Property

Locally Assessed Property

All real property, unless specifically exempted, is subject to property tax. The tax is due January 1 of each year following the year of assessment and is payable without penalty until March 1. A 5% discount is allowed for taxes paid in full by February 15. A mobile home used as a residence or business is subject to tax if it is 27 or more feet long or is attached to utility services. The tax is due January 10 of the year of assessment or ten days after the home is purchased or first moved into this state. A 5% discount is allowed for taxes paid in full by February 15 or within 30 days after the mobile home is purchased or moved into this state. The county determines and collects real property and mobile home taxes and distributes the revenue to the county, cities, townships, school districts, and other taxing districts.

Centrally Assessed Property

The State Board of Equalization values railroads, investor-owned public utilities, and airlines for property tax purposes. The valuations of railroads and utilities are certified to the counties, and the counties determine and collect the tax at the same rates and at the same time as locally assessed property. The State Tax Commissioner collects airline taxes and distributes them to the airports where the airlines make regularly scheduled landings.

Taxes Paid In Lieu Of Property Taxes

Cooperative-Owned Transmission Lines

Cooperative-owned transmission lines of 230 kilovolts or larger pay an annual tax of $225 per mile in lieu of property tax on the lines and any substation used in delivering electrical energy. For a transmission line initially placed in service on or after October 1, 2002, the tax is $300 per mile, but does not apply for the first year and must be reduced by 75 percent for the second year, 50 percent for the third year, and 25 percent for the fourth year.

Rural Electric Cooperatives

Rural electric generation, transmission and distribution cooperatives pay a gross receipts tax instead of property tax on all property except land, which is assessed locally. The gross receipts tax is 1% during the first five years of business and 2% thereafter. The tax is collected by the counties and distributed to the taxing districts in which the cooperatives have pole line mileage.

Telecommunications Companies

Telecommunications companies that provide two-way communications pay a 2 ½ percent gross receipts tax in lieu of property tax on all property used in two-way communications service.

Tourism or Concession License Fee

A license fee in lieu of property taxes is payable for state-owned property leased from the Superintendent of the State Historical Board or the Director of the Parks and Recreation Department and used for tourism or concession purposes. The fee is set by the superintendent or by the director and is at least $1, but not more than 1% of the tenant’s gross receipts.

Others

The following property is subject to payments in lieu of taxes:

• Land owned or leased by the North Dakota Game and Fish Department
• Land owned by the Board of University and School Lands
• Land owned by the North Dakota National Guard
• Farmland or Ranchland owned by Nonprofit Organizations for Conservation Purposes
• Building and associated real property owned by Workforce Safety and Insurance