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Property Tax Exemption

Personal property is exempt from taxation with the exception of certain oil and gas refineries and utilities in North Dakota. This means there is no property tax on items such as office equipment, inventory, accounts receivable or materials.

Local taxing authorities in North Dakota control property tax rates and exemptions. Any new or expanding business project may be granted a property tax exemption for up to five years. Two extensions are available:

  • Agricultural processors may be granted a partial or full exemption for up to five additional years.
  • A project located on property leased from a government entity qualifies for an exemption for up to five additional years upon annual application by the project operator.

In addition to or in lieu of a property tax exemption, a company may negotiate payments in lieu of taxes for up to 20 years from the date of commencement of project operations.

North Dakota property tax is determined by multiplying the taxable value of real property -- land and buildings -- by the local mill rate. North Dakota commercial property tax is calculated by multiplying true and full value of commercial property, which the local assessor establishes, by 50 percent to reach assessed value; then multiplying assessed value by 10 percent to reach taxable value; and then multiplying taxable value by the local mill rate.

Learn more about property tax rates and exemptions from the Office of the State Tax Commissioner.

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