Legislative Wrap-Up 2019 Property Tax

Ryan Rauschenberger, Tax CommissionerLinda Leadbetter, State Supervisor of Assessments

Joseph Becker, Auditor III, Research and Education

SB 2331 – Wind Generation Allocation

• Amends N.D.C.C. 57-33.2-18• 33% of revenue deposited in State General Fund for wind

projects that:– Begin initial construction after December 31, 2020.– Have been in operation for twenty years or more from the date of first

assessment, whether initially taxed under 57-06-14.1 or 57-33.2-04.

HB 1041/1174 – Homestead Credit for Specials/Income

• Amends N.D.C.C. 57-02-08.3• Adjusts maximum of $6000 by the consumer price index

January 1, each year• Interest reduced from 9% to 6% per year• HB 1174 provides that social security remains income as it is

considered for the homestead credit

SB 2189 – Township & City Board of Equalization

• Amends N.D.C.C. 57-09-01 & 57-11-01• Township Board of Equalization• City Board of Equalization • Meet within the first 15 days of April• Addresses flexibility needed for those that share assessors

SB 2278 & SB 2360 – Farm Residence Exemption

• Amend portions of N.D.C.C. 57-02-08(15)– Income information is a confidential record (2019 tax year)– Requires income verification on prescribed form (2020 tax year)– 66% of gross income from farming activities– Met during the two preceding calendar years

SB 2360 / 2278 – Farm Residence Exemption

• Amendments to N.D.C.C. 57-02-08(15)(b)

– SB 2278 – Requires statement from applicant showingfarm income test is met

– SB 2360 – Streamlines farm income test andshortens test period

This is a CONFIDENTIAL RECORD

• New simplified 2-page form

• Use for 2018 or 2019 income tax year

This is a CONFIDENTIAL RECORD

• Former worksheet was optional tool

• New form is required from every applicant

This is a CONFIDENTIAL RECORD

• New farm income test now based on established, familiar federal income tax method

• Uses gross income from farming definition under federal estimated income tax rules

This is a CONFIDENTIAL RECORD

• Farm gross income must be 66% or more of total gross income for year

• Non-farm income test was repealed

This is a CONFIDENTIAL RECORD

• Farm gross income must be 66% or more of total gross income for year

• Non-farm income test was repealed

• Part 1 – Total farm and non-farm gross incomeMatches federal amount

• Part 1 – Total farm and non-farm gross incomeMatches federal amount

• Part 2 – Gross income from farmingMatches federal amount

• Part 2 – Gross income from farmingMatches federal amount

• Part 3 – Applicant’s signature

• Part 3 – Applicant’s signature

This is a CONFIDENTIAL RECORD

Questions?