Much-needed relief is on the way for North Dakota homeowners, and it could give eligible homeowners $500 off on their 2024 property taxes. The North Dakota property tax credit program, also known as the Primary Residence Credit, has been designed by the Office of State Tax Commissioner. Eligible residents need to show their proof of residency and identity to get the credit.
North Dakota property tax credit: when and how to apply
Homeowners in North Dakota can now apply for the Primary Residence Credit. The State Tax Commissioner started accepting North Dakota property tax credit applications on January 1. The state has already received more than 20,000 applications since the application opened.
Residents who own a home in North Dakota and live there the majority of the time are likely to qualify for the credit. There are no age or income limitations to apply for the credit. The last date to apply for the credit is March 31.
North Dakota is encouraging homeowners to apply for the credit by spreading the word through social media ads and interviews with the press. Also, the state mentioned the program in property tax statements sent to taxpayers in December.
If approved, the credit amount will show as a deduction on the applicant’s property tax statement for the 2024 tax year. Applicants can apply online by clicking here, or they can call 701-328-7988 if they don’t have internet access.
Lawmakers have set aside over $100 million for the North Dakota property tax credit in the 2023-2025 state budget. The new credit won’t impact local tax revenue as it is funded by the state.
It must be noted that the funding covers the 2024 tax year only, but if the state wants to continue the credit next year, it will have to set the money aside for it in the 2025-2027 budget.
Other tax relief options available
The North Dakota property tax credit is part of a bigger property tax relief package that the Legislature adopted during the 2023 session. Along with offering $500 credit, the package – costing more than $515 million – expanded the existing property tax credit for elderly and disabled homeowners, called the homestead credit.
Previously, the homestead credit was open only to residents with an annual income of $42,000 a year or less, but now the threshold has been raised to $70,000. The new law also eliminated the clause that disqualified households with more than $500,000 in assets.
Specifically, the program now has two tiers. Those with an income of $40,000 a year or less can claim up to 100% of their property tax bills, with a maximum limit of $9,000. Those with income between $40,000 and $70,000 can claim up to 50% of their property tax bills, with a maximum limit of $4,500.
Along with introducing the North Dakota property tax credit and expanding the homestead credit, the relief package also offers subsidies for low-income renters, disabled veterans and farm residences.
