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Interest strong in new North Dakota property tax credit

by Mary Steurer, North Dakota Monitor
January 3, 2024

Homeowners in North Dakota can now apply for up to $500 off their 2024 property taxes.

The new program, administered by the Office of State Tax Commissioner, aims to take pressure off taxpayers as the state government enjoys an unexpected financial surplus.

If you own a home in North Dakota and live there a majority of the time, you’re probably eligible.

You just need to provide proof of your identity and the parcel number of your home. Once approved, the credit would reduce your bill for the 2024 tax year.

If you’re unable to live in your home for health reasons — if you’re receiving care in a rehabilitation center or nursing home, for example — you can still apply so long as you’re not renting it to someone else while you’re away.

Fill out the online application by March 31 to claim your discount. 

The state began accepting applications this week. State Tax Commissioner Brian Kroshus said his office had already received over 10,000 applications by Tuesday afternoon.

“Right now, the wait times are several minutes — two to three minutes,” Kroshus said. “The phones are definitely ringing, but we’re processing people efficiently. And I think the initial rush will subside.”

The agency included an insert about the program along with property tax statements sent to taxpayers in December, Kroshus said. He said they’re also trying to spread the word through social media ads and interviews with the press.

Residential property taxes are collected at the county level and support local governments and public schools.

Since the new tax credit is funded by the state, it won’t impact local tax revenue. Lawmakers set aside more than $100 million for the program in the 2023-2025 state budget.

That funding only covers the 2024 tax year. If the Legislature wants to continue the program a second year, lawmakers would have to earmark money for it in the 2025-2027 budget.

“They’re going to have to at least talk about it in terms of getting that funding penciled in, so to speak, in the next biennium for the 2025 tax year,” said Kroshus.

It’s part of a much larger cut to income and property taxes adopted by the Legislature during the 2023 session.

The package — expected to cost the state more than $515 million — also expanded a pre-existing property tax credit for elderly and disabled homeowners. That program, commonly referred to as the homestead credit, was previously only open to North Dakota residents making $42,000 a year or less. Lawmakers raised that ceiling to $70,000.

The amended program includes two different discount tiers. Households that earn $40,000 a year or less can have up to 100% of their property tax bills covered by the program, so long as the amount doesn’t exceed $9,000. Households that earn between $40,000 and $70,000 a year, meanwhile, can have their property tax bills slashed by up to 50%, not to exceed $4,500.

The Legislature also removed a clause disqualifying households that own more than $500,000 in assets from the program.

The primary residence and homestead credits aren’t the only relief programs offered by the state. Other programs include subsidies for low-income renters, disabled veterans and farm residences. For more information, visit the Office of the Tax Commissioner’s website.

North Dakota Monitor is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. North Dakota Monitor maintains editorial independence. Contact Editor Amy Dalrymple for questions: [email protected]. Follow North Dakota Monitor on Facebook and Twitter.