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Property Taxes History

2017 Session

  • A new report shall be completed by the county auditor and contain taxable value information and levy detail necessary to prepare a report that identifies property tax increases.  The report is due to the state tax commissioner by December 31 each year. The tax commissioner shall prepare a statewide report by taxing district and provide said report to legislative management by April 1 of each year.
  • Surrendered certificates of title and records used to convert manufactured housing to real property must be maintained permanently and will be searchable on a website to confirm the status of a manufactured home as real estate.
  • Any city that has a certified Class I assessor and which has been determined by the state supervisor of assessments to have enough sales for an adequate sales ratio study, may elect to maintain records required under this subsection on behalf of the county.
  • A person claiming an incentive must provide documentation or property tax clearance from each county a person has fifty percent or more interest in a property.   Section 1 requires that person has satisfied all state and local tax obligations owed to the state or political subdivision. 
  • If a corporation or pass-through entity, officers, governors, managing members or partners charged with filing or paying taxes for the entity are subject to the same provisions as individuals.
  • All assessments for sidewalks must be payable in equal amounts not exceeding twenty years and must bear interest at an annual rate of not more than two percentage points above the average net annual interest rate on warrants for the total of the assessments remaining. Anyone may pay the sidewalk assessment in one single payment, and anyone who has paid one of more installments may pay the balance in one payment.
  • Any grantee or grantee's authorized agent who presents a deed in the office of the county recorder shall certify on the face of the deed any one of the following:  1. a statement of full consideration paid for the property or 2. a statement designating one of exemptions under §11-18-02.2(7).
  • Cities granting property tax incentives lasting longer than five years are to provide the chairman of the county commission and the president of any affected school district a letter outlining the terms of any proposed property tax incentive.  The county commission and school district shall notify the city in writing whether the county or school district elects to participate in granting the property tax incentive.
  • The ability for the board of county commissioners to levy an annual tax not exceeding ten mills plus any-voter approved additional levy to acquiring and developing real estate, capital improvements, buildings, pavement, equipment and debt service associated with financing for county supported airports or airport authorities was added.  The approval of sixty percent or more of electors for taxes levied for a capital improvements fund is required.
  • The consolidated taxpayer notice requirements as set forth in SB2288 establishes the following:
    • The county budget meeting notice.
    • Requires governing body of municipality to prepare a preliminary budget on or before August 10 each year.
    • Preliminary budget statements from municipality to county auditor and sets hearing date no earlier than September 7, and provides hearing details to county auditor. 
    • For municipalities anticipating levying less than $100,000 must publish notice of budget hearing once not less than six days before said hearing.
    • Identifies the notice requirements of this law for the governing body budget hearing.
    • Establishes for taxation purposes, the following January 1, as the effective date for annexations.
    • Changes language to be included on the notice of increased property assessment.
    • State board of equalization annual meeting to review centrally assessed property changed to its annual meeting in July.
    • Establishes that tentative assessments for centrally assessed property must be prepared on or before June 15 each year, for review at the state board of equalization meeting on the second Tuesday of July.
    • Require county auditors to provide maps to railroad companies by February 1 of district boundaries and that railroad company’s file by January 15.
    • Requires railroad companies to provide reports to the tax commissioner by April 1 of each year.
    • Requires companies assessed under 57-06-06 to report to tax commissioner by April 15.
    • Sets penalties for late reporting at 20% if not received by April 15 or opportunity to request extension from tax commissioner to May 1.  The state board shall add an additional ten percent to the assessed value if reporting not received by June 1.
    • Establish tentative assessments required by June 15 and that ten days' notice by mail be provided to each company.
    • Requires county auditors to provide maps of district boundaries by January 1 of each year to centrally assessed companies and requires companies to provide a report with location of operative property to county auditors by February 15 of each year.
    • Sets state board of equalization meeting to review centrally assessed property as the second Tuesday in July.
    • Establishes requirements for the consolidated budget hearing notice and estimated tax statement.
    • Sets school district deadline for establishing levy as August 10 each year.

2015 Session

  • Amended notice of increased assessment to require notice within 15 days of a local or county board or within 30 days of the state board of equalization, when action of the respective board creates a cumulative increase of $3,000 or more and 10% or more than the previous year's assessment.  Also requires prior notice of a township, city or county board of equalization meeting if cumulative result of increase is 15% or more than the previous year’s assessment.
  • Established certification requirements for assessors.  County directors of equalization and assessors of cities with a population of 5000 or greater must hold a class I certificate.  Township assessors and assessors of cities with a population of less than 5000 must hold a class II certificate.  Both certificates must be attained within twenty-four months of appointment or election to the position.
  • Increased value of a homestead eligible for the homestead credit from $100,000 to $125,000 beginning with taxable year 2016.
  • Provided a property tax exemption for a transmission line of 230 kV or larger for the first taxable year and a percentage of exemption through the second, third and fourth taxable years.  Established rate of taxation at $300 per mile.
  • Amended the state paid credit to include electric transmission and electric distribution taxes.
  • Extended the state paid property tax credit for taxable years 2015 and 2016 at twelve percent.
  • Exempted coal beneficiated for use within a coal conversion facility from the coal conversion facility tax.
  • No severance tax imposed on coal purchased for improvement through the beneficiation process which is subsequently used to produce steam used in agricultural commodity processing facilities in North Dakota or adjacent states or any facility owned by the state or political subdivision.
  • Amended NDCC § 57-06-14.1 to eliminate the language of extending the taxable value calculation of one and one half percent through the duration of an executed power purchase agreement.  All wind generation units with a nameplate capacity of 100 kilowatts or more completing construction after December 31, 2014 and those that are 20 years or more from the first assessment date will be subject to payments in lieu of property tax under NDCC 57-33.2-04 as well as all administrative provisions of chapter 57-33.2. 
  • Established that elected governing boards have authority to determine levy; non-elected boards submit a request for a levy.  Established reporting requirements prior to consideration of budget or levy requests.
  • Included land in the determination of the maximum credit available to disabled veterans or qualifying unremarried surviving spouse.  Established that the disabled veteran credit terminates at the end of the taxable year of the death of the applicant.
  • Provided matching grant for senior citizen programs equal to 87.5% of the amount appropriated for such programs up to an amount equal to the levy of up to one mill.  Effective for taxable years beginning after December 31, 2014. 
  • Provided for the consolidation and revision of mill levies and governing body levy authority.
  • Created a requirement for the Tax Commissioner to provide an estimate of tax increase for proposed school construction loans.
  • Provided for reduction of the county human service budget based on payments assumed by the Department of Human Services. 
  • Provided for a requirement that all taxing entities authorized to levy property taxes or have property taxes levied on their behalf to file annual reports, including ending fund balances, with the county auditor. 

2013 Session

  • Amended the base year calculation for school district general funds and reduced the number of special purpose levies available to schools.
  • Increased the maximum qualifying income for the homestead credit and renter’s refund program from $26,000 to $42,000.  Increased maximum assets allowed for homeowners to $500,000, including the market value of the homestead.
  • Provided that the governing body of a municipality may revoke or reduce an exemption or revoke or increase payments in lieu of tax for reasons specified in negotiation documents or as provided in N.D.C.C. 40-57.1-03.
  • Provided that a property owner may appeal assessment, classification, and exempt status of owner’s property to the State Board of Equalization if the property owner was foreclosed from attending the assessment proceedings because of the failure to substantially comply with notice requirements or irregularity of the local assessment proceedings.
  • Provided for the State Board of Equalization to add a penalty of $5,000, to be collected as part of the tax, against a public utility company that fails to make the required report for three consecutive years.
  • Provided exemption from all taxes and special assessments for property of a housing authority used for authority administration, or other property solely owned by the authority and used to conduct powers granted to the authority by law.
  • Repealed provisions for maintaining privacy of sale prices for real estate transactions.
  • Increased acreage exempted from taxation for religious purposes to five acres.
  • Increased the maximum property tax credit for a disabled veteran to $6,750 taxable value of fixtures, buildings, and improvements to the homestead.
  • Amended notice of increase in assessment to include a statement informing the owner that an increase in assessment does not mean that property taxes will increase.  Each taxing district must base its tax rate on the number of dollars raised from property taxes in the previous taxable year.
  • Provided that the assessor must provide a list of individuals that received a notice of increase of assessment to each city, county, school district, and park district that levied $100,000 or more in the previous year.
  • Amended language on property tax statements to include “legislative tax relief” which identifies the dollars of property tax savings provided by the state of North Dakota.
  • Provided a 12% credit for property taxes levied against real property or mobile homes and specific centrally assessed property.
  • Required a township to provide a response to a building permit application within 60 days of receipt of application.
  • Provided that a school district may establish an early childhood program and support it with local tax revenues, gifts, grants, donations, state moneys and federal funds designated for the program.
  • Required primary sector certification to be determined prior to a municipality extending a new or expanding business exemption.
  • Provided that cities or counties with a population of less than 40,000 must first receive voter approval for allowing new or expanding business exemptions to retail sector businesses.
  • Reduced tax rate of the distribution tax from $1.00 per megawatt hour to 80 cents per megawatt hour for retail sale of electricity delivered to a consumer in this state.
  • Extended the time frame for an electric company to opt into the irrevocable election to be taxed under N.D.C.C. 57-33.2.
  • Provided exemption from taxation for all residential rental property used as affordable housing for the property’s period of affordability.
  • Provided that neither the state nor any political subdivision may impose any mortgage tax or any sales or transfer taxes on the mortgage or transfer of real property.

2011 Session

  • Enacted a potash and byproducts tax in lieu of ad valorem taxes on any property rights attached to or inherent in the right to produce potash and potash byproducts; upon producing potash and potash byproducts leases; upon machinery, appliances, and equipment used in and around any well producing potash or potash byproducts and actually used in the operation of the well; and upon any investment in property.  Provided that the land and processing plant, mining facility, or satellite facility must be assessed and taxed as other property within the taxing district in which the property is situated, is taxed.
  • Extended property tax relief enacted by the 2009 legislature through the biennium ending June 30, 2013.
  • Provided that for any county that has not fully implemented use of soil type and soil classification data by February 1 of any year after 2011, the Tax Commissioner shall direct the state treasurer to withhold 5 percent of that county’s allocation each quarter from the State Aid Distribution Fund.  Provided that the amount withheld must be deposited in the agricultural land valuation fund.  Directed that all moneys deposited must be allocated to the county from which the withholding was made upon certification from the Tax Commissioner of the implementation of subsection 7 of section 57-02-27.2 by that county.
  • Required that land that was assessed as agricultural property at the time the land was put to use for extraction of oil, natural gas, or subsurface minerals as defined in section 38-12-01 must continue to be assessed as agricultural property if the remainder of the surface owner’s parcel continues to qualify for assessment as agricultural property.
  • Amended section 57-02-27.1 to provide that the governing body of a township, as well the governing body of a city, may establish valuations that recognize the supply of vacant lots available for sale.
  • Provided for a city or county to impose crew housing permit fees on crew housing facilities.  Provided that a city or county may share revenues from the fees with other taxing districts in which the property is located.
  • Required a city, city park district, county, or school district to publish a property tax increase notice and hold a public hearing if it intends to impose a property tax levy in a greater number of mills than would be needed to raise the same amount of property tax revenue as the property tax levy in the prior year.  Does not include taxing districts that levied a property tax of less than $100,000 in the prior year and set a budget for the current year calling for a property tax levy of less than $100,000.  
  • Amended the disabled veterans’ property tax credit.  Authorized 100 percent credit for a disabled veteran who has an extra-schedular rating to include individual unemployability that brings the total disability rating to 100 percent as determined by the Department of Veterans' Affairs, and for an unremarried surviving spouse who is receiving dependency and indemnity compensation.    
  • Exempted from property tax the leasehold interest in property leased by a political subdivision from another political subdivision.
  • Increased the number of mills that a county may levy for emergency purposes to 4 mills in a county with a population under 30,000 but more than 5,000, and 6 mills in a county with a population of 5,000 or lower.  A county with a population of 30,000 or more may levy a tax not exceeding 2 mills.
  • Expanded the property tax exemption for property of religious corporations or organizations to include all buildings used for religious services; the residence of the minister in charge of services; land under those buildings; unimproved off-street parking or reasonable landscaping or sidewalk area adjoining the main church building; and a maximum of two additional acres.  If the minister’s residence is not adjacent to the church, that residence with up to two acres of land is exempt.
  • Provides that for purposes of property tax exemption, property is not used wholly or in part for public charity if that property is residential rental units leased to tenants based on income levels that enable the owner to receive a federal low-income housing income tax credit.
  • Provides that for purposes of tax increment financing (TIF) districts, “blighted area” does not include any land that has been assessed as agricultural property within the last ten years unless it was located within the interior boundaries of a city for at least ten years.  Limited the number of years the base year for a TIF district may be used without a new base year being established.  Allowed surplus funds on hand to be distributed to political subdivisions.  Set out requirements for public hearings and annual reports to the Department of Commerce.
  • Provided for suspension or revocation of a certificate issued by the State Supervisor of Assessments for probable cause, for a hearing and appeal, and for restoration of the certificate.  Set out requirements for property records and their maintenance.  Gave authority to the State Board of Equalization to equalize the classification and exemption status of real property.  Provided for review by the Tax Commissioner, State Supervisor of Assessments, or their designee of selected properties within each county, and examination of the reviews by the State Board of Equalization.  Provided that if any county or county official fails to take action ordered by the State Board of Equalization, the State Board of Equalization may petition any judge of the district court to require the county or county official to comply with the order of the State Board of Equalization.  Provided that the county commissioners, Tax Commissioner, or State Board of Equalization may order a new assessment.  Provided an appeal process for any owner of property included in a new assessment.

2009 Session

  • Increased the maximum ad valorem exemption for the homestead of a blind person to true and full value of $160,000 of fixtures, buildings, and improvements.
  • Provided that if the owner of a manufactured home records an affidavit of affixation, the manufactured home is considered real property and is assessed with the land on which it is located.
  • Provided that all oil or gas pipeline property that is not exempt from ad valorem taxation is subject to assessment by the State Board of Equalization.
  • Provided that the State Board of Equalization may not approve valuation and assessment in any taxing district in which the true and full value for residential and commercial property exceeds the true and full value for those property classifications in that taxing district as determined by the sales ratio study.
  • Extended the date by which a centrally assessed wind generation unit with a nameplate generation capacity of 100 kilowatts or more must be completed to qualify for 1.5% taxable valuation rate until January 1, 2015.
  • Repealed N.D.C.C. sections 57-02-24 and 57-02-25 relating to taxation of minerals, the ownership of which has been severed from the ownership of the overlying land.
  • Enacted property tax relief for all North Dakota taxpayers by providing mill levy reduction grants to school districts and requiring school districts to reduce their mill levies.  Terminated authority for school districts to have unlimited mill levies effective for taxable years after 2015.  Required electors desiring levies up to a specified number of mills above 185 mills to approve a levy up to a specific number of mills, for a period not to exceed ten years, by December 31, 2015.
  • Provided a state-funded property tax credit to reimburse political subdivisions for property tax losses experienced because of exemption of qualifying disabled veterans' homesteads from property taxes.  Required a qualifying applicant to furnish to assessment officials, when requested to do so, any information which is believed will support the claim for credit for any subsequent year.  Repealed language that permitted a county to disallow disabled veterans' exemptions.
  • Enacted an exemption for new single-family residential property, exclusive of land, for the year in which construction began and the next two taxable years, if the property remains owned by the builder and unoccupied, provided the exemption is approved by the city or county.
  • Provided that the surviving spouse of a farmer who at the time of death was an active farmer is eligible for the farm residence exemption through the end of the fifth taxable year after the taxable year of death of the deceased active farmer.  The farm residence exemption applies for as long as the residence is continuously occupied by the surviving spouse of an individual who at the time of death was a retired farmer.
  • Increased the maximum amount of exemption allowed for new single-family, condominium, and townhouse property, exclusive of land, to $150,000 for the first two taxable years after the taxable year in which construction is completed and the residence is owned and occupied for the first time, provided the exemption is approved by the city or county.
  • Increased the maximum mill levy allowed for a soil conservation district to 2 mills.
  • Increased the maximum qualifying income for applicants for homestead property tax credit to $26,000.  Increased the maximum exemption under the homestead credit program to $4,500 taxable value ($100,000 true and full value) of the person's homestead.  Raised the asset limitation for qualifying applicants to $75,000 excluding the first $100,000 unencumbered value of the homestead.
  • Increased the maximum qualifying income for applicants for the renter's property tax refund to $26,000 and increased the maximum refund to $400.
  • Provided that property owned by a nonprofit entity and used exclusively as a cemetery is exempt from special assessments.
  • Provided that when any assessor has increased the true and full value of any lot or tract of land and improvements by $3,000 or more and 10% or more than the amount of the last assessment, written notice must be delivered or mailed to the property owner, or provided to the property owner by electronic mail with verification of receipts, not fewer than 15 days before the meeting of the local board of equalization.

2007 Session

  • Provided that a centrally assessed wind turbine electric generation unit with a nameplate generation capacity of 100 kilowatts or more on which construction is completed after June 30, 2006, and before January 1, 2011, must be valued at 1.5% of assessed value to determine taxable value.
  • Provided that the value of carbon dioxide pipeline property for which payments in lieu of taxes are required must be excluded from the valuation of property in the taxing district for purposes of determining the mill rate for the taxing district.
  • Created the North Dakota pipeline authority to facilitate development of pipeline facilities to support production, transportation, and utilization of North Dakota energy-related commodities.  Provided for exemption of pipeline property owned by the pipeline authority and constructed after 2006, during construction and for the first five years of operation.  The property is subject to assessment by the State Board of Equalization and payments in lieu of taxes by the State Treasurer during the time it is exempt.
  • Required a resolution by the board of county commissioners to use any proceeds of a tax levy in excess of the amount needed to match federal funds for surfacing or maintenance of roads within the county road program for which the levy was originally made, or for any new project included in an amended program.
  • Defined the uncontested amount of taxes paid under protest as the amount that will be payable if the application for abatement, adjustment, or refund is approved by the board of county commissioners.  Provided that the uncontested amount of taxes under protest may be allocated immediately.
  • Provided that an applicant for abatement is limited to the relief claimed in the application for abatement.
  • Required the county director of tax equalization to use soil type and soil classification data from detailed and general soil surveys to determine the relative value of lands for each assessment district compared to the county average value. 
  • Required local assessors, in determining the relative value of each assessment parcel, to apply the following considerations in descending order of significance: soil type and soil classification data from the detailed or general soil surveys; the schedule of modifiers approved by the State Supervisor of Assessments and provided by the county director of tax equalization; and actual use of the property for cropland or noncropland purposes by the owner of the parcel.
  • Provided 5% of a county’s allocation from the State Aid Distribution Fund shall be withheld from any county that has not fully implemented use of soil type and soil classification data from detailed or general soil surveys for any taxable year after 2009, until implementation is complete.
  • Required that during the 2007-2008 interim, each county that has not fully implemented use of soil type and soil classification data from the detailed and general soil surveys shall report to the Legislative Council the reason for failure to do so and the anticipated date for full implementation.
  • Provided that unless delinquent taxes, special assessments, penalty, interest, and costs on real property are paid by October 1 of the second year following the year in which taxes became delinquent, the county auditor will foreclose on the tax lien and issue a tax deed to the county.
  • Provided that an excess levy may be authorized for a township up to 100% over and above the basic legal limitations.
  • Increased the maximum qualifying income for the homestead credit and renter’s refund from $14,500 to $17,500 per year for tax year 2007.  Increased the maximum taxable value of the homestead that may be exempted to $3,375.
  • Required that when any assessor has increased the true and full value of any lot or tract of land and improvements by more than 10% of the last assessment, notice must be delivered or mailed in writing to the property owner, or provided to the property owner by electronic mail with verification of receipt, not fewer than 15 days before the meeting of the local board of equalization. 
  • Provided that after June 30, 2007, in any school district election for approval of unlimited or increased levy authority, the ballot must specify the number of mills, the percentage increase in dollars levied or that unlimited mill levy authority is proposed for approval, and the number of taxable years for which that approval is to apply.
  • Provided that approval of unlimited or increased levy authority may not be effective for more than ten taxable years.
  • Provided that the question of authorizing or discontinuing specific number of mills authority or unlimited taxing authority in any school district must be submitted to the electors at the next regular election upon resolution of the school board or filing of a petition signed by 10% of the electors.
  • Provided that the property tax statement must include, or be accompanied by a separate sheet with, three columns showing for the taxable year to which the statement applies and the two immediately preceding taxable years, the property tax levy in dollars against the parcel by the county, school district, and city or township.
  • Provided for an income tax credit for 2007 and 2008 of 10% of property taxes or mobile home taxes that became due during the income tax taxable year and are paid.  See “Historical Overview” under Individual Income Tax on page 47 and Corporation Income Tax on page 28.
  • Provided that mobile home tax statements must include three columns showing for the taxable year for which the statement applies and the two immediately preceding taxable years, the property tax levy in dollars against the mobile home by the county, school district, and any city or township that levied taxes against the mobile home.
  • Required the Legislative Council to study in each interim through 2012 the feasibility and desirability of property tax reform and providing property tax relief, with the goal of reduction of each taxpayer’s annual property tax bill to not more than 1.5% of the true and full value of the property.
  • Provided that a certificate from a licensed physician or a written determination of disability from the Social Security Administration is acceptable proof of permanent and total disability for purposes of the homestead credit and renter’s refund.
  • Increased the true and full value of improvements owned and occupied as a homestead for which a paraplegic disabled veteran may receive property tax exemption from $80,000 to $120,000.
  • Repealed the income test for a disabled veteran with 50% or greater certified rated service-connected disability. 
  • Provided that a disabled veteran with a 50% or greater certified rated service-connected disability is eligible for an exemption equal to the percentage of the disabled veteran’s disability applied against the first $120,000 of true and full value of improvements owned and occupied by the disabled veteran as a homestead.
  • Provided that after the initial filing of a claim for exemption, the exemption is automatically renewed each year, but the veteran or veteran’s unremarried surviving spouse must re-file if that person sells the property or no longer claims it as a primary place of residence, or if the veteran dies or receives a change in the percentage of certified rated service-connected disability.
  • Provided that the disabled veteran’s exemption does not apply within a county in which a resolution adopted by the board of county commissioners is in effect disallowing the exemption for the taxable year.
  • Provided that the governing body of a city may establish valuations that recognize the supply of vacant lots available for sale.

2005 Session

  • Created the North Dakota transmission authority.  Provided that transmission facilities built under the authority are exempt from property taxes for a period not to exceed five years.  After the initial period, transmission lines of 230 kilovolts or larger and associated transmission substations are subject to a per-mile tax at the full rate and subject to the same manner of imposition and allocation as imposed on cooperative-owned transmission lines.
  • Required the county auditor to certify if there is an unsatisfied lien for homestead credit for special assessments against land in a document presented for transfer.  Provided that the county recorder may not record any deed for property on which the county auditor has determined that there is an unsatisfied lien for homestead credit for special assessments, except for a transfer between spouses because of the death of one of them.
  • Required a recipient to enter into a business incentive agreement with each grantor of a business incentive granted by the state or a political subdivision.  Provided a penalty for a recipient that fails to meet goals.
  • Provided that agricultural property includes land on which a greenhouse is located if the land is used for a nursery or other purpose associated with the operation of the greenhouse.  Provided that a greenhouse located on agricultural land and used primarily for growing of horticultural or nursery products is a farm building or improvement.
  • Provided that a centrally assessed wind turbine electric generation unit with a nameplate generation capacity of 100 kilowatts or more, for which a purchased power agreement was executed after April 30, 2005, and before July 1, 2006, and construction was begun after April 30, 2005, and before July 1, 2006, must be valued at 1.5% of assessed value to determine taxable value.
  • Increased the maximum qualifying income for the homestead credit and renter's refund from $14,000 to $14,500.  Increased the maximum amount of taxable value credit to $3,038.  Increased the unencumbered amount of homestead valuation that may be excluded from the asset test for homeowners to $100,000.
  • Provided that the rate used for capitalization of the average annual gross return of agricultural land may not be less than 8.9% for 2005 and 8.3% for subsequent years.
  • Authorized housing authorities to provide housing for persons of moderate income.  Provided that property of an authority used for moderate income housing is exempt from all taxes except special assessments unless specifically exempted from a special assessment by the political subdivision.
  • Provided that in lieu of exemption of a park model trailer located in a trailer park or campground, the department of transportation shall register the trailer as a travel trailer for a registration fee of $20 per year.

2003 Session

  • Provided that land acquired by tax deed must be sold to the highest qualified bidder.  Provided that a person is unqualified to be the highest bidder for property if the person owes delinquent taxes to any county.
  • Provided that any privately owned structure, fixture, or improvement located on state-owned land is not exempt from special assessments levied for flood control purposes if it is used for commercial purposes, unless it is primarily used for athletic or educational purposes at a state institution of higher learning.
  • Exempted from property taxation all property including any possessory interest therein, relating to any waterworks, mains, and water distribution system, or sewage systems and facilities for the collection, treatment, purification, and disposal in a sanitary manner of sewage, leased to the state or any agency or institution of the state, or to a private entity, which property is operated by, or providing services to, a municipality or other political subdivision.
  • Exempted from property taxation any property, including any possessory interest therein, belonging to the state or any agency or institution of the state, leased to a private entity pursuant to N.D.C.C. § 54-01-27, which property is operated by, or providing services to, the state or its citizens.
  • Provided that property owned by the state and held under a lease and any structure, fixture, or improvement located on that property is not taxable to the leaseholder if the structure, fixture, or improvement is used primarily for athletic and educational purposes at any state institution of higher education.
  • Provided for one year's exemption and three years of graduated tax rates for new or substantially expanded investor-owned and cooperative-owned transmission lines of 230 kilovolts or larger, and associated transmission substations, initially placed in service on or after October 1, 2002.  After the fourth year, those lines are taxed at $300 per mile.
  • Provided that the rate used for capitalization of the average annual gross return of agricultural land may not be less than 9.5%.

2001 Session

  • Required that when the board of county commissioners rejects an application for abatement, a written explanation of the rationale for the decision must be attached to the application and mailed to the applicant.
  • Provided that the taxable value of a centrally assessed wind turbine electric generation unit with a capacity of 100 kwh or more is 3% of assessed value.
  • Provided that a county officer or employee will not refund a fee or tax of less than $5.00.
  • Provided that a municipality may provide partial or complete exemption of residential property, exclusive of land, if the property was rehabilitated by an individual for the primary place of residence as a renaissance zone project.  Provided for exemptions of buildings, structures, fixtures and improvements rehabilitated as a zone project for any business or investment purpose.  A taxpayer may not be delinquent in payment of any state or local tax to benefit from those provisions.
  • Defined inundated agricultural land as agricultural property containing a minimum of 10 contiguous acres if the value exceeds 10% of the average agricultural value of noncropland for the county.  Provided the land must have been unsuitable for growing crops or grazing farm animals for at least two consecutive growing seasons, and produced revenue less than the county average revenue per acre for noncropland.
  • Required a nonprofit organization to make payments in lieu of taxes on property acquired for conservation.
  • Provided that a township may defray expenses of improvements by special assessment.

1999 Session

  • Made income and expense statements provided by commercial property owners to assessors confidential.
  • Allowed an abatement of property tax for damage to a building, mobile home, structure, or other improvement caused by natural disaster.
  • Increased the income limitation for the homestead credit and renter's refund from $13,500 to $14,000.
  • Made permanent the $20 permit fee for a park model trailer in lieu of the mobile home tax.
  • Expanded the farm building exemption to include feedlots and buildings used primarily, rather than exclusively, for farming purposes.
  • Allowed depreciation expense as an addition to net farm income for the farm residence exemption.
  • Granted the farm residence exemption to beginning farmers.
  • Established a class of inundated agricultural property that is assessed at 10% of the noncropland value.
  • Changed the agricultural land valuation formula to require inclusion of a production cost factor.
  • Made permanent the requirement that school districts and townships be included in the negotiations for the new business exemption.
  • Changed the payments in lieu of taxes for new businesses to include existing buildings as well as new buildings.
  • Extended the period of exemption for remodeling from three to five years and allowed an addition to an existing building to be exempted as an eligible improvement.
  • Changed the tax deed proceedings from a sale of tax delinquent property to foreclosure of tax lien.
  • Changed the county levy for Social Security to allow up to five mills to be used for county automation and telecommunications.
  • Increased the levy of a tax for programs and activities for senior citizens by a county or city from one to two mills.
  • Provided that a school district may levy up to 15 mills for removal or abatement of asbestos in school buildings and for providing an alternative education program.

1997 Session

  • Allowed for a 2% increase in the amount levied to match federal funds.
  • Required the state water commission to make payments in lieu of taxes for land acquired for the Devils Lake project.
  • Extended the agricultural production data used by NDSU for the agricultural land formula to a ten-year period for the 2000 assessment.
  • Made permanent a 50% expense allowance for agricultural revenue from irrigated cropland.
  • Allowed the temporary requirement that school districts and townships be consulted before granting a new business property tax incentive to expire.
  • Defined the income requirement for the farm residence exemption as more than 50% from farming activities in any one of the preceding three years.
  • Increased allowable nonfarm income to $40,000 during each of the preceding three years.
  • Provided that park model trailer owners could pay a fee of $20 per year to the motor vehicle department to exempt the trailer from taxation as a mobile home for tax years 1997 and 1998.
  • Increased the maximum general fund tax levy for fire protection districts from 10 to 13 mills.
  • Gave the state engineer authority to take remedies when man-made objects situated in, on the bed of, or adjacent to a navigable lake are, or are imminently likely to be, a menace to life or property or public health or safety; and to assess costs of action against any property of the person responsible.
  • Changed the agricultural property definition for property platted after March 30, 1981.
  • Provided that a pipeline and associated equipment, not including land, constructed after 1996 for transportation or storage of CO2 for use in enhanced recovery of oil or natural gas is tax exempt during construction and the first ten full taxable years.  The property is subject to assessment by the State Board of Equalization and payments in lieu of taxes by the State Treasurer during the time it is exempt.

 

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Ryan Rauschenberger
Tax Commissioner
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Property Taxes History

2017 Session

  • A new report shall be completed by the county auditor and contain taxable value information and levy detail necessary to prepare a report that identifies property tax increases.  The report is due to the state tax commissioner by December 31 each year. The tax commissioner shall prepare a statewide report by taxing district and provide said report to legislative management by April 1 of each year.
  • Surrendered certificates of title and records used to convert manufactured housing to real property must be maintained permanently and will be searchable on a website to confirm the status of a manufactured home as real estate.
  • Any city that has a certified Class I assessor and which has been determined by the state supervisor of assessments to have enough sales for an adequate sales ratio study, may elect to maintain records required under this subsection on behalf of the county.
  • A person claiming an incentive must provide documentation or property tax clearance from each county a person has fifty percent or more interest in a property.   Section 1 requires that person has satisfied all state and local tax obligations owed to the state or political subdivision. 
  • If a corporation or pass-through entity, officers, governors, managing members or partners charged with filing or paying taxes for the entity are subject to the same provisions as individuals.
  • All assessments for sidewalks must be payable in equal amounts not exceeding twenty years and must bear interest at an annual rate of not more than two percentage points above the average net annual interest rate on warrants for the total of the assessments remaining. Anyone may pay the sidewalk assessment in one single payment, and anyone who has paid one of more installments may pay the balance in one payment.
  • Any grantee or grantee's authorized agent who presents a deed in the office of the county recorder shall certify on the face of the deed any one of the following:  1. a statement of full consideration paid for the property or 2. a statement designating one of exemptions under §11-18-02.2(7).
  • Cities granting property tax incentives lasting longer than five years are to provide the chairman of the county commission and the president of any affected school district a letter outlining the terms of any proposed property tax incentive.  The county commission and school district shall notify the city in writing whether the county or school district elects to participate in granting the property tax incentive.
  • The ability for the board of county commissioners to levy an annual tax not exceeding ten mills plus any-voter approved additional levy to acquiring and developing real estate, capital improvements, buildings, pavement, equipment and debt service associated with financing for county supported airports or airport authorities was added.  The approval of sixty percent or more of electors for taxes levied for a capital improvements fund is required.
  • The consolidated taxpayer notice requirements as set forth in SB2288 establishes the following:
    • The county budget meeting notice.
    • Requires governing body of municipality to prepare a preliminary budget on or before August 10 each year.
    • Preliminary budget statements from municipality to county auditor and sets hearing date no earlier than September 7, and provides hearing details to county auditor. 
    • For municipalities anticipating levying less than $100,000 must publish notice of budget hearing once not less than six days before said hearing.
    • Identifies the notice requirements of this law for the governing body budget hearing.
    • Establishes for taxation purposes, the following January 1, as the effective date for annexations.
    • Changes language to be included on the notice of increased property assessment.
    • State board of equalization annual meeting to review centrally assessed property changed to its annual meeting in July.
    • Establishes that tentative assessments for centrally assessed property must be prepared on or before June 15 each year, for review at the state board of equalization meeting on the second Tuesday of July.
    • Require county auditors to provide maps to railroad companies by February 1 of district boundaries and that railroad company’s file by January 15.
    • Requires railroad companies to provide reports to the tax commissioner by April 1 of each year.
    • Requires companies assessed under 57-06-06 to report to tax commissioner by April 15.
    • Sets penalties for late reporting at 20% if not received by April 15 or opportunity to request extension from tax commissioner to May 1.  The state board shall add an additional ten percent to the assessed value if reporting not received by June 1.
    • Establish tentative assessments required by June 15 and that ten days' notice by mail be provided to each company.
    • Requires county auditors to provide maps of district boundaries by January 1 of each year to centrally assessed companies and requires companies to provide a report with location of operative property to county auditors by February 15 of each year.
    • Sets state board of equalization meeting to review centrally assessed property as the second Tuesday in July.
    • Establishes requirements for the consolidated budget hearing notice and estimated tax statement.
    • Sets school district deadline for establishing levy as August 10 each year.

2015 Session

  • Amended notice of increased assessment to require notice within 15 days of a local or county board or within 30 days of the state board of equalization, when action of the respective board creates a cumulative increase of $3,000 or more and 10% or more than the previous year's assessment.  Also requires prior notice of a township, city or county board of equalization meeting if cumulative result of increase is 15% or more than the previous year’s assessment.
  • Established certification requirements for assessors.  County directors of equalization and assessors of cities with a population of 5000 or greater must hold a class I certificate.  Township assessors and assessors of cities with a population of less than 5000 must hold a class II certificate.  Both certificates must be attained within twenty-four months of appointment or election to the position.
  • Increased value of a homestead eligible for the homestead credit from $100,000 to $125,000 beginning with taxable year 2016.
  • Provided a property tax exemption for a transmission line of 230 kV or larger for the first taxable year and a percentage of exemption through the second, third and fourth taxable years.  Established rate of taxation at $300 per mile.
  • Amended the state paid credit to include electric transmission and electric distribution taxes.
  • Extended the state paid property tax credit for taxable years 2015 and 2016 at twelve percent.
  • Exempted coal beneficiated for use within a coal conversion facility from the coal conversion facility tax.
  • No severance tax imposed on coal purchased for improvement through the beneficiation process which is subsequently used to produce steam used in agricultural commodity processing facilities in North Dakota or adjacent states or any facility owned by the state or political subdivision.
  • Amended NDCC § 57-06-14.1 to eliminate the language of extending the taxable value calculation of one and one half percent through the duration of an executed power purchase agreement.  All wind generation units with a nameplate capacity of 100 kilowatts or more completing construction after December 31, 2014 and those that are 20 years or more from the first assessment date will be subject to payments in lieu of property tax under NDCC 57-33.2-04 as well as all administrative provisions of chapter 57-33.2. 
  • Established that elected governing boards have authority to determine levy; non-elected boards submit a request for a levy.  Established reporting requirements prior to consideration of budget or levy requests.
  • Included land in the determination of the maximum credit available to disabled veterans or qualifying unremarried surviving spouse.  Established that the disabled veteran credit terminates at the end of the taxable year of the death of the applicant.
  • Provided matching grant for senior citizen programs equal to 87.5% of the amount appropriated for such programs up to an amount equal to the levy of up to one mill.  Effective for taxable years beginning after December 31, 2014. 
  • Provided for the consolidation and revision of mill levies and governing body levy authority.
  • Created a requirement for the Tax Commissioner to provide an estimate of tax increase for proposed school construction loans.
  • Provided for reduction of the county human service budget based on payments assumed by the Department of Human Services. 
  • Provided for a requirement that all taxing entities authorized to levy property taxes or have property taxes levied on their behalf to file annual reports, including ending fund balances, with the county auditor. 

2013 Session

  • Amended the base year calculation for school district general funds and reduced the number of special purpose levies available to schools.
  • Increased the maximum qualifying income for the homestead credit and renter’s refund program from $26,000 to $42,000.  Increased maximum assets allowed for homeowners to $500,000, including the market value of the homestead.
  • Provided that the governing body of a municipality may revoke or reduce an exemption or revoke or increase payments in lieu of tax for reasons specified in negotiation documents or as provided in N.D.C.C. 40-57.1-03.
  • Provided that a property owner may appeal assessment, classification, and exempt status of owner’s property to the State Board of Equalization if the property owner was foreclosed from attending the assessment proceedings because of the failure to substantially comply with notice requirements or irregularity of the local assessment proceedings.
  • Provided for the State Board of Equalization to add a penalty of $5,000, to be collected as part of the tax, against a public utility company that fails to make the required report for three consecutive years.
  • Provided exemption from all taxes and special assessments for property of a housing authority used for authority administration, or other property solely owned by the authority and used to conduct powers granted to the authority by law.
  • Repealed provisions for maintaining privacy of sale prices for real estate transactions.
  • Increased acreage exempted from taxation for religious purposes to five acres.
  • Increased the maximum property tax credit for a disabled veteran to $6,750 taxable value of fixtures, buildings, and improvements to the homestead.
  • Amended notice of increase in assessment to include a statement informing the owner that an increase in assessment does not mean that property taxes will increase.  Each taxing district must base its tax rate on the number of dollars raised from property taxes in the previous taxable year.
  • Provided that the assessor must provide a list of individuals that received a notice of increase of assessment to each city, county, school district, and park district that levied $100,000 or more in the previous year.
  • Amended language on property tax statements to include “legislative tax relief” which identifies the dollars of property tax savings provided by the state of North Dakota.
  • Provided a 12% credit for property taxes levied against real property or mobile homes and specific centrally assessed property.
  • Required a township to provide a response to a building permit application within 60 days of receipt of application.
  • Provided that a school district may establish an early childhood program and support it with local tax revenues, gifts, grants, donations, state moneys and federal funds designated for the program.
  • Required primary sector certification to be determined prior to a municipality extending a new or expanding business exemption.
  • Provided that cities or counties with a population of less than 40,000 must first receive voter approval for allowing new or expanding business exemptions to retail sector businesses.
  • Reduced tax rate of the distribution tax from $1.00 per megawatt hour to 80 cents per megawatt hour for retail sale of electricity delivered to a consumer in this state.
  • Extended the time frame for an electric company to opt into the irrevocable election to be taxed under N.D.C.C. 57-33.2.
  • Provided exemption from taxation for all residential rental property used as affordable housing for the property’s period of affordability.
  • Provided that neither the state nor any political subdivision may impose any mortgage tax or any sales or transfer taxes on the mortgage or transfer of real property.

2011 Session

  • Enacted a potash and byproducts tax in lieu of ad valorem taxes on any property rights attached to or inherent in the right to produce potash and potash byproducts; upon producing potash and potash byproducts leases; upon machinery, appliances, and equipment used in and around any well producing potash or potash byproducts and actually used in the operation of the well; and upon any investment in property.  Provided that the land and processing plant, mining facility, or satellite facility must be assessed and taxed as other property within the taxing district in which the property is situated, is taxed.
  • Extended property tax relief enacted by the 2009 legislature through the biennium ending June 30, 2013.
  • Provided that for any county that has not fully implemented use of soil type and soil classification data by February 1 of any year after 2011, the Tax Commissioner shall direct the state treasurer to withhold 5 percent of that county’s allocation each quarter from the State Aid Distribution Fund.  Provided that the amount withheld must be deposited in the agricultural land valuation fund.  Directed that all moneys deposited must be allocated to the county from which the withholding was made upon certification from the Tax Commissioner of the implementation of subsection 7 of section 57-02-27.2 by that county.
  • Required that land that was assessed as agricultural property at the time the land was put to use for extraction of oil, natural gas, or subsurface minerals as defined in section 38-12-01 must continue to be assessed as agricultural property if the remainder of the surface owner’s parcel continues to qualify for assessment as agricultural property.
  • Amended section 57-02-27.1 to provide that the governing body of a township, as well the governing body of a city, may establish valuations that recognize the supply of vacant lots available for sale.
  • Provided for a city or county to impose crew housing permit fees on crew housing facilities.  Provided that a city or county may share revenues from the fees with other taxing districts in which the property is located.
  • Required a city, city park district, county, or school district to publish a property tax increase notice and hold a public hearing if it intends to impose a property tax levy in a greater number of mills than would be needed to raise the same amount of property tax revenue as the property tax levy in the prior year.  Does not include taxing districts that levied a property tax of less than $100,000 in the prior year and set a budget for the current year calling for a property tax levy of less than $100,000.  
  • Amended the disabled veterans’ property tax credit.  Authorized 100 percent credit for a disabled veteran who has an extra-schedular rating to include individual unemployability that brings the total disability rating to 100 percent as determined by the Department of Veterans' Affairs, and for an unremarried surviving spouse who is receiving dependency and indemnity compensation.    
  • Exempted from property tax the leasehold interest in property leased by a political subdivision from another political subdivision.
  • Increased the number of mills that a county may levy for emergency purposes to 4 mills in a county with a population under 30,000 but more than 5,000, and 6 mills in a county with a population of 5,000 or lower.  A county with a population of 30,000 or more may levy a tax not exceeding 2 mills.
  • Expanded the property tax exemption for property of religious corporations or organizations to include all buildings used for religious services; the residence of the minister in charge of services; land under those buildings; unimproved off-street parking or reasonable landscaping or sidewalk area adjoining the main church building; and a maximum of two additional acres.  If the minister’s residence is not adjacent to the church, that residence with up to two acres of land is exempt.
  • Provides that for purposes of property tax exemption, property is not used wholly or in part for public charity if that property is residential rental units leased to tenants based on income levels that enable the owner to receive a federal low-income housing income tax credit.
  • Provides that for purposes of tax increment financing (TIF) districts, “blighted area” does not include any land that has been assessed as agricultural property within the last ten years unless it was located within the interior boundaries of a city for at least ten years.  Limited the number of years the base year for a TIF district may be used without a new base year being established.  Allowed surplus funds on hand to be distributed to political subdivisions.  Set out requirements for public hearings and annual reports to the Department of Commerce.
  • Provided for suspension or revocation of a certificate issued by the State Supervisor of Assessments for probable cause, for a hearing and appeal, and for restoration of the certificate.  Set out requirements for property records and their maintenance.  Gave authority to the State Board of Equalization to equalize the classification and exemption status of real property.  Provided for review by the Tax Commissioner, State Supervisor of Assessments, or their designee of selected properties within each county, and examination of the reviews by the State Board of Equalization.  Provided that if any county or county official fails to take action ordered by the State Board of Equalization, the State Board of Equalization may petition any judge of the district court to require the county or county official to comply with the order of the State Board of Equalization.  Provided that the county commissioners, Tax Commissioner, or State Board of Equalization may order a new assessment.  Provided an appeal process for any owner of property included in a new assessment.

2009 Session

  • Increased the maximum ad valorem exemption for the homestead of a blind person to true and full value of $160,000 of fixtures, buildings, and improvements.
  • Provided that if the owner of a manufactured home records an affidavit of affixation, the manufactured home is considered real property and is assessed with the land on which it is located.
  • Provided that all oil or gas pipeline property that is not exempt from ad valorem taxation is subject to assessment by the State Board of Equalization.
  • Provided that the State Board of Equalization may not approve valuation and assessment in any taxing district in which the true and full value for residential and commercial property exceeds the true and full value for those property classifications in that taxing district as determined by the sales ratio study.
  • Extended the date by which a centrally assessed wind generation unit with a nameplate generation capacity of 100 kilowatts or more must be completed to qualify for 1.5% taxable valuation rate until January 1, 2015.
  • Repealed N.D.C.C. sections 57-02-24 and 57-02-25 relating to taxation of minerals, the ownership of which has been severed from the ownership of the overlying land.
  • Enacted property tax relief for all North Dakota taxpayers by providing mill levy reduction grants to school districts and requiring school districts to reduce their mill levies.  Terminated authority for school districts to have unlimited mill levies effective for taxable years after 2015.  Required electors desiring levies up to a specified number of mills above 185 mills to approve a levy up to a specific number of mills, for a period not to exceed ten years, by December 31, 2015.
  • Provided a state-funded property tax credit to reimburse political subdivisions for property tax losses experienced because of exemption of qualifying disabled veterans' homesteads from property taxes.  Required a qualifying applicant to furnish to assessment officials, when requested to do so, any information which is believed will support the claim for credit for any subsequent year.  Repealed language that permitted a county to disallow disabled veterans' exemptions.
  • Enacted an exemption for new single-family residential property, exclusive of land, for the year in which construction began and the next two taxable years, if the property remains owned by the builder and unoccupied, provided the exemption is approved by the city or county.
  • Provided that the surviving spouse of a farmer who at the time of death was an active farmer is eligible for the farm residence exemption through the end of the fifth taxable year after the taxable year of death of the deceased active farmer.  The farm residence exemption applies for as long as the residence is continuously occupied by the surviving spouse of an individual who at the time of death was a retired farmer.
  • Increased the maximum amount of exemption allowed for new single-family, condominium, and townhouse property, exclusive of land, to $150,000 for the first two taxable years after the taxable year in which construction is completed and the residence is owned and occupied for the first time, provided the exemption is approved by the city or county.
  • Increased the maximum mill levy allowed for a soil conservation district to 2 mills.
  • Increased the maximum qualifying income for applicants for homestead property tax credit to $26,000.  Increased the maximum exemption under the homestead credit program to $4,500 taxable value ($100,000 true and full value) of the person's homestead.  Raised the asset limitation for qualifying applicants to $75,000 excluding the first $100,000 unencumbered value of the homestead.
  • Increased the maximum qualifying income for applicants for the renter's property tax refund to $26,000 and increased the maximum refund to $400.
  • Provided that property owned by a nonprofit entity and used exclusively as a cemetery is exempt from special assessments.
  • Provided that when any assessor has increased the true and full value of any lot or tract of land and improvements by $3,000 or more and 10% or more than the amount of the last assessment, written notice must be delivered or mailed to the property owner, or provided to the property owner by electronic mail with verification of receipts, not fewer than 15 days before the meeting of the local board of equalization.

2007 Session

  • Provided that a centrally assessed wind turbine electric generation unit with a nameplate generation capacity of 100 kilowatts or more on which construction is completed after June 30, 2006, and before January 1, 2011, must be valued at 1.5% of assessed value to determine taxable value.
  • Provided that the value of carbon dioxide pipeline property for which payments in lieu of taxes are required must be excluded from the valuation of property in the taxing district for purposes of determining the mill rate for the taxing district.
  • Created the North Dakota pipeline authority to facilitate development of pipeline facilities to support production, transportation, and utilization of North Dakota energy-related commodities.  Provided for exemption of pipeline property owned by the pipeline authority and constructed after 2006, during construction and for the first five years of operation.  The property is subject to assessment by the State Board of Equalization and payments in lieu of taxes by the State Treasurer during the time it is exempt.
  • Required a resolution by the board of county commissioners to use any proceeds of a tax levy in excess of the amount needed to match federal funds for surfacing or maintenance of roads within the county road program for which the levy was originally made, or for any new project included in an amended program.
  • Defined the uncontested amount of taxes paid under protest as the amount that will be payable if the application for abatement, adjustment, or refund is approved by the board of county commissioners.  Provided that the uncontested amount of taxes under protest may be allocated immediately.
  • Provided that an applicant for abatement is limited to the relief claimed in the application for abatement.
  • Required the county director of tax equalization to use soil type and soil classification data from detailed and general soil surveys to determine the relative value of lands for each assessment district compared to the county average value. 
  • Required local assessors, in determining the relative value of each assessment parcel, to apply the following considerations in descending order of significance: soil type and soil classification data from the detailed or general soil surveys; the schedule of modifiers approved by the State Supervisor of Assessments and provided by the county director of tax equalization; and actual use of the property for cropland or noncropland purposes by the owner of the parcel.
  • Provided 5% of a county’s allocation from the State Aid Distribution Fund shall be withheld from any county that has not fully implemented use of soil type and soil classification data from detailed or general soil surveys for any taxable year after 2009, until implementation is complete.
  • Required that during the 2007-2008 interim, each county that has not fully implemented use of soil type and soil classification data from the detailed and general soil surveys shall report to the Legislative Council the reason for failure to do so and the anticipated date for full implementation.
  • Provided that unless delinquent taxes, special assessments, penalty, interest, and costs on real property are paid by October 1 of the second year following the year in which taxes became delinquent, the county auditor will foreclose on the tax lien and issue a tax deed to the county.
  • Provided that an excess levy may be authorized for a township up to 100% over and above the basic legal limitations.
  • Increased the maximum qualifying income for the homestead credit and renter’s refund from $14,500 to $17,500 per year for tax year 2007.  Increased the maximum taxable value of the homestead that may be exempted to $3,375.
  • Required that when any assessor has increased the true and full value of any lot or tract of land and improvements by more than 10% of the last assessment, notice must be delivered or mailed in writing to the property owner, or provided to the property owner by electronic mail with verification of receipt, not fewer than 15 days before the meeting of the local board of equalization. 
  • Provided that after June 30, 2007, in any school district election for approval of unlimited or increased levy authority, the ballot must specify the number of mills, the percentage increase in dollars levied or that unlimited mill levy authority is proposed for approval, and the number of taxable years for which that approval is to apply.
  • Provided that approval of unlimited or increased levy authority may not be effective for more than ten taxable years.
  • Provided that the question of authorizing or discontinuing specific number of mills authority or unlimited taxing authority in any school district must be submitted to the electors at the next regular election upon resolution of the school board or filing of a petition signed by 10% of the electors.
  • Provided that the property tax statement must include, or be accompanied by a separate sheet with, three columns showing for the taxable year to which the statement applies and the two immediately preceding taxable years, the property tax levy in dollars against the parcel by the county, school district, and city or township.
  • Provided for an income tax credit for 2007 and 2008 of 10% of property taxes or mobile home taxes that became due during the income tax taxable year and are paid.  See “Historical Overview” under Individual Income Tax on page 47 and Corporation Income Tax on page 28.
  • Provided that mobile home tax statements must include three columns showing for the taxable year for which the statement applies and the two immediately preceding taxable years, the property tax levy in dollars against the mobile home by the county, school district, and any city or township that levied taxes against the mobile home.
  • Required the Legislative Council to study in each interim through 2012 the feasibility and desirability of property tax reform and providing property tax relief, with the goal of reduction of each taxpayer’s annual property tax bill to not more than 1.5% of the true and full value of the property.
  • Provided that a certificate from a licensed physician or a written determination of disability from the Social Security Administration is acceptable proof of permanent and total disability for purposes of the homestead credit and renter’s refund.
  • Increased the true and full value of improvements owned and occupied as a homestead for which a paraplegic disabled veteran may receive property tax exemption from $80,000 to $120,000.
  • Repealed the income test for a disabled veteran with 50% or greater certified rated service-connected disability. 
  • Provided that a disabled veteran with a 50% or greater certified rated service-connected disability is eligible for an exemption equal to the percentage of the disabled veteran’s disability applied against the first $120,000 of true and full value of improvements owned and occupied by the disabled veteran as a homestead.
  • Provided that after the initial filing of a claim for exemption, the exemption is automatically renewed each year, but the veteran or veteran’s unremarried surviving spouse must re-file if that person sells the property or no longer claims it as a primary place of residence, or if the veteran dies or receives a change in the percentage of certified rated service-connected disability.
  • Provided that the disabled veteran’s exemption does not apply within a county in which a resolution adopted by the board of county commissioners is in effect disallowing the exemption for the taxable year.
  • Provided that the governing body of a city may establish valuations that recognize the supply of vacant lots available for sale.

2005 Session

  • Created the North Dakota transmission authority.  Provided that transmission facilities built under the authority are exempt from property taxes for a period not to exceed five years.  After the initial period, transmission lines of 230 kilovolts or larger and associated transmission substations are subject to a per-mile tax at the full rate and subject to the same manner of imposition and allocation as imposed on cooperative-owned transmission lines.
  • Required the county auditor to certify if there is an unsatisfied lien for homestead credit for special assessments against land in a document presented for transfer.  Provided that the county recorder may not record any deed for property on which the county auditor has determined that there is an unsatisfied lien for homestead credit for special assessments, except for a transfer between spouses because of the death of one of them.
  • Required a recipient to enter into a business incentive agreement with each grantor of a business incentive granted by the state or a political subdivision.  Provided a penalty for a recipient that fails to meet goals.
  • Provided that agricultural property includes land on which a greenhouse is located if the land is used for a nursery or other purpose associated with the operation of the greenhouse.  Provided that a greenhouse located on agricultural land and used primarily for growing of horticultural or nursery products is a farm building or improvement.
  • Provided that a centrally assessed wind turbine electric generation unit with a nameplate generation capacity of 100 kilowatts or more, for which a purchased power agreement was executed after April 30, 2005, and before July 1, 2006, and construction was begun after April 30, 2005, and before July 1, 2006, must be valued at 1.5% of assessed value to determine taxable value.
  • Increased the maximum qualifying income for the homestead credit and renter's refund from $14,000 to $14,500.  Increased the maximum amount of taxable value credit to $3,038.  Increased the unencumbered amount of homestead valuation that may be excluded from the asset test for homeowners to $100,000.
  • Provided that the rate used for capitalization of the average annual gross return of agricultural land may not be less than 8.9% for 2005 and 8.3% for subsequent years.
  • Authorized housing authorities to provide housing for persons of moderate income.  Provided that property of an authority used for moderate income housing is exempt from all taxes except special assessments unless specifically exempted from a special assessment by the political subdivision.
  • Provided that in lieu of exemption of a park model trailer located in a trailer park or campground, the department of transportation shall register the trailer as a travel trailer for a registration fee of $20 per year.

2003 Session

  • Provided that land acquired by tax deed must be sold to the highest qualified bidder.  Provided that a person is unqualified to be the highest bidder for property if the person owes delinquent taxes to any county.
  • Provided that any privately owned structure, fixture, or improvement located on state-owned land is not exempt from special assessments levied for flood control purposes if it is used for commercial purposes, unless it is primarily used for athletic or educational purposes at a state institution of higher learning.
  • Exempted from property taxation all property including any possessory interest therein, relating to any waterworks, mains, and water distribution system, or sewage systems and facilities for the collection, treatment, purification, and disposal in a sanitary manner of sewage, leased to the state or any agency or institution of the state, or to a private entity, which property is operated by, or providing services to, a municipality or other political subdivision.
  • Exempted from property taxation any property, including any possessory interest therein, belonging to the state or any agency or institution of the state, leased to a private entity pursuant to N.D.C.C. § 54-01-27, which property is operated by, or providing services to, the state or its citizens.
  • Provided that property owned by the state and held under a lease and any structure, fixture, or improvement located on that property is not taxable to the leaseholder if the structure, fixture, or improvement is used primarily for athletic and educational purposes at any state institution of higher education.
  • Provided for one year's exemption and three years of graduated tax rates for new or substantially expanded investor-owned and cooperative-owned transmission lines of 230 kilovolts or larger, and associated transmission substations, initially placed in service on or after October 1, 2002.  After the fourth year, those lines are taxed at $300 per mile.
  • Provided that the rate used for capitalization of the average annual gross return of agricultural land may not be less than 9.5%.

2001 Session

  • Required that when the board of county commissioners rejects an application for abatement, a written explanation of the rationale for the decision must be attached to the application and mailed to the applicant.
  • Provided that the taxable value of a centrally assessed wind turbine electric generation unit with a capacity of 100 kwh or more is 3% of assessed value.
  • Provided that a county officer or employee will not refund a fee or tax of less than $5.00.
  • Provided that a municipality may provide partial or complete exemption of residential property, exclusive of land, if the property was rehabilitated by an individual for the primary place of residence as a renaissance zone project.  Provided for exemptions of buildings, structures, fixtures and improvements rehabilitated as a zone project for any business or investment purpose.  A taxpayer may not be delinquent in payment of any state or local tax to benefit from those provisions.
  • Defined inundated agricultural land as agricultural property containing a minimum of 10 contiguous acres if the value exceeds 10% of the average agricultural value of noncropland for the county.  Provided the land must have been unsuitable for growing crops or grazing farm animals for at least two consecutive growing seasons, and produced revenue less than the county average revenue per acre for noncropland.
  • Required a nonprofit organization to make payments in lieu of taxes on property acquired for conservation.
  • Provided that a township may defray expenses of improvements by special assessment.

1999 Session

  • Made income and expense statements provided by commercial property owners to assessors confidential.
  • Allowed an abatement of property tax for damage to a building, mobile home, structure, or other improvement caused by natural disaster.
  • Increased the income limitation for the homestead credit and renter's refund from $13,500 to $14,000.
  • Made permanent the $20 permit fee for a park model trailer in lieu of the mobile home tax.
  • Expanded the farm building exemption to include feedlots and buildings used primarily, rather than exclusively, for farming purposes.
  • Allowed depreciation expense as an addition to net farm income for the farm residence exemption.
  • Granted the farm residence exemption to beginning farmers.
  • Established a class of inundated agricultural property that is assessed at 10% of the noncropland value.
  • Changed the agricultural land valuation formula to require inclusion of a production cost factor.
  • Made permanent the requirement that school districts and townships be included in the negotiations for the new business exemption.
  • Changed the payments in lieu of taxes for new businesses to include existing buildings as well as new buildings.
  • Extended the period of exemption for remodeling from three to five years and allowed an addition to an existing building to be exempted as an eligible improvement.
  • Changed the tax deed proceedings from a sale of tax delinquent property to foreclosure of tax lien.
  • Changed the county levy for Social Security to allow up to five mills to be used for county automation and telecommunications.
  • Increased the levy of a tax for programs and activities for senior citizens by a county or city from one to two mills.
  • Provided that a school district may levy up to 15 mills for removal or abatement of asbestos in school buildings and for providing an alternative education program.

1997 Session

  • Allowed for a 2% increase in the amount levied to match federal funds.
  • Required the state water commission to make payments in lieu of taxes for land acquired for the Devils Lake project.
  • Extended the agricultural production data used by NDSU for the agricultural land formula to a ten-year period for the 2000 assessment.
  • Made permanent a 50% expense allowance for agricultural revenue from irrigated cropland.
  • Allowed the temporary requirement that school districts and townships be consulted before granting a new business property tax incentive to expire.
  • Defined the income requirement for the farm residence exemption as more than 50% from farming activities in any one of the preceding three years.
  • Increased allowable nonfarm income to $40,000 during each of the preceding three years.
  • Provided that park model trailer owners could pay a fee of $20 per year to the motor vehicle department to exempt the trailer from taxation as a mobile home for tax years 1997 and 1998.
  • Increased the maximum general fund tax levy for fire protection districts from 10 to 13 mills.
  • Gave the state engineer authority to take remedies when man-made objects situated in, on the bed of, or adjacent to a navigable lake are, or are imminently likely to be, a menace to life or property or public health or safety; and to assess costs of action against any property of the person responsible.
  • Changed the agricultural property definition for property platted after March 30, 1981.
  • Provided that a pipeline and associated equipment, not including land, constructed after 1996 for transportation or storage of CO2 for use in enhanced recovery of oil or natural gas is tax exempt during construction and the first ten full taxable years.  The property is subject to assessment by the State Board of Equalization and payments in lieu of taxes by the State Treasurer during the time it is exempt.

 

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