25.0308.06000
Sixty-ninth
Legislative Assembly
of North Dakota
Introduced by
Senators Weber, Bekkedahl, Hogue
Representatives Headland, Lefor, Vigesaa
A BILL for an Act to amend and reenact section 57-02-08.9 of the North Dakota Century Code,
relating to the primary residence credit; to provide for application; to provide a retroactive
effective date; to provide an expiration date; and to declare an emergency.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Section 57-02-08.9 of the North Dakota Century Code is
amended and reenacted as follows:
57-02-08.9. Primary residence credit - Qualification - Application. (Effective for the
first two taxable years beginning after December 31, 2023)
1.An individualA taxpayer is entitled to a credit of five hundred dollars against the
property tax due on the individual'staxpayer's primary residence as provided in this
section. The credit may not exceed the amount of property tax due. The credit must be
applied to reduce the property tax owed on the individual'staxpayer's primary
residence after other exemptions or credits under this chapter have been applied.
2.For purposes of this section, "primary:
a."Owned" means an individual holds a present ownership interest, including
ownership in fee simple, holds a present life estate or other terminable present
ownership interest, holds a beneficial interest in a qualifying trust, or is a
purchaser under a contract for deed. The term does not include a mere right of
occupancy or a tenancy under a lease.
b.(1)"Primary residence" means a dwelling in this state owned and occupied by
an individual as that individual's primary place of residence and includes
residences taxed under chapter 57-55, including the land, appurtenances,
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REENGROSSED SENATE BILL NO. 2201
SECOND ENGROSSMENT
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and improvements used in the residential occupancy of the dwelling , that,
subject to paragraph 2 and subsection 3, is:
(a)Owned by one or more individuals, either directly or through a
beneficial interest in a qualifying trust;
(b)Designed or adapted for human residence;
(c)Used as a residence; and
(d)Occupied as a primary place of residence by an owner, by an
individual who has a life estate in the property, or, for property owned
through a beneficial interest in a qualifying trust, by a trustor or
beneficiary of the trust who qualifies for the credit.
(2)For purposes of the definition of "primary residence" under this subdivision:
(a)An individual may not have more than one primary residence.
(b)A primary residence includes a primary residence taxed under chapter
57 - 55.
c."Qualifying trust" means a trust:
(1)In which the agreement, will, or court order creating the trust, an instrument
transferring property to the trust, or any other agreement that is binding on
the trustee provides that the trustor of the trust or a beneficiary of the trust
has the right to use and occupy as the trustor's or beneficiary's primary
residence rent free and without charge except for taxes and other costs and
expenses specified in the instrument or court order:
(a)For life;
(b)For the lesser of life or a term of years; or
(c)Until the date the trust is revoked or terminated by an instrument or
court order that describes the property with sufficient certainty to
identify it and is recorded in the real property records of the county in
which the property is located; and
(2)That acquires the property in an instrument of title or under a court order
that:
(a)Describes the property with sufficient certainty to identify it and the
interest acquired; and
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(b)Is recorded in the real property records of the county in which the
property is located.
d."Trustor" means an individual who transfers an interest in real or personal
property to a qualifying trust, whether during the individual's lifetime or at death,
or the individual's spouse.
3.An individual who does not reside in the primary residence in this state is eligible for
the credit under this section if the individual's absence is due to confinement in a
nursing home, hospital, or other care facility, for as long as that confinement lasts and
the portion of the primary residence previously occupied by the individual is not rented
to another individualperson.
4.Only one credit under this section may be applied against the property taxes levied
against any primary residence. A trust may not claim a credit for more than one
primary residence under this section.
5.An individual whose primary residence is a farm structure exempt from taxation under
subsection 15 of section 57-02-08 is not eligible for a credit under this section.
6.The credit may not reduce the liability for special assessments levied upon any
property.
7.To apply for a credit under this section, an applicant shall sign and file with the tax
commissioner, 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.
8.The tax commissioner, in consultation with the county auditors, shall prescribe, design,
and make available all forms necessary to effectuate this section. The tax
commissioner shall make these forms available upon request.
SECTION 2. RETROACTIVE EFFECTIVE DATE - APPLICATION - EXPIRATION DATE.
This Act is retroactively effective and applies for the first two taxable years beginning after
December 31, 2023, and after that date is ineffective. A taxpayer who, regardless of the
application requirements and deadlines under section 57-02-08.9, qualifies for a credit under
this Act against taxes levied in taxable year 2024 may file an abatement claim to receive a
refund of taxes paid equal to the amount of the credit allowed under this Act. Supplemental
certifications by the county auditor and the tax commissioner and supplemental payments by
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the state treasurer shall be made and distributed according to the procedures provided under
section 57-02-08.10 and may be made after the dates prescribed in section 57-02-08.10.
SECTION 3. EMERGENCY. This Act is declared to be an emergency measure.
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