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City approves 2019 tax rolls

By Staff | Apr 12, 2019

The Rugby City Council met Tuesday at 7p.m. to approve the city’s 2019 tax rolls as the acting city board of tax equalization.

After reviewing information and ordinances pertaining to tax equalization, council members listened to information presented by Pierce County Director of Tax Equalization Kelsey Siegler.

Siegler reported agricultural land values have increased to be in tolerance with overall averages provided by the office of the North Dakota State Tax Commissioner.

“Each year, NDSU and the State Tax Department look at our numbers for each soil classification, and they tell us where we need to be at for overall averages,” Siegler told the council.

“That required a 6 percent increase this year, which put us at a 93 percent tolerance. We need to be between 90 and10 percent tolerance with that.”

“For residential land and structures,” Siegler continued, “there was no change. For commercial land there was no over the board change.”

Siegler told the council commercial and residential sales ratios were 97.6 and 96.8 percent, each figure within acceptable ranges per the State of North Dakota Tax Commissioner’s office. She noted lakeshore property values and ratios are calculated separately and included with assessment totals.

Siegler continued, “I’m required by law to send a notice of increase to anybody whose property value went up $3,000 and 10%. There were 28 of those total for the City of Rugby. Some of those included some Chalmers lots that weren’t valued at anything before, but now are valued. Some of those include some that had a prorated value because they bought mid-year, and now they’re getting full year valuation. Some included new construction; some included adjustments to the assessment, and then changes in exemption.”

She reported the true and full value for new construction in 2018 as $5,599,493, and the value of demolition at $48,194.

“Overall, residential (property) saw a 1.9 percent increase; ag land saw a 6 percent increase; commercial saw an 8.5 percent increase, and overall, the total saw a 3.9 percent increase, or $6,458,035,” Siegler added.

Siegler noted the value of 1 mil was $7,685.06 in 2018. “This year, it’s predicted to be $8000.63, which is up from last year $315.57,” she said.

Siegler indicated her office received 72 applications for homestead credits for this year, and seven had not been completed and returned. “For people to qualify, you need to be 65 and older, or permanently and totally disabled. If you are permanently and totally disabled, there is no age requirement. You need to have an income of under $42,000, and you cannot have more assets than $500,000,” she explained.

Siegler also reported six Disabled American Veterans exemptions, one exemption for the legally blind, and four exemptions for new residences.

“(The new residence exemption) is approved by the city, and it’s a maximum of two years on the structure only, and it’s only on new structures, once they are completed and occupied. We have two of those that were completed; one was removed,” she said of the new residence exemptions.

Completed exemptions, each for $150,000 with $6750 taxable were for David Herfendal and Sheila and Larry Braaten. Exemptions for the 2018-2019 year were reported for Derrick and Shannon Welk, Sheila Vescovi, Kevin and Teri Allickson and George and Dyvonne Zinck.

Siegler reported Ken Schaan, Craig Zachmeier and Kayla and Benjamin Brase have applied for new residence exemptions for 2019-2020.

Siegler reported Delta T Development Corporation, an entity associated with Family Dollar Stores, completed a discretionary tax exemption for new or expanding businesses in 2018.

“Then we had two payments in lieu of taxes, that was the Rugby Hotel Group, that was completed for this year,” Siegler added, “and Moure Equipment, or Gooseneck, that one has a little more on it, they’re at 30 percent exempt for a payment of $81,720.”

“With these numbers,” Siegler indicated, “we have $128,970 taxable, and using last year’s mil levy rate, that’s $38,453.70. The city’s share is $15,553.78. The school’s share is $14,88.56, and the county/state’s share is $8019.36.”

Council member Gary Kraft asked Siegler about the homestead credit program.

“That comes from the state,” she answered.

The council approved the tax rolls for 2019 with a unanimous vote.

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