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Committee backs bill to require full-sale disclosure for agricultural parcels under 80 acres
Summary
The House Agriculture Committee voted to advance Senate Bill 2,152, which would remove an existing exemption that keeps sale prices off recorded deeds for agricultural parcels of fewer than 80 acres, with supporters saying it will improve appraisal accuracy and lower costs for consumers.
Senator Dean Rummel urged the committee to approve Senate Bill 2,152, arguing the change will increase transparency and help appraisers and assessors set accurate market values for small agricultural parcels. “There is no such thing as just a simple bill,” Rummel told the committee, adding that removing the exemption for agricultural lands less than 80 acres would give assessors and appraisers better data for valuations.
The bill would strike the exemption in subsection 6, paragraph J, of North Dakota Century Code section 11-18-02.2 that currently excludes agricultural lands under 80 acres from the recorded "statement of full consideration paid" that otherwise appears on deeds. Supporters said most deeds already include consideration statements, but the small-parcel exemption leaves a gap that forces appraisers to chase private records or rely on guesses. Alyssa Glass, executive director of the North Dakota Farm Credit Council, told the committee her group's appraisers spend the most time and expense tracking, verifying and analyzing sales data for rural properties and that adding consistent sales data would lower appraisal costs for consumers.
Appraisers and lenders testified they expect better and faster access to sales data for small tracts will lower financing costs because appraisals would be quicker and based on verifiable comparables. Steve Vetter, a certified residential appraiser who also served on the task force that discussed the issue, told lawmakers the bill improves "transferability" for small parcels — a factor in value — and could help younger buyers obtain footholds in rural properties by reducing appraisal friction.
Committee members asked about the effect on tax assessments and whether more recorded sale prices could increase taxes where small parcels near towns may now be revalued. Senator Rummel acknowledged that more transparent sales data could change assessed values in some areas but said he preferred transparency to guesswork.
After public testimony from appraisers, farm-credit lenders and commodity groups, Representative White moved a due-pass recommendation. The committee approved the motion in roll call; the clerk recorded multiple "No" votes but the motion passed. Supporters asked the House to pass the bill to give assessors and appraisers consistent, recorded sales data for parcels under 80 acres.
