Homestead Credit

State

North Dakota

Year

2022

Variations in Receipt of Benefit

Benefit Varies with Income

Benefit Type

Circuit Breaker

Benefit

Residents are eligible for an exemption of the taxable value for their homestead, calculated on homestead value not to exceed $125,000. The exemption varies by income. There are 6 income brackets with exemptions ranging from 100% (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 if 20% of the annual rent exceeds 4% of income, not to exceed a $400 credit. If a property has two owners who are not spouses, claimants can receive a benefit in proportion to their percentage of ownership.

How is Benefit Disbursed

Exemption from assessed value

Eligible Property Type

Residential

Characteristics of Eligible Property

Only residential property, including mobile homes, is eligible for this program.

Eligibility Criteria

Age

Disability

Homeowner

Income Ceiling

Principal Residence

Renter

Wealth Limit

Description of Eligibility Criteria

Applicants must live in the residence, and be 65 years or older or 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. The applicant is still eligible while residing in a nursing home, hospital, or care facility if the property is not 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 distributes the money to the local taxing districts of the county. Refunds for renters are paid from the state general fund.

Record ID

ND101_RR22

Footnotes

An application must be filed with the local assessor by 1 February of the year of the credit. Rent is exclusive of any federal rent subsidy and charges for any utilities, services, furniture, furnishings, or personal property appliances furnished by the landlord. Taxable value for residential property is calculated as 4.5% of market value based on all properties being assessed at 50% of market value and residential properties further taxed at 9% of assessed value. Income does not include gifts, inheritances, life insurance proceeds, social security lump sum death payments, insurance payments, federal fuel assistance, renter's refund payments, food stamps, veteran's disability payments, payments for foster care, Retired Senior Volunteer Program payments, Senior Companion Program, Vista Program, and medical expenses paid during the year if not reimbursed.

Sources

N.D. Cent. Code § 47-18-01;
N.D. Cent. Code § 57-02-08.1 ~ 57-02-08.2 (in effect for 2022)
North Dakota Office of State Tax Commissioner, Guideline-Property Tax: Credits for ND Homeowners and Renters (June 2023)
[https://www.tax.nd.gov/sites/www/files/documents/guidelines/homestead-veterans-renters/credits-for-nd-homeowners-renters-guideline.pdf Accessed 12/26/2023]
View Archived Source

North Dakota Office of State Tax Commissioner, Homestead & Renter's Refund Property Tax Credits Flyer (2022)
[https://www.tax.nd.gov/sites/www/files/documents/news-center/publications/homestead-property-tax-credit-and-renters-refund-flyer.pdfAccessed 12/26/2023]
View Archived Source
North Dakota Office of State Tax Commissioner, Homestead Property Tax Credit and Renter's Refund
[https://www.nd.gov/tax/homestead/ Accessed 12/26/2023]
View Archived Source

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