Property Tax Credits & Exemptions

North Dakota offers the following property tax exemptions for businesses.

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.

Eligibility: Projects must be a new or expanding primary sector business. Primary sector is a business that adds value to product, process, or service that produces new wealth in North Dakota. Primary sector certification must be gained from the North Dakota Department of Commerce Division of Economic Development and Finance.

A project is not eligible for an exemption if any of the following apply:

• A tax exemption was received under tax increment financing
• The exemption fosters unfair competition or endangers existing business
• Land does not qualify for an exemption

A city or county with a population of less than 40,000 may grant an exemption for a retail project (non-primary sector) if the voters have approved the granting of exemptions and criteria for retail sector projects.

Application Process:

• Application for Property Tax Exemption for New or Expanding Businesses - North Dakota Department of Commerce Division of Economic Development and Finance
• Primary Sector Certification – North Dakota Department of Commerce Division of Economic Development and Finance
• One of the following Clearance Forms may be needed:
  • State Clearance Record Form
  • Property Tax Clearance Record Form

  Century Code Reference: N.D.C.C. § 40-57.1

  Personal Property Tax Exemption

  North Dakota exempts all personal property from property taxation except that of certain oil and gas refineries and utilities.

  Wind Turbine Electric Generation - Property Tax Reduction

  A property tax reduction applies to a centrally assessed wind turbine electric generation unit with a nameplate generation capacity of 100 kilowatts or more. A centrally assessed wind turbine electric generation unit produces electric power for public use.

  Eligibility: A wind turbine on which construction is completed before January 1, 2015. The taxable value is calculated at 3% of assessed value instead of at the 10% rate that applies to other centrally assessed property. The taxable value is calculated at 1.5% of assessed value if:

  • Construction of the wind turbine is completed after June 30, 2006, and before January 1, 2015, or
  • A purchased power agreement was executed after April 30, 2005, and before January 1, 2006, and the construction of the wind turbine was completed after April 30, 2005, and before July 1, 2006. The valuation calculated at 1½% of assessed value only applies for the duration of the purchased power agreement initially executed for the wind turbine.

  Century Code Reference: N.D.C.C. § 57-06

  Individual Property Tax Credits

  North Dakota offers the following property tax credits for individuals.

  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.

  Homestead Property Tax Credit and Renter's Refund

  Certain individuals may qualify for a property tax credit or partial refund of the rent they pay.

  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.

  Eligibility: To be eligible for this program, you must:

  • Be a disabled veteran of the United States Armed Forces with an armed forces service-connected disability of 50% or greater in the year for which the application is made.
    • Your extra-scheduler rating, to include individual unemployability, may bring the total disability rating to 100%, as determined by the United States Department of Veterans Affairs.

    If two disabled veterans are married and living together, the combined credits may not exceed 100% of $8,100 of taxable value of the homestead. In the event of the applicant’s death, the spouse is eligible for the credit. The spouse who is receiving United States Department of Veterans Affairs dependency and indemnity compensation receives 100% of the credit.

    With the credit, the applicant’s taxable value may decrease as follows:

    Disability Percentage	Maximum Reduction
    100%	$8,100
    90%	$7,290
    80%	$6,480
    70%	$5,670
    60%	$4,860
    50%	$4,050

    Application Process: To apply for the Disabled Veteran's Property Tax Credit, submit:

    • Application for Disabled Veterans Property Tax Credit to the local assessor or county director of tax equalization.

    The application is due by March 31 of the year in which the property is assessed and for which the credit is requested. Include documentation regarding the applicant’s service-connected disability and military honorable discharge with your application.

    To share this information with others, please:

    • Disabled Veterans Property Tax Credit Flyer
    • Disabled Veterans Property Tax Credit Guideline

    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.

    Eligibility: The general requirements for a qualifying farm residence include:

    • The residence must be located on 10 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 net 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.

      Application Process: To apply, complete the Application for Farm Residence Property Tax Exemption and contact 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.

      • 2023 Statement of Farm Gross Income
      • 2022 Statement of Farm Gross Income

      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.

        If you think you may qualify for the farm residence exemption, complete the Application for Farm Residence Exemption and contact the county director of tax equalization in the county where the residence is located.