Variations in Receipt of Benefit
Benefit Varies with Income
Residents are eligible for an exemption of taxable value for their homestead that varies by income, calculated on homestead value not to exceed $125,000. There are 6 income brackets with exemptions ranging from 100% for a maximum exemption of $5,625 for those with an income below $22,000, to an exemption of 10% not to exceed $563 for an income up to $42,000. The homestead credit of $5,625 equates to a reduction of $125,000 of market value. A homestead credit of $563 equates to a reduction of $12,511 of market value. Renters are also eligible for a credit conditional that 20% of the annual rent exceeds 4% of income, not to exceed $400 credit. If a property has two owners who are not spouses, claimants can receive a benefit in proportion to their percent of ownership. Application must be filed with the local assessor by 1 February of the year of the credit.
How is Benefit Disbursed
Exemption from assessed value
Eligible Property Type
Characteristics of Eligible Property
Only residential property is eligible for this program. Mobile homes are also eligible for the benefit.
Description of Eligibility Criteria
Applicants must live in the residence, and be 65 years or older, or be totally disabled. Spouses are also eligible. Income cannot exceed $42,000. Applicants cannot possess assets in excess of $500,000, including the value of their home and any assets gifted or otherwise divested within the last 3 years. If the applicant is not living in the residence because of illness, the property cannot be rented to another person.
Local Option in Adoption of Program
Local government is unable to exercise an option
Local Option Regarding Program Features
No local option regarding program features
State Funding for Local Tax Loss
State reimburses all of the local government tax loss
Description of State Funding for Tax Loss
The county treasurer receives payment from the state treasurer, and then distributes the money to the local taxing districts of the county. Refunds for renters is paid from the state general fund.
N.D. Cent. Code § 57-02-08.1 ~ 57-02-08.2 (in effect for 2021)
[https://www.nd.gov/tax/data/upfiles/media/credits-for-nd-homeowners-renters-guideline.pdf accessed 08/31/2022]
View Archived Source
North Dakota Office of State Tax Commissioner, Homestead Property Tax Credit and Renter's Refund Brochure, (2021)
[https://www.tax.nd.gov/sites/www/files/documents/news-center/publications/homestead-property-tax-credit-and-renter-s-refund-brochure.pdf Accessed on08/31/2022]
View Archived Source
[https://www.nd.gov/tax/homestead/ accessed 02/21/2022]