At a Glance:
Benefit: Exemption from property taxes on farm residences
Eligibility: Active farmers, retired farmers, farm laborers, beginning farmers, or surviving spouses
Deadline: February 1 for application; March 31 for income statements
Details:
There are multiple categories for the Farm Residence Exemption, but an application may only be completed for a single category:
- Active Farmer
- Vacant Residence
- Farm Laborer Residence
- Retired Farmer
- Beginning Farmer
- Surviving Spouse
The application will help you determine the appropriate category.
Note: The 2019 Legislative Session brought several changes to the Farm Residence Exemption for those claiming Active Farmer Status (the other designations have not changed). To qualify as an Active Farmer, the farmer and their spouse, if married, must have received more than 66% of their combined annual gross income from farming activities in any one year of the two preceding calendar years, whether one or both are farmers. This is a change from having made no more than $40,000 net off-farm income in each of the past 3 years.
The non-farm income limit is now calculated as part of the total gross income. Previously, the limit was $40,000 of non-farm income. The gross income (farm and non-farm) must include a spouse’s gross income.
Application Process/ Requirements
The Active Farmer must now include the “Statement of Farm Gross Income” form in addition to their application; the form is available for download from the North Dakota Tax Commissioner’s website. The form is a fillable Excel spreadsheet based off the current IRS 1040 form. A new application and statement of income must be submitted each year to renew the exemption.
Deadlines: February 1; however, applications are considered incomplete and will be denied if the Statement of Farm Gross Income is not received by the Assessor’s Office.
Statement of Farm Gross Income: Can be submitted separately before March 31.
Please contact the Assessor’s Office for application assistance