In North Dakota, there is a property tax exemption for qualifying farm residences. Each residence is examined individually to determine if it qualifies.
Qualifications
The residence must be located on 10 contiguous acres or more of agricultural land and occupied by a farmer, which is a person who:
- Devotes most of their time to farming or ranching activities
- Has had gross farm income that is at least 66% of the total annual income of the farmer and spouse in any 1 year of the 2 preceding calendar years, whether one or both are farmers.
- Individuals who have begun occupancy and operation of a farm within the last 2 calendar years qualify as a farmer, as well as any farmer who retired due to age or illness.
Exemption Cap
Not applicable for the farm residence exemption.
Application Process
To apply, complete the Application for Farm Residence Property Tax Exemption and Statement of Farm Gross Income, and provide to the county director of tax equalization in the county where the residence is located. The complete application should be given to the county director of tax equalization.
How to Claim
Once approved, exemption will be applied to the taxpayer’s property tax statement.
Reference & Additional Resources
Flowcharts are available for those uncertain if they qualify for the exemption:
Q: I am a farmer, yet my house is taxed. What are the requirements for an exemption of farm residence?
A: There is a specific exemption from property tax for a qualifying farm residence. Each residence must be examined individually to determine if it qualifies. One should contact the county director of tax equalization of the county where the residence is located to review the specific facts of the residence. The general requirements are as follows:
- Residence must be located on ten acres or more of agricultural land and occupied by a farmer.
- A farmer is a person who devotes the majority of time to farming or ranching activities; has had gross farm income that is at least 66 percent of the total annual income of the farmer and spouse in any one year of the two preceding calendar years.
- The term farmer includes a retired farmer who has retired because of age or illness and who, at the time of retirement, qualified as a farmer for the farm residence exemption. "Farmer" includes a beginning farmer who has begun occupancy and operation of a farm within the preceding three calendar years.
Flowcharts are available for those uncertain if they qualify for the exemption.
- Active Farmer
- Ag Storage
- Beginning Farmer
- Farm Laborer
- Retired Farmer
- Surviving Spouse
- Vacant Farm Residence
Additional Property Tax Credits and Exemptions
Those applying for the credit may be eligible to apply for more than one type of property tax credit. Additional information on other credits and exemptions can be found here:
Property Tax Credits & Exemptions
Have Questions? Contact us at:
Phone: 701-328-7988
Toll Free: 1-877-649-0112
Email: taxprc@nd.gov