North Dakota Century Code 57-33.2-05 establishes an electric generation and distribution tax which is in lieu of all real or personal property tax that would otherwise be imposed on the operative property of the company. Tax on operative property is centrally assessed at the rates indicated in the schedule below. Non-operative property includes land, buildings, structures, or improvements used for administrative purposes relating to generation, transmission, or distribution of electricity. Tax on non-operative property is locally assessed.
Tax | Tax Rate | Tax Distribution |
| Electric Distribution | Mega-Watt Hours Sold x $0.80 = Total Tax | Total Tax split equally between location of the lines and where it was sold. |
| Electric Transmission | Rate and exemption are variable based on when the line was put into service and year of transmission line operation (see ch. 57-33.2 and § 57-06-17.3) | Tax is allocated to taxing districts based on the location of the transmission lines that spread across the state. |
| Electric Generation |
| Tax is allocated to taxing districts based on the location of the generating units within the state. |
| Electric Generation from Wind |
| Tax is allocated to taxing districts based on the location of the generating units, or turbines, for the wind farm within the state. |
Schedules shown below must be completed and uploaded into NDTap.
Transmission
- Electric Transmission Tax Guide
- Electric Transmission Tax - File Layout
Distribution
- Electric Distribution Tax - File Layouts
Generation
- Electric Generation Tax - File Layout
- Generation from Wind
There are no tax incentives for this property, but there may be certain income or sales tax incentives that apply.
Centrally Assessed Payment in Lieu of tax is paid at the state level and distributed to the counties through the State Treasurer’s office. Any PILOT tax can be paid through a company’s ND TAP account.