxation for residential property are tied to market value.
In order to calculate residential property values, the sale price and assessed values for all the residential property sold in the township or city are tabulated together. Then the ratio of the assessed value to the sale price is calculated for each of the sales.
The median value for those ratios is supposed to be between 90 and 100 percent — meaning that the new assessed value becomes 90 to 100 percent of the market value — and if it isn’t, the residential property values are brought up so that it is.
In Stutsman County, the values were brought up to 93 to 94 percent of the market value.
When there are fewer than three parcels sold in a township, Bakken groups townships together until there are at least three, so that the median will be more accurate.
Some residential property sales can be excluded, such as those between family members.
The township properties that will see the largest increases in residential property value are those in townships closest to Jamestown, Bakken said.
Midway Township will see the largest increases in residential property value, which will increase by 37 percent.
However, quite a few townships will see 27 percent increases in residential property values. Those townships include: Homer, Woodbury, Buchanan, Fried, Rose, Spiritwood, Winfield, Corwin, Sydney, Lenton, Lippert and Eldridge. And Bloom Township properties will have 24 percent higher values than the previous year.
Most of the rest of the townships will see a 10 percent increase in residential property values.
There are still a few areas of Stutsman County where the projected residential value increases are smaller than 10 percent, and the city of Jamestown sets its own residential property values separately and isn’t included in the county’s analysis, Bakken said.
Montpelier Township and Spiritwood Lake City were both completely reappraised last year, so their values didn’t change.
“About every four to six years we should be doing a complete reappraisal,” Bakken said, though that hasn’t happened for a while. Those reappraisals can help prevent having to increase values using the market.
And then there are Ypsilanti Township, with values expected to increase just 3 percent, and the city of Medina, which will see a 4 percent increase in residential property values.
Some cities in Stutsman County will see even higher increases in residential property than the townships around Jamestown.
Pingree, Streeter, Buchanan, Montpelier, Kensal and Cleveland are all looking at property value increases of 48 percent, with Woodworth and Courtenay sitting at 24 percent increases.
All the numbers have been checked against the data from previous years, Bakken said.
“The percent of increase of property values doesn’t translate directly into … a tax increase,” Bakken cautioned.
It does mean that if the total property tax levy were a pie, the residential piece of the pie would be proportionally larger than it was last year, in comparison with the commercial and agricultural pieces.
“Residential would be pulling a little bit bigger piece of the pie,” Bakken said.
The total size of the pie — meaning the total amount of property tax to be levied — is yet to be set by the taxing entities such as Stutsman County, though, which means that whether people’s taxes go up or not is yet to be determined, he added.
Sun reporter Kari Lucin can be reached at (701) 952-8453
or by email at email@example.com