Homestead Special Assessment Deferral

State

North Dakota

Year

2022

Variations in Receipt of Benefit

No Variation in Receipt of Benefits

Benefit Type

Deferral

Benefit

The benefit is a deferral of all special assessments on the property. The sum of the applicant's homestead credit and the special assessment deferral may not exceed $6,000 (annually adjusted for inflation) for a single tax year. The deferral results in a priority lien on the property that accrues interest.

How is Benefit Disbursed

Credit to the property tax bill

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

Surviving Spouse

Description of Eligibility Criteria

The applicant must be receiving the homestead credit; live in the residence and be invested in the property; 65 years or older, or be totally or permanently disabled; and have an income of no more than $70,000. Deferred liability may be transferred to a surviving spouse upon the death of the beneficiary. Only one member of a married couple may apply for the benefit. If the applicant is not living in the residence because of illness, they retain eligibility unless the property is 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 state reimburses each local government for the tax loss and the state holds a lien against the property which must be paid back by the property owner.

Record ID

ND107_RR22

Footnotes

Interest accrues at a rate of 6% annually. Funds from repayment of the liens are deposited to the state general fund. If the amount of the lien exceeds the market value of the property, the state may accept the amount of the market value of the property as payment in full on the lien. The lien becomes due upon the sale or transfer of the property, except in the case of a transfer to a surviving spouse upon the death of the claimant. The applicant must submit the application to the county auditor no later than 1 February of the year in which the installment of the special assessment becomes payable. An application must be made each year for that year’s installment of the special assessment. The credit may not be applied to delinquent special assessments.

Sources

N.D. Cent. Code § 47-18-01;
N.D. Cent. Code § 57-02-08.1 ~ 57-02-08.3 (in effect for 2022)
North Dakota Office of the State Tax Commissioner, Guideline - Property Tax: Homestead Credit For Special Assessments (November 2019)
[https://www.tax.nd.gov/sites/www/files/documents/guidelines/property-tax/homestead-credit-for-special-assessments-guideline.pdf Accessed 10/06/2023]
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