2016 North Dakota Century Code Title 57 Taxation Chapter 57-02 General Property Assessment
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CHAPTER 57-02
GENERAL PROPERTY ASSESSMENT
57-02-01. Definitions.
As used in this title, unless the context or subject matter otherwise requires:
1. "Agricultural property" means platted or unplatted lands used for raising agricultural
crops or grazing farm animals, except lands platted and assessed as agricultural
property prior to March 30, 1981, shall continue to be assessed as agricultural
property until put to a use other than raising agricultural crops or grazing farm animals.
Agricultural property includes land on which a greenhouse or other building is located
if the land is used for a nursery or other purpose associated with the operation of the
greenhouse. The time limitations contained in this section may not be construed to
prevent property that was assessed as other than agricultural property from being
assessed as agricultural property if the property otherwise qualifies under this
subsection.
a. Property platted on or after March 30, 1981, is not agricultural property when any
four of the following conditions exist:
(1) The land is platted by the owner.
(2) Public improvements, including sewer, water, or streets, are in place.
(3) Topsoil is removed or topography is disturbed to the extent that the property
cannot be used to raise crops or graze farm animals.
(4) Property is zoned other than agricultural.
(5) Property has assumed an urban atmosphere because of adjacent
residential or commercial development on three or more sides.
(6) The parcel is less than ten acres [4.05 hectares] and not contiguous to
agricultural property.
(7) The property sells for more than four times the county average true and full
agricultural value.
b. Land that was assessed as agricultural property at the time the land was put to
use for extraction of oil, natural gas, or subsurface minerals as defined in section
38-12-01 must continue to be assessed as agricultural property if the remainder
of the surface owner's parcel of property on which the subsurface mineral activity
is occurring continues to qualify for assessment as agricultural property under this
subsection.
2. "Air carrier transportation property" means the operative property of each airline whose
property is assessed for taxation purposes pursuant to chapters 57-06 and 57-32.
3. "Assessed valuation" means fifty percent of the true and full value of property.
4. "Centrally assessed property" means all property which is assessed by the state board
of equalization under chapters 57-05, 57-06, and 57-32.
5. "Commercial property" means all property, or portions of property, not included in the
classes of property defined in subsections 1, 4, 11, and 12.
6. "Credits" means and includes every claim and demand for money or other valuable
thing, and every annuity or sum of money receivable at stated periods, due or to
become due, and all claims and demands secured by deeds or mortgages, due or to
become due.
7. "Governing body" means a board of county commissioners, city council, board of city
commissioners, school board, or board of education, or the similarly constituted and
acting board of any other municipality.
8. "Money" or "moneys" means gold and silver coin, treasury notes, bank notes, and
every deposit which any person owning the same or holding in trust and residing in
this state is entitled to withdraw as money or on demand.
9. "Municipality" or "taxing district" means a county, city, township, school district, water
conservation and flood control district, Garrison Diversion Conservancy District, county
park district, joint county park district, irrigation district, park district, rural fire protection
district, or any other subdivision of the state empowered to levy taxes.
10. "Person" includes a firm, corporation, or limited liability company.
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"Railroad property" means the operating property, including franchises, of each
railroad operated in this state, including any electric or other street or interurban
railway.
"Residential property" means all property, or portions of property, used by an individual
or group of individuals as a dwelling, including property upon which a mobile home is
located but not including hotel and motel accommodations required to be licensed
under chapter 23-09 nor structures providing living accommodations for four or more
separate family units nor any tract of land upon which four or more mobile homes are
located.
"Taxable valuation" signifies the valuation remaining after deducting exemptions and
making other reductions from the original assessed valuation, and is the valuation
upon which the rate of levy finally is computed and against which the taxes finally are
extended.
"Tract", "lot", "piece or parcel of real property", or "piece or parcel of land" means any
contiguous quantity of land in the possession of, owned by or recorded as the property
of, the same claimant, person, or company.
"True and full value" means the value determined by considering the earning or
productive capacity, if any, the market value, if any, and all other matters that affect the
actual value of the property to be assessed. This shall include, for purposes of arriving
at the true and full value of property used for agricultural purposes, farm rentals, soil
capability, soil productivity, and soils analysis.
"Unencumbered cash" means the total cash on hand in any fund, less the amount
belonging to the fund in closed banks and less the amount of outstanding warrants,
bills, accounts, and contracts which are chargeable against the fund.
There shall be a presumption that a unit of land is not a farm unless such unit contains
a minimum of ten acres [4.05 hectares], and the taxing authority, in determining
whether such presumption shall apply, shall consider such things as the present use,
the adaptability to use, and how similar type properties in the immediate area are
classified for tax purposes.
57-02-01.1. Certification of assessors.
The state supervisor of assessments shall certify assessors as provided in this section.
1. To be certified as a class I assessor, an individual must:
a. Have a high school diploma or its equivalent.
b. Successfully complete one hundred eighty hours of assessment and appraisal
instruction approved by the state supervisor of assessments. The number of
hours of instruction determined necessary by the state supervisor of assessments
for each of the following topics is required:
(1) Tax administration.
(2) Principles and theory of value.
(3) Residential property appraisal.
(4) Commercial property appraisal.
(5) Agricultural property valuation.
2. To be certified as a class II assessor, an individual must:
a. Have a high school diploma or its equivalent.
b. Successfully complete eighty hours of assessment and appraisal instruction
approved by the state supervisor of assessments. The number of hours of
instruction determined necessary by the state supervisor of assessments for each
of the following topics is required:
(1) Tax administration.
(2) Principles and theory of value.
(3) Residential property appraisal.
(4) Commercial property appraisal.
(5) Agricultural property valuation.
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The state supervisor of assessments may allow credit against required instruction in
any topic under subdivision b of subsection 1 and subdivision b of subsection 2 upon
receipt of documented training in this state or another state in the topic.
An individual appointed as an assessor must hold the required assessor certificate at
the time of appointment or obtain that certificate within two years after initial
appointment or by July 31, 2017, whichever is later. An assessor who does not obtain
the required certificate within two years after initial appointment or by July 31, 2017,
whichever is later, or who does not maintain that certificate in good standing is not
eligible for re-appointment.
An assessor certificate is valid for a term of two years from the first day of the calendar
year for which it becomes effective.
A class I assessor certificate may be renewed if the holder has completed twenty
hours of approved classroom instruction or seminars during the term of the certificate.
For purposes of this subsection, an assessor certificate holder is entitled to one and
one-half hours of credit for each hour spent as an instructor of approved classroom
instruction or seminars during the term of the certificate.
A class II assessor certificate may be renewed if the holder has completed ten hours of
approved classroom instruction or seminars during the term of the certificate.
The state supervisor of assessments shall notify the holder of an assessor certificate
of the time for application for renewal of the individual's certificate. The state
supervisor of assessments shall notify the governing body of the taxing district
employing an assessor whose certificate is not renewed or whose certificate is
suspended or revoked.
Any person who is denied a certificate under this section may appeal to the tax
commissioner for a hearing under chapter 28-32.
The tax commissioner may adopt rules under chapter 28-32 for the administration of
this section.
57-02-02. Abbreviations used in land descriptions.
Abbreviations used in describing real estate may be as follows:
1. In all proceedings, lists, advertisements, records, notices, and documents relative to
assessing, advertising, or selling real estate for taxes or special assessments, it is
sufficient to describe such real estate by the use of initial letters, abbreviations, and
figures to designate the township, range, section, or part of section, and the number of
a lot or block.
2. Whenever the letters N., E., S., or W. are used, they must be construed to mean north,
east, south, and west, respectively.
3. Whenever there are used the initial letters N.W., S.W., N.E., or S.E., whether in capital
letters or small letters, and whether each letter is followed by a period or the two are
written connectedly without a period to signify the same to be an abbreviation of two
words, and whenever said letters are used in connection with section numbers to
designate land descriptions, and in the absence of proof to the contrary, it must be
presumed that the same are abbreviations for and mean "northwest", "southwest",
"northeast", and "southeast", respectively.
4. When two or more sets of such abbreviations are used connectedly, as for example
N.E. S.E., the same must be presumed to mean the "northeast quarter of the
southeast quarter".
5. When any such initial letters are followed with a numeral placed in the position of an
algebraic exponent, as N.W.4, S.W.4, N.E.4, or S.E.4, with the figure placed on or above
the line, the description must be taken to mean the "northwest quarter", "southwest
quarter", "northeast quarter", or "southeast quarter", respectively. The abbreviation N.2,
S.2, E.2, or W.2 must be presumed to mean the "north half", "south half", "east half", or
"west half", respectively, of the section or quarter or other portion of land designated
immediately following it.
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Combinations of such letters and figures must be read accordingly, as S.2 N.E.4 must
be taken as intended to mean and describe the "south half of the northeast quarter",
and similar combinations of such letters and exponents must be construed accordingly.
In the absence of such figure placed in the position of an exponent, whenever
abbreviations N.W., S.W., N.E., or S.E. are used alone or with similar abbreviations,
they must be presumed to mean and be read as "northwest quarter", "southwest
quarter", "northeast quarter", or "southeast quarter", respectively, unless it appears
clearly from the context that another meaning is intended.
The abbreviation sec. must be taken as meaning "section", the letters "t" or "twp" or
"tp" must be taken to mean "township", the letters "r" or "rg" or "rge" must be taken to
mean "range", the abbreviations "b" or "blk" or "bk" must be taken to mean "block", the
abbreviations "add" or "ad" must be taken to mean "addition", and the abbreviations
"sub" or "subd" must be taken to mean "subdivision".
The abbreviation "do" or the characters ",," or other similar abbreviation or character,
must be construed to mean the same name, word, initial, letter, abbreviation, or figure
as the last preceding one written or the one written immediately above.
No description in which the foregoing abbreviations, symbols, initial letters, figures, or
characters definitely can be understood by the application of the definitions and rules
in this section may be held defective because such abbreviations are used instead of
words or figures symbolized thereby.
57-02-03. Property subject to taxation.
All property in this state is subject to taxation unless expressly exempted by law.
57-02-04. Real property defined.
Real property, for the purpose of taxation, includes:
1. The land itself, whether laid out in town lots or otherwise, and improvements to the
land, such as ditching, surfacing, and leveling, except plowing and trees, and all rights
and privileges thereto belonging or in anywise appertaining, and all mines, minerals,
and quarries in and under the same and shall expressly include all such improvements
made by persons to lands held by them under the laws of the United States, all such
improvements to land the title to which still is vested in any railroad company and
which is not used exclusively for railroad purposes, and improvements to land
belonging to any other corporation or limited liability company whose property is not
subject to the same mode and rule of taxation as other property.
2. All structures and buildings, including manufactured homes as defined in section
41-09-02 with respect to which the requirements of subsections 1 through 3 of section
39-05-35, as applicable, have been satisfied, including systems for the heating,
air-conditioning, ventilating, sanitation, lighting, and plumbing of such structures and
buildings, and all rights and privileges thereto belonging or in anywise appertaining,
but shall not include items which pertain to the use of such structures and buildings,
such as machinery or equipment used for trade or manufacture which are not
constructed as an integral part of and are not essential for the support of such
structures or buildings, and which are removable without materially limiting or
restricting the use of such structures or buildings.
3. Machinery and equipment, but not including small tools and office equipment, used or
intended for use in any process of refining products from oil or gas extracted from the
earth, but not including such equipment or appurtenances located on leased oil and
gas production sites.
57-02-05. Personal property defined.
Repealed by S.L. 1971, ch. 534, § 4.
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57-02-05.1. Personal property defined.
Personal property, for the purpose of taxation, includes all property that is not included
within the definition of real property.
57-02-06. Who are deemed merchants.
Repealed by S.L. 1983, ch. 595, § 3.
57-02-07. Who are deemed manufacturers.
Repealed by S.L. 1983, ch. 595, § 3.
57-02-08. Property exempt from taxation.
All property described in this section to the extent herein limited shall be exempt from
taxation:
1. All property owned exclusively by the United States except any such property which
the state and its political subdivisions are authorized by the laws of the United States
to tax.
2. All property owned by this state, but no lands contracted to be sold by the state shall
be exempt.
3. All property belonging to any political subdivision and the leasehold interest in property
leased by a political subdivision from another political subdivision.
4. Property of Indians if the title of that property is inalienable without the consent of the
United States secretary of the interior.
5. All lands used exclusively for burying grounds or cemeteries.
6. All property belonging to schools, academies, colleges, or other institutions of learning,
not otherwise used with a view to profit, and all dormitories and boarding halls,
including the land upon which they are situated, owned and managed by any religious
corporation for educational or charitable purposes for the use of students in
attendance upon any educational institution, if such dormitories and boarding halls are
not managed or used for the purpose of making a profit over and above the cost of
maintenance and operation.
7. Repealed by S.L. 2011, ch. 445, § 2.
8. All buildings 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, used wholly or in part for public charity, together with the land
actually occupied by such institutions not leased or otherwise used with a view to
profit. The exemption provided by this subsection includes any dormitory, dwelling, or
residential-type structure, together with necessary land on which such structure is
located, owned by a religious or charitable organization recognized as tax exempt
under section 501(c)(3) of the United States Internal Revenue Code which is occupied
by members of said organization who are subject to a religious vow of poverty and
devote and donate substantially all of their time to the religious or charitable activities
of the owner.
9. a. All buildings owned by any religious corporation or organization and used for the
religious purposes of the organization, and if on the same parcel, dwellings with
usual outbuildings, intended and ordinarily used for the residence of the bishop,
priest, rector, or other minister in charge of services, land directly under and
within the perimeter of those buildings, improved off-street parking or reasonable
landscaping or sidewalk area adjoining the main church building, and up to a
maximum of five additional acres [2.02 hectares] must be deemed to be property
used exclusively for religious purposes, and exempt from taxation, whether the
real property consists of one tract or more. If the residence of the bishop, priest,
rector, or other minister in charge of services is located on property not adjacent
to the church, that residence with usual outbuildings and land on which it is
located, up to two acres [.81 hectare], is exempt from taxation.
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The exemption for a building used for the religious purposes of the owner
continues to be in effect if the building in whole, or in part, is rented to another
otherwise tax-exempt corporation or organization, provided no profit is realized
from the rent.
Property of an agricultural fair association duly incorporated for the purpose of holding
agricultural fairs, and not conducted for the profit of any of its members or
stockholders; provided, that all property described in this subsection shall be subject to
taxation for the cost of fire protection services furnished by any municipal corporation
in which said property is located.
Property owned by lodges, chapters, commanderies, consistories, farmers' clubs,
commercial clubs, and like organizations, and associations, grand or subordinate, not
organized for profit, and used by them for places of meeting and for conducting their
business and ceremonies, and all property owned by any fraternity, sorority, or
organization of college students if such property is used exclusively for such purposes;
provided, further, that any portion of such premises not exclusively used for places of
meeting and conducting the business and ceremonies of such organization shall be
subject to taxation.
Provided, further, that if any such organization as contemplated by this
subsection is licensed for the sale of alcoholic beverages as defined by the statutes of
the state of North Dakota, such portion of such premises where such alcoholic
beverages are consumed or sold shall be deemed not to be so used exclusively for
conduct of its business and meeting if such beverages are sold at a profit.
Provided, further, that if food other than that served at lodge functions and
banquets and food sold or consumed in any fraternity or sorority house, is sold at a
profit on the premises, that portion of the premises where such food is sold at a profit
shall be deemed not to be used exclusively for places of meeting or conducting the
business and ceremonies of such organization; provided, that all property described in
this subsection shall be subject to taxation for the cost of fire protection services
furnished by any municipal corporation in which said property is located.
Repealed by S.L. 1983, ch. 595, § 3.
All land used as a public park or monument ground belonging to any military
organization, and not used for gain.
The armory, and land or lots upon which situated, owned by a regiment, battalion, or
company of the North Dakota national guard, and used for military purposes by such
organization.
a. All farm structures and improvements located on agricultural lands.
(1) This subsection must be construed to exempt farm buildings and
improvements only, and may not be construed to exempt from taxation
industrial plants, or structures of any kind not used or intended for use as a
part of a farm plant, or as a farm residence.
(2) "Farm buildings and improvements" includes a greenhouse or other building
used primarily for the growing of horticultural or nursery products from seed,
cuttings, or roots, if not used on more than an occasional basis for a
showroom for the retail sale of horticultural or nursery products. A
greenhouse or building used primarily for display and sale of grown
horticultural or nursery products is not a farm building or improvement.
(3) Any structure or improvement used primarily in connection with a retail or
wholesale business other than farming, any structure or improvement
located on platted land within the corporate limits of a city, or any structure
or improvement located on railroad operating property subject to
assessment under chapter 57-05 is not exempt under this subsection. For
purposes of this paragraph, "business other than farming" includes
processing to produce a value-added physical or chemical change in an
agricultural commodity beyond the ordinary handling of that commodity by a
farmer prior to sale.
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The following factors may not be considered in application of the exemption
under this subsection:
(a) Whether the farmer grows or purchases feed for animals raised on the
farm.
(b) Whether animals being raised on the farm are owned by the farmer.
(c) Whether the farm's replacement animals are produced on the farm.
(d) Whether the farmer is engaged in contract feeding of animals on the
farm.
It is the intent of the legislative assembly that this exemption as applied to a
residence must be strictly construed and interpreted to exempt only a residence
that is situated on a farm and which is occupied or used by a person who is a
farmer and that the exemption may not be applied to property which is occupied
or used by a person who is not a farmer. For purposes of this subdivision:
(1) "Farm" means a single tract or contiguous tracts of agricultural land
containing a minimum of ten acres [4.05 hectares] and for which the farmer,
actually farming the land or engaged in the raising of livestock or other
similar operations normally associated with farming and ranching, has
received annual net income from farming activities which is fifty percent or
more of annual net income, including net income of a spouse if married,
during any of the three preceding calendar years.
(2) "Farmer" means an individual who normally devotes the major portion of
time to the activities of producing products of the soil, poultry, livestock, or
dairy farming in such products' unmanufactured state and has received
annual net income from farming activities which is fifty percent or more of
annual net income, including net income of a spouse if married, during any
of the three preceding calendar years. For purposes of this paragraph,
"farmer" includes a:
(a) "Beginning farmer", which means an individual who has begun
occupancy and operation of a farm within the three preceding
calendar years; who normally devotes the major portion of time to the
activities of producing products of the soil, poultry, livestock, or dairy
farming in such products' unmanufactured state; and who does not
have a history of farm income from farm operation for each of the
three preceding calendar years.
(b) "Retired farmer", which means an individual who is retired because of
illness or age and who at the time of retirement owned and occupied
as a farmer the residence in which the person lives and for which the
exemption is claimed.
(c) "Surviving spouse of a farmer", which means the surviving spouse of
an individual who is deceased, who at the time of death owned and
occupied as a farmer the residence in which the surviving spouse lives
and for which the exemption is claimed. The exemption under this
subparagraph expires at the end of the fifth taxable year after the
taxable year of death of an individual who at the time of death was an
active farmer. The exemption under this subparagraph applies for as
long as the residence is continuously occupied by the surviving
spouse of an individual who at the time of death was a retired farmer.
(3) "Net income from farming activities" means taxable income from those
activities as computed for income tax purposes pursuant to chapter 57-38
adjusted to include the following:
(a) The difference between gross sales price less expenses of sale and
the amount reported for sales of agricultural products for which the
farmer reported a capital gain.
(b) Interest expenses from farming activities which have been deducted in
computing taxable income.
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Depreciation expenses from farming activities which have been
deducted in computing taxable income.
(4) When exemption is claimed under this subdivision for a residence, the
assessor may require that the occupant of the residence who it is claimed is
a farmer provide to the assessor for the year or years specified by the
assessor a written statement in which it is stated that fifty percent or more of
the net income of that occupant, and spouse if married and both spouses
occupy the residence, was, or was not, net income from farming activities.
(5) In addition to any of the provisions of this subsection or any other provision
of law, a residence situated on agricultural land is not exempt for the year if
it is occupied by an individual engaged in farming who had nonfarm income,
including that of a spouse if married, of more than forty thousand dollars
during each of the three preceding calendar years. This paragraph does not
apply to a retired farmer or a beginning farmer as defined in paragraph 2.
(6) For purposes of this section, "livestock" includes "nontraditional livestock" as
defined in section 36-01-00.1.
(7) A farmer operating a bed and breakfast facility in the farm residence
occupied by that farmer is entitled to the exemption under this section for
that residence if the farmer and the residence would qualify for exemption
under this section except for the use of the residence as a bed and
breakfast facility.
Property now owned, or hereafter acquired, by a corporation organized, or hereafter
created, under the laws of this state for the purpose of promoting athletic and
educational needs and uses at any state educational institution in this state, and not
organized for profit.
Moneys and credits, including shares of corporate stock and membership interests in
limited liability companies, except moneyed capital which is so invested or used as to
come into direct competition with money invested in bank stock.
and 19. Repealed by S.L. 1983, ch. 595, § 3.
Fixtures, buildings, and improvements up to the amount of valuation specified, when
owned and occupied as a homestead, as hereinafter defined, by any of the following
persons:
a. A paraplegic disabled veteran of the United States armed forces or any veteran
who has been awarded specially adapted housing by the department of veterans'
affairs, or the unremarried surviving spouse if such veteran is deceased, for the
first one hundred twenty thousand dollars of true and full valuation of the fixtures,
buildings, and improvements.
b. Any permanently and totally disabled person who is permanently confined to use
of a wheelchair, or, if deceased, the unremarried surviving spouse of a
permanently and totally disabled person. If the spouse of a permanently and
totally disabled person owns the homestead or if it is jointly owned by them, the
same reduction in assessed valuation applies as long as both reside thereon. The
provisions of this subdivision do not reduce the liability for special assessments
levied upon the homestead. The phrase "permanently confined to use of a
wheelchair" means that the person cannot walk with the assistance of crutches or
any other device and will never be able to do so and that a physician selected by
the local governing board has so certified.
Any person claiming an exemption under this subsection for the first time shall file
with the county auditor an affidavit showing the facts herein required and a description
of the property. The affidavit must be open for public inspection. A person thereafter
shall furnish to the assessor or other assessment officials when requested to do so
any information that is believed will support the claim for exemption for a subsequent
year.
For purposes of this subsection, and except as otherwise provided in this
subsection, "homestead" has the meaning provided in section 47-18-01 except that it
also applies to any person who otherwise qualifies under the provisions of this
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subsection whether or not the person is the head of a family. The board of county
commissioners is hereby authorized to cancel the unpaid taxes for any year in which
the qualifying owner has held title to the exempt property.
Repealed by S.L. 1983, ch. 595, § 3.
All or any part of fixtures, buildings, and improvements upon any nonfarmland up to a
taxable valuation of seven thousand two hundred dollars, owned and occupied as a
home by a blind person. Residential homes owned by the spouse of a blind person, or
jointly owned by a blind person and spouse, shall also be exempt within the limits of
this subsection as long as the blind person resides in the home. For purposes of this
subsection, a blind person is defined as one who is totally blind, has visual acuity of
not more than 20/200 in the better eye with correction, or whose vision is limited in
field so that the widest diameter subtends an angle no greater than twenty degrees.
The exemption provided by this subsection extends to the entire building classified as
residential, and owned and occupied as a residence by a person who qualifies for the
exemption as long as the building contains no more than two apartments or rental
units which are leased.
All, or any portion of structural improvements other than paving and surfacing to land
used exclusively for the business of operating an automobile parking lot within a city
open for general public patronage. If a portion of the structure is exempt from taxation
as being open for general public patronage, the amount of such exemption shall be
computed by determining the value of the public parking area in proportion to the total
value of the structure.
Repealed by S.L. 1983, ch. 595, § 3.
All personal property is exempt except:
a. Personal property of entities, other than railroads, required by section 4 of
article X of the Constitution of North Dakota to be assessed by the state board of
equalization.
b. Any property that is subjected to a tax which is imposed in lieu of ad valorem
taxes.
c. Any particular kind or class of personal property, including mobile homes or
housetrailers, that is subjected to a tax imposed pursuant to any other provision
of law.
Fixtures, buildings, and improvements when owned and occupied as a homestead, as
hereinafter defined, by a paraplegic disabled person, or if the person is deceased the
unremarried spouse, if the income from all sources of the person and spouse, or if the
person is deceased the income from all sources of the unremarried surviving spouse,
in the calendar year prior to the year for which the exemption is claimed did not
exceed the maximum amount of income provided in section 57-02-08.1 for receiving a
homestead credit under that section. To obtain the exemption for the first time, a
certificate from a medical doctor who is approved by the board of county
commissioners, accompanied by an affidavit, showing the facts herein required and a
description of the property, must be filed with the county auditor. The affidavit and
accompanying certificate must be opened to public inspection. Any person claiming
the exemption for any year after the first year shall furnish to the assessor or other
assessment officials when requested to do so any information which the person
believes will support the claim for the exemption for any subsequent year. For
purposes of this subsection, "homestead" has the meaning provided in section
47-18-01 except that it also applies to any person who otherwise qualifies under the
provisions of this subsection whether or not the person is the head of a family. The
board of county commissioners is hereby authorized to cancel the unpaid taxes for any
year in which the person has held title to the exempt property.
Installations, machinery, and equipment of systems in new or existing buildings or
structures, designed to provide heating or cooling or to produce electrical or
mechanical power, or any combination of these, or to store any of these, by utilization
of solar, wind, or geothermal energy; provided, that if the solar, wind, or geothermal
energy device is part of a system which uses other means of energy, only that portion
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36.
of the total system directly attributable to solar, wind, or geothermal energy shall be
exempt. Provided, however, that any exemptions granted by this subsection shall be
valid for a five-year period following installation of any such system and apply only to
locally assessed property. For the purposes of this subsection, solar or wind energy
devices shall have the meaning provided in section 57-38-01.8 and geothermal energy
device means a system or mechanism or series of mechanisms designed to provide
heating or cooling or to produce electrical or mechanical power, or any combination of
these, by a method which extracts or converts the energy naturally occurring beneath
the earth's surface in rock structures, water, or steam.
All fixtures, buildings, and improvements owned by any cooperative or nonprofit
corporation organized under the laws of this state and used by it to furnish potable
water to its members and customers for uses other than the irrigation of agricultural
land.
Property to which title is held by a city pursuant to chapter 40-57 which is leased to an
entity described in subsection 8 and used by the entity as provided in subsection 8 or
subleased to a public school district for educational purposes; provided, that the entity
is qualified as an exempt organization under section 501(c)(3) of the United States
Internal Revenue Code of 1954, as amended.
Property, but not including property used for residential purposes, owned by an
organization described in subsection 9 and leased to a public school district for
educational purposes; provided, that the property had previously been owned and
occupied by the organization for an exempt purpose described in subsection 9 for a
period of at least five years.
All group homes owned by nonprofit corporations, not organized with a view to profit
and recognized as tax exempt under section 501(c)(3) of the United States Internal
Revenue Code [26 U.S.C. 501(c)(3)], including those for persons with developmental
disabilities as defined in section 25-01.2-01, and the real property upon which they are
located during the period in which the group homes are under construction or in a
remodeling phase and while they are used as group homes. For the purposes of this
subsection, the term "group home" means a community-based residential home which
provides room and board, personal care, habilitation services, or supervision in a
family environment, and which, once established is licensed by the appropriate North
Dakota licensing authority.
Minerals in place in the earth which at the time of removal from the earth are then
subject to taxes imposed under chapter 57-51, 57-61, or 57-65.
Property used for athletic or recreational activities when owned by a political
subdivision and leased to a nonprofit corporation organized for the purpose of
promoting public athletic or recreational activities.
Any building located on land owned by the state if the building is used at least in part
for academic or research purposes by students and faculty of a state institution of
higher education.
Up to one hundred fifty thousand dollars of the true and full value of all new
single-family and condominium and townhouse residential property, exclusive of the
land on which it is situated, is exempt from taxation for the first two taxable years after
the taxable year in which construction is completed and the residence is owned and
occupied for the first time if all of the following conditions are met:
a. The governing body of the city, for property within city limits, or the governing
body of the county, for property outside city limits, has approved the exemption of
the property by resolution. A resolution adopted under this subsection may be
rescinded or amended at any time. The governing body of the city or county may
limit or impose conditions upon exemptions under this subsection, including
limitations on the time during which an exemption is allowed.
b. Special assessments and taxes on the property upon which the residence is
situated are not delinquent.
The governing body of the city, for property within city limits, or of the county, for
property outside city limits, may grant a property tax exemption for the portion of
Page No. 10
37.
38.
39.
40.
41.
42.
fixtures, buildings, and improvements, used primarily to provide early childhood
services by a corporation, limited liability company, or organization licensed under
chapter 50-11.1 or used primarily as an adult day care center. However, this exemption
is not available for property used as a residence.
a. A pollution abatement improvement. As used in this subsection, "pollution
abatement improvement" means property, exclusive of land and improvements to
the land such as ditching, surfacing, and leveling, that is:
(1) Part of an agricultural or industrial facility which is used for or has for its
ultimate purpose the prevention, control, monitoring, reducing, or eliminating
of pollution by treating, pretreating, stabilizing, isolating, collecting, holding,
controlling, measuring, or disposing of waste contaminants; or
(2) Part of an agricultural or industrial facility and required to comply with local,
state, or federal environmental quality laws, rules, regulations, or standards.
b. The exemption under this subsection applies only to that portion of the valuation
of property attributable to the pollution abatement improvement on which
construction or installation was commenced after December 31, 1992, and does
not apply to the valuation of any property that is not a necessary component of
the pollution abatement improvement. The governing body of the city, for property
within city limits, or the governing board of the county, for property outside city
limits, shall determine whether the property proposed for exemption is a pollution
abatement improvement and may grant an exemption for the pollution abatement
improvement based upon the requirements of this subsection.
Property owned by the state upon which payments in lieu of property taxes are made
by the state.
Notwithstanding any other law, all property, including any possessory interest therein,
relating to any waterworks, mains, and water distribution system leased to the state, or
any agency or institution of the state, or to a private entity pursuant to subsection 5 of
section 40-33-01, subsection 12 of section 61-24.5-09, or subsection 23 of section
61-35-12, which property is operated by, or providing services to, a municipality or
other political subdivision or agency of the state, or its citizens.
Notwithstanding any other law, all property, including any possessory interest therein,
relating to any sewage systems and facilities for the collection, treatment, purification,
and disposal in a sanitary manner of sewage leased to the state, or any agency or
institution of the state, or to a private entity pursuant to section 40-34-19 or
subsection 23 of section 61-35-12, which property is operated by, or providing services
to, a municipality or other political subdivision or agency of the state, or its citizens.
Notwithstanding any other law, all property, including any possessory interest therein,
leased to a private entity pursuant to section 54-01-27, which property is operated by,
or providing services to, the state or its citizens.
a. New single-family residential property, exclusive of the land on which it is
situated, is exempt from assessment for the taxable year in which construction
began and the next two taxable years, if the property remains owned by the
builder, remains unoccupied, and all of the following conditions are met:
(1) The governing body of the city, for property within city limits, or the
governing body of the county, for property outside city limits, has approved
the exemption of property under this subsection by resolution. A resolution
adopted under this subsection may be rescinded or amended at any time.
The governing body of the city or county may limit or impose conditions
upon exemptions under this subsection, including limitations on the time
during which an exemption is allowed.
(2) Special assessments and taxes on the property upon which the residence is
situated are not delinquent.
b. A builder is eligible for exemption of no more than ten properties under this
subsection in a taxable year within each jurisdiction that has approved the
exemption under this subsection. For purposes of this subsection, "builder"
includes an individual who builds that individual's own residence.
Page No. 11
43.
All residential rental property, inclusive of land and administrative and auxiliary
buildings, used as affordable housing shall be exempt from taxation for the property's
period of affordability.
a. The property is exempt under this section if the housing finance agency certifies
to the county director of tax equalization that on January 1, 2013, or thereafter,
the residential rental property complies with the following:
(1) The property is subject to and in compliance with a land use restriction
agreement that enumerates the mandatory income and rent restrictions;
(2) The property is owned by a qualified nonprofit entity, as defined in
section 42 of the Internal Revenue Code [26 U.S.C. 42]. If under a
partnership agreement or other legally enforceable instrument, a for-profit
entity, such as a limited partner, has an ownership interest in the property,
then the agreement must provide that the nonprofit entity must have the
right of first refusal in any transfer of the ownership interest in the property.
The partnership agreement or other legally enforceable instrument also
must provide that any transfer of the ownership interest by the for-profit
entity must be without financial gain; and
(3) The general partner or other ownership entity is owned or controlled by a
nonprofit entity or a political subdivision.
b. For projects beginning after December 31, 2012, the exemption begins for the
first taxable year after the owners of the rental property receive a building permit
from the local jurisdiction in which the affordable housing residential rental
property will be located.
c. If part of the residential rental property is not eligible to receive assistance
through local, state, or federal affordable housing programs, the exemption under
this section is calculated by dividing the number of income and rent-restricted
units by the total number of rental units.
d. In lieu of the ad valorem taxes that would otherwise be assessed, the project
owners shall make a payment equal to five percent of the balance of the total
annual rents collected during the preceding calendar year, minus the utility costs
for the property paid by the owner of the property.
e. If an affordable housing rental property fails to comply with the requirements of
this section, or fails to comply with rent and household income restrictions under
a local, state, or federal affordable housing program, on or before March fifteen of
each calendar year, the housing finance agency shall notify the director of tax
equalization and the state supervisor of assessments that the property is no
longer eligible for the exemption.
f. For the purposes of this subsection, "affordable housing" includes property
eligible for or receiving assistance through a local, state, or federal affordable
housing program and in which rent and household income restrictions apply, and
which is owned by nonprofit entities organized for the purpose of providing
affordable housing. Affordable housing is limited to residential rental property
owned by or with a controlling ownership or management interest by an
organization organized and operated exclusively for exempt purposes set forth in
section 501(c)(3) of the Internal Revenue Code [26 U.S.C. 501(c)(3)].
57-02-08.1. Homestead credit.
1. a. Any person sixty-five years of age or older or permanently and totally disabled, in
the year in which the tax was levied, with an income that does not exceed the
limitations of subdivision c is entitled to receive a reduction in the assessment on
the taxable valuation on the person's homestead. An exemption under this
subsection applies regardless of whether the person is the head of a family.
b. The exemption under this subsection continues to apply if the person does not
reside in the homestead and the person's absence is due to confinement in a
nursing home, hospital, or other care facility, for as long as the portion of the
homestead previously occupied by the person is not rented to another person.
Page No. 12
c.
d.
e.
f.
g.
h.
i.
2.
a.
b.
The exemption must be determined according to the following schedule:
(1) If the person's income is not in excess of twenty-two thousand dollars, a
reduction of one hundred percent of the taxable valuation of the person's
homestead up to a maximum reduction of five thousand six hundred
twenty-five dollars of taxable valuation.
(2) If the person's income is in excess of twenty-two thousand dollars and not in
excess of twenty-six thousand dollars, a reduction of eighty percent of the
taxable valuation of the person's homestead up to a maximum reduction of
four thousand five hundred dollars of taxable valuation.
(3) If the person's income is in excess of twenty-six thousand dollars and not in
excess of thirty thousand dollars, a reduction of sixty percent of the taxable
valuation of the person's homestead up to a maximum reduction of three
thousand three hundred seventy-five dollars of taxable valuation.
(4) If the person's income is in excess of thirty thousand dollars and not in
excess of thirty-four thousand dollars, a reduction of forty percent of the
taxable valuation of the person's homestead up to a maximum reduction of
two thousand two hundred fifty dollars of taxable valuation.
(5) If the person's income is in excess of thirty-four thousand dollars and not in
excess of thirty-eight thousand dollars, a reduction of twenty percent of the
taxable valuation of the person's homestead up to a maximum reduction of
one thousand one hundred twenty-five dollars of taxable valuation.
(6) If the person's income is in excess of thirty-eight thousand dollars and not in
excess of forty-two thousand dollars, a reduction of ten percent of the
taxable valuation of the person's homestead up to a maximum reduction of
five hundred sixty-three dollars of taxable valuation.
Persons residing together, as spouses or when one or more is a dependent of
another, are entitled to only one exemption between or among them under this
subsection. Persons residing together, who are not spouses or dependents, who
are co-owners of the property are each entitled to a percentage of a full
exemption under this subsection equal to their ownership interests in the
property.
This subsection does not reduce the liability of any person for special
assessments levied upon any property.
Any person claiming the exemption under this subsection shall sign a verified
statement of facts establishing the person's eligibility.
A person is ineligible for the exemption under this subsection if the value of the
assets of the person and any dependent residing with the person exceeds five
hundred thousand dollars, including the value of any assets divested within the
last three years.
The assessor shall attach the statement filed under subdivision f to the
assessment sheet and shall show the reduction on the assessment sheet.
An exemption under this subsection terminates at the end of the taxable year of
the death of the applicant.
Any person who would qualify for an exemption under subdivisions a and c of
subsection 1 except for the fact that the person rents living quarters is eligible for
refund of a portion of the person's annual rent deemed by this subsection to
constitute the payment of property tax.
For the purpose of this subsection, twenty percent of the annual rent, exclusive of
any federal rent subsidy and of charges for any utilities, services, furniture,
furnishings, or personal property appliances furnished by the landlord as part of
the rental agreement, whether expressly set out in the rental agreement, must be
considered as payment made for property tax. When any part of the twenty
percent of the annual rent exceeds four percent of the annual income of a
qualified applicant, the applicant is entitled to receive a refund from the state
general fund for that amount in excess of four percent of the person's annual
income, but the refund may not be in excess of four hundred dollars. If the
Page No. 13
3.
4.
5.
calculation for the refund is less than five dollars, a minimum of five dollars must
be sent to the qualifying applicant.
c. Persons who reside together, as spouses or when one or more is a dependent of
another, are entitled to only one refund between or among them under this
subsection. Persons who reside together in a rental unit, who are not spouses or
dependents, are each entitled to apply for a refund based on the rent paid by that
person.
d. Each application for refund under this subsection must be made to the tax
commissioner before the first day of June of each year by the person claiming the
refund. The tax commissioner may grant an extension of time to file an
application for good cause. The tax commissioner shall issue refunds to
applicants.
e. This subsection does not apply to rents or fees paid by a person for any living
quarters, including a nursing home licensed pursuant to section 23-16-01, if those
living quarters are exempt from property taxation and the owner is not making a
payment in lieu of property taxes.
f. A person may not receive a refund under this section for a taxable year in which
that person received an exemption under subsection 1.
All forms necessary to effectuate this section must be prescribed, designed, and made
available by the tax commissioner. The county directors of tax equalization shall make
these forms available upon request.
A person whose homestead is a farm structure exempt from taxation under
subsection 15 of section 57-02-08 may not receive any property tax credit under this
section.
For the purposes of this section:
a. "Dependent" has the same meaning it has for federal income tax purposes.
b. "Homestead" has the same meaning as provided in section 47-18-01.
c. "Income" means income for the most recent complete taxable year from all
sources, including the income of any dependent of the applicant, and including
any county, state, or federal public assistance benefits, social security, or other
retirement benefits, but excluding any federal rent subsidy, any amount excluded
from income by federal or state law, and medical expenses paid during the year
by the applicant or the applicant's dependent which is not compensated by
insurance or other means.
d. "Medical expenses" has the same meaning as it has for state income tax
purposes, except that for transportation for medical care the person may use the
standard mileage rate allowed for state officer and employee use of a motor
vehicle under section 54-06-09.
e. "Permanently and totally disabled" means the inability to engage in any
substantial gainful activity by reason of any medically determinable physical or
mental impairment which can be expected to result in death or has lasted or can
be expected to last for a continuous period of not less than twelve months as
established by a certificate from a licensed physician or a written determination of
disability from the social security administration or any federal or state agency
that has authority to certify an individual's disability.
57-02-08.2. Homestead credit - Certification.
1. Prior to the first of March of each year, the county auditor of each county shall certify to
the state tax commissioner on forms prescribed by the state tax commissioner the
name and address of each person for whom the homestead credit provided for in
section 57-02-08.1 was allowed for the preceding year, the amount of exemption
allowed, the total of the tax mill rates of all taxing districts, exclusive of any state mill
rates, that was applied to other real estate in such taxing districts for the preceding
year, and such other information as may be prescribed by the tax commissioner.
2. On or before the first of June of each year, the tax commissioner shall audit the
certifications, make the required corrections, and certify to the state treasurer for
Page No. 14
3.
4.
5.
payment to each county, the sum of the amounts computed by multiplying the
exemption allowed for each such homestead in the county for the preceding year by
the total of the tax mill rates, exclusive of any state mill rates, that was applied to other
real estate in such taxing districts for that year.
The county treasurer upon receipt of the payment from the state treasurer shall
apportion and distribute it without delay to the county and to the local taxing districts of
the county on the basis on which the general real estate tax for the preceding year is
apportioned and distributed.
The tax commissioner shall annually certify to the state treasurer the amount
computed by multiplying the exemption allowed for all homesteads in the state for the
preceding year by one mill for deposit into the state medical center fund.
Supplemental certifications by the county auditor and by the state tax commissioner
and supplemental payments by the state treasurer may be made after the dates
prescribed in this section to make such corrections as may be necessary because of
errors or because of approval of any application for abatement filed by a person
because the exemption provided for in section 57-02-08.1 was not allowed in whole or
in part.
57-02-08.3. Homestead credit for special assessments - Certification - Lien.
1. Any person who has qualified for the property tax credit provided for in section
57-02-08.1 may elect to also qualify for an additional homestead credit against that
person's homestead for the portion of any special assessment levied by a taxing
district which becomes due for the same year. The total amount of credits allowed for
any one property must not exceed six thousand dollars excluding any interest charged
by the body levying the special assessment. This credit may be granted only at the
election of the qualifying person. The person making the election shall do so by filing
with the county auditor a claim for the special assessment credit on a form prescribed
by the tax commissioner. The claim must be filed with the county auditor on or before
February first of the year in which the special assessment installment thereof becomes
payable.
2. a. By March first of each year, the county auditor of each county shall certify to the
state tax commissioner, on forms prescribed by the tax commissioner, the
following information:
(1) The name and address of each person for whom the special assessment
credit provided for in subsection 1 was allowed for the preceding year.
(2) The amount of credit allowed for the special assessment installment thereof
due for the preceding year.
(3) The total amount of the special assessment credits due in each special
assessment district.
(4) Other information that the tax commissioner requires.
b. The tax commissioner shall audit the certifications, make such corrections as may
be required, and certify to the state treasurer for payment to each county by June
first of each year the sum of the amounts computed by adding the credits allowed
for portions of special assessments which were due for each homestead in the
county for the preceding year. No more than the portion of special assessments
due for the preceding year shall be allowed as a credit for any homestead in any
year.
c. The county treasurer upon receipt of the payment from the state treasurer shall
forthwith apportion and distribute the payment to each special assessment district
in the county according to the total credits allowed for each respective special
assessment district.
d. Supplemental certifications by the county auditor and by the state tax
commissioner and supplemental payments by the state treasurer may be made
after the dates prescribed herein to make such corrections as may be necessary
because of errors therein.
Page No. 15
3.
a.
b.
c.
Any credit allowed under subsection 1, plus interest in the amount of nine percent
per year from June first of the year for which the special assessment installment
for which a credit is taken becomes payable, creates a lien in favor of the state
against the property upon which the special assessment credit is allowed and
remains a lien upon the property from the time the credit is allowed until the lien is
fully satisfied by depositing the amount of the lien in the state general fund. If the
amount of the lien exceeds the market value of the property, the state may accept
the amount of the market value of the property as payment in full on the lien.
(1) Except as otherwise provided in this subdivision, a transfer of title to the
homestead because of sale, death, or otherwise may not be made without
the lien being satisfied. When a credit under subsection 1 is allowed, the
county auditor shall cause a notice of lien of record to be filed against
subject property with the recorder.
(2) The recorder may not record any deed for property on which the county
auditor has determined that there is an unsatisfied lien created under this
section, except for a transfer between spouses because of the death of one
of them as provided in paragraph 3.
(3) When a transfer occurs between spouses because of the death of one of
them, the lien allowed by this section need not be satisfied until the property
is again transferred.
This lien has precedence over all other liens except general tax liens and prior
special assessment liens and shall not be divested at any judicial sale. A mistake
in the description of the property covered by this lien or in the name of the owner
of the property does not defeat the lien if the property can be identified by the
description in the special assessment list.
57-02-08.4. Conditional property tax exemption for owners of wetlands.
Wetlands qualifying under this section are exempt from taxation. To qualify for the tax
exemption, the owner of wetlands must annually file with the county director of tax equalization,
on a form prescribed by the state tax commissioner, a legal description of the wetlands for which
an exemption is claimed and an agreement to not drain, fill, pump, or concentrate water in a
smaller and deeper excavation in the wetland basin or alter the physical nature of the wetland in
any manner that reduces the wetland's ability to function as a natural system during the year for
which the exemption is claimed. To qualify for the exemption the agreement must be filed by
June thirtieth of the year for which the exemption is claimed. The exemption is not available for
years prior to filing of the agreement or for any year in which the terms of the agreement are
violated. The county director of tax equalization shall certify to the county auditor, for each
landowner receiving the exemption, the landowner's name, the amount of tax which would have
been due on the exempt acreage for the most recent past tax year, and that the landowner has
filed the required agreement. The amount of the wetlands exemption must be reflected upon the
property tax statement of each eligible taxpayer.
For purposes of this section, "wetlands" means all types 3, 4, and 5 wetlands, as
determined by the agriculture commissioner and the director of the game and fish department,
in accordance with United States fish and wildlife service circular no. 39 (1971 edition), drainage
of which would be feasible and practical.
When wetlands are drained or altered so the land no longer qualifies for the exemption
provided by this section, the land is subject to additional taxes which would have been assessed
if the property had not qualified for the exemption provided by this section. The taxes which
would have been due on the land without the exemption for the ten years preceding the year in
which the exemption is terminated must be computed, and the property owner shall pay the
difference between this amount and the taxes which were actually paid on the property in
addition to taxes currently due. Absence of water on property qualifying for the exemption under
this section, caused by drought conditions, does not disqualify the property from the exemption
under this section.
The wetlands tax exemption provided by this section does not grant the public any
additional or greater right of access to the wetlands or diminish any right of ownership to the
Page No. 16
wetlands. The owner of property exempt under this section may use the property in any manner
which does not violate the agreement filed with the county director of tax equalization.
No property is exempt under this section unless the tax commissioner has certified to the
county auditor of each county by December tenth of the taxable year that funds are available in
the state treasury which may be used for payment in full of any state obligations under section
57-02-08.5.
57-02-08.5. Wetlands tax exemption payment - Certification.
Prior to November first of each year, the county auditor of each county shall certify to the
state tax commissioner on forms prescribed by the commissioner the total amount of property
tax which would have been due on property exempt under section 57-02-08.4 within the county
and other information as may be prescribed by the commissioner. The county auditor shall
forward to the commissioner copies of all agreements described in section 57-02-08.4 in effect
in the county.
The commissioner shall audit the claims for exemption, make corrections as required, and
certify to the state treasurer for payment to each county on or before June thirtieth of each year
the sum of property taxes due on property exempt under section 57-02-08.4 for the county in
the preceding year.
The county treasurer upon receipt of the payment from the state treasurer shall apportion
and distribute it to the county and local taxing districts on the basis on which the general real
estate tax for the preceding year is apportioned and distributed.
Supplemental certifications by the county auditor and the state tax commissioner and
supplemental payments by the state treasurer may be made after the date prescribed in this
section to make corrections as may be necessary.
No certifications must be made and no apportionment or distribution of payments to political
subdivisions may be made under this section unless property was exempt under section
57-02-08.4 in the preceding year.
57-02-08.6. Authorization for receipt of funds.
The state treasurer is authorized to receive funds for this program by legislative
appropriation and by gift, grant, devise, or bequest of any money or property from any private or
public source. Funds appropriated from any source for this purpose are not subject to section
54-44.1-11 and all income and moneys derived from the investment of the funds must be
credited to the fund for this program. The director of the game and fish department, the
agriculture commissioner, and the state engineer shall work with the governor, the United States
fish and wildlife service, nonprofit conservation organizations, and any other public official or
private organization or citizen to develop a source of funding to implement sections 57-02-08.4
and 57-02-08.5.
57-02-08.7. License fee in lieu of property taxes on leases for tourism or concession
purposes.
Payment of the license fee as provided in this section by the lessee of any leasehold
interest in state-owned property leased from the director of the state historical society or the
director of the parks and recreation department is a payment in lieu of all ad valorem taxes on
the leasehold interest or any associated building or other improvement if the lessee uses the
property, building, or other improvement primarily for tourism or concession purposes. The
director of the state historical society or the director of the parks and recreation department shall
establish the license fee at an annual amount not less than one dollar and not more than one
percent of the gross receipts from the tourism or concession enterprise. The lessee shall pay
the license fee to the treasurer of the county in which the tourism or concession enterprise is
located and all fees received under this section must be deposited in the county general fund.
The lease must indicate that the director of the state historical society or the director of the
parks and recreation department approves use of the property primarily for tourism or
concession purposes and intends the license fee paid by the lessee to be in lieu of ad valorem
taxes.
Page No. 17
57-02-08.8. Property tax credit for disabled veterans - Certification - Distribution.
1. A disabled veteran of the United States armed forces with an armed forces
service-connected disability of fifty percent or greater or a disabled veteran who has
an extra-schedular rating to include individual unemployability that brings the veteran's
total disability rating to one hundred percent as determined by the department of
veterans' affairs, who was discharged under honorable conditions or who has been
retired from the armed forces of the United States, or the unremarried surviving
spouse if the disabled veteran is deceased, is eligible for a credit applied against the
first six thousand seven hundred fifty dollars of taxable valuation of the homestead
owned and occupied by the disabled veteran or unremarried surviving spouse equal to
the percentage of the disabled veteran's disability compensation rating for
service-connected disabilities as certified by the department of veterans' affairs for the
purpose of applying for a property tax credit. An unremarried surviving spouse who is
receiving department of veterans' affairs dependency and indemnity compensation
receives a one hundred percent credit as described in this subsection.
2. If two disabled veterans are married to each other and living together, their combined
credits may not exceed one hundred percent of six thousand seven hundred fifty
dollars of taxable valuation of the homestead. If a disabled veteran co-owns the
homestead property with someone other than the disabled veteran's spouse, the credit
is limited to that disabled veteran's interest in the homestead, to a maximum amount
calculated by multiplying six thousand seven hundred fifty dollars of taxable valuation
by the disabled veteran's percentage of interest in the homestead property and
multiplying the result by the applicant's certified disability percentage.
3. A disabled veteran or unremarried surviving spouse claiming a credit under this
section for the first time shall file with the county auditor an affidavit showing the facts
herein required, a description of the property, and a certificate from the United States
department of veterans' affairs, or its successor, certifying to the amount of the
disability. The affidavit and certificate must be open for public inspection. A person
shall thereafter furnish to the assessor or other assessment officials, when requested
to do so, any information which is believed will support the claim for credit for any
subsequent year.
4. For purposes of this section, and except as otherwise provided in this section,
"homestead" has the meaning provided in section 47-18-01 except that it also applies
to a person who otherwise qualifies under the provisions of this section whether the
person is the head of the family.
5. This section does not reduce the liability of a person for special assessments levied
upon property.
6. A credit under this section terminates at the end of the taxable year of the death of the
applicant.
7. The board of county commissioners may cancel the portion of unpaid taxes that
represents the credit calculated in accordance with this section for any year in which
the qualifying owner has held title to the homestead property. Cancellation of taxes for
any year before enactment of this section must be based on the law that was in effect
for that tax year.
8. Before the first of March of each year, the county auditor of each county shall certify to
the tax commissioner on forms prescribed by the tax commissioner the name and
address of each person for whom the property tax credit for homesteads of disabled
veterans was allowed for the preceding year, the amount of credit allowed, the total of
the tax mill rates of all taxing districts, exclusive of any state mill rates, that was
applied to other real estate in the taxing districts for the preceding year, and such other
information as may be prescribed by the tax commissioner.
9. On or before the first of June of each year, the tax commissioner shall audit the
certifications, make the required corrections, and certify to the state treasurer for
payment to each county the sum of the amounts computed by multiplying the credit
allowed for each homestead of a disabled veteran in the county by the total of the tax
Page No. 18
10.
11.
12.
mill rates, exclusive of any state mill rates that were applied to other real estate in the
taxing districts for the preceding year.
The county treasurer upon receipt of the payment from the state treasurer shall
apportion and distribute the payment without delay to the county and to the local taxing
districts of the county on the basis on which the general real estate tax for the
preceding year is apportioned and distributed.
On or before the first day of June of each year, the tax commissioner shall certify to
the state treasurer the amount computed by multiplying the property tax credit allowed
under this section for homesteads of disabled veterans in the state for the preceding
year by one mill for deposit in the state medical center fund.
Supplemental certifications by the county auditor and by the tax commissioner and
supplemental payments by the state treasurer may be made after the dates prescribed
in this section to make such corrections as may be necessary because of errors or
because of approval of an application for abatement filed by a person because the
credit provided for the homestead of a disabled veteran was not allowed in whole or in
part.
57-02-09. Basis of exemptions.
The exemptions provided for in section 57-02-08 must be made in each case on the basis
of the full cash valuation both of the exemption and of the property upon which such exemption
is allowed.
57-02-10. Inundated and highway easement lands exempt from taxation.
The board of county commissioners is authorized and directed to remove from the tax rolls
and to declare as exempt from taxation all inundated lands upon which the owner thereof has
granted or hereafter shall grant a permanent easement to the United States of America, its
instrumentalities, or agencies, for the purpose of constructing, maintaining, and operating water
or wildlife conservation projects, and all lands upon which the owner thereof has granted or
hereafter shall grant an easement for a highway or road right of way to the United States, its
instrumentalities or agencies, or to the state or its political subdivisions, and such lands so
removed from the tax rolls shall remain exempt until such time as such water or wildlife
conservation projects or highway shall have been abandoned. Such lands shall not be removed
from the tax rolls and declared exempt from taxation until such time as the construction of such
water or wildlife conservation projects or highway thereon shall have been completed.
57-02-11. Listing of property - Assessment thereof.
Certified assessment officials must list and assess property as follows:
1. All real property subject to taxation must be listed and assessed every year with
reference to its value, on February first of that year.
2. An individual property record must be kept by the appropriate assessment official for
each parcel of taxable property. The record may be in electronic or paper form and
must include identifying information as prescribed by the state supervisor of
assessments. Assessors shall prepare the records and provide copies of all property
records prepared by the assessor to the county director of tax equalization. The county
director of tax equalization shall maintain those records for ten years from the date the
records were received from the assessors. A city with a population of five thousand or
more may elect to maintain the records required under this subsection on behalf of the
county. A city that makes this election must include these records in a city database of
taxable property to be maintained in the office of city assessor for ten years from the
assessment date.
3. Whenever after the first day of February and before the first day of April in any year, it
is made to appear to the assessor by the oath of the owner that any building, structure,
or other improvement, or tangible personal property, which is listed for taxation for the
current year has been destroyed or damaged by fire, flood, tornado, or other natural
disaster, the assessor shall investigate the matter and deduct from the valuation of the
Page No. 19
property of the owner of such destroyed property an amount which in the assessor's
judgment fairly represents such deduction as should be made.
57-02-11.1. Townhouses - Common areas - Assessment and taxation.
Townhouse property must be classified and valued as is other property except that the
value of the townhouse property must be increased by the value added by the right to use any
common areas in connection with the townhouse development. The common areas of the
development may not be separately taxed. The value of a common area of the townhouse
development must be assessed in an equal amount to each townhouse in the development
unless a declaration setting out a different apportionment is recorded in the office of the county
recorder. The total value of the townhouse property, including the value added as provided
herein, must have the benefit of any homestead credit under section 57-02-08.1 or other special
classification if the townhouse otherwise qualifies.
57-02-11.2. Confidentiality of information provided by commercial property owners
for assessment purposes.
Unless directed otherwise by judicial order or as otherwise provided by law, records and
information provided by the owner or occupant of commercial property with regard to income
and expenses of the property in connection with an assessment are confidential. This section
does not prohibit the publication of statistics classified to prevent the identification of a particular
property and information relating to that property or the disclosure of the records or information
when an action or proceeding has been brought by the owner or occupant to set aside or review
the assessment.
57-02-12. Manner of listing personal property.
Repealed by S.L. 1983, ch. 598, § 25.
57-02-13. False list under oath - Perjury.
Repealed by S.L. 1975, ch. 106, § 673.
57-02-14. Valuation of real property exempt from taxation.
At the time of making the assessment of real property, the assessor shall enter in a
separate list each description of property exempt by law and shall value it in the same manner
as other property, designating in each case to whom such property belongs and for what
purpose used. This section does not apply to property of the United States, this state, or a
political subdivision of this state or farm buildings or farm residences exempt from property
taxes by law.
57-02-14.1. Tax exemption certificate for real property to be filed - Exceptions.
Any person, corporations, limited liability companies, associations, or organizations owning
real property located within a municipality which claims that such real property is exempt from
assessment and taxation shall file with the assessor and with the county auditor a certificate
setting out all facts on which the claim for exemption is based, including the names of owners,
the date such property was acquired, the legal description, the use to which the property was
put during the twelve months preceding the assessment date, and any other information which
the assessor may request. This certificate shall be filed with the assessor and the county auditor
each year before the assessment date. If the certificate is not filed as provided herein, the
assessor shall regard the property as nonexempt property and shall assess it as such. The
provisions of this section shall not apply in any case when the real property is owned by the
United States or the state of North Dakota or any of its departments, institutions, agencies, or
political subdivisions.
57-02-15. Place of listing personal property.
Except as otherwise provided by statute, or by the constitution, all taxable tangible personal
property shall be assessed in the county, city, township, or district in which it is situated.
Page No. 20
Moneyed capital within the meaning of 12 U.S.C. 548 and such other moneys and credits as
hereafter may be made taxable, including stocks and bonds other than bank stock, shall be
listed and assessed against the owner thereof at the owner's place of business, and, if a
corporation or limited liability company, at its principal place of business, and if there is no
principal place of business or office in this state, then such personal property shall be listed in
the assessment district in which the business of the corporation, limited liability company, or
person is carried on.
57-02-16. Nonresident's farm property.
Repealed by S.L. 1963, ch. 375, § 6.
57-02-17. Listing of personal property moved between April first and June first.
Repealed by S.L. 1981, ch. 558, § 2.
57-02-18. Listing of range stock.
Repealed by S.L. 1971, ch. 538, § 1.
57-02-18.1. Taxation of livestock after thirty days.
Repealed by S.L. 1971, ch. 538, § 1.
57-02-18.2. Livestock tax proration after April first.
Repealed by S.L. 1971, ch. 538, § 1.
57-02-18.3. Livestock list submitted to auditor.
Repealed by S.L. 1971, ch. 538, § 1.
57-02-18.4. Livestock assessment by auditor.
Repealed by S.L. 1971, ch. 538, § 1.
57-02-18.5. Notice to auditor of livestock movement.
Repealed by S.L. 1971, ch. 538, § 1.
57-02-18.6. Livestock tax collectible where danger of movement.
Repealed by S.L. 1971, ch. 538, § 1.
57-02-18.7. Effect of prior livestock assessment.
Repealed by S.L. 1971, ch. 538, § 1.
57-02-19. Assessment of oil and gas drilling equipment.
Repealed by S.L. 1953, ch. 309, § 1.
57-02-20. Exemption of farm machinery for one year.
Repealed by S.L. 1981, ch. 581, § 4.
57-02-21. Tax exemption of personal property of certain persons with minimum
income - Penalty for false statement.
Repealed by S.L. 1981, ch. 581, § 4.
57-02-22. Place of listing in case of doubt.
Repealed by S.L. 1981, ch. 558, § 2.
57-02-23. Number or name of school district to be listed.
Repealed by S.L. 1985, ch. 604, § 22.
Page No. 21
57-02-24. Assessors to list coal and minerals.
Repealed by S.L. 2009, ch. 544, § 2.
57-02-25. Procedure in assessment of coal and mineral reserves.
Repealed by S.L. 2009, ch. 544, § 2.
57-02-26. Certain property taxable to lessee or equitable owner - Exception.
1. Property held under a lease for a term of years, or under a contract for the purchase
thereof, belonging to the United States or to the state or a political subdivision thereof,
except such lands upon which the state makes payments in lieu of property taxes, or
to any religious, scientific, or benevolent society or institution, whether incorporated or
unincorporated, or to any railroad corporation whose property is not taxed in the same
manner as other property, must be considered, for all purposes of taxation, as the
property of the person so holding the same.
2. Property held under an easement or a lease for a term of years and any improvements
upon that property which are used for any purpose relating to discovery, exploration,
processing, or transportation of oil or gas must be considered the property of the
lessee or easement holder. For the purposes of this subsection, "improvements" does
not include property subject to the provisions of chapter 57-06 or property subject to
the in lieu of ad valorem tax provisions of chapter 57-51.
3. Property owned by the state and held under a lease and any structure, fixture, or
improvement located on that property is not taxable to the leaseholder if the structure,
fixture, or improvement is used primarily for athletic and educational purposes at any
state institution of higher education.
57-02-26.1. Assessment to lessee of personal property owned by a bank.
Repealed by S.L. 1973, ch. 446, § 4.
57-02-27. Property to be valued at a percentage of assessed value - Classification of
property - Limitation on valuation of annexed agricultural lands.
All property subject to taxation based on the value thereof must be valued as follows:
1. All residential property to be valued at nine percent of assessed value. If any property
is used for both residential and nonresidential purposes, the valuation must be
prorated accordingly.
2. All agricultural property to be valued at ten percent of assessed value as determined
pursuant to section 57-02-27.2.
3. All commercial property to be valued at ten percent of assessed value.
4. All centrally assessed property to be valued at ten percent of assessed value except
as provided in section 57-06-14.1.
The resulting amounts must be known as the taxable valuation. In determining the assessed
value of real and personal property, except agricultural property, the assessor may not adopt a
lower or different standard of value because the same is to serve as a basis of taxation, nor may
the assessor adopt as a criterion of value the price at which said property would sell at auction,
or at forced sale, or in the aggregate with all the property in the town or district, but the assessor
shall value each article or description by itself, and at such sum or price as the assessor
believes the same to be fairly worth in money. In assessing any tract or lot of real property, there
must be determined the value of the land, exclusive of improvements, and the value of all
taxable improvements and structures thereon, and the aggregate value of the property,
including all taxable structures and other improvements, excluding the value of crops growing
upon cultivated lands. In valuing any real property upon which there is a coal or other mine, or
stone or other quarry, the same must be valued at such a price as such property, including the
mine or quarry, would sell for at a fair voluntary sale for cash. Agricultural lands within the
corporate limits of a city which are not platted constitute agricultural property and must be so
classified and valued for ad valorem property tax purposes until such lands are put to another
use. Agricultural lands, whether within the corporate limits of a city or not, which were platted
Page No. 22
and assessed as agricultural property prior to March 30, 1981, must be assessed as agricultural
property for ad valorem property tax purposes until put to another use. Such valuation must be
uniform with the valuation of adjoining unannexed agricultural land.
57-02-27.1. Property to be valued at true and full value.
All assessors and boards of equalization shall place the values of all items of taxable
property at the true and full value of the property except as otherwise specifically provided by
law, and the amount of taxes that may be levied on such property must be limited as provided in
this chapter. For the purposes of sections 57-02-27, 57-02-27.1, 57-02-27.2, and 57-55-04, the
term "true and full value" has the same meaning as provided in subsection 15 of section
57-02-01, except that "true and full value" of agricultural lands must be as determined pursuant
to section 57-02-27.2.
The governing body of the city or township may establish valuations that recognize the
supply of vacant lots available for sale.
57-02-27.2. Valuation and assessment of agricultural lands.
1. "True and full value" of agricultural lands must be their agricultural value for the
purposes of sections 57-02-27, 57-02-27.1, 57-02-27.2, and 57-55-04. Agricultural
value is defined as the "capitalized average annual gross return", except for inundated
agricultural land. The "annual gross return" must be determined from crop share rent,
cash rent, or a combination thereof reduced by estimated property taxes and crop
marketing expenses incurred by farmland owners renting their lands on a cash or crop
share basis.
2. For purposes of this section, "annual gross return" for cropland used for growing crops
other than sugar beets and potatoes means thirty percent of annual gross income
produced, "annual gross return" for cropland used for growing sugar beets and
potatoes means twenty percent of annual gross income produced, and "annual gross
return" for land used for grazing farm animals means twenty-five percent of an amount
determined by the department of agribusiness and applied economics of North Dakota
state university to represent the annual gross income potential of the land based upon
the animal unit carrying capacity of the land.
3. The "average annual gross return" for each county must be determined as follows:
a. Total the annual gross returns for the ten years immediately preceding the current
year for which data is available and discard the highest and lowest annual gross
returns of the ten.
b. The department of agribusiness and applied economics of North Dakota state
university shall establish a base year index of prices paid by farmers using annual
statistics on that topic compiled by the national agricultural statistics service for
the seven-year period ending in 1995, discarding the highest and lowest years'
indexes, and averaging the remaining five years' indexes. The department of
agribusiness and applied economics shall gather the national agricultural
statistics service annual index of prices paid by farmers for the ten years ending
with the most recent year used under subdivision a, discard the highest and
lowest years' indexes, average the remaining eight years' indexes, and divide the
resulting amount by the base year index of prices paid by farmers. This amount
must be divided into the amount determined under subdivision a.
c. Divide the figure arrived at in subdivision b by eight.
4. To find the "capitalized average annual gross return", the average annual gross return
must be capitalized by a rate that is a ten-year average of the gross agribank
mortgage rate of interest for North Dakota. The ten-year average must be computed
from the twelve years ending with the most recent year used under subdivision a of
subsection 3, discarding the highest and lowest years, and the gross agribank
mortgage rate of interest for each year must be determined in the manner provided in
section 20.2032A-4(e)(1) of the United States treasury department regulations for
valuing farm real property for federal estate tax purposes, except that the interest rate
may not be adjusted as provided in section 20.2032A-4(e)(2).
Page No. 23
5.
6.
7.
8.
The department of agribusiness and applied economics of North Dakota state
university shall compute annually an estimate of the average agricultural value per
acre [.40 hectare] of agricultural lands on a statewide and on a countywide basis; shall
compute the average agricultural value per acre [.40 hectare] for cropland,
noncropland, and inundated agricultural land for each county; and shall provide the tax
commissioner with this information by December first of each year. Fifty percent of the
annual gross income from irrigated cropland must be considered additional expense of
production and may not be included in computation of the average agricultural value
per acre [.40 hectare] for cropland for the county as determined by the department of
agribusiness and applied economics. Before January first of each year, the tax
commissioner shall provide to each county director of tax equalization these estimates
of agricultural value for each county.
For purposes of this section, "inundated agricultural land" means property classified as
agricultural property containing a minimum of ten contiguous acres if the value of the
inundated land exceeds ten percent of the average agricultural value of noncropland
for the county, which is inundated to an extent making it unsuitable for growing crops
or grazing farm animals for two consecutive growing seasons or more, and which
produced revenue from any source in the most recent prior year which is less than the
county average revenue per acre for noncropland calculated by the department of
agribusiness and applied economics of North Dakota state university. Application for
classification as inundated agricultural land must be made in writing to the township
assessor or county director of tax equalization by March thirty-first of each year. Before
all or part of a parcel of property may be classified as inundated agricultural land, the
board of county commissioners must approve that classification for that property for
the taxable year. The agricultural value of inundated agricultural lands for purposes of
this section must be determined by the department of agribusiness and applied
economics of North Dakota state university to be ten percent of the average
agricultural value of noncropland for the county as determined under this section.
Valuation of individual parcels of inundated agricultural land may recognize the
probability that the property will be suitable for agricultural production as cropland or
for grazing farm animals in the future. Determinations made under this subsection may
be appealed through the informal equalization process and formal abatement process
provided for in this title.
Before February first of each year, the county director of tax equalization in each
county shall provide to all assessors within the county an estimate of the average
agricultural value of agricultural lands within each assessment district. The estimate
must be based upon the average agricultural value for the county adjusted by the
relative values of lands within each assessment district compared to the county
average. In determining the relative value of lands for each assessment district
compared to the county average, the county director of tax equalization shall use soil
type and soil classification data from detailed and general soil surveys.
Each local assessor shall determine the relative value of each assessment parcel
within the assessor's jurisdiction and shall determine the agricultural value of each
assessment parcel by adjusting the agricultural value estimate for the assessment
district by the relative value of the parcel. Each parcel must then be assessed
according to section 57-02-27. If either a local assessor or a township board of
equalization develops an agricultural value for the lands in its assessment district
differing substantially from the estimate provided by the county director of tax
equalization, written evidence to support the change must be provided to the county
director of tax equalization. In determining the relative value of each assessment
parcel, the local assessor shall apply the following considerations, which are listed in
descending order of significance to the assessment determination:
a. Soil type and soil classification data from detailed or general soil surveys.
b. The schedule of modifiers that must be used to adjust agricultural property
assessments within the county as approved by the state supervisor of
assessments under subsection 9.
Page No. 24
c.
9.
10.
Actual use of the property for cropland or noncropland purposes by the owner of
the parcel.
Before February first of each year, the county director of tax equalization in each
county shall provide to all assessors of agricultural property within the county a
schedule of modifiers that must be used to adjust agricultural property assessments
within the county and directions regarding how those modifiers must be applied by
assessors. Before the schedule of modifiers is provided to assessors within the county,
the county director of tax equalization shall obtain the approval of the state supervisor
of assessments for use of the schedule within the county.
For any county that has not fully implemented use of soil type and soil classification
data from detailed or general soil surveys by February first of any taxable year after
2011, the tax commissioner shall direct the state treasurer to withhold five percent of
that county's allocation each quarter from the state aid distribution fund under section
57-39.2-26.1 beginning with the first quarter of 2013, and continuing until the tax
commissioner certifies to the state treasurer that that county has fully implemented use
of soil type or soil classification data. The amount withheld from the allocation must be
deposited into the agricultural land valuation fund. The amount withheld from the
allocation must be withheld entirely from the portion of the allocation which may be
retained by the county and may not reduce allocations to any political subdivisions
within the county.
57-02-27.3. Taxable valuation of centrally assessed wind turbine electric generators.
Repealed by S.L. 2007, ch. 504, § 5.
57-02-28. Basis for computation of tax.
The value of all property subject to a general property tax to be used in the computation of
taxes levied thereon is its taxable valuation as computed pursuant to section 57-02-27.
57-02-29. Bond and oath of district assessor.
Every person elected or appointed to the office of assessor in an assessor district consisting
of unorganized territory, at or before the time of receiving the assessment books, must be
bonded for the faithful discharge of the duties of the office, in the state bonding fund or by a
corporate surety company authorized to do business in this state, in the penal sum of one
thousand dollars. The assessor shall take and subscribe the oath prescribed for civil officers.
Failure to be bonded or to take such oath must be deemed a refusal to serve and creates a
vacancy in the office.
57-02-30. Assessor may administer oaths.
The assessor may administer oaths to all persons who are required to swear to any
statement or return in connection with the assessment and may examine, under oath, any
person whom the assessor may believe to have knowledge of the amount or value of the
personal property of any person refusing to list or to verify the list of personal property.
57-02-31. Auditor to furnish books to assessors at meeting.
The county auditor annually shall provide the necessary books and blanks at county
expense for each assessment district or township in the county. Every year, the county auditor
shall enter in the real property assessment book a complete list of all lands or lots subject to
taxation. The list must show the name of the owner, if known, the number of acres [hectares],
and the lots and parts of lots or blocks included in each description. On or before the second
Wednesday in February of each year, following notice by mail from the county auditor, all the
assessors in the county shall meet in the county auditor's office for a conference on their duties
as assessors, and the county auditor shall then deliver to each assessor the assessment books
and blanks for each assessor's assessment district. Each assessor must be allowed a sum not
to exceed twenty dollars a day, at the discretion of the board of county commissioners, for each
day's attendance at the conference and mileage in the amounts provided in section 11-10-15.
Page No. 25
57-02-32. Auditor to furnish tax list.
The auditor of each county shall make and transmit to the township clerk of each civil
township within such county, on the first day of March of each year, a copy of the tax list of such
township for the preceding year showing the owner and description of each piece or parcel of
land assessed and the valuation thereof.
57-02-33. Assessor services for unorganized territory.
Any area not within an organized township or city must be assessed by a certified assessor
under the supervision and direction of the county director of tax equalization. The county
director of tax equalization may serve as an assessor of property under this section. Every
individual performing assessor services under this section is entitled to compensation and
mileage and travel expenses determined by the board of county commissioners for the time
actually and necessarily employed in assessment of property. The compensation and expenses
must be paid from the treasury of the county in which the assessed property is located only
upon submission of an itemized statement setting forth the actual time spent in the work of the
assessor and mileage traveled, approved by the board of county commissioners.
57-02-34. When and how assessment made.
The assessor shall perform the duties required of the office during the twelve-month period
prior to April first in the manner provided in this section. The assessor shall determine both the
true and full value as defined by law and the assessed value of each tract or lot of real property
listed for taxation, and shall enter those values in separate columns, and the true and full value
and assessed value of all improvements and structures taxable thereon in separate columns,
opposite such description of property, and in another column shall show the total assessed
value of the property by adding the totals of the two previous assessed value columns.
57-02-35. Sickness or absence of owner.
Repealed by S.L. 1983, ch. 598, § 25.
57-02-36. List given to auditor for persons sick or absent.
Repealed by S.L. 1983, ch. 598, § 25.
57-02-37. Duty of assessor upon failure to obtain assessment - Copy of assessment
list to nonresident.
Repealed by S.L. 1983, ch. 598, § 25.
57-02-38. Units of real property for assessment.
In all assessment books and tax lists and in all proceedings for the collection of taxes and
proceedings founded thereon, unplatted land and undeveloped land platted before March 30,
1981, not situated within the limits of an incorporated city must be described in subdivisions not
exceeding quarter sections. Real property in the platted portion of a city or real property platted
on or after March 30, 1981, that is located outside any city and is not agricultural property under
the conditions set out in subsection 1 of section 57-02-01, must be assessed separately as to
each lot. When a building or structure covers two or more contiguous lots or parts of lots owned
by the same person the assessment may not be entered separately as to each lot or part of lot,
but the tract upon which the building is located must be described and assessed as one parcel.
A block which has not been subdivided may be described, assessed, and taxed in a unit of one
block. A failure to comply with the provisions of this section does not impair the validity of taxes.
57-02-39. Irregularities of land to be platted into lots if required.
If any tract or lot of land is divided into irregular shapes which can be described only by
metes and bounds, or if any addition or subdivision which already has been platted into blocks
and lots and subsequently sold into parts of blocks or lots which can be described only by metes
and bounds, or if the courses, distances, and sizes of each lot or fractional lot are not given or
marked upon the plat so that the precise location of each lot and fractional lot can be
Page No. 26
ascertained accurately, surveyed, or laid out, the owner of such tract or tracts, upon the request
of the county auditor, shall have such land platted or replatted, as the case may be, into lots or
blocks according to deeds on record. If such plat cannot be made without an actual survey of
the land, the same must be surveyed and platted and the plat thereof recorded. If the owners of
any such tract refuse or neglect to cause such plat and survey, when necessary, to be made
and recorded within thirty days after such request, the county surveyor, or some other
competent surveyor, upon the request of the county auditor, shall make out such plat from the
records of the recorder if practicable, but if it cannot be made from such records, then the
surveyor shall make the necessary survey and plat thereof, and the county auditor shall have
the same recorded, but no such plat may be recorded until approved by the city engineer of the
city affected thereby, and if there is no city engineer, then by the county surveyor. A certificate of
the approval of such plat must be made by the officer making the same endorsed on the plat or
map. Such certificate also must be recorded and forms a part of the record. When such plat has
been duly certified and recorded, any description of the property in accordance with the number
and description set forth in such plat must be deemed a good and valid description of the lots or
parcels of land so described. No such plat or description may bear the name or number which
already has been applied to any plat or description previously made and recorded as a part of
any such city. When the owner of such land fails to comply with the provisions of this section,
the cost of surveying, platting, and recording must be paid by the county, upon allowance by the
board of county commissioners, and the amount thereof must be added to the taxes upon such
tracts or lots the ensuing year. Such taxes, when collected, must be credited to the county
general fund. The surveyor making such survey or plat is entitled to receive for services in
making the same the compensation allowed by law for doing other county surveying or platting,
and such fees become a legal charge upon such tracts of land.
57-02-40. Taxes paramount lien on real estate - Statute of limitations not applicable to
personal property taxes.
1. Taxes upon real property are a perpetual paramount lien thereon against all persons,
except the United States and this state.
2. Taxes upon personal property shall not be affected by any general statute of
limitations.
3. A tax lien includes the principal of the tax, and all costs, penalties, interest, charges,
and expenses which by law accrue, attach, or are incurred.
57-02-41. Attachment of tax lien and prorating taxes as between vendor and
purchaser.
All taxes, as between vendor and purchaser, become a lien on real estate on and after the
first day of January following the year for which such taxes were levied. If taxable real property
is acquired in any year after the assessment date by an owner in whose hands it will be exempt
from taxation, the taxes on it for the portion of the year that it was not exempt, computed to the
nearest month, constitute a personal charge against the person from whom it was acquired and
all of the provisions of law for payment and collection of personal property taxes are applicable
to such prorated taxes.
If exempt real property is acquired in any year after the assessment date by an owner in
whose hands it is taxable, it must be assessed as omitted property and the taxes on it for that
portion of the year that it is not exempt, computed to the nearest month, are subject to all of the
provisions for payment and collection that are applicable to taxes for the same year on other
real property.
57-02-42. Personal property in transit - Definition - Exemption.
Repealed by S.L. 1975, ch. 524, § 2.
57-02-43. Records.
Repealed by S.L. 1975, ch. 524, § 2.
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57-02-44. Reconsignment - Report - Tax.
Repealed by S.L. 1975, ch. 524, § 2.
57-02-45. Criminal penalty.
Repealed by S.L. 1975, ch. 106, § 673; 1975, ch. 524, § 2.
57-02-46. Civil penalty.
Repealed by S.L. 1975, ch. 524, § 2.
57-02-47. Name of billboard owner.
No person may erect and rent or lease any billboard for advertising purposes upon any land
or attached to any building, unless at the time of the erection of such billboard there is attached
and firmly affixed thereto a plate or sign containing the name and address of the owner of such
billboard, which plate or sign must be kept and maintained thereon at all times.
57-02-48. Failure to designate billboard owner - Penalty.
If the owner of such billboard fails to comply with the provisions of section 57-02-47 within
sixty days after the erection of such billboard, such owner is guilty of an infraction.
57-02-49. Billboard reports - Contents - Filing - Penalty.
Repealed by S.L. 1975, ch. 524, § 2.
57-02-50. Agricultural land valuation fund - Deposits - Continuing appropriation.
There is established a special fund in the state treasury to be known as the agricultural land
valuation fund. The moneys withheld under subsection 10 of section 57-02-27.2 must be
deposited into the agricultural land valuation fund. All moneys deposited in the agricultural land
valuation fund are appropriated as a continuing appropriation and must be allocated to the
county from which the withholding was made upon certification from the tax commissioner of the
implementation of subsection 7 of section 57-02-27.2 by that county.
57-02-51. Notice of township and city equalization meetings to be published - Date of
equalization meeting.
Each year the county auditor shall publish in the official county newspaper for two
successive weeks, a notice that proceedings for the equalization of assessments will be held by
the several local equalization boards. The first publication of the notice may not be earlier than
March first and the second publication may not be later than March twentieth. The notice must
contain a statement that the proceedings will be held at the regular meeting place of the
governing board or other place designated by that board of the township or city, as the case
may be. The notice must also contain a statement that each taxpayer has the right to appear
before the appropriate board of review or equalization and petition for correction of the
taxpayer's assessment. The equalization proceedings in an organized township must be held on
the second Monday in April and in a city on the second Tuesday in April.
57-02-52. Notice of county equalization meetings to be published - Date of
equalization meeting.
Each year the county auditor shall publish in the official county newspaper for two
successive weeks, a notice that proceedings for the equalization of assessments for all real
property in the county will be held by the county board of equalization. The first publication of
the notice may not be earlier than May first and the second publication may not be later than
May twentieth, however, the second notice must be published more than ten days prior to the
date of the meeting. The notice must contain the date, time, and location of the meeting. The
notice must also contain a statement that each taxpayer has the right to appear before the
appropriate board of review or equalization and petition for correction of the taxpayer's
assessment. The county equalization proceedings must be held no later than June tenth.
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57-02-53. Assessment increase notice to property owner.
1. a. When any assessor has increased the true and full valuation of any lot or tract of
land and improvements to an amount that is an increase of three thousand
dollars or more and ten percent or more from the amount of the previous year's
assessment, the assessor shall deliver written notice of the amount of increase
and the amount of the previous year's assessment to the property owner at the
expense of the assessment district for which the assessor is employed. Delivery
of written notice to a property owner under this subdivision must be completed at
least fifteen days before the meeting of the local board of equalization.
b. If written notice by the assessor was not required under subdivision a and action
by the township, city, or county board of equalization or order of the state board of
equalization has increased the true and full valuation of any lot or tract of land
and improvements to an amount that results in a cumulative increase of three
thousand dollars or more and ten percent or more from the amount of the
previous year's assessment, written notice of the amount of increase and the
amount of the previous year's assessment must be delivered to the property
owner. The written notice under this subdivision must be mailed or delivered at
the expense of the township, city, or county that made the assessment increase
or at the expense of the township, city, or county that was ordered to make the
increase by the state board of equalization. Delivery of written notice to a property
owner under this subdivision must be completed within fifteen days after the
meeting of the township, city, or county board of equalization that made or
ordered the assessment increase and within thirty days after the meeting of the
state board of equalization, if the state board of equalization ordered the
assessment increase.
c. The tax commissioner shall prescribe suitable forms for written notices under this
subsection. The written notice under subdivision a must show the true and full
value of the property, including improvements, that the assessor determined for
the current year and for the previous year and must also show the date
prescribed by law for the meeting of the local board of equalization of the
assessment district in which the property is located and the meeting date of the
county board of equalization.
d. Delivery of written notice under this section must be by personal delivery to the
property owner, mail addressed to the property owner at the property owner's
last-known address, or electronic mail to the property owner directed with
verification of receipt to an electronic mail address at which the property owner
has consented to receive notice.
2. The form of notice prescribed by the tax commissioner must require a statement to
inform the taxpayer that an assessment increase does not mean property taxes on the
parcel will increase. The notice must state that each taxing district must provide mailed
notice of public hearing to the property owner if a greater property tax levy is being
proposed than a zero increase number of mills. The notice may not contain an
estimate of a tax increase resulting from the assessment increase.
3. The assessor shall provide an electronic or printed list including the name and address
of the addressee of each assessment increase notice required under subdivision a of
subsection 1 and the officer responsible for providing notice under subdivision b of
subsection 1 shall provide an electronic or printed list including the name and address
of the addressee of each assessment increase notice required under subdivision b of
subsection 1 to each city, county, school district, or city park district in which the
subject property is located, but a copy does not have to be provided to any such taxing
district that levied a property tax levy of less than one hundred thousand dollars for the
prior year.
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