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6 | Page <br />Sales Ratio Analysis <br />North Dakota property tax is an ad valorem tax. This means, simply, a tax according to value. The true <br />and full value for tax purposes must reflect the market value of the property. To maintain equitable <br />assessments and achieve an accurate portrayal of the market our office conducts a sales ratio study <br />annually. It is the intent of the ND legislature that local assessors use the results of the sales ratio study <br />as a guide in making and equalizing assessments of property. <br />The State Board of Equalization adopted a tolerance level of 90 to 100 percent for agricultural, <br />residential, and commercial assessments for the 2021 sales ratio study. This means that our final ratio <br />analysis, after adjustments, must have a median between 90 and 100 percent. Prior to adjustments, the <br />2021 residential sales resulted in a median of 86.0 percent while commercial sales closed the year at <br />91.4 percent, which is within the appropriate tolerance level. Adjustments made to both classes of <br />property resulted in the final ratios listed below: <br />2021 Assessment Ratio Study for Cass County <br />2021 Measurements Tolerance <br />Median Ratio Residential 94.97% State Mandated 90 - 100% <br />Median Ratio Commercial 96.46% State Mandated 90 - 100% <br />PRD Residential 1.00 IAAO Guidelines 0.98 – 1.03 <br />PRD Commercial 1.05 IAAO Guidelines 0.98 – 1.03 <br />COD Residential 6.12% IAAO Guidelines Less Than 15% <br />COD Commercial 9.61% IAAO Guidelines Less Than 20%