Wind Farm Property

Medium

Wind farms are valued in one of two ways:

  • Ad valorem, under North Dakota Century Code 57-06, where all operative property, real and personal, is subject to assessment. A system value is calculated and allocated to North Dakota based on the location of operating property. Both cost and income approaches to value are used     

           or

  • In lieu, under 57-33.2 for those farms that construction was completed after December 31, 2014, or which is twenty years or older.

The annual reports are due May 1st of each year.

Medium

To determine the tax for windfarm property, the true and full operative value is multiplied by 1.5-3% 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 wind farm that is worth $1,500,000 (true and full value) located where your local taxing entities total 250 mills.  

  1. Wind Farm True and Full Operative Value x 1.5-3%= Taxable Value. ($1,500,000 x .01.5/.003 = $22,500/$45,000)
  2. Taxable Value x mill = Mill Rate. ($22,500/$45,000 x .001= $22.50/$45)
  3. Mill Rate x # of taxable mills= Total Tax Owed. ($22.50/$45 x 250 = $5,625/$11,250)

The total tax owed on a windfarm worth $1,500,000 with a 250 mill levy would be $5,625/$11,250.

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.

Property owners may qualify for the Solar, Wind or Geothermal Device Property Tax Exemption. 

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

Medium
Medium