25.1184.01000
Sixty-ninth
Legislative Assembly
of North Dakota
Introduced by
Representatives Toman, Dockter, Kasper, Schatz, Steiner, VanWinkle, Koppelman, D.
Johnston, Louser
Senators Meyer, Castaneda, Paulson
A BILL for an Act to create and enact a new section to chapter 57-02, a new chapter to title 57,
a new section to chapter 57-09, a new section to chapter 57-11, two new sections to chapter
57-12, two new sections to chapter 57-13, and a new section to chapter 57-15 of the North
Dakota Century Code, relating to imposition of a square footage tax on residential property,
provision of a solar or wind energy device or geothermal device credit and new single-family,
condominium, and townhouse residential property credit, duties of the state and county boards
of equalization, application of mill levy limits, and valuation requirements; to amend and reenact
sections 11-23-05, 11-28.3-03, 11-28.3-04, and 11-28.3-09, subsection 2 of section 11-28.3-17,
subsection 4 of section 15.1-27-04.1, sections 18-10-07, 18-10-12.1, 40-40-06, 40-40-10, and
40-58-20, subsection 2 of section 40-58-20.2, sections 57-02-11, 57-02-51, 57-02-52, 57-09-04,
57-11-03, 57-15-02, 57-15-02.2, 57-15-05, 57-15-07, 57-15-11, 57-15-13, 57-15-31, 57-15-31.1,
57-20-01, 57-20-01.1, 57-20-02, 57-20-03, 57-20-04, 57-20-07.1, 57-20-09, 57-20-10, and
57-20-21.1, subdivision a of subsection 1 of section 57-23-04, section 57-23-06, subsection 2 of
section 57-28-03, subdivision c of subsection 1 of section 57-28-20, and sections 57-28-26,
57-55-01.2, 57-55-04, 57-55-04.1, 57-55-05, and 61-24-09 of the North Dakota Century Code,
relating to imposition of a square footage tax on residential property, application of certain
property tax incentives to the square footage tax, duties of state and local equalization boards,
determination of taxing district budgets and tax levies, the determination of school state aid
payments, and imposition of a square footage tax on mobile homes; to repeal subsection 35 of
section 57-02-08 of the North Dakota Century Code, relating to a property tax exemption for
new single-family, condominium, and townhouse residential property; to provide a penalty; and
to provide an effective date.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
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HOUSE BILL NO. 1474
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SECTION 1. AMENDMENT. Section 11-23-05 of the North Dakota Century Code is
amended and reenacted as follows:
11-23-05. Computing amount of levy.
1.The amount which the board of county commissioners shall levy as the county
ad valorem tax shall be computed by adding together the amounts of the annual
appropriation and of that part of any special appropriation which is to be raised by
taxation and deducting therefrom so much of the probable receipts from all sources,
including square footage tax levied under section 18 of this Act, except loans, and so
much of the unappropriated balance in the county treasury at the close of the auditor's
books for the previous year as the board deems advisable.
2.The board, on or before the October meeting required by section 11-11-05, shall
determine the amount of ad valorem taxes that shall be levied for county purposes and
the square footage tax rate for purposes of the tax under section 18 of this Act and
shall levy all such taxes in specific amounts.
SECTION 2. AMENDMENT. Section 11-28.3-03 of the North Dakota Century Code is
amended and reenacted as follows:
11-28.3-03. Notice of election.
In addition to the usual requirements of notices of election, the notice for an election at
which the question provided for in this chapter will be voted upon must include a statement
describing the boundaries of the proposed rural ambulance service district, expressed,
wherever possible, in terms of the government survey, a statement setting forth a maximum
allowed mill levy and square footage tax rate for the proposed district, which levy may not
exceed the limitation in section 11-28.3-09. The notice of election also must state the voting
areas in which the question provided by this chapter will be on the ballot.
SECTION 3. AMENDMENT. Section 11-28.3-04 of the North Dakota Century Code is
amended and reenacted as follows:
11-28.3-04. Form of ballot - Vote required to approve.
1.The ballot on the question of forming a rural ambulance service district must be in
substantially the following form:
Shall (name of taxing district or districts) levy a tax for the purpose of forming a
rural ambulance district of not to exceed _______ mills for the purpose of forming
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a rural ambulance districtcommercial, agricultural, and centrally assessed
property, $_______ per residential land square foot, and $_______ per
residential structure square foot?
Yes ☐
No ☐
2.The square footage tax rates must be determined in accordance with the requirements
of section 18 of this Act.
3.If a majority of all the votes cast on the question of levying a tax and forming a rural
ambulance service district are in favor of such athe tax levy, then the formation of the
district is approved.
SECTION 4. AMENDMENT. Section 11-28.3-09 of the North Dakota Century Code is
amended and reenacted as follows:
11-28.3-09. Emergency medical service policy - Levy - Financial report.
1.The board of directors shall establish a general emergency medical service policy for
the district and annually shall estimate the probable expense for carrying out that
policy. The estimate must be certified by the president and secretary to the proper
county auditor or county auditors, on or before August tenth of each year. In the year
for which the levy is sought, a board of directors of a rural ambulance service district
seeking approval of a property tax levy under this chapter shall file with the county
auditor of the counties within the rural ambulance service district, at a time and in a
format prescribed by the county auditors, a financial report for the preceding calendar
year showing the ending balances of each fund held by the rural ambulance service
district during that year. The board or boards of county commissioners may levy a tax
not to exceed the mill rate and square footage rates approved by the electors of the
district under section 11-28.3-04. If the board wishes to levy a tax in excess of that
approved by the electors, the board, upon its own motion, may place the question of
increasing the maximum allowable mill levy and square footage rates for the electors
to approve at a regular or special election. The amount of ad valorem tax levied under
this section may not exceed a mill rate of fifteen mills upon the taxable property within
the district for the maintenance of the rural ambulance service district for the fiscal
year as provided by law.
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2.The tax levied for a rural ambulance service district must be:
a.Collected as other taxes are collected in the county.
b.Deposited by the secretary-treasurer in a bank or credit union account.
c.Paid out upon warrants drawn upon the district account by authority of the board
of directors of the district, bearing the signature of the secretary-treasurer and the
countersignature of the president.
3.The amount of the tax levy, including ad valorem taxes and square footage taxes
authorized under section 18 of this Act, may not exceed the amount of funds required
to defray the expenses of the district for a period of one year as embraced in the
annual estimate of expense, including the amount of principal and interest upon the
indebtedness of the district for the ensuing year. The district may include in its
operating budget no more than ten percent of its annual operating budget as a
depreciation expense to be set aside in a dedicated emergency medical services
sinking fund deposited with the treasurer for the replacement of equipment and
ambulances. The ten percent emergency medical services sinking fund may be in
addition to the actual annual operating budget, but the total of the annual operating
budget and the annual ten percent emergency medical services sinking fund shall not
exceed the amount of revenue that would be generated by application of the
maximum mill levy and square footage rates approved by the electors.
4.If an ambulance operations area identified by the department of health and human
services under section 23-27-01 is situated, in whole or in part, within the boundaries
of a rural ambulance service district formed under this chapter, and the district does
not provide emergency medical services to the territory in the ambulance operations
area, whether directly or through a contract under section 11-28.3-12, the property
situated in the ambulance operations area which does not receive emergency medical
services from the district is exempt from the district's tax levy under this section.
Changes to the ambulance operations area will not impact the district under this
section until the subsequent tax year. The excluded territory remains responsible and
must discharge its proportionate share of outstanding obligations pursuant to the
procedure under section 11-28.3-17.
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SECTION 5. AMENDMENT. Subsection 2 of section 11-28.3-17 of the North Dakota
Century Code is amended and reenacted as follows:
2.Mill leviesLevies imposed under section 11-28.3-09 remain in effect until the
proportionate share of outstanding obligations are paid.
SECTION 6. AMENDMENT. Subsection 4 of section 15.1-27-04.1 of the North Dakota
Century Code, as effective after June 30, 2025, is amended and reenacted as follows:
4.After determining the product in accordance with subsection 3, the superintendent of
public instruction shall:
a.Subtract an amount equal to sixty mills multiplied by the taxable valuation of all
property classifications in the school district in taxable year 2025; and
b.Subtract an amount equal to seventy-five percent of all revenue types listed in
subdivisions c and d of subsection 1. Before determining the deduction for
seventy-five percent of all revenue types, the superintendent of public instruction
shall adjust revenues as follows:
(1)Tuition revenue shall be adjusted as follows:
(a)In addition to deducting tuition revenue received specifically for the
operation of an educational program provided at a residential
treatment facility, tuition revenue received for the provision of an adult
farm management program, tuition received for the education of
high-cost and special education students, and tuition received under
an agreement to educate students from a school district on an
air force base with funding received through federal impact aid as
directed each school year in paragraph 3 of subdivision c of
subsection 1, the superintendent of public instruction also shall reduce
the total tuition reported by the school district by the amount of tuition
revenue received for the education of students not residing in the
state and for which the state has not entered a cross-border education
contract; and
(b)The superintendent of public instruction also shall reduce the total
tuition reported by admitting school districts meeting the requirements
of subdivision e of subsection 2 of section 15.1-29-12 by the amount
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of tuition revenue received for the education of students residing in an
adjacent school district.
(2)After adjusting tuition revenue as provided in paragraph 1, the
superintendent shall reduce all remaining revenues from all revenue types
by the percentage of mills levied in 2022 by the school district for sinking
and interest relative to the total mills levied in 2022 by the school district for
all purposes.
SECTION 7. AMENDMENT. Section 18-10-07 of the North Dakota Century Code is
amended and reenacted as follows:
18-10-07. Fire protection policy to be determined - Financial report - Tax levy limit -
Vote-approved ad valorem levy authority.
1.The board of directors shall determine a general fire protection policy for the district
and shall annually estimate the probable expense for carrying out the contemplated
program. The annual estimate of probable expense may include an amount
determined by the board of directors to be necessary to be carried over to a future
year for purchase of firefighting equipment, ambulances, or other emergency vehicles.
The estimate must be certified by the president and secretary to the proper county
auditor or county auditors, on or before June thirtieth of each year, who shall levy a
tax, including ad valorem tax and square footage tax as authorized under section 18 of
this Act, upon the taxable property within the district for the maintenance of the fire
protection district for the fiscal year as provided by law.
2.In the year for which the levy is sought, a board of directors of a rural fire protection
district seeking approval of a property tax levy under this chapter must file with the
county auditor of the counties within the rural fire district, at a time and in a format
prescribed by the county auditors, a financial report for the preceding calendar year
showing the ending balances of each fund held by the rural fire protection district
during that year.
3.The ad valorem tax may not exceed a tax rate of five mills per dollar of the taxable
valuation of property in the district except upon resolution adopted by the board of
directors and approval by a majority of the qualified electors voting on the question at
an annual or special meeting of electors called by the board of directors, the
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ad valorem levy may be made in an amount not exceeding thirteen mills. If an election
to approve or reauthorize an excess ad valorem tax levy will be held at an annual or
special meeting of electors of the district called by the board of directors, notice of the
meeting and the proposed excess ad valorem levy election must be provided by at
least one publication in the official newspaper of each county in which the district is
located at least seven days, but not more than fourteen days, before the date of the
public meeting. The published notice must include the amount of the proposed
ad valorem tax rate increase in mills and the duration for which elector approval of the
increase is sought and must include the location where, and hours during which,
ballots may be cast.
4.Votes to approve or disapprove the ad valorem levy increase must be cast on the date
of the meeting. The polling place must remain open for at least six hours on the date
of the meeting. The secretary-treasurer of the district shall prepare and distribute to
qualified electors at the polling place paper ballots to conduct the election on the
question of increased ad valorem levy authority. Three election judges to receive and
count the ballots, who are qualified electors of the district but not members of the
board, must be selected at least seven days before the meeting by approval of a
majority of the members of the board. A marked ballot must be delivered to one of the
judges, folded to conceal its contents, the judge shall deposit it in the ballot box, and
another judge shall enter the name of the elector who cast the ballot in the pollbook.
When the election is closed, the judges shall count the ballots and announce the
result. Results of the election must be certified by the secretary-treasurer of the district
and each of the election judges to the tax commissioner and to the county auditor of
each county in which the district is located within ten days after the election. The
certificate must include a statement of the question as it appeared on the ballot,
together with the total number of votes cast in favor, and the number of votes cast
against, authorizing the excess ad valorem levy.
5.After July 31, 2015, approval or reauthorization by electors of increased ad valorem
levy authority under this section may not be effective for more than ten taxable years
or the period of time necessary for repayment of indebtedness incurred which was
intended to be repaid from the increased ad valorem levy, whichever expires later.
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Additional ad valorem levy authority authorized by the board of directors after petition
of electors before August 1, 2015, remains in effect under the provisions of law at the
time the levy was authorized for the time period authorized by the electors but not
exceeding ten taxable years or the period of time necessary for repayment of
indebtedness incurred which was intended to be repaid from the increased levy,
whichever expires later.
6.The ad valorem tax and square footage tax levied under section 18 of this Act must
be:
1.a.Collected as other taxes are collected in the county.
2.b.Turned over to the secretary-treasurer of the rural fire protection district, who
shall have a surety bond in the amount of at least five thousand dollars.
3.c.Placed to the credit of the rural fire protection district so authorizing the same by
its secretary-treasurer in a state or national bank, except amounts to be carried
over to a future year for purchase of firefighting equipment, ambulances, or other
emergency vehicles may be invested to earn the maximum return available.
4.d.Paid out upon warrants drawn upon the fund by authority of the board of directors
of the district, bearing the signature of the secretary-treasurer and the
countersignature of the president of the rural fire protection district.
7.The amount of tax levy, including ad valorem taxes and square footage taxes, may not
exceed the amount of funds required to defray the expenses of the district for a period
of one year as embraced in the annual estimate of expense, including the amount of
principal and interest upon the indebtedness of the district for the ensuing year and
including any amount determined by the board of directors to be necessary to be
carried over to a future year for purchase of firefighting equipment, ambulances, or
other emergency vehicles.
SECTION 8. AMENDMENT. Section 18-10-12.1 of the North Dakota Century Code is
amended and reenacted as follows:
18-10-12.1. Withdrawal from rural fire protection district.
Any person having an ownership interest in property subject to a millan ad valorem or
square footage tax levy as provided for in section 18-10-07 and wishing to withdraw such
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property from the rural fire protection district may do so as provided in this section, subject to
the following restrictions:
1.The territory to be withdrawn from the district must border on the outer boundary of the
district.
2.The territory to be withdrawn from the district remains subject to and chargeable for
the payment and discharge of the proportion of obligations outstanding at the time of
filing the petition for the withdrawal of the territory that the taxable valuation of property
in the territory to be withdrawn bears to the taxable valuation of all property within the
district prior to withdrawal.
3.Mill leviesLevies imposed under section 18-10-07 remain in effect until the
proportionate share of outstanding obligations are paid.
4.The proceedings for withdrawal must be initiated by the filing of a petition with the
appropriate county auditor or auditors signed by the fee title holders of sixty percent of
the surface acreage in the territory sought to be withdrawn and contain a description of
the boundaries of the territory sought to be withdrawn and a map or plat illustrating
such area.
5.The county auditor shall verify from the tax schedules and determine whether the
petition complies with the requirements of subsection 4.
6.The county auditor shall determine and certify the respective percentage proportions
of the taxable valuation of the territory petitioned to be withdrawn to the taxable
valuation of all property in the district prior to withdrawal to the board of directors of the
district concerned.
7.Within twenty days after receipt of the petition, verification, and computation of
respective percentage proportions, the board of directors of the district concerned
shall attach to the petition a statement of outstanding obligations of the district and
shall forward the petition to the appropriate board or boards of county commissioners.
8.The board or boards of county commissioners shall, at a regular meeting, compute the
indebtedness proportionately assignable to the territory sought to be withdrawn, and
shall, by written order, describe the boundaries of the territory withdrawn and the
indebtedness of the district assigned to the territory and subject to continued levy
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under section 18-10-07. The order and computation must be filed in the office of the
county auditor or auditors.
9.The annual estimate required under section 18-10-07 must reflect the annual expense
of retiring principal and interest upon the proportionate share of district indebtedness
assigned to withdrawn territory.
SECTION 9. AMENDMENT. Section 40-40-06 of the North Dakota Century Code is
amended and reenacted as follows:
40-40-06. Notice of preliminary budget statement - Contents - How given.
1.On or before August tenth of each year, after the governing body has prepared the
preliminary budget statement, the auditor of the municipality shall:
a.Provide the county auditor with a copy of the preliminary budget statement.
b.Set a public budget hearing date no earlier than September seventh and no later
than October seventh for the purpose of adopting the final budget and square
footage tax rates for purposes of the tax authorized under section 18 of this Act
and making the annual ad valorem and square footage tax levy.
c.Provide notice of the public budget and proposed square footage tax rate hearing
date to the county auditor.
2.For municipalities anticipating levying a square footage tax or less than one hundred
thousand dollars in ad valorem tax levies in the current year, the notice must:
a.Contain a statement of the proposed square footage tax rate and the total
proposed expenditures for each fund in the preliminary budget, but need not
contain any detailed statement of the proposed expenditures;
b.Be published at least once, not less than six days prior to the budget hearing, in a
newspaper published in the municipality, if there is one, and if no newspaper is
published in the municipality, the notice must be published not less than six days
prior to the meeting in the official city newspaper as provided by section
40-01-09; and
c.Provide that any taxpayer may appear and discuss with the governing body the
proposed square footage tax rates or any item of proposed expenditures, or may
object to any item or, amount, or rate.
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SECTION 10. AMENDMENT. Section 40-40-10 of the North Dakota Century Code is
amended and reenacted as follows:
40-40-10. Certified copies of levy and final budget sent to county auditor.
Immediately after the completion of the final budget, square footage tax rates for purposes
of the tax under section 18 of this Act, and the adoption of the annual ad valorem and square
footage tax levy by the governing body of a municipality in accordance with the provisions of
this chapter, and in no case later than October tenth, the auditor of the municipality shall send to
the county auditor a certified copy of the levy and square footage tax rates for purposes of the
tax under section 18 of this Act as adopted and a certified copy of the final budget.
SECTION 11. AMENDMENT. Section 40-58-20 of the North Dakota Century Code is
amended and reenacted as follows:
40-58-20. Tax increment financing.
1.At any time after the governing body of a municipality has approved a development or
renewal plan for any development or renewal area and has filed that plan with the
department of commerce division of community services, it may request the county
auditor and treasurer to compute, certify, and remit tax increments resulting from the
development or renewal of the area in accordance with the plan and any modifications
thereof, and the county auditor and treasurer shall do so in accordance with this
section.
a.For a tax increment district established before July 1, 2011, the base year for tax
increments computed for a development or renewal area under this section or
section 40-58-20.1 may not be used for more than twenty-five taxable years
without the governing body of the municipality establishing a new base year
using taxable values, established as of February first of the following year, or
square footage taxes levied in the following taxable year, which are not more
than fifteen years old. Regardless of length of the initial district, the new base
year may be used to compute tax increments for up to an additional fifteen years
after which time the tax increment district must be closed, except that the original
base year for tax increments pledged for an indebtedness incurred before July 1,
2011, may continue until the indebtedness is paid.
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b.For a tax increment district established after July 1, 2011, the base year for tax
increments computed for a development or renewal area under this section or
section 40-58-20.1 may not be used for more than twenty-five taxable years
without the governing body of the municipality establishing a new base year
using taxable values, established as of February first of the following year, or
square footage taxes levied in the following taxable year, which are not more
than fifteen years old. The new base year may be used to compute tax
increments for up to an additional five years after which time the tax increment
district must be closed.
2.Notwithstanding any other provision in this section, for a tax increment district
established before January 1, 2026, the tax increment or tax losses must be
calculated as the difference between the square footage tax and ad valorem tax levied
in dollars against the lots and parcels of real estate in the district in the current taxable
year and the amount of ad valorem property tax levied in dollars against the original
taxable value of the lots and parcels of real estate in the district in taxable year 2025.
For purposes of this subsection, "original taxable value" means the taxable value of
the lots and parcels of real estate in the year the tax increment district was
established.
3.For a tax increment district established on or after January 1, 2026:
a.The auditor shall compute and certify the original taxable value ofsquare footage
tax or ad valorem tax levied in dollars against each lot and parcel of real estate in
the area, as last assessed and equalizedlevied before the date of the request,
including the taxable value oftax levied against any lot or parcel previously
acquired by the municipality or its urban renewal agency, as last assessed and
equalizedtaxed before it was acquired. However, any real property acquired by
the city or the city's urban renewal agency prior to July 1, 1973, or more than five
years prior to the approval of a development or renewal plan for any development
or renewal area, whichever is later, is deemed to have an original taxable value
of a zero tax levy and the county auditor shall so certify.
3.b.In each subsequent year, the auditor shall compute and certify the net amount by
which the original taxable value of square footage tax and ad valorem tax levied
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in dollars against all lots and parcels of real estate in the area, as then assessed
and equalizedlevied, including real estate then held by the municipality or urban
renewal agency valuedtaxed at zero, has increased or decreased in comparison
with the original taxable value of all suchsquare footage tax and ad valorem tax
levied in dollars against the real estate. The net amount of the increase or
decrease is referred to in this section as the incremental valuetax increment or
the lost valuetax losses for that year, as the case may berespectively.
4.In any year when there is an incremental value, the auditor shall exclude it from the
taxable value upon which the auditor computes the mill rates of taxes levied in that
year by the state, the county, the municipality, the school district, and every other
political subdivision having power to tax the development or renewal area, until the
cost of development or renewal of the area has been reimbursed in accordance with
this section. However, the auditor shall extend the aggregate mill rate of those taxes
against the incremental value as well as the original taxable value, and the amount of
taxes received from that extension against the incremental value is referred to in this
section as the tax increment for that year.
5.In any year when there is a lost value, the auditor shall compute and certify the
amounts of taxes which would have resulted from the extension against the lost value
of the mill rate of taxes levied that year by the state and each political subdivision
having power to tax the development or renewal area. The amounts so computed are
referred to in this section as the tax losses for that year.
6.The county auditor shall segregate all tax increments from the development or renewal
area in a special fund, crediting to the fund an amount equal to the tax increment, in
each year when there is an incremental value, that proportion of each collection of
taxes on real estate within the area which the incremental value bears to the total
taxable value in that yeara tax increment.
7.5.Upon receipt of any tax increments in the fund, the county treasurer, at the times when
the county treasurer distributes collected taxes to the state and to each political
subdivision for which a tax loss has previously been recorded, shall also remit to each
of them from the tax increment fund an amount proportionate to the amount of that tax
loss, until all those tax losses have been reimbursed. Thereafter, at the time of each
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distribution, the county treasurer shall remit the entire balance then on hand in the
fund to the municipality, until the cost of development or renewal of the area has been
reimbursed to the municipality as provided in this section.
8.6.The cost of development or renewal subject to reimbursement from the tax increment
fund for each development or renewal area must include all expenditures incident to
carrying out the development or renewal plan for the area and any modifications
thereof, not otherwise reimbursed in one of the ways referred to below, including all
expenses of the clearance, development, redevelopment, rehabilitation, and
conservation of the area, and all interest and redemption premiums paid on bonds,
notes, or other obligations issued by the municipality or urban renewal agency to
provide funds for payment of those expenses, subject to section 40-58-20.1 for the
purpose of determining eligible cost of development of industrial or commercial
property. From the total cost to be reimbursed there must be deducted, except as
provided below, all amounts received from the federal government or others, and all
special assessments, revenues, and other receipts except property taxes, which are
actually collected and applied to the payment of the cost or the bonds, notes, or other
obligations, at the times when those payments are due. However, if the proceeds of
tax increments or of bonds, notes, or other obligations are loaned to finance part or all
of the cost of a project comprising the restoration, reconstruction, and improvement of
a privately owned state historical site situated within the development or renewal area
or any buildings or structures thereon, as contemplated in section 55-10-08, or of a
property listed in the national register of historic places, as contemplated in section
55-10-11, in consideration of the grant to the city of a historic easement with respect
thereto, repayments of the loan may not be deducted from the cost of development or
renewal subject to reimbursement.
9.7.The tax increments from any development or renewal area may be appropriated by
the governing body of the municipality for the payment of any general obligation
bonds, special improvement warrants, or refunding improvement bonds issued by the
municipality to provide funds for payment of the cost of development or renewal,
together with interest and redemption premiums thereon, other than that portion, if
any, of such principal, interest, and redemption premiums which can be paid when due
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from collections of special assessments, revenues, or other funds, excluding property
taxes, which are pledged for the payment thereof. When special improvement
warrants or refunding improvement bonds are issued to pay the cost of public
improvements of special benefit to properties within the development or renewal area,
the governing body may cause those special benefits to be computed, together with
the cost properly assessable against those properties, and may appropriate the tax
increments from the area to the payment of that cost, in lieu of levying special
assessments upon the property. In this event, the amount so appropriated, divided into
the same number of installments as the special assessments and with interest at the
same rate on the declining balance thereof, is deemed a part of the special
assessments appropriated for payment of the cost, within the meaning of section
40-26-08.
10.8.When the cost of development or renewal of any development or renewal area has
been fully paid and all bonds, notes, or other obligations issued by the municipality to
pay that cost have been retired, or funds sufficient for the retirement thereof have
been received by the municipality, the governing body shall cause this to be reported
to the county auditor, who shall thereafter compute the mill rates oflevy all taxes upon
the total taxable value, for property subject to ad valorem tax, or the total square
footage, for property subject to the tax under section 18 of this Act, of the development
or renewal area. Any balance then on hand in the tax increment fund must be
distributed by the county treasurer to the state and all political subdivisions having
power to tax property, including by ad valorem and square footage tax, in the area, in
amounts proportionate to the amounts of the tax losses previously reimbursed to
them.
11.9.As an alternative to the sale of bonds to be amortized with tax increments as provided
in this section, the governing body of a municipality may, in its discretion, grant a total
or partial tax exemption for the project in order to provide assistance to a project
developer in a development or renewal area, pursuant to agreement with the
municipality. However, if a developer of a development or renewal project receives a
tax exemption for that project pursuant to this subsection, that project developer may
not receive a tax exemption for that project under section 40-57.1-03, 40-57.1-04,
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40-57.1-04.1, or 40-57.1-04.3. The amount of annual tax exemption under this
subsection is limited to the tax increment as defined in this section as it applies to the
development or renewal project and may extend for a period not to exceed fifteen
years. In determining the total amount of the tax exemption to be authorized, the
municipality shall give due consideration to the same elements as are involved in the
sale of bonds to be amortized by tax increments. The amount to be reimbursed, by tax
exemption, to the project developer must be all or a portion of eligible public costs
which have been paid by the project developer, plus interest on those costs at a rate
not to exceed ten percent per annum. The amount of tax exemption must be an
amount sufficient to reimburse the project operator for those eligible costs, amortized
pursuant to the agreement between the project developer and the municipality. If an
exemption has been granted under this subdivision before taxable year 2026 for
property that is subject to the square footage tax under section 18 of this Act in taxable
year 2026 or later, the governing body of a municipality shall convert the exemption as
necessary to allow the same tax benefit to be realized by the property owner under the
square footage taxation system under section 18 of this Act as would have been
realized under the ad valorem taxation system before taxable year 2026.
12.10.The governing body of a municipality with an active tax increment financing district
may at any time identify funds on hand that are in excess of the costs it determines
necessary to complete the activities included in the last approved urban renewal plan
for that district. The governing body shall cause the identified surplus to be transferred
to the county treasurer to be distributed to the state and all political subdivisions
having power to tax property in the area, in amounts proportionate to the most recent
five-year average of the ad valorem property tax or square footage tax levy within the
district.
SECTION 12. AMENDMENT. Subsection 2 of section 40-58-20.2 of the North Dakota
Century Code is amended and reenacted as follows:
2.Before granting a property tax incentive, including an ad valorem tax or square footage
tax incentive, on any parcel of property that is anticipated to receive a property tax
incentive for more than five years, the governing body of the municipality must comply
with the requirements in section 40-05-24.
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SECTION 13. AMENDMENT. Section 57-02-11 of the North Dakota Century Code is
amended and reenacted as follows:
57-02-11. Listing of property - Assessment thereof - Determination of square footage .
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 an assessor who holds
a current certification as a class I assessor under section 57-02-01.1, and which has
been determined by the state supervisor of assessments to have enough sales for an
adequate sales ratio study, 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 property of the owner of such destroyed property an amount which in
the assessor's judgment fairly represents such deduction as should be made.
4.By December 31, 2025, the assessor shall determine the land square footage and
structure square footage of each parcel of residential property in the assessor's
assessment district and record the land square footage and structure square footage
in the individual property record for each parcel. For purposes of this subsection:
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a."Land square foot" or "land square footage" means the square footage
measurement of the land area of a parcel of property, excluding the square
footage of any structure or building situated on the land.
b."Structure square foot" or "structure square footage" means the square footage
measurement of structures and buildings situated on a parcel of property above
ground level, exclusive of the land on which the structures or buildings are
situated. The term excludes any areas of a building or structure considered below
grade.
SECTION 14. AMENDMENT. Section 57-02-11 of the North Dakota Century Code is
amended and reenacted as follows:
57-02-11. Listing of property - Assessment thereof - Determination of square footage.
Certified assessment officials must list and assess property as follows:
1.On February first of each year:
a.All real property subject to ad valorem taxation must be listed and assessed
every year with reference to its value, on February first of for that year.
b.The land square footage and structure square footage of real property subject to
the square footage tax under section 18 of this Act must be listed for 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 an assessor who holds
a current certification as a class I assessor under section 57-02-01.1, and which has
been determined by the state supervisor of assessments to have enough sales for an
adequate sales ratio study, 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.
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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 or square footage of the property of the owner of such destroyed property an
amount which in the assessor's judgment fairly represents such deduction as should
be made.
4.By December 31, 2025, the assessor shall determine the land square footage and
structure square footage of each parcel of residential property in the assessor's
assessment district and record the land square footage and structure square footage
in the individual property record for each parcel. For purposes of this subsection:
a."Land square foot" or "land square footage" means the square footage
measurement of the land area of a parcel of property, excluding the square
footage of any structure or building situated on the land.
b."Structure square foot" or "structure square footage" means the square footage
measurement of structures and buildings situated on a parcel of property above
ground level, exclusive of the land on which the structures or buildings are
situated. The term excludes any areas of a building or structure considered below
grade.
SECTION 15. AMENDMENT. Section 57-02-51 of the North Dakota Century Code is
amended and reenacted as follows:
57-02-51. Notice of township and city equalization meetings to be published - Date of
equalization meeting.
1.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.
2.The first publication of the notice may not be more than forty-five days before the date
of the equalization proceedings and the second publication may not be less than
fourteen days before the equalization proceedings.
3.The notice must contain a statement that the:
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a.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; and
b.Each taxpayer has the right to appear before the appropriate board of review or
equalization and petition for correction of the taxpayer's assessment of property
valuation or square footage determination under section 18 of this Act .
4.The equalization proceedings in a city must be held within the first fifteen days of April
and the equalization proceedings in an organized township must be held in the month
of April.
SECTION 16. AMENDMENT. Section 57-02-52 of the North Dakota Century Code is
amended and reenacted as follows:
57-02-52. Notice of county equalization meetings to be published - Date of
equalization meeting.
1.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.
2.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.
3.The notice must contain the:
a.The date, time, and location of the meeting. The notice must also contain a; and
b.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 of property valuation or square footage determination under
section 18 of this Act .
4.The county equalization proceedings must be held no later than June tenth.
SECTION 17. A new section to chapter 57-02 of the North Dakota Century Code is created
and enacted as follows:
Valuation of property subject to square footage tax - Exemption.
Notwithstanding any other provision of law:
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1.Except as provided in subsection 2, property subject to the square footage tax under
section 18 of this Act is exempt from the valuation requirements under this chapter.
2.For purposes of calculating the debt limits under sections 15 and 16 of article X of the
Constitution of North Dakota:
a.The true and full value of a property subject to the square footage tax under
section 18 of this Act must be calculated as the sum of:
(1)The land square footage of the property multiplied by the average price per
square foot of similarly situated land in the county based on real estate
sales; and
(2)The structure square footage of the property multiplied by the average price
per square foot of a similarly situated structure in the county based on real
estate sales.
b.The assessed value of a property subject to the square footage tax under
section 18 of this Act is fifty percent of the amount calculated in subdivision a.
SECTION 18. A new chapter to title 57 of the North Dakota Century Code is created and
enacted as follows:
Definitions.
For purposes of this chapter:
1."Land square foot" or "land square footage" means the square footage measurement
of the land area of a parcel of property, excluding the square footage of any structure
or building situated on the land.
2."Structure square foot" or "structure square footage" means the square footage
measurement of structures and buildings situated on a parcel of property above
ground level, exclusive of the land on which the structures or buildings are situated.
The term excludes any areas of a building or structure considered below grade.
Residential square footage tax - Imposition.
Property classified as residential property, which is not otherwise subject to a payment in
lieu of tax , is subject to a tax at a rate equal to a price per land square foot and a price per
structure square foot as approved by each taxing district as provided in this chapter.
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Taxes in lieu of ad valorem property taxes.
Taxes imposed under this chapter are in lieu of all ad valorem property taxes levied by the
state or any of its political subdivisions upon property subject to the tax under this chapter.
Exemptions.
1.Property subject to tax under this chapter which meets the criteria of the exemptions
listed in section 57 - 02 - 08, except subsection 27 of section 57 - 02 - 08 , are exempt from
the tax under this chapter to the extent provided in section 57 - 02 - 08.
2.Notwithstanding any other provision of law:
a.If an exemption or payment in lieu of tax was calculated based on the valuation of
residential property and the applicable mill rate before taxable year 2026, and a
conversion method is not provided under law, the county auditor shall convert the
exemption or payment in lieu of tax as necessary to allow the same tax benefit to
be realized by the property owner under this chapter as would have been
realized by the property owner under the ad valorem taxation system before
taxable year 2026.
b.If a specific exemption or payment in lieu of tax was granted by a taxing district
for a parcel of residential property for a specified number of taxable years under
the ad valorem taxation system before taxable year 2026, the county auditor shall
apply the exemption or payment in lieu of tax to the tax levied under this chapter
for the remaining taxable years. If a conversion method is not provided under law,
the county auditor shall convert the exemption or payment in lieu of tax as
necessary to allow the same tax benefit to be realized by the property owner
under this chapter as would have been realized under the ad valorem taxation
system before taxable year 2026.
Tax exemption certificate for real property to be filed - Exceptions.
1.A person owning residential property located within a taxing district which claims that
the real property is exempt from taxation under this chapter shall file with the assessor
and with the county auditor a certificate setting out the facts on which the claim for
exemption is based, including the names of owners, the date the property was
acquired, the legal description, the use to which the property was put during the twelve
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months preceding the assessment date, and any other information which the assessor
may request.
2.Unless otherwise provided by law, the certificate shall be filed with the assessor and
the county auditor each year before February first.
3.If the certificate is not filed as provided in this section, the assessor shall regard the
property as nonexempt property.
4.The provisions of this section do 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.
Solar, wind, or geothermal energy device credit.
1.An owner is entitled to a credit of five percent of the taxes levied under this chapter
against the structure square footage of a new or existing building in which a solar or
wind energy device or geothermal energy device is installed. The credit may be
applied for up to five taxable years following the installation of the system.
2.To qualify for the credit under subsection 1, an applicant shall sign and file with the
county assessor , by April first of each year, an application containing a verified
statement of facts establishing the applicant's eligibility as of the date of the claim on a
form and in the manner prescribed by the tax commissioner.
3.For the purposes of this subsection:
a."Geothermal energy device" has the meaning provided in section 57 - 38 - 01.8.
b."Solar or wind energy device" has the meaning provided in section 57 - 38 - 01.8.
New single-family, condominium, and townhouse residential property credit.
1.An owner is entitled to a credit equal to thirty percent of the taxes levied under this
chapter against the structure square footage of a new single-family, condominium, and
townhouse residential property if 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 credit under
this section by resolution. A resolution adopted under this subdivision may be
rescinded or amended at any time. The governing body of the city or county may
limit or impose conditions upon a credit under this section, including limitations on
the time during which a credit is allowed.
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b.Special assessments and taxes on the property upon which the residence is
situated are not delinquent.
2.The credit may be applied for up to two taxable years after the taxable year in which
construction is completed and the residence is owned and occupied for the first time.
Land and structure square footage - Determination - Certification.
1.On or before February first of each year, certified assessment officials shall determine
the land square footage and structure square footage of residential property subject to
the tax under this chapter. The assessment official shall record the information in the
individual property record for each parcel of property subject to the tax under this
chapter.
2.For purposes of determining structure square footage of a townhouse, the structure
square footage of the townhouse property must be increased by the square footage
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 square footage of a common area of the townhouse development must be
apportioned 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 structure square footage of the townhouse property, including the
square footage added as provided in this subsection, must have the benefit of any
credit, exemption, or other special classification if the townhouse otherwise qualifies.
3.The assessor shall certify the land square footage and structure square footage of
each parcel of real property subject to the tax under this chapter to the:
a.Governing board of each taxing district in which the parcel is situated;
b.County director of tax equalization; and
c.County auditor.
4.The assessor shall deliver written notice of the certified land square footage and
structure square footage to the property owner of each parcel of real property subject
to the tax under this chapter at least fifteen days before the meeting of the local board
of equalization.
a.The tax commissioner shall prescribe suitable forms for written notices under this
subsection. The written notice must include the date prescribed by law for the
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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.
b.Delivery of written notice under this subdivision 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.
5.The determination of taxable land square footage and structure square footage may
be appealed through the equalization or abatement process.
Square footage determination of real property exempt from taxation.
1.At the time of making the determination of land square footage and structure square
footage, the assessor shall enter in a separate list each description of property exempt
from taxation under this chapter and shall determine the land square footage and
structure square footage of the property in the same manner as other property subject
to taxation under this chapter, designating in each case to whom the property belongs
and for what purpose used.
2.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.
Square footage tax rate - Determination - Limitation - Hearing.
1.A taxing district shall:
a.Propose square footage tax rates in an amount per structure square foot and an
amount per land square foot, calculated as follows:
(1)Subject to the requirements and limitations in subsections 4 and 5, for
taxable year 2026:
(a)The proposed price per structure square foot of residential property is
equal to the ad valorem property tax levied in dollars in taxable year
2025 attributable to residential structures situated in the taxing district
divided by the total residential structure square footage in the taxing
district.
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(b)The proposed price per land square foot of residential property is
equal to the ad valorem property tax levied in dollars in taxable year
2025 attributable to residential land situated in the taxing district
divided by the total residential land square footage in the taxing
district.
(2)Subject to the requirements and limitations in subsections 4 and 5, for
taxable years after 2026:
(a)The proposed price per structure square foot of residential property is
equal to the price per structure square foot imposed in the preceding
taxable year multiplied by the percentage increase or decrease of the
taxing district's proposed budget for the current taxable year
compared to the preceding taxable year.
(b)The proposed price per land square foot of residential property is
equal to the price per land square foot imposed in the preceding
taxable year multiplied by the percentage increase or decrease of the
taxing district's proposed budget for the current taxable year
compared to the preceding taxable year.
b.Notify the county auditor of the proposed square footage tax rates under
subdivision a according to the procedures in section 57 - 15 - 02.2 on or before
August tenth of each year.
c.Notify members of the taxing district of the proposed square footage tax rates
under subdivision a according to the procedures in section 57 - 15 - 02.2 on or
before August thirty-first of each year.
2.The taxing district shall consider the proposed square footage tax rates under
subsection 1 during the taxing district's budget and proposed square footage tax rate
hearing required under section 57 - 15 - 02.2.
3.Subject to the requirements and limitations in subsections 4 and 5, after the taxing
district's budget and proposed square footage tax rate hearing required under section
57 - 15 - 02.2, the taxing district shall approve the following square footage tax rates by a
resolution approved by the governing body of the taxing district:
a.Price per structure square foot of residential property.
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b.Price per land square foot of residential property.
4.For purposes of the square footage tax rates under this chapter, a taxing district shall
impose a square footage tax rate at a rate which will generate sufficient revenue,
together with the ad valorem tax assessed against commercial, agricultural, and
centrally assessed property, to pay outstanding bonded indebtedness secured with ad
valorem property tax in taxable years before 2026.
5.The governing board of a taxing district, in levying taxes, including ad valorem taxes
and square footage taxes under this chapter, is limited by the amount necessary to
meet the appropriations included in the taxing district's budget for the ensuing fiscal
year, and to provide a reserve fund as limited by law, together with a tax sufficient in
amount to pay the interest on the bonded debt of the taxing district and to provide a
sinking fund to pay the principal at maturity.
Certification of square footage tax rates.
The square footage tax rates approved by the governing board of a taxing district to be
applied to a parcel subject to the tax under this chapter must be certified by the officer acting as
business manager or clerk of the governing body of the taxing district to the county auditor of
the county in which the parcel is situated immediately following the action of the governing body,
or within ten days thereafter.
Duty of county auditor upon certification of square footage tax rate.
The county auditor of each county, upon receipt of the square footage tax rates certified to
the county auditor by the proper authorities of a taxing district, shall acknowledge receipt of the
certification to the official so certifying them immediately upon receiving the certification.
Square footage tax levy - Calculation.
The county auditor shall compute the amount of square footage tax to be levied against a
parcel of residential property as the sum of:
1.The combined land square footage tax rates for each taxing district in which the parcel
is situated multiplied by the land square footage of the parcel; and
2.The combined structure square footage rates for each taxing district in which the
parcel is situated multiplied by the structure square footage of the parcel.
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Enforcement - Administration - Collection - Penalties - Delinquency.
Provisions of law relating to enforcement, administration, collection, penalties, and
delinquency proceedings for ad valorem taxes apply to taxes levied under this chapter.
Abatement procedure.
The procedures for abatement under chapter 57 - 23 apply to the tax levied under this
chapter.
SECTION 19. AMENDMENT. Section 57-09-04 of the North Dakota Century Code is
amended and reenacted as follows:
57-09-04. Duties of board - Limitation on increase - Notice - Review of square footage
determination.
1.The township board of equalization shall ascertain whether all taxable property subject
to ad valorem taxation in its township has been properly placed upon the assessment
list and duly valued by the assessor. In case any real property has been omitted by
inadvertence or otherwise, the board shall place the same upon the list with the true
value thereof. The board shall proceed to correct the assessment so that each tract or
lot of real property is entered on the assessment list at the true value thereof. The
board may not increase the valuation returned by the assessor to an amount that
results in a cumulative increase of more than fifteen percent from the amount of the
previous year's assessment without giving the owner or the owner's agent reasonable
notice and opportunity to be heard regarding the intention of the board to increase it.
All complaints and grievances of residents of the township must be heard and decided
by the board and it may make corrections as appear to be just. Complaints by
nonresidents with reference to the assessment of any real property and complaints by
others with reference to any assessment made after the meeting of the township
board of equalization must be heard and determined by the county board of
equalization. The board must comply with any requirement for notice of an
assessment increase under section 57-02-53.
2.The township board of equalization shall hear complaints and grievances of residents
of the township regarding the determination of land square footage and structure
square footage for purpose of taxation under section 18 of this Act. The board shall
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resolve the complaints and grievances and may make corrections to the square
footage determinations as appear to be just.
SECTION 20. A new section to chapter 57-09 of the North Dakota Century Code is created
and enacted as follows:
Equalization of valuation of property subject to square footage tax - Exemption.
Notwithstanding any other provision of law, property subject to the square footage tax under
section 18 of this Act is exempt from the equalization requirements under this chapter pertaining
to the valuation of the property.
SECTION 21. AMENDMENT. Section 57-11-03 of the North Dakota Century Code is
amended and reenacted as follows:
57-11-03. Duties of board - Limitation on increase - Notice - Review of square footage
determination.
1.At its meeting, the board of equalization shall proceed to equalize and correct the
assessment roll. It may change the valuation and assessment of any real property
subject to ad valorem taxation upon the roll by increasing or diminishing the true and
full valuation thereof as is reasonable and just to render taxation uniform, except that
the board may not increase the valuation of any property returned by the assessor to
an amount that results in a cumulative increase of more than fifteen percent from the
amount of the previous year's assessment without first giving the owner or the owner's
agent reasonable notice and opportunity to be heard regarding the intention of the
board to increase it. All complaints and grievances of residents of the city must be
heard and decided by the board and it may make corrections as appear to be just.
Complaints by nonresidents with reference to the assessment of any real property and
complaints by others with reference to any assessment made after the meeting of the
city board of equalization must be heard and determined by the county board of
equalization. The board shall comply with any requirement for notice of an assessment
increase under section 57-02-53.
2.The board of equalization shall hear complaints and grievances of residents of the city
regarding the determination of land square footage and structure square footage for
purpose of taxation under section 18 of this Act. The board shall resolve the
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complaints and grievances and may make corrections to the square footage
determinations as appear to be just.
SECTION 22. A new section to chapter 57-11 of the North Dakota Century Code is created
and enacted as follows:
Equalization of valuation of property subject to square footage tax - Exemption.
Notwithstanding any other provision of law, property subject to the square footage tax under
section 18 of this Act is exempt from the equalization requirements under this chapter pertaining
to the valuation of the property.
SECTION 23. A new section to chapter 57-12 of the North Dakota Century Code is created
and enacted as follows:
Review and correction of taxable square footage determination.
1.The county board of equalization shall hear complaints and grievances of residents of
the county regarding the determination of land square footage and structure square
footage for purpose of taxation under section 18 of this Act. The board shall resolve
the complaints and grievances and may make corrections to the square footage
determinations as appear to be just.
2.The owner of a parcel of real estate for which the square footage for purposes of
taxation under section 18 of this Act has been calculated may appeal the square
footage determination to the state board of equalization as provided in section 25 of
this Act; provided that the owner has first appealed the assessment to the local
equalization board of the taxing district in which the property is situated and to the
county board of equalization of the county in which the property is situated.
SECTION 24. A new section to chapter 57-12 of the North Dakota Century Code is created
and enacted as follows:
Equalization of valuation of property subject to square footage tax - Exemption.
Notwithstanding any other provision of law, property subject to the square footage tax under
section 18 of this Act is exempt from the equalization requirements under this chapter pertaining
to the valuation of the property.
SECTION 25. A new section to chapter 57-13 of the North Dakota Century Code is created
and enacted as follows:
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Review of appeals regarding taxable square footage determination.
1.If a property owner has properly appealed the property's square footage
determination, the board may hear and resolve the appeal and may make corrections
to the square footage determination as appear to be just.
2.In the case of an appeal, the owner of the property must establish to the satisfaction of
the board that the owner of the property had first appealed the square footage
determination to the local equalization board of the taxing district in which the property
is situated and to the county board of equalization of the county in which the property
is situated.
SECTION 26. A new section to chapter 57-13 of the North Dakota Century Code is created
and enacted as follows:
Equalization of valuation of property subject to square footage tax - Exemption.
Notwithstanding any other provision of law, property subject to the square footage tax under
section 18 of this Act is exempt from the equalization requirements under this chapter pertaining
to the valuation of the property.
SECTION 27. AMENDMENT. Section 57-15-02 of the North Dakota Century Code is
amended and reenacted as follows:
57-15-02. Determination of rate.
The tax rate of all taxes, except taxes the rate of which is fixed by law and the square
footage tax under section 18 of this Act , must be calculated and fixed by the county auditor
within the limitations prescribed by statute. If any municipality levies a greater amount than the
prescribed maximum legal rate of levy will produce, the county auditor shall extend only such
amount of tax as the prescribed maximum legal rate of levy will produce. The rate must be
based and computed on the taxable valuation of taxable property in the municipality or district
levying the tax. The rate of all taxes must be calculated by the county auditor in mills, tenths,
and hundredths of mills.
SECTION 28. AMENDMENT. Section 57-15-02.2 of the North Dakota Century Code is
amended and reenacted as follows:
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57-15-02.2. Estimated property tax, square footage tax, and budget and proposed
square footage tax rate hearing notice.
1.On or before August tenth of each year the governing body of a taxing district shall
provide to the county auditor in each county in which the taxing district has taxable
property a preliminary budget statement, proposed square footage tax rates for
property subject to the tax under section 18 of this Act, and the date, time, and
location of the taxing district's public hearing on its property tax levy and square
footage tax rates, which may be no earlier than September seventh. A taxing district
that fails to provide the information required under this subsection on or before August
tenth may not impose a property tax levy or square footage tax in a greater amount of
dollars than was imposed by the taxing district in the prior year.
2.By August thirty-first of each year the county treasurer shall provide a written notice to
the owner of each parcel of taxable property subject to ad valorem taxation with a total
estimated property tax of at least one hundred dollars and the owner of each parcel of
taxable property subject to the square footage tax under section 18 of this Act . The
text of the notice must contain the following information:
a.For property subject to ad valorem taxation:
(1)The date, time, and location of the public budget hearing for each of the
taxing districts in which the property owner's parcel is located, which
anticipate levying in excess of one hundred thousand dollars in the current
year, and the location at which the taxing district's budget is available for
review;.
b.(2)The true and full value of the property based on the best information
available;.
c.(3)A column showing the actual property tax levy in dollars against the parcel
by the taxing district that levied taxes against the parcel in the immediately
preceding taxable year and a column showing the estimated property tax
levy in dollars against the parcel by the taxing district levying tax in the
taxable year for which the notice applies based on the preliminary budget
statements of all taxing jurisdictions;.
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d.(4)A column indicating the difference between the taxing district's total levy
from the previous year and the taxing district's estimated levy with the word
"INCREASE" printed in boldface type if the proposed tax levy is larger in
dollars than the levy in dollars in the previous year;.
e.(5)Information identifying the estimated property tax savings that will be
provided pursuant to section 57-20-07.1 based on the best information
available;.
b.For property subject to the square footage tax under section 18 of this Act:
(1)The date, time, and location of the public budget and square footage tax
rate hearing for each of the taxing districts in which the property owner's
parcel is located and the location at which the taxing district's budget is
available for review.
(2)The preliminary land square footage and structure square footage tax rates
for residential property under section 18 of this Act.
(3)The total land square footage and structure square footage for each parcel
of land.
(4)Beginning in taxable year 2027:
(a)A column showing the actual land square footage and structure
square footage tax rates to be applied against the square footage of
the parcel by the taxing district that levied taxes against the parcel in
the immediately preceding taxable year and a column showing the
proposed land square footage and structure square footage tax rates
to be applied against the square footage of the parcel by the taxing
district levying tax in the taxable year for which the notice applies.
(b)A column indicating the difference between the taxing district's actual
land square footage and structure square footage tax rates in the
previous year and the taxing district's proposed land square footage
and structure square footage tax rates with the word "INCREASE"
printed in boldface type if the proposed square footage rate is larger
than the actual square footage rate in the previous year.
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f.c.A statement that there will be an opportunity for citizens to present oral or written
comments regarding each taxing district's property tax levy; and proposed square
footage tax rates.
g.d.The actual amount of the special assessment installment payable against the
parcel in the immediately preceding taxable year.
3.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. If a parcel of taxable property is owned by more than one owner, notice
must be sent to only one owner of the property. Failure of an owner to receive a notice
under this section will not relieve the owner of ad valorem property tax or square
footage tax liability or modify the qualifying date under section 57-20-09 for which an
owner may receive a discount for early payment of tax.
4.The tax commissioner shall prescribe suitable forms for written notices under this
section.
5.The direct cost of providing taxpayer notices under this section may be allocated in a
manner proportionate to the number of notices mailed on behalf of each taxing district
that intends to levy in excess of one hundred thousand dollars in property taxes in the
current yearunder this section.
SECTION 29. A new section to chapter 57-15 of the North Dakota Century Code is created
and enacted as follows:
Application of mill levy limitation and levy authority provisions.
Provisions of this chapter which provide mill levy limitations or mill levy authority calculated
as a specific number of mills of taxable valuation of property in a taxing district are applicable to
ad valorem tax levies and do not apply to the square footage tax levied by the governing board
of a taxing district pursuant to section 18 of this Act.
SECTION 30. AMENDMENT. Section 57-15-05 of the North Dakota Century Code is
amended and reenacted as follows:
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57-15-05. County tax levy.
1.The board of county commissioners, in levying county taxes, including square footage
taxes levied by the board of county commissioners under section 18 of this Act and
ad valorem taxes, is limited to the amount necessary to meet the appropriations
included in the county budget for the ensuing fiscal year, and to provide a reserve fund
as limited in this chapter, together with a tax sufficient in amount to pay the interest on
the bonded debt of the county and to provide a sinking fund to pay the principal at
maturity.
2.The county budget shall show the complete expenditure program of the county for the
ensuing fiscal year and the sources of revenue from which it is to be financed.
SECTION 31. AMENDMENT. Section 57-15-07 of the North Dakota Century Code is
amended and reenacted as follows:
57-15-07. City tax levies.
The governing body, in levying city taxes, including square footage taxes levied by the
governing body under section 18 of this Act and ad valorem taxes, is limited by the amount
necessary to meet the appropriations included in the city budget for the ensuing fiscal year and
to provide a reserve fund as limited in this chapter, together with a tax sufficient in amount to
pay the interest on the bonded debt of the municipality, and to provide a sinking fund to pay the
principal at maturity.
SECTION 32. AMENDMENT. Section 57-15-11 of the North Dakota Century Code is
amended and reenacted as follows:
57-15-11. Park district tax levies.
The board of park commissioners, in levying park district taxes, including square footage
taxes levied by the governing body under section 18 of this Act and ad valorem taxes, is limited
by the amount necessary to meet the appropriations included in the park district budget for the
ensuing fiscal year, and to provide a reserve fund as limited in this chapter, together with a tax
sufficient in amount to pay the interest on the bonded debt of the municipality and to provide a
sinking fund to pay the principal at maturity.
SECTION 33. AMENDMENT. Section 57-15-13 of the North Dakota Century Code is
amended and reenacted as follows:
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57-15-13. School district tax levies.
1.School district taxes must be levied by the governing body of each school district on or
before the tenth day of August of each year.
2.The governing body of the school district may increase or decrease its tax levy and
budget for the current fiscal year on or before the tenth day of October of each year
but the certification must be filed with the county auditor within the time limitations
under section 57-15-31.1.
3.Taxes for school district purposes must be based upon an itemized budget statement
which must show the complete expenditure program of the district for the current fiscal
year and the sources of the revenue from which it is to be financed.
4.The school board of each public school district, in levying taxes, including square
footage taxes levied by the school board under section 18 of this Act and ad valorem
taxes, is limited by the amount necessary to be raised for the purpose of meeting the
appropriations included in the school budget of the current fiscal year, and the sum
necessary to be provided as an interim fund, together with a tax sufficient in amount to
pay the interest on the bonded debt of the district and to provide a sinking fund to pay
and discharge the principal thereof at maturity.
SECTION 34. AMENDMENT. Section 57-15-31 of the North Dakota Century Code is
amended and reenacted as follows:
57-15-31. Determination of ad valorem property tax levy.
1.The amount of ad valorem property taxes to be levied by any county, city, township,
school district, park district, or other municipality authorized to levy taxes must be
computed by deducting from the amount of estimated expenditures for the current
fiscal year as finally determined, plus the required reserve fund determined upon by
the governing board from the past experience of the taxing district, the total of the
following items:
a.The available surplus consisting of the free and unencumbered cash balance;
b.Estimated revenues from sources other than direct ad valorem property taxes,
including the amount of square footage taxes levied under section 18 of this Act ;
c.The total estimated collections from tax levies for previous years;
d.Expenditures that must be made from bond sources;
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e.The amount of distributions received from an economic growth increment pool
under section 57-15-61; and
f.The estimated amount to be received from payments in lieu of taxes on a project
under section 40-57.1-03.
2.Allowance may be made for a permanent delinquency or loss in tax collection not to
exceed five percent of the amount of the levy.
SECTION 35. AMENDMENT. Section 57-15-31.1 of the North Dakota Century Code is
amended and reenacted as follows:
57-15-31.1. Deadline date for amending budgets and certifying taxes.
1.No taxing district may certify any taxes, including ad valorem tax and square footage
tax levied under section 18 of this Act, or amend its current budget and no county
auditor may accept a certification of taxes, including ad valorem tax and square
footage tax levied under section 18 of this Act, or amended budget after the tenth day
of October of each year if such certification or amendment results in a change in the
amount of tax levied.
2.The current budget, except for property taxes and square footage tax under section 18
of this Act, may be amended during the year for any revenues and appropriations not
anticipated at the time the budget was prepared.
SECTION 36. AMENDMENT. Section 57-20-01 of the North Dakota Century Code is
amended and reenacted as follows:
57-20-01. Real and personal property taxes - When due and delinquent - Penalties.
1.All real andproperty taxes, including ad valorem taxes and square footage taxes levied
under section 18 of this Act, all personal property taxes, and yearly installments of
special assessment taxes become due on the first day of January following the year
for which the taxes were levied.
2.The first installment of real estate taxes, including ad valorem taxes and square
footage taxes levied under section 18 of this Act, all personal property taxes, and
yearly installments of special taxes become delinquent after the first day of March
following and, if not paid on or before said date, are subject to a penalty of three
percent, and on May first following an additional penalty of three percent, and on July
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first following an additional three percent, and an additional penalty of three percent on
October fifteenth following.
3.From and after January first of the year following the year in which the taxes become
due and payable, simple interest at the rate of twelve percent per annum upon the
principal of the unpaid taxes on personal property must be charged until the taxes and
penalties are paid, with the interest charges to be prorated to the nearest full month for
a fractional year of delinquency.
4.The second installment of real estate taxes, including ad valorem taxes and square
footage taxes levied under section 18 of this Act, becomes delinquent after October
fifteenth, and, if not paid on or before that date becomes subject to a penalty of six
percent.
SECTION 37. AMENDMENT. Section 57-20-01.1 of the North Dakota Century Code is
amended and reenacted as follows:
57-20-01.1. Extension of due date for property taxes when county treasurer's office is
closed.
When the due date for full or installment payment of any property taxes, including
ad valorem taxes and square footage taxes levied under section 18 of this Act, or special
assessments falls on a day on which the county treasurer's office is not open for business, the
payment may be made on the first day following on which the office is open without penalty or
loss of discount.
SECTION 38. AMENDMENT. Section 57-20-02 of the North Dakota Century Code is
amended and reenacted as follows:
57-20-02. Tax list made out by county auditor.
1.As soon as practicable after the taxes, including ad valorem taxes and square footage
taxes levied under section 18 o f this Act, are levied, and after the levies of the several
taxing districts within the county have been certified, the county auditor shall make out
the tax lists according to the prescribed form to correspond with the assessment
districts of the county.
2.The ad valorem tax percentage rate necessary to raise the required amount of the
various taxes must be calculated on the taxable valuation of property after equalization
by the state board of equalization, but no ad valorem tax rate may be used which
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results in any fraction of less than one-half of one-tenth of a mill, and in extending any
tax, it, whenever it amounts to the fractional part of a cent, must be made one cent.
SECTION 39. AMENDMENT. Section 57-20-03 of the North Dakota Century Code is
amended and reenacted as follows:
57-20-03. Form of tax list.
1.The tax list must be made out to correspond with the assessment books with respect
to ownership and description of property, with columns for the valuation, square
footage, and for the various items of tax included in the total amount of all taxes set
down opposite such description of property.
2.The amounts of special taxes must be entered in appropriate columns, but the general
taxes and square footage taxes, if appropriate, may be shown by entering the rate of
each tax at the head of the proper column without extending the same, in which case
a schedule of the rates of such taxes must be made on the first page of each tax list.
3.The tax lists also must show, in a separate column, the years for which a tax lien has
been foreclosed upon any piece or parcel, if the same has not been redeemed or
deeded for such taxes.
SECTION 40. AMENDMENT. Section 57-20-04 of the North Dakota Century Code is
amended and reenacted as follows:
57-20-04. Abstract of tax list to be sent to tax commissioner - Reports.
1.The county auditor, on or before December thirty-first following the levy of the taxes,
shall prepare and transmit to the tax commissioner a complete abstract of the tax list
of the auditor's county.
2.In addition to the tax list required in subsection 1, the county auditor, on or before
December thirty-first following the levy of the taxes, shall prepare and transmit to the
tax commissioner a report providing, for property subject to ad valorem taxation, each
taxing district's property valuation and property tax levy, for property subject to a
square footage tax under section 18 of this Act, each taxing district's square footage,
square footage tax rates, and square footage tax levy, and any other information the
tax commissioner deems necessary to prepare the report required in subsection 3. For
taxing districts with property in more than one county, information must be collected
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and transmitted by the county auditor of the county in which the main office of that
taxing district is located.
3.The tax commissioner shall compile information received from the county auditors in
subsection 2 and prepare a statewide report of ad valorem property tax and square
footage tax increase. The report must include the annual increase in ad valorem
property taxes and square footage taxes levied by each taxing district of the state after
adjusting for property that was not taxable in the preceding year and property that is
no longer taxable which was taxable in the preceding year. The report must be
provided to the legislative management by April first of each year.
4.The tax commissioner shall prescribe the form and manner of providing the reports
and certifications required under this section.
5.On or before December 31, 2017, the county auditor shall provide a report to the tax
commissioner providing the information identified in subsection 2 for the 2015 and
2016 tax years.
SECTION 41. AMENDMENT. Section 57-20-07.1 of the North Dakota Century Code is
amended and reenacted as follows:
57-20-07.1. County treasurer to mail real estate tax statement - Contents of statement.
1.On or before December twenty-sixth of each year, the county treasurer shall mail aan
ad valorem or square footage real estate tax statement to the owner of each parcel of
real property at the owner's last-known address. The form of the ad valorem or square
footage real estate tax statement to be used in every county must be prescribed and
approved for use by the tax commissioner. The statement must be provided in a
manner that allows the taxpayer to retain a printed record of the obligation for payment
of ad valorem or square footage taxes and special assessments as provided in the
statement. If a parcel of real property is owned by more than one individual, the county
treasurer shall send only one statement to one of the owners of that property.
Additional copies of the tax statement will be sent to the other owners upon their
request and the furnishing of their names and addresses to the county treasurer. The
tax statement must:
a.For property subject to ad valorem tax:
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(1)Include a dollar valuation of the true and full value as defined by law of the
property and the total mill levy applicable.
b.(2)Include, or be accompanied by a separate sheet, with three columns
showing, for the taxable year to which the tax statement applies and the two
immediately preceding taxable years, the property tax levy in dollars against
the parcel by the county and school district and any city or township that
levied taxes against the parcel.
c.(3)Provide information identifying the property tax savings provided by the
state of North Dakota. The tax statement must include a line item that is
entitled "legislative tax relief" and identifies the dollar amount of property tax
savings realized by the taxpayer under chapter 50-34 for taxable years
before 2019, chapter 50-35 for taxable years after 2018, and chapter
15.1-27.
(1)(a)For purposes of this subdivision, legislative tax relief under chapter
15.1-27 is determined by multiplying the taxable value for the taxable
year for each parcel shown on the tax statement by the number of
mills of mill levy reduction grant under chapter 57-64 for the 2012
taxable year plus the number of mills determined by subtracting from
the 2012 taxable year mill rate of the school district in which the parcel
is located the lesser of:
(a)[1]Fifty mills; or
(b)[2]The 2012 taxable year mill rate of the school district minus sixty
mills.
(2)(b)Legislative tax relief under chapter 50-35 is determined by multiplying
the taxable value for the taxable year for each parcel shown on the
tax statement by the number of mills of relief determined by dividing
the amount calculated in subsection 1 of section 50-35-03 for a
human service zone by the taxable value of taxable property in the
zone for the taxable year.
b.For property subject to the square footage tax under section 18 of this Act:
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(1)Include the total land square footage and structure square footage for the
parcel of land and the the land square footage and structure square footage
tax rates applicable to the parcel of land.
(2)For taxable year 2027, include, or be accompanied by a separate sheet,
with two columns showing, for the taxable year to which the tax statement
applies and the immediately preceding taxable year, the square footage tax
levy in dollars against the parcel by the county and school district and any
city or township that levied taxes against the parcel.
(3)For taxable years after 2027, include, or be accompanied by a separate
sheet, with three columns showing, for the taxable year to which the tax
statement applies and the two immediately preceding taxable years, the
square footage tax levy in dollars against the parcel by the county and
school district and any city or township that levied taxes against the parcel.
2.Failure of an owner to receive a statement will not relieve that owner of liability, nor
extend the discount privilege past the February fifteenth deadline.
SECTION 42. AMENDMENT. Section 57-20-09 of the North Dakota Century Code is
amended and reenacted as follows:
57-20-09. Discount for early payment of tax.
1.Except as provided in section 57-20-21.1, the county treasurer shall allow a five
percent discount to all taxpayers who shall pay all of the ad valorem or square footage
real estate taxes levied on any tract or parcel of real property in any one year in full on
or before February fifteenth prior to the date of delinquency. Such
2.The discount applies to all general real estate taxes, including ad valorem taxes and
square footage taxes levied under section 18 of this Act, levied for state, county, city,
township, school district, fire district, park district, and any other taxing districts but
does not apply to personal property taxes or special assessment installments.
3.Whenever the board of county commissioners, by resolution, determines that an
emergency exists in the county by virtue of weather or other catastrophe, it may
extend the discount period for an additional thirty days.
SECTION 43. AMENDMENT. Section 57-20-10 of the North Dakota Century Code is
amended and reenacted as follows:
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57-20-10. Installment payments of real estate tax.
RealAd valorem and square footage real estate taxes, either current or delinquent, may be
paid in installments of not less than ten percent of the amount of the tax, plus penalty and
interest if any, but each such installment in no event may be less than ten dollars. Credit must
be given on the tax records for the installment payments so made, and penalty and interest
must be computed only upon the balance of the tax remaining unpaid.
SECTION 44. AMENDMENT. Section 57-20-21.1 of the North Dakota Century Code is
amended and reenacted as follows:
57-20-21.1. Priority for delinquent taxes.
1.When payment is made for any real or personal property taxes, including ad valorem
taxes and square footage taxes levied under section 18 of this Act, or special
assessments, payments must be applied first to the oldest unpaid delinquent taxes or
special assessments due, if any, shown to exist upon the property for which the tax
payments are made, including any penalty and interest.
2.The discounts applicable to payment of taxes set out in section 57-20-09 do not apply
to payment of taxes made on property upon which tax payments are delinquent.
SECTION 45. AMENDMENT. Subdivision a of subsection 1 of section 57-23-04 of the North
Dakota Century Code is amended and reenacted as follows:
a.When an error has been made in any identifying entry or description of the
property, in entering the valuation or square footage thereof, or in the extension
of the tax, to the injury of the complainant.
SECTION 46. AMENDMENT. Section 57-23-06 of the North Dakota Century Code is
amended and reenacted as follows:
57-23-06. Hearing on application.
1.Within ten days after receiving an application for abatement, the city auditor or the
township clerk shall give the applicant a notice of a hearing to be held before the
governing body of the city or township, or such other committee as it may designate, in
which the assessed property is located. Said hearing must be set for no more than
sixty days after the date of the notice of hearing, and in any event, must be held
before the recommendations provided for in subsection 2 are made. The applicant
may waive, in writing, the hearing before such governing body or designated
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committee at any time before the hearing. Any recommendations provided for in
subsection 2 must be transmitted to the county auditor no more than thirty days after
the date set for the hearing. The provisions of this subsection do not apply to
applications for abatement pursuant to section 57-02-08.2.
2.At the next regular meeting of the board of county commissioners following the filing of
an application for abatement or, if forthcoming, at the next regular meeting of the
board of county commissioners following transmittal of the recommendations of the
governing body of the municipality, the applicant may appear, in person or by a
representative or attorney, and may present such evidence as may bear on the
application. The applicant shall furnish any additional information or evidence
requested by the board of county commissioners. The recommendations of the
governing body of the municipality in which such assessed property is located must be
endorsed upon or attached to every application for an abatement or refund, and the
board of county commissioners shall give consideration to such recommendations.
The board of county commissioners, by a majority vote, either shall approve or reject
the application, in whole or in part. If rejected, in whole or in part, a written explanation
of the rationale for the decision, signed by the chairman of the board, must be
attached to the application, and a copy thereof must be mailed by the county auditor to
the applicant at the post-office address specified in the application.
3.At a hearing before the board of county commissioners on an application for
abatement, the applicant or the applicant's representative or attorney is limited to the
relief claimed in the application for abatement submitted to the board of county
commissioners. The applicant or applicant's representative or attorney may not submit
evidence during a hearing on an application for abatement suggesting a lower
valuation, a lower square footage determination, a lower square footage tax rate, a
lower tax levy, or a different taxable status than was requested in the application for
abatement submitted to the board of county commissioners.
SECTION 47. AMENDMENT. Subsection 2 of section 57-28-03 of the North Dakota
Century Code is amended and reenacted as follows:
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2.The amount of delinquent ad valorem property taxes, square footage taxes levied
under section 18 of this Act, and special assessments, with penalties, interest, and
foreclosure costs, for the tax year foreclosed.
SECTION 48. AMENDMENT. Subdivision c of subsection 1 of section 57-28-20 of the North
Dakota Century Code is amended and reenacted as follows:
c.Sold for less than the total amount of the taxes due, the treasurer shall write tax
receipts beginning with the earliest year and for as many subsequent years as
the proceeds realized from the sale will satisfy, and the remainder of any unpaid
general taxes, including ad valorem taxes and square footage taxes levied under
section 18 of this Act, or special assessments must be canceled by the board of
county commissioners.
SECTION 49. AMENDMENT. Section 57-28-26 of the North Dakota Century Code is
amended and reenacted as follows:
57-28-26. Disposition of rental revenue.
1.All the net revenue from leases of property under this chapter and all federal payments
for property acquired by the county by tax deed must be paid into the county treasury.
2.On or before January tenth in each year, the county treasurer shall apportion these
amounts received in the previous calendar year to the county, city, school district,
township, or other taxing districts in which the property is located in the proportion that
the previous year's general fund and square footage tax levy in the taxing district
bears to the total of general fund and square footage tax levies of all taxing districts in
which the property is located.
SECTION 50. AMENDMENT. Section 57-55-01.2 of the North Dakota Century Code is
amended and reenacted as follows:
57-55-01.2. Statements of full consideration and square footage to be filed with
application for title to mobile homes - Sales ratio study - Penalty.
1.Any person who has purchased a mobile home and is applying for a title under section
39-18-03 shall present, with the application, a certified statement of the full
consideration paid for the mobile home and the square footage of the mobile home.
2.The director of the department of transportation may not issue a certificate of title to
the mobile home until the certified statement is received. The director of the
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department of transportation shall accumulate and at least monthly forward to the
state board of equalization a report containing the information filed in the director's
office pursuant to this section.
3.The state board of equalization shall prescribe the necessary forms for the statements
and reports to be used in carrying out the purposes of this section, and the forms must
contain a space for the explanation of special circumstances which may have
contributed to the amount of the consideration or square footage. The state board of
equalization shall furnish this information to the state tax commissioner who shall
conduct a sales ratio study to determine the proper assessment values of mobile
homes under this chapter.
4.Any person who, in the statement provided for in this section, willfully falsifies the
consideration paid for or square footage of the transferred mobile home is guilty of a
class B misdemeanor.
SECTION 51. AMENDMENT. Section 57-55-04 of the North Dakota Century Code is
amended and reenacted as follows:
57-55-04. Taxes - How determined - Disbursement.
1.The director of tax equalization shall determine the tax for each mobile home by
placing an evaluation ondetermining the square footage of the mobile home based
upon its assessed value and by adjusting the valuation of the mobile home by the
percentage provided in section 57-02-27 to determine its taxable valuation under
standards and guides determined by the state tax commissioner and applying that
evaluationthe square footage to the preceding year's total mill levies
applyingresidential structure square footage tax rates determined under section 18 of
this Act which apply to property within the taxing district in which the mobile home is
located. The director of tax equalization may refer to the statement required under
section 57 - 55 - 01.2 to determine the square footage of the mobile home.
2.The county treasurer shall provide a tax statement for each mobile home subject to
taxation under this chapter, including.
a.For taxable year 2028, the tax statement must include two columns showing, for
the taxable year to which the tax statement applies and the immediately
preceding taxable year, the square footage tax levy in dollars against the mobile
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home by the county and school district and any city or township that levied taxes
against the mobile home.
b.For taxable years after 2028, the tax statement must include three columns
showing, for the taxable year to which the tax statement applies and the two
immediately preceding taxable years, the propertysquare footage tax levy in
dollars against the mobile home by the county and school district and any city or
township that levied taxes against the mobile home.
3.If a mobile home is acquired or moved into this state during the calendar year and a
tax permit has not been previously issued for such mobile home in this state for such
year, the tax is determined by computing the remaining number of months of the
current year to the nearest full month and multiplying that number by one-twelfth of the
amount which would be due for the full year.
4.The taxes collected under this chapter must be disbursed in the same year they are
collected and in the same manner as real estatesquare footage taxes for the
preceding year are disbursed.
SECTION 52. AMENDMENT. Section 57-55-04.1 of the North Dakota Century Code is
amended and reenacted as follows:
57-55-04.1. Procedure for abatement, refund, or compromise of tax.
1.Any person having any estate, right, title, or interest in or lien upon any mobile home
which has been assessed for taxation purposes pursuant to this chapter may apply for
abatement, refund, or compromise, as the case may be, pursuant to chapter 57-23.
2.The application must be made in writing on the form prescribed by the tax
commissioner and must be filed in triplicate with the county auditor of the county
where the mobile home was assessed.
3.The county auditor shall promptly serve the county director of tax equalization with one
copy of the application.
4.The abatement or compromise must be granted by the county commissioners if the
facts upon which the application is based establish that the assessment contains error,
or that the value placed uponsquare footage determination of the mobile home by the
county director of tax equalization was excessive, or that the mobile home is exempt
from taxation pursuant to section 57-55-10.
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5.The decision of the county commissioners may be appealed in the manner provided
by law.
SECTION 53. AMENDMENT. Section 57-55-05 of the North Dakota Century Code is
amended and reenacted as follows:
57-55-05. Taxes in lieu of other property taxes.
The taxes provided for in this chapter are in lieu of all property taxes, including ad valorem
taxes and square footage taxes levied under section 18 of this Act, upon such mobile homes for
the calendar year for which the tax permit is valid. However, such taxes may in no way be
construed as exempting any mobile home owner from the requirements of registering such
mobile home with the director of the department of transportation or securing license plates
entitling such mobile home to be hauled upon the state's highways pursuant to section
39-18-03.
SECTION 54. AMENDMENT. Section 61-24-09 of the North Dakota Century Code is
amended and reenacted as follows:
61-24-09. District budget - Determination of amount to be levied - Adoption of levy -
Limitation.
1.In July of each year, the board of directors shall estimate and itemize all the expenses
and obligations of the district, including expenses of directors, expenses of operating
the office, debt service and retirement, and obligations and liabilities to the United
States for which provision must be made.
2.The board of directors may include in such budget funds deemed necessary to create
reserve funds to meet future payments under district contracts.
3.Upon the completion and adoption of such budget, the board of directors shall make a
tax levy, including ad valorem taxes and square footage taxes under section 18 of this
Act, in an amount sufficient to meet such budget. Such
4.The levy shall be in the form of a resolution, adopted by a majority vote of the
members of the board of directors of the district. Such
5.The resolution shallmust include an ad valorem levy in mills, but not exceeding one
mill, and a square footage tax levy sufficient to meet all the expenses, obligations, and
liabilities of the district as provided in the budget.
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SECTION 55. REPEAL. Subsection 35 of section 57-02-08 of the North Dakota Century
Code is repealed.
SECTION 56. EFFECTIVE DATE. Sections 1 through 5, 7 through 12, 14 through 49, and
54 and 55 of this Act are effective for taxable years beginning after December 31, 2025.
Section 6 of this Act is effective July 1, 2026. Sections 51, 52, and 53 of this Act are effective for
taxable years beginning after December 31, 2026.
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