January 15, 2020

Farm home property tax exemption broadened

By Neal A. Shipman
Farmer Editor

More McKenzie County farmers and ranchers may be eligible to get a break on their property taxes thanks to a change approved by the North Dakota Legislature.
According to Katie Paulson, McKenzie County Tax director, during this past legislative session, the North Dakota Legislature changed the income test to qualify for the property tax exemption for farm and/or ranch homes.
In the past, farmers and ranchers were required to prove that 50 percent or more of their net income came from farming and/or ranching. But the new changes that were passed by the 2019 North Dakota Legislature require that to be eligible for the farm home exemption, filers must now show that 66 percent of their gross income is derived from farming activities.
But Paulson says that the new law will be helpful to many farmers and ranchers as it took away the $40,000 limit for non-farm income, including a spouse’s salary.
“I think that we could see more of our farmers and ranchers qualify for the property tax relief on their homes with the $40,000 limit on non-farm income being removed,” states Paulson. “We have many of our farmers and ranchers who have their spouse working, are taking side jobs or have had oil income. So removing that limit could mean more farmers and ranchers could be eligible for the farm home property tax exemption.”

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