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Office of State Tax Commissioner, Ryan Rauschenberger : State of North Dakota
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600 E. Boulevard Ave.
  Bismarck, ND 58505-0599
  328.7088 phone
  701.328.3700 fax
  877.328.7088 toll-free

Income Tax Exemption

New or Expanding Business

Qualifications

A primary sector or tourism business may qualify for an income tax exemption for up to five years. "Primary sector" refers to a business that adds value to a product, process, or service that produces new wealth in North Dakota. "Tourism" refers to a tourism-related business that is a destination attraction. Eligibility is limited to a new business or to an existing business that expands its operations in North Dakota.

A business is not eligible for the exemption if:

  • the business received a property tax exemption under tax increment financing,
  • there is an outstanding recorded lien for delinquent property, income, sales or use taxes against the business, or
  • the exemption fosters unfair competition or endangers existing business.

Application Procedures

  • The business must apply to the State Board of Equalization, c/o State Tax Commissioner.
  • The application must be filed no later than one year after the commencement of operations within the new business or expansion.
  • The Department of Commerce Division of Economic Development and Finance reviews the application for primary sector or tourism eligibility.
  • The business must provide notice to competitors as prescribed by the State Board.
  • At a public meeting, the State Board considers the application and any testimony, and grants or denies the exemption.

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