North Dakota 2025-2026 Regular Session

North Dakota House Bill HB1560 Compare Versions

Only one version of the bill is available at this time.

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1	1	25.1141.01000
2	2	Sixty-ninth
3	3	Legislative Assembly
4	4	of North Dakota
5	5	Introduced by
6	6	Representative Toman
7	7	A BILL for an Act to create and enact a new section to chapter 57-02 and a new subdivision to
8	8	subsection 1 of section 57-55-10 of the North Dakota Century Code, relating to a primary
9	9	residence long-term homeowner property valuation reduction; and to provide an effective date.
10	10	BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
11	11	SECTION 1. A new section to chapter 57-02 of the North Dakota Century Code is created
12	12	and enacted as follows:
13	13	Primary residence long-term homeowner property valuation reduction -
14	14	Qualification - Application - Certification - State reimbursement.
15	15	1.A long-term homeowner is entitled to a reduction of one hundred percent of the
16	16	taxable valuation of the long-term homeowner's primary residence , up to a maximum
17	17	reduction of eighteen thousand dollars of taxable valuation . If the long-term
18	18	homeowner qualifies for another credit under this chapter, including the credits under
19	19	sections 57 - 02 - 08.1 and 57 - 02 - 08.8, which reduces the taxable value of the long-term
20	20	homeowner's primary residence, the credit must apply to the remaining taxable value
21	21	after application of the other credit.
22	22	2.A dwelling does not lose its character as a primary residence if the owner of the
23	23	dwelling does not reside in the primary residence because the individual is confined in
24	24	a nursing home, hospital, or other care facility, for as long as that confinement lasts
25	25	and the portion of the primary residence previously occupied by the individual is not
26	26	rented to another person.
27	27	3.Individuals residing together who are co - owners of the property but who are not
28	28	spouses or dependents each are entitled to a percentage of the reduction under
29	29	subsection 1 equal to their ownership interests in the property.
30	30	Page No. 1 25.1141.01000
31	31	HOUSE BILL NO. 1560
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55	55	23 Sixty-ninth
56	56	Legislative Assembly
57	57	4.If a primary residence is co - owned by two individuals who are spouses and only one
58	58	spouse meets the criteria of a long-term homeowner , both spouses must be
59	59	considered long-term homeowners for purposes of the credit under this section.
60	60	5.To apply for the reduction under this section, an owner shall sign and file with the tax
61	61	commissioner an application containing a verified statement of facts establishing the
62	62	owner's property meets the eligibility requirements under this section as of the date of
63	63	the application on a form and in the manner prescribed by the tax commissioner .
64	64	a.An application must be filed by August 1, 2025, to request a valuation reduction
65	65	for:
66	66	(1)Taxable year 2025 for a primary residence taxed as real estate under this
67	67	title.
68	68	(2)Taxable years 2025 and 2026 for a primary residence taxed as a mobile
69	69	home under chapter 57 - 55.
70	70	b.For valuation reductions after 2025 for a primary residence taxed as real estate
71	71	under this title and valuation reductions after 2026 for a primary residence taxed
72	72	as a mobile home under chapter 57 - 55, an application must be filed by August
73	73	first of each year to request a reduction under this section beginning:
74	74	(1)The taxable year during which the application is filed for a primary residence
75	75	taxed as real estate under this title.
76	76	(2)The taxable year succeeding the taxable year during which the application
77	77	is filed for a primary residence taxed as a mobile home under chapter
78	78	57 - 55.
79	79	c.By October 1, 2025, the tax commissioner shall:
80	80	(1)Review the applications received under subdivision a and determine which
81	81	applications qualify for the reduction under this section; and
82	82	(2)Provide to each county director of tax equalization a copy of each approved
83	83	or rejected application received under subdivision a which identifies property
84	84	located in the county.
85	85	d.By October first of each year after 2025, the tax commissioner shall:
86	86	(1)Review the applications received under subdivision b and determine which
87	87	applicants qualify for the reduction under this section; and
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121	121	(2)Provide to each county director of tax equalization a copy of each approved
122	122	or rejected application received under subdivision b which identifies property
123	123	located in the county .
124	124	e.The county director of tax equalization shall a ttach each application approved
125	125	under this subsection to the assessment list and list the amount of the reduction
126	126	on the assessment list.
127	127	f.The tax department may request additional documentation from the applicant
128	128	when making the determination of eligibility.
129	129	g.If any claimant is found to have claimed a reduction fraudulently under this
130	130	section to which that claimant is not entitled, all reductions under this section for
131	131	that claimant for that taxable year must be canceled. If a claimant received a
132	132	reduction that is canceled under this section, the auditor of the county in which
133	133	the property is located shall enter the amount of the canceled reduction as
134	134	omitted property on the assessment list of property that has escaped taxation.
135	135	h.Determinations of eligibility for a reduction under this section may be appealed
136	136	through the equalization and abatement process.
137	137	6.a.For taxable year 2025:
138	138	(1)The county auditor shall apply the reduction under this section to each
139	139	primary residence taxed as real estate under this title and identified as a
140	140	qualifying primary residence on the corresponding tax statement.
141	141	(2)The county auditor shall consider an application received under
142	142	subsection 5 for a primary residence taxed as a mobile home under chapter
143	143	57 - 55 and identified by the tax commissioner as a primary residence eligible
144	144	for the reduction under this section as an application for an abatement and
145	145	refund of taxes in an amount consistent with the reduction allowed. The
146	146	county auditor shall present the application for abatement and refund of
147	147	taxes to the board of county commissioners at its next regular meeting. The
148	148	county commissioners shall approve the applications filed under this
149	149	paragraph as soon as practicable and refunds must be issued without delay
150	150	according to the procedures in section 57 - 23 - 09. The application, notice,
151	151	and hearing requirements and procedures under chapter 57 - 23 and
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185	185	sections 57 - 55 - 04.1 and 57 - 55 - 12 do not apply to an application for
186	186	abatement and refund filed under this paragraph.
187	187	b.For taxable years after 2025, the county auditor shall apply the reduction under
188	188	this section to each primary residence identified as a qualifying primary residence
189	189	on the corresponding property tax statement or mobile home tax statement.
190	190	7.A reduction under this section is valid for the entire taxable year for which the claim
191	191	was approved, without regard to any change of ownership of the property which
192	192	occurs af ter the claim was approved for the taxable year .
193	193	8.This section does not reduce the liability of any individual for special assessments
194	194	levied upon any property.
195	195	9.A reduction of taxable valuation under this section may not be applied to reduce the
196	196	taxable valuation used for purposes of determining the amount subtracted from a
197	197	school district's state aid payment under subdivision a of subsection 4 of section
198	198	15.1 - 27 - 04.1.
199	199	10.The tax commissioner shall prescribe, design, and make available all forms necessary
200	200	to effectuate this section. Application forms must include the full name and address of
201	201	the applicant and any other information prescribed by the tax commissioner. The
202	202	county director of tax equalization shall make these forms available to applicants upon
203	203	request.
204	204	11.For purposes of this section:
205	205	a."Long-term homeowner" means a homeowner who has owned the homeowner's
206	206	primary residence for thirty years or more.
207	207	b."Owned" means an individual holds a present ownership interest, including
208	208	ownership in fee simple, holds a present life estate or other terminable present
209	209	ownership interest, holds a beneficial interest in a qualifying trust in which the
210	210	property is held, has an ownership interest in the corporation or passthrough
211	211	entity that owns the property, or is a purchaser under a contract for deed. The
212	212	term does not include a mere right of occupancy or a tenancy under a lease.
213	213	c.(1)"P rimary residence" means a dwelling in this state, including the land,
214	214	appurtenances, and improvements used in the residential occupancy of the
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247	247	dwelling, which is not exempt from property taxes as a farm residence and,
248	248	subject to subsection 2 and paragraph 2, is:
249	249	(a)Owned by one or more individuals, either directly or through a
250	250	beneficial interest in a qualifying trust;
251	251	(b)Designed or adapted for human residence;
252	252	(c)Used as a residence; and
253	253	(d)Occupied as a primary place of residence by:
254	254	[1]An individual who holds a present ownership interest, including
255	255	ownership in fee simple;
256	256	[2]An individual who has a life estate in the property;
257	257	[3]For property owned through a beneficial interest in a qualifying
258	258	trust, a trustor or beneficiary of the trust who qualifies for the
259	259	reduction; or
260	260	[4]For property owned through an ownership interest in a
261	261	corporation or passthrough entity, an individual who holds an
262	262	ownership interest in the corporation or passthrough entity and
263	263	who qualifies for the reduction.
264	264	(2)For purposes of the term:
265	265	(a)An individual may not have more than one primary residence.
266	266	(b)A primary residence includes a primary residence taxed as a mobile
267	267	home under chapter 57 - 55.
268	268	d."Qualifying trust" means a trust:
269	269	(1)In which the agreement, will, or court order creating the trust, an instrument
270	270	transferring property to the trust, or any other agreement that is binding on
271	271	the trustee provides that the trustor of the trust or a beneficiary of the trust
272	272	has the right to use and occupy as the trustor's or beneficiary's primary
273	273	residence rent free and without charge except for taxes and other costs and
274	274	expenses specified in the instrument or court order:
275	275	(a)For life;
276	276	(b)For the lesser of life or a term of years; or
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309	309	(c)Until the date the trust is revoked or terminated by an instrument or
310	310	court order that describes the property with sufficient certainty to
311	311	identify it and is recorded in the real property records of the county in
312	312	which the property is located; and
313	313	(2)That acquires the property in an instrument of title or under a court order
314	314	that:
315	315	(a)Describes the property with sufficient certainty to identify it and the
316	316	interest acquired; and
317	317	(b)Is recorded in the real property records of the county in which the
318	318	property is located.
319	319	e."Trustor" means an individual who transfers an interest in real or personal
320	320	property to a qualifying trust, whether during the individual's lifetime or at death,
321	321	or the individual's spouse.
322	322	12.a.Before January 15, 2026, the county auditor of each county shall certify to the tax
323	323	commissioner, on forms prescribed by the tax commissioner, the following
324	324	information applicable to taxable year 2025 for primary residences taxed as real
325	325	estate under this title and taxable years 2025 and 2026 for primary residences
326	326	taxed as a mobile home under chapter 57 - 55 :
327	327	(1)The full name, address, and social security or taxpayer identification number
328	328	of each individual or entity for whom the reduction under this section was
329	329	allowed;
330	330	(2)The legal description of the property;
331	331	(3)The taxable value of the property;
332	332	(4)The dollar amount of each reduction in taxable value allowed;
333	333	(5)The total of the tax mill rates used to calculate taxes for the corresponding
334	334	year of all taxing districts in which the property was contained, exclusive of
335	335	any state mill rates; and
336	336	(6)Any other information prescribed by the tax commissioner.
337	337	b.Before January fifteenth of each year after 2026, the county auditor of each
338	338	county shall certify to the tax commissioner, on forms prescribed by the tax
339	339	commissioner, the following information applicable to the taxable year during
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373	373	which the application is filed for a primary residence taxed as real estate under
374	374	this title and the taxable year succeeding the taxable year during which the
375	375	application is filed for a primary residence taxed as a mobile home under chapter
376	376	57 - 55 :
377	377	(1)The full name, address, and social security or taxpayer identification number
378	378	of each individual or entity for whom the reduction under this section was
379	379	allowed for the corresponding taxable year;
380	380	(2)The legal description of the property;
381	381	(3)The taxable value of the property;
382	382	(4)The dollar amount of each reduction in taxable value allowed;
383	383	(5)The total of the tax mill rates used to calculate taxes for the corresponding
384	384	year of all taxing districts in which the property was contained, exclusive of
385	385	any state mill rates; and
386	386	(6)Any other information prescribed by the tax commissioner.
387	387	13.a.By March 15, 2026, the tax commissioner shall:
388	388	(1)Review the certifications under subdivision a of subsection 12, make any
389	389	required corrections, and certify to the state treasurer for payment to each
390	390	county the sum of the amounts computed by:
391	391	(a)For valuation reductions for primary residences taxed as real estate
392	392	for taxable year 2025, m ultiplying the reduction allowed for each
393	393	qualifying primary residence taxed as real estate under this title in the
394	394	county for taxable year 2025 by the total of the tax mill rates for
395	395	taxable year 2025 of all taxing districts in which the property was
396	396	located.
397	397	(b)For valuation reductions for primary residences taxed as mobile
398	398	homes under chapter 57 - 55 for taxable year 2025, m ultiplying the
399	399	reduction allowed for each qualifying primary residence taxed as a
400	400	mobile home under chapter 57 - 55 in the county for taxable year 2025
401	401	by the total of the tax mill rates used to calculate mobile home taxes
402	402	under chapter 57 - 55 in taxable year 2025 of all taxing districts in
403	403	which the property was located.
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437	437	(c)For valuation reductions for primary residences taxed as mobile
438	438	homes under chapter 57 - 55 for taxable year 2026, m ultiplying the
439	439	reduction allowed for each qualifying primary residence taxed as a
440	440	mobile home under chapter 57 - 55 in the county for taxable year 2026
441	441	by the total of the tax mill rates used to calculate mobile home taxes
442	442	under chapter 57 - 55 in taxable year 2026 of all taxing districts in
443	443	which the property was located.
444	444	(2)Certify to the state treasurer for deposit in the state medical center fund the
445	445	amount computed by multiplying one mill times the reduction allowed under
446	446	this section for primary residences taxed as rea l estate for taxable year
447	447	2025 and m obile homes under chapter 57 - 55 for taxable years 2025 and
448	448	2026.
449	449	b.By March fifteenth of each year after 2026, the tax commissioner shall:
450	450	(1)Review the certifications under subdivision b of subsection 12, make any
451	451	required corrections, and certify to the state treasurer for payment to each
452	452	county the sum of the amounts computed by:
453	453	(a)Multiplying the reduction allowed for each qualifying primary residence
454	454	taxed as real estate under this title in the county for the preceding
455	455	year by the total of the tax mill rates for the preceding year of all
456	456	taxing districts in which the property was located.
457	457	(b)Multiplying the reduction allowed for each qualifying primary residence
458	458	taxed as a mobile home under chapter 57 - 55 in the county for the
459	459	current year by the total of the tax mill rates used to calculate mobile
460	460	home taxes under chapter 57 - 55 for the current taxable year of all
461	461	taxing districts in which the property was located.
462	462	(2)Certify annually to the state treasurer for deposit in the state medical center
463	463	fund the amount computed by multiplying one mill times the reduction
464	464	allowed under this section for all eligible primary residences in the state for:
465	465	(a)The taxable year during which the application is filed for a primary
466	466	residence taxed as real estate under this title.
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499	499	(b)The taxable year succeeding the taxable year during which the
500	500	application is filed for a primary residence taxed as a mobile home
501	501	under chapter 57 - 55 .
502	502	c.In reviewing certifications, the tax commissioner may refer to any income tax
503	503	return information or other information available to the tax commissioner.
504	504	14.Within fourteen days of receiving the payment from the state treasurer, the county
505	505	treasurer shall apportion and distribute the payment without delay to the county and to
506	506	the taxing districts of the county on the same basis property taxes under this chapter
507	507	and mobile home taxes under chapter 57 - 55 were apportioned and distributed for the
508	508	taxable year in which the taxes were levied.
509	509	15.Supplemental certifications by the county auditor and the tax commissioner and
510	510	supplemental payments by the state treasurer may be made after the dates prescribed
511	511	in this section to make any corrections necessary because of errors or approval of any
512	512	application for equalization or abatement filed by an individual or entity because all or
513	513	part of the reduction under this section was not allowed.
514	514	SECTION 2. A new subdivision to subsection 1 of section 57-55-10 of the North Dakota
515	515	Century Code is created and enacted as follows:
516	516	If it is owned by an individual who qualifies for the primary residence long-term
517	517	homeowner property valuation reduction under section 1 of this Act, to the extent
518	518	to which the individual is entitled to the reduction.
519	519	SECTION 3. EFFECTIVE DATE. This Act is effective for taxable years beginning after
520	520	December 31, 2024.
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