North Dakota

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State of North Dakota


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Bismarck (Burleigh) - Devils Lake (Ramsey) - Dickinson (Stark) - Fargo (Cass) - Grafton (Walsh) - Grand Forks - Mandan (Morton) - Minot (Ward) - Valley (Barnes) - Wahpeton (Richland) - West Fargo (Cass)
State Tax Summary
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In the state of North Dakota, real property tax is called Property Taxes. The official valuation standard is that True and full value shall mean, “the value determined by considering the earnings or productive capacity if any, the market value of the property to be assessed.” North Dakota Statutes, as amended.

All real and personal property on February 1 in North Dakota is subject to property tax unless exempt under federal or state law. Taxes are imposed by county, municipality and school districts. There is no property tax at the state level and no personal property tax in North Dakota North Dakota has property tax exemptions for seniors, low income taxpayers and disabled homeowners. Taxpayers must submit an application for an exemption. The state has documentation at website http://www.nd.gov/tax/ Special exemptions are available for government, religious, charitable, and educational property; farm, residential, agricultural improvements; and forest and orchards; hospitals, mines, and special exemptions for residential or commercial rehabilitation. North Dakota has two appeal procedures: an informal appeal with 4 steps and a formal appeal with 6 steps. There are commercial exemptions for improvements, mining, agriculture, railroads, utilities and wind turbines. The Denver Area Service Center (ASC) provides tax service for North Dakota.

Contents

Responsible agency

Property Tax Calendar

  • Assessment date February 1
  • Valuation Notices

Notices are sent when valuations increase 15% or more and property value increases $3000 or more. Notices are mailed 10 days before the second Tuesday in April. Smaller assessment increases are mailed each year with a property bill in December.

  • Appeal Deadline

Taxpayers may file objections with the County Board of Supervisors on first Monday in August of each year.

  • Bill Payment Date

Taxes are due February 15. If taxes are paid in one installment by February 15, there is a 5% discount. Two payment installments are due March 1 and October 15.

Property tax rates and dates

  • Annual assessment of real property Yes
  • Classification of property

All residential property is assessed at 4 ½% of true and full value.

  • Collections Taxes are collected one year in arrears
  • Fiscal year January 1 through December 31
  • Level of collection County treasurer
  • Level of government responsible for assessment County
  • Reassessment cycle Every year
  • Tax Calculation Rate

Full Market Value x 50% = Assessed value Assessed Value x 9% = Taxable value Taxable Value x Tax Rate = Taxes due

Residential Exemptions

Exemption claims must be filed to receive exemption from specially treated property or for property tax refunds. All properties used for housing the elderly, disabled, or mentally impaired exclusively are exempt from property taxes.

  • Blind, disabled and veteran exemption

The homestead for blind or disabled persons confined to a wheel chair, veterans and paraplegic disabled persons; groups homes for persons with developmental disabilities are exempt from property tax.

  • Construction in Progress

Taxpayers are responsible for the actual or market value of February 1. Improvement to residential or commercial structures may be exempt for up to five years if the exemption is approved by the local taxing authority. Any new construction of single family or town house is exempt from property tax for two years, up to $75,000.

  • Homestead

The homestead is exempt for three years for the value added by renovation, remodeling, or rehabilitation to any property that is 25 years or older. http://www.legis.nd.gov/cencode/T57C022.pdf

  • Mobile Homes

Mobile homes are assessed as real property when on a permanent foundation and land is owned by mobile home owner.

  • Personal property

Personal property is exempt in North Dakota.

  • Regular Homestead

For senior citizens over 65, and homeowners who are certified as permanently and totally disabled regardless of age, may receive tax credits un the homestead property tax credit program.

  • Renter refunds

Renters who are senior citizens over 65, or anyone that is certified as permanently and totally disabled regardless of age and has an income of less than $13,000 may qualify for a rent refund under the homestead property tax credit program. Renters may receive refunds up to $230 if 20% of the rent exceeds 4% of the renter’s income. Renters must apply every year to the North Dakota Tax department for this refund.

  • Tax deferment for seniors

Senior citizens over 65 may qualify for a property tax deferment, which is a lien on the property for property taxes due and repaid when the property is sold.

Commercial Exemptions

  • Agriculture property exemption

Any agricultural farm products grown in North Dakota and to the producer, products and materials to feed livestock, tools and machinery to cultivate or harvest crops, and property used for promoting objects at fairs are exempt.

  • Libraries, schools, colleges, athletic facilities

Non profit, religious, and educational organizations including early childhood facilities are exempt from property tax.

  • Mining, oil and gas property

Oil or gas producing equipment, wells, connections, pumps and derricks are exempt. Oil or gas produced under ground on producing property is exempt.

  • Pollution

Pollution abatement improvements are exempt from property tax. Solar, wind, and geothermal energy devices may qualify for a five year exemption.

  • Urban renewal

Property within an enterprise urban renewal zone may qualify for exemption from property tax.

  • Wetlands

Wetlands are exempt.

Tax Collector and Officials

North Dakota has two year elected and two year appointed tax assessors. There is no minimum education required. Special education and certification are required.

Forms

To claim the taxpayer refunds for homeowners and exemptions, taxpayers must contact their county assessors office, not the state office. Additional help, including property tax help is on the state website http://www.nd.gov/tax/centurycode/property.html

Forms due dates

The Clerk of the Board of Supervisors must send all applications for exemptions to the Tax Commission no later than June 1. All deductions for real property require that the ownership must be recorded as of February 1 of the assessment year for taxes payable the following year. Manufactured and mobile homes must be owned by February 1 to be eligible for the deductions to be applied to the tax bill for that year.

State assessor's manual

  • North Dakota Tax Assessor Manual; Marshall & Swift
  • North Dakota State Tax Commission
  • State Capitol
  • 600 East Boulevard Avenue
  • Bismarck, North Dakota 58505-0599
  • Price $25.00

How property tax determined

Residential property is assessed at 4 1/2% of market value and the assessor determines the fair market value. Mobile homes may be assessed as real property only when the owner of the mobile home is also the assessed owner of the land on which the mobile home sits. Most mobile homes are taxed as personal property. The assessor may use three methods.

  • Cost Approach

At current labor and material prices, estimate how much it would take to replace the property with one similar to it. Use this method when there are no sales of comparable properties.

  • Income Approach

For an apartment or office building, estimate how much income the property can produce.

  • Market Approach

Use other comparable properties that have sold recently, determine the most probable sales price of the subject property.

Appeal Procedure

North Dakota has two appeal procedures: informal and formal. Procedures to abate or refund taxes are at http://www.legis.nd.gov/cencode/T57C23.pdf

  • Informal appeal procedure
    • First

Meet at an informal meeting with local county tax assessor to resolve the issue, before April 1.

    • Second

If not successful, file an appeal with Local Board of Equalization.

    • Third

If not successful, file an appeal with County Board of Equalization.

    • Fourth

If not successful, file an appeal with State Board of Equalization. Their decision is final, but taxpayer may begin a formal appeal process.

  • Formal appeal procedure

A property owner may appeal a current or prior tax year and must file an application for abatement and refund of taxes. The formal appeal begins after an assessment is final, follows strict hearings dates and may result in court action in the final step.

    • First

File an application for abatement with the County Auditor or County Director of Equalization.

    • Second

In 10 days the local governing tax authority notifies taxpayer of hearing time and place.

    • Third

Within 60 days after the hearing, the local authority considers the appeal presented at the hearing. The local board either grants or rejects in part the appeal.

    • Fourth

At least 10 days before the county hearing, the taxpayer will be notified of the hearing time and place.

    • Fifth

The county commission will review the appeal and the taxpayer may present information at the hearing. The appeal is granted or denied.

    • Sixth

If appeal is denied, taxpayer must file an appeal to the North Dakota District Court within 30 days. All administrative appeals must be taken before requesting a judicial review. All current property taxes must be paid before the state will hear the case and the property owner may want to consult with an attorney at this level.

Additional tax classifications

  • Agriculture property tax

Agriculture is Class I and assessed at 5% of true and full value.

  • Commercial property tax

Commercial and industrial real estate is Class III and assessed at 5% of true and full value. Centrally assessed property is Class IV and assessed at 5% of market value.

  • Personal property tax

There is no personal property tax in North Dakota.

Additional tax bills and charges

  • Corrected bill

When an error is found on the original tax statement or when property owners go before the Board of Review, resulting in tax increases or decreases, a correct bill is issued when the corrections are made. Corrected bills are also issued when levy rates are wrong, the house is on the wrong tax lot and for homeowner exemption.

  • Delinquent taxes

Delinquent balances are applied to subsequent bills. A taxpayer may apply to have late charges, interest and property taxes canceled due to undue hardship or property damaged by a casualty loss event . No notices are sent for delinquent taxes in Mississippi.

  • Penalty and Interest charges

Homesteads are assessed 1% penalty on payments missed starting on February 2. North Dakota requires property owners to reimburse state agencies for sale and advertising fees.

  • Special Assessment Bills

A local entity may issues a special assessment bill for nuisance or infrastructure charges. These bills are due 30 days from the date of issue. Bills may also be issued when a homestead exemption is removed.

  • Tax liens

Property tax liens are attach as of January 1 each year on the assessment date. A property tax lien may be removed by payment of the property tax liability.

Current Legislation and Pending Issues

References





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