The operative property, both real and personal, of each company assessed under chapter 57-06, is valued by taking into consideration the earning power of the property as shown by its gross earnings and net operating income, the market or actual value of its stocks and bonds, the value of its franchises, rights, and privileges granted under the laws of this state to do business in this state, and any other legally-established evidences of value.
Only property that is in North Dakota is assessed, if the company has property that crosses state lines, the value of the portion within this state is determined by taking into consideration the value of the entire system and of the part within this state.
When there is sufficient information, both the cost and income approaches are utilized. For companies who don’t report their income, an assessment based on the original cost less depreciation is utilized.
The annual reports are due May 1st of each year.
Tax Rate
To determine the tax for pipeline property, the true and full operative value is multiplied by 5% to get the taxable value, it is then multiplied by the local mill rate. A mill is 0.1% or 1/10 of a percent, in order to calculate you take 0.001 times your taxable value and multiply that by your total mills to identify your total tax owed.
For example, let's identify the property tax for a pipeline that is worth $1,500,000 (true and full value) located where your local taxing entities total 250 mills.
- Pipeline True and Full Operative Value x 5%= Taxable Value. ($1,500,000 x .05 = $75,000)
- Taxable Value x mill = Mill Rate. ($75,000 x .001= $75)
- Mill Rate x # of taxable mills= Total Tax Owed. ($75 x 250 = $18,750)
The total tax owed on a pipeline worth $1,500,000 with a 250 mill levy would be $18,750.
How to Appeal
Appeals must be directed to the State Board of Equalization. If any company is aggrieved by any assessment of omitted property made by the tax commissioner under this chapter, it has the right to appeal to the State Board of Equalization for a review of such assessment. Such appeal must be taken by filing a notice of appeal with the tax commissioner within thirty days after the hearing date specified in the notice provided by section 57-07-02.
Tax Incentives
There are no tax incentives for this property, but there may be certain income or sales tax incentives that apply.
Payment Options
Property tax is a cumulation of different taxing entities and authorities. These various forms of local government include your county, city, township, school board, park board and any other entity that is authorized to levy property taxes. Although property taxes are payable to the county in which you reside, it is important to note that the funds are distributed as shown in the mill levy breakout on your statement