Summary — SB 2201 (North Dakota) — Primary Residence Credit
Status & timeline
- Introduced in the 69th Legislative Assembly; passed both houses and enrolled.
- Governor approved (documented Aug 15, 2025). The Act’s nominal effective date is July 1, 2026, but it is written retroactively to apply to the first two taxable years beginning after December 31, 2023 (i.e., taxable years 2024 and 2025). The Act includes an emergency clause.
Purpose
- To provide a temporary, one-time-per-year property tax credit ($500) for qualifying owners of a primary residence in North Dakota for the first two taxable years beginning after Dec. 31, 2023, and to establish application and refund procedures (including limited retroactive relief).
Key provisions
- Credit amount and ordering
- Taxpayer is entitled to a $500 credit against property tax on the taxpayer’s primary residence. The credit cannot exceed the property tax liability and is applied after other exemptions/credits.
- The credit does not reduce liability for special assessments.
Eligible property and ownership
- “Primary residence” is a dwelling in North Dakota owned and occupied as the owner’s primary place of residence (includes residences taxed under chapter 57‑55). Only one primary residence allowed per individual.
- “Owned” includes present ownership interests (fee simple, life estate), purchaser under contract for deed, and beneficial interests in a qualifying trust (final enrolled language emphasizes direct ownership or through a beneficial interest in a qualifying trust).
- “Qualifying trust” is defined narrowly (trust instrument or court order must grant the trustor/beneficiary the right to occupy rent‑free as primary residence and must be recorded; trust must acquire property by recorded instrument or court order).
Special eligibility rules
- An owner absent due to confinement in a nursing home/hospital/other care facility remains eligible while confined provided the previously occupied portion is not rented to another person.
- Farm structures exempt under subsection 15 of section 57‑02‑08 are not eligible.
- Only one $500 credit may be applied against taxes levied on any primary residence; a trust may not claim credits for more than one residence.
Application and administration
- Applicants must file a signed, verified application with the Tax Commissioner by April 1 each year using forms prescribed by the Tax Commissioner (in consultation with county auditors).
- For taxpayers who qualify for a 2024 credit on a primary residence owned through a beneficial interest in a qualifying trust, an abatement claim may be filed no later than May 1, 2025 to receive a refund of taxes paid equal to the credit amount.
- Supplemental certifications and payments (county auditor, tax commissioner, state treasurer) follow procedures in section 57‑02‑08.10.
Who is affected
- North Dakota property taxpayers who own and occupy a dwelling in the state as their primary residence (including certain trust beneficiaries/trustors). County auditors and the Tax Commissioner will have additional administrative duties. The state will be responsible for processing supplemental payments/refunds under existing statutory procedures.
Expiration and fiscal notes
- The credit is temporary: it applies only for the first two taxable years beginning after Dec. 31, 2023 (effectively limited to taxable years 2024 and 2025) and is ineffective thereafter.
- Fiscal impact: a $500 per‑eligible‑residence credit for two years, plus state administrative/refund processing costs; exact cost depends on number of eligible claimants.
Relevant citations & procedures
- Amends and reenacts NDCC § 57‑02‑08.9; supplemental payment/certification procedures reference § 57‑02‑08.10.
