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North Dakota Senate Bill SB2201

North Dakota 2025-2026 Regular Session

North Dakota Senate Bill SB2201 Compare Versions

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1-Sixty-ninth Legislative Assembly of North Dakota
2-In Regular Session Commencing Tuesday, January 7, 2025
3-SENATE BILL NO. 2201
4-(Senators Weber, Bekkedahl, Hogue)
5-(Representatives Headland, Lefor, Vigesaa)
6-AN ACT to amend and reenact section 57-02-08.9 of the North Dakota Century Code, relating to the
7-primary residence credit; to provide for application; to provide a retroactive effective date; to
8-provide an expiration date; and to declare an emergency.
1+25.0308.07000
2+Sixty-ninth
3+Legislative Assembly
4+of North Dakota
5+Introduced by
6+Senators Weber, Bekkedahl, Hogue
7+Representatives Headland, Lefor, Vigesaa
8+A BILL for an Act to amend and reenact section 57-02-08.9 of the North Dakota Century Code,
9+relating to the primary residence credit; to provide for application; to provide a retroactive
10+effective date; to provide an expiration date; and to declare an emergency.
911 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
10-SECTION 1. AMENDMENT. Section 57-02-08.9 of the North Dakota Century Code is amended and
11-reenacted as follows:
12-57-02-08.9. Primary residence credit - Qualification - Application. (Effective for the first two
13-taxable years beginning after December 31, 2023)
14-1.An individualA taxpayer is entitled to a credit of five hundred dollars against the property tax
15-due on the individual'staxpayer's primary residence as provided in this section. The credit may
16-not exceed the amount of property tax due. The credit must be applied to reduce the property
17-tax owed on the individual'staxpayer's primary residence after other exemptions or credits
18-under this chapter have been applied.
12+SECTION 1. AMENDMENT. Section 57-02-08.9 of the North Dakota Century Code is
13+amended and reenacted as follows:
14+57-02-08.9. Primary residence credit - Qualification - Application. (Effective for the
15+first two taxable years beginning after December 31, 2023)
16+1.An individualA taxpayer is entitled to a credit of five hundred dollars against the
17+property tax due on the individual'staxpayer's primary residence as provided in this
18+section. The credit may not exceed the amount of property tax due. The credit must be
19+applied to reduce the property tax owed on the individual'staxpayer's primary
20+residence after other exemptions or credits under this chapter have been applied.
1921 2.For purposes of this section, "primary:
20-a."Owned" means an individual holds a present ownership interest, including ownership in
21-fee simple, holds a present life estate or other terminable present ownership interest,
22-holds a beneficial interest in a qualifying trust, or is a purchaser under a contract for
23-deed. The term does not include a mere right of occupancy or a tenancy under a lease.
24-b.(1)"Primary residence" means a dwelling in this state owned and occupied by an
25-individual as that individual's primary place of residence and includes residences
26-taxed under chapter 57-55, including the land, appurtenances, and improvements
27-used in the residential occupancy of the dwelling , that, subject to paragraph 2 and
28-subsection 3, is:
29-(a)Owned by one or more individuals, either directly or through a beneficial
30-interest in a qualifying trust;
22+a."Owned" means an individual holds a present ownership interest, including
23+ownership in fee simple, holds a present life estate or other terminable present
24+ownership interest, holds a beneficial interest in a qualifying trust, or is a
25+purchaser under a contract for deed. The term does not include a mere right of
26+occupancy or a tenancy under a lease.
27+b.(1)"Primary residence" means a dwelling in this state owned and occupied by
28+an individual as that individual's primary place of residence and includes
29+residences taxed under chapter 57-55, including the land, appurtenances,
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31+REENGROSSED SENATE BILL NO. 2201
32+SECOND ENGROSSMENT
33+with House Amendments
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57+and improvements used in the residential occupancy of the dwelling , that,
58+subject to paragraph 2 and subsection 3, is:
59+(a)Owned by one or more individuals, either directly or through a
60+beneficial interest in a qualifying trust;
3161 (b)Designed or adapted for human residence;
3262 (c)Used as a residence; and
33-(d)Occupied as a primary place of residence by an owner, by an individual who
34-has a life estate in the property, or, for property owned through a beneficial
35-interest in a qualifying trust, by a trustor or beneficiary of the trust who
36-qualifies for the credit.
63+(d)Occupied as a primary place of residence by an owner, by an
64+individual who has a life estate in the property, or, for property owned
65+through a beneficial interest in a qualifying trust, by a trustor or
66+beneficiary of the trust who qualifies for the credit.
3767 (2)For purposes of the definition of "primary residence" under this subdivision:
3868 (a)An individual may not have more than one primary residence.
39-(b)A primary residence includes a primary residence taxed under chapter 57 - 55.
40-c."Qualifying trust" means a trust: S. B. NO. 2201 - PAGE 2
69+(b)A primary residence includes a primary residence taxed under chapter
70+57 - 55.
71+c."Qualifying trust" means a trust:
4172 (1)In which the agreement, will, or court order creating the trust, an instrument
42-transferring property to the trust, or any other agreement that is binding on the
43-trustee provides that the trustor of the trust or a beneficiary of the trust has the right
44-to use and occupy as the trustor's or beneficiary's primary residence rent free and
45-without charge except for taxes and other costs and expenses specified in the
46-instrument or court order:
73+transferring property to the trust, or any other agreement that is binding on
74+the trustee provides that the trustor of the trust or a beneficiary of the trust
75+has the right to use and occupy as the trustor's or beneficiary's primary
76+residence rent free and without charge except for taxes and other costs and
77+expenses specified in the instrument or court order:
4778 (a)For life;
4879 (b)For the lesser of life or a term of years; or
49-(c)Until the date the trust is revoked or terminated by an instrument or court
50-order that describes the property with sufficient certainty to identify it and is
51-recorded in the real property records of the county in which the property is
52-located; and
53-(2)That acquires the property in an instrument of title or under a court order that:
54-(a)Describes the property with sufficient certainty to identify it and the interest
55-acquired; and
56-(b)Is recorded in the real property records of the county in which the property is
57-located.
58-d."Trustor" means an individual who transfers an interest in real or personal property to a
59-qualifying trust, whether during the individual's lifetime or at death, or the individual's
60-spouse.
61-3.An individual who does not reside in the primary residence in this state is eligible for the credit
62-under this section if the individual's absence is due to confinement in a nursing home,
63-hospital, or other care facility, for as long as that confinement lasts and the portion of the
64-primary residence previously occupied by the individual is not rented to another
65-individualperson.
66-4.Only one credit under this section may be applied against the property taxes levied against
67-any primary residence. A trust may not claim a credit for more than one primary residence
68-under this section.
80+(c)Until the date the trust is revoked or terminated by an instrument or
81+court order that describes the property with sufficient certainty to
82+identify it and is recorded in the real property records of the county in
83+which the property is located; and
84+(2)That acquires the property in an instrument of title or under a court order
85+that:
86+(a)Describes the property with sufficient certainty to identify it and the
87+interest acquired; and
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121+(b)Is recorded in the real property records of the county in which the
122+property is located.
123+d."Trustor" means an individual who transfers an interest in real or personal
124+property to a qualifying trust, whether during the individual's lifetime or at death,
125+or the individual's spouse.
126+3.An individual who does not reside in the primary residence in this state is eligible for
127+the credit under this section if the individual's absence is due to confinement in a
128+nursing home, hospital, or other care facility, for as long as that confinement lasts and
129+the portion of the primary residence previously occupied by the individual is not rented
130+to another individualperson.
131+4.Only one credit under this section may be applied against the property taxes levied
132+against any primary residence. A trust may not claim a credit for more than one
133+primary residence under this section.
69134 5.An individual whose primary residence is a farm structure exempt from taxation under
70135 subsection 15 of section 57-02-08 is not eligible for a credit under this section.
71-6.The credit may not reduce the liability for special assessments levied upon any property.
136+6.The credit may not reduce the liability for special assessments levied upon any
137+property.
72138 7.To apply for a credit under this section, an applicant shall sign and file with the tax
73-commissioner, by April first of each year, an application containing a verified statement of facts
74-establishing the applicant's eligibility as of the date of the claim on a form and in the manner
75-prescribed by the tax commissioner.
76-8.The tax commissioner, in consultation with the county auditors, shall prescribe, design, and
77-make available all forms necessary to effectuate this section. The tax commissioner shall
78-make these forms available upon request.
79-SECTION 2. RETROACTIVE EFFECTIVE DATE - APPLICATION - EXPIRATION DATE. This Act
80-is retroactively effective and applies for the first two taxable years beginning after December 31, 2023,
81-and after that date is ineffective. A taxpayer who, regardless of the application requirements and
82-deadlines under section 57-02-08.9, qualifies for a credit under this Act against taxes levied on a
83-primary residence owned through a beneficial interest in a qualifying trust in taxable year 2024, may file
84-an abatement claim no later than May 1, 2025, to receive a refund of taxes paid equal to the amount of
85-the credit allowed under this Act. Supplemental certifications by the county auditor and the tax S. B. NO. 2201 - PAGE 3
86-commissioner and supplemental payments by the state treasurer shall be made and distributed
87-according to the procedures provided under section 57-02-08.10 and may be made after the dates
88-prescribed in section 57-02-08.10.
89-SECTION 3. EMERGENCY. This Act is declared to be an emergency measure. S. B. NO. 2201 - PAGE 4
90-____________________________ ____________________________
91-President of the Senate Speaker of the House
92-____________________________ ____________________________
93-Secretary of the Senate Chief Clerk of the House
94-This certifies that the within bill originated in the Senate of the Sixty-ninth Legislative Assembly of North
95-Dakota and is known on the records of that body as Senate Bill No. 2201 and that two-thirds of the
96-members-elect of the Senate voted in favor of said law.
97-Vote: Yeas 47 Nays 0 Absent 0
98-____________________________ ____________________________
99-President of the Senate Secretary of the Senate
100-This certifies that two-thirds of the members-elect of the House of Representatives voted in favor of
101-said law.
102-Vote: Yeas 88 Nays 0 Absent 6
103-____________________________ ____________________________
104-Speaker of the House Chief Clerk of the House
105-Received by the Governor at ________M. on _____________________________________, 2025.
106-Approved at ________M. on __________________________________________________, 2025.
107-____________________________
108-Governor
109-Filed in this office this ___________day of _______________________________________, 2025,
110-at ________ o’clock ________M.
111-____________________________
112-Secretary of State
139+commissioner, by April first of each year, an application containing a verified statement
140+of facts establishing the applicant's eligibility as of the date of the claim on a form and
141+in the manner prescribed by the tax commissioner.
142+8.The tax commissioner, in consultation with the county auditors, shall prescribe, design,
143+and make available all forms necessary to effectuate this section. The tax
144+commissioner shall make these forms available upon request.
145+SECTION 2. RETROACTIVE EFFECTIVE DATE - APPLICATION - EXPIRATION DATE.
146+This Act is retroactively effective and applies for the first two taxable years beginning after
147+December 31, 2023, and after that date is ineffective. A taxpayer who, regardless of the
148+application requirements and deadlines under section 57-02-08.9, qualifies for a credit under
149+this Act against taxes levied on a primary residence owned through a beneficial interest in a
150+qualifying trust in taxable year 2024, may file an abatement claim no later than May 1, 2025, to
151+receive a refund of taxes paid equal to the amount of the credit allowed under this Act.
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185+Supplemental certifications by the county auditor and the tax commissioner and supplemental
186+payments by the state treasurer shall be made and distributed according to the procedures
187+provided under section 57-02-08.10 and may be made after the dates prescribed in section
188+57-02-08.10.
189+SECTION 3. EMERGENCY. This Act is declared to be an emergency measure.
190+Page No. 4 25.0308.07000
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