Property Generally Exempt from Taxation
All property owned exclusively by the US government, state of North Dakota, local government/political subdivision (including leasehold interest in property leased by a political subdivision from another political subdivision), or Tribal lands held in trust are exempt from taxation. This does not include lands contracted to be sold.
Personal property is exempt from property taxation except in the following circumstances:
- Personal Property of Entities, other than railroads
- Property subject to tax in lieu of ad valorem taxes (Example: certain oil and gas refineries and utilities)
- Particular kinds or classes of personal property in which tax is imposed by another provision of law. (Example: Mobile homes and house trailers)
Property Tax Exemptions- Application Required
Additional property may qualify for exemption, as listed in the qualifications, through the application process.
Qualifications
Qualifications shown below, restrictions may apply and can be found in N.D.C.C. § 57-02-08:
- Burial grounds or cemeteries
- Cooperative and/or non-profit organization property used for one of the following primary purposes:
- Furnish Potable water to members or customers, other than the irrigation of agricultural land
- Promoting athletic and educational needs for a state educational institution
- Daycare centers for both adult day care and early childhood services provided by a corporation, LLC or organization licensed under chapter 50-11.1.
- Disability Exemptions, including persons:
- Group homes owned by non-profit organizations with the purpose of caring for persons with developmental disabilities
- Legally Blind, exemption cap on taxable valuation applies
- Paraplegic Disabled Veteran, including unremarried surviving spouse
- Paraplegic Disabled person, including unremarried surviving spouse, income restrictions apply
- Permanently and totally disabled person confined to a wheelchair
- Educational Institutions, including schools, academies, colleges and other institutions of learning. This also includes dormitories or boarding halls that are not for profit.
- Leased Property in the instances of:
- Property leased to the state for the purpose of public works, including sewage systems and water distribution systems
- Property owned by religious organization for a minimum of five years used for an educational purpose by a school district
- Property owned by non-profit institutions of public charity, including public hospitals and nursing homes licensed pursuant to section 23-16-01 under the control of religious or charitable institutions used for an educational purpose by a school district
- Property owned by a political subdivision and leased to a nonprofit organization for the purpose of promoting public athletic or recreational activities
- Lodges, Chapter, Associations that are not-for-profit and used exclusively for meeting or conducting business. Includes agricultural fair associations that are not for profit.
- Military or Military organization property- used for armory and/or honorary monuments
- New construction on single-family, townhome and condominiums for the first two taxable years on up to $150,000 of true and full value of the property with approval by resolution of the governing body in which the property resides
- Parking structures/ramps used for general public patronage
- Pollution Abatement improvements
- Public Charity- Buildings and land belonging to institutions of public charity, including public hospitals and nursing homes licensed pursuant to section 23-16-01 under the control of religious or charitable institutions
- Religious organizations- property used predominantly for current or future religious purposes
- Rental Property that has been determined affordable housing by the housing finance agency, complying with requirements as listed in N.D.C.C. § 57-02-08(43)
Exemption Cap
Certain exemptions have valuation or term limit caps. Refer to N.D.C.C. § 57-02-08 for more information.
Application Process
Application for Property Tax Exemption must be filled out annually and provided to the local assessor by February 1st of the year for which is the exemption is claimed. Application for Property Tax Exemption
How to Claim
Once application is approved exemption will be applied.
Property Tax Exemptions- Special Application Required
Additional property may qualify for exemption, through their specific application process.
Primary Residence Credit
North Dakota residents who own a home and reside in it as their primary residence qualify for a state property tax credit.
Learn more at:
Disabled Veteran's Property Tax Credit
The Disabled Veteran’s Property Tax Credit is available to veterans of the United States Armed Forces with a disability of 50% or greater.
If eligible, the credit may reduce the taxable value of a homestead. A homestead can include a house, the land the house is on, and/or other buildings on the same land. If a qualified veteran moves to a different homestead, the credit can be applied to the new property.
Learn more at:
Homestead Property Tax Credit
The Homestead Property Tax Credit is available for qualifying homeowners.
Learn more at:
Renter's Refund
Certain individuals may qualify for a partial refund of the rent they pay.
Learn more at:
Improvements to Commercial and Residential Buildings- Temporary Property Tax Exemption
To ensure that the present method of assessment does not detract property owners from investing private capital into improvements to commercial and residential buildings and structures, city or county governing bodies may elect to give short-term property tax improvement exemptions to qualifying properties.
The governing body of the city, for property within city limits, and the governing body of the county, for property outside of city limits, must pass a resolution to allow for said exemption.
Improvements to Commercial and Residential Buildings Temporary Exemption
Solar, Wind or Geothermal Device Property Tax Exemption
Installations, machinery, and equipment of systems in new or existing buildings or structures to provide heating, cooling or electrical power may qualify for the solar, wind or geothermal device property tax exemption.
Additional Property Tax Resources
Learn more about the Property Tax Assessment Process.
Additional forms that may be of interest:
- Application for Abatement - Request for abatement or refund of taxes on property.
- Application for Property Tax Exemption - Request for consideration of a real property exemption.
Farm/Agricultural Property Tax Reductions & Exemptions
North Dakota offers the following property tax reductions and exemptions for individuals operating a farm and own agricultural property.
Farm Residence Exemption
In North Dakota, there is a property tax exemption for qualifying farm residences. Each residence is examined individually to determine if it qualifies.
Learn more at:
Inundated Agricultural Land Tax Reduction
In North Dakota, there is a property tax reduction for qualifying agricultural property. Each property is examined individually to determine if it qualifies.
Wetlands Exemption
Wetlands that meet the requirements in this section are not subject to property taxes. To get this tax exemption, the landowner must submit a form each year to the county director of tax equalization. The form, provided by the state tax commissioner, must include:
- A legal description of the wetland,
- An agreement that the land will not be drained, filled, pumped, or altered in any way that harms its natural function.
This form must be submitted by June 30 of the year the exemption is requested.
Additional Property Tax Resources
Learn more about the Property Tax Assessment Process.
Additional forms that may be of interest:
- Application for Abatement - Request for abatement or refund of taxes on property.
- Application for Property Tax Exemption - Request for consideration of a real property exemption.
New or Expanding Business - Property Tax
A business project may qualify for a property tax exemption for up to 5 years.
Two extensions are available:
- Agricultural processors may be granted a partial or full exemption for up to 5 additional years.
- A project located on property leased from a government entity qualifies for an exemption for up to 5 additional years upon annual application by the project operator.
In addition to, or instead of, an exemption, local governments and any project operator may negotiate payments in lieu of property tax for a period of up to 20 years from the date project operations begin.
New or Expanding Business - Property Tax Exemption
Improvements to Commercial and Residential Buildings- Temporary Property Tax Exemption
To ensure that the present method of assessment does not detract property owners from investing private capital into improvements to commercial and residential buildings and structures, city or county governing bodies may elect to give short-term property tax improvement exemptions to qualifying properties.
The governing body of the city, for property within city limits, and the governing body of the county, for property outside of city limits, must pass a resolution to allow for said exemption.
Additional Property Tax Resources
Learn more about the Property Tax Assessment Process.
Additional forms that may be of interest:
- Application for Abatement - Request for abatement or refund of taxes on property.
- Application for Property Tax Exemption - Request for consideration of a real property exemption.
In addition to those listed above, North Dakota exempts all personal property from property taxation except that of certain oil and gas refineries and utilities.
Century Code Reference: N.D.C.C. §§ 57-02-04 and 57-02-08
For an all-encompassing list of Business Tax Incentives: