There are two different types of property tax in North Dakota – locally assessed property and centrally assessed property. In addition, some industries pay other taxes in lieu of property tax.
Locally Assessed Property
Locally assessed property is real property that is owned by an individual or a business. All real property, unless specifically exempt, is subject to property tax. Real property means land and other assets that are permanently structured on the land. A mobile home used as a residence or business is also subject to property tax if it is 27 or more feet long or is attached to utility services.
Property tax for real property is due January 1 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. Property tax for a mobile home is due January or 10 days after the home is purchased or moved into the 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 the state.
Counties determine and collect real property and mobile home property taxes, and distribute the revenue to the county, cities, townships, school districts, and other taxing districts. Property taxes are determined by three elements: 1) mills (tax rate), 2) taxable values, and 3) taxing entity. Visit North Dakota Association of Counties - Understanding Property Tax to learn more about counties’ work with property taxes and mills (tax rate).
Definitions to Know in Property Tax
- Real property means land and other assets that are permanently structured on the land.
- Market value is what real property would sell for in the current market.
- Assessed value of all real property in North Dakota is equal to 50% of the market value.
Centrally Assessed Property
Centrally assessed property is specific types of property, including railroads, investor-owned public utilities, pipelines, and airlines. The State Board of Equalization decides the value of railroads, pipelines, and utilities, and certifies the value to the counties in North Dakota. The counties determine the tax due for each property and collect the tax.
Taxes Paid in Lieu of Property Taxes
Some industries pay for property taxes by paying other taxes, these are taxes in lieu of property tax.
Rural Electric Cooperatives
Generation, distribution, and transmission property of rural electric cooperatives is subject to payment in lieu of property tax. N.D.C.C. § 57-33.2
Other Electric Companies
Other companies engaged in electric generation, distribution, and transmission are subject to payment in lieu of property tax and exempt from ad valorem taxation. Ad valorem tax is an assessment based upon value.
Solar farms are considered grid-connected generators and are taxed under N.D.C.C. § 57-33.2-04(2).
For tax rates and other details of these taxes, our Guideline - Property Not Assessed by Local Assessors contains more information.
Telecommunications Companies
Telecommunications companies that provide two-way communication pay a 2.5% gross receipts tax in lieu of property tax on all property used in two-way communication service.
Tourism or Concession License Fee
State-owned property leased from the superintendent of the State Historical Society of North Dakota or the director of the North Dakota Parks and Recreation Department and used for tourism or concession, pay a license fee instead of property taxes. The fee is set by the respective agency and is at least $1, but not more than 1% of the tenant’s gross receipts.
Others Property Subject to Payments in Lieu of Property 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