North Dakota Application For Property Tax Exemption of a Farm Residence

Application For Property Tax Exemption of a Farm Residence
Application for Farm Residence Property Tax Exemption
APPLICATION FOR FARM RESIDENCE PROPERTY TAX EXEMPTION
OFFICE OF STATE TAX COMMISSIONER
SFN 24737 (9-2019)

For farm residence property tax exemption under N.D.C.C. § 57-02-08(15), effective for property tax years 2020 and after.
Name of Property Owner	

Property (Parcel) Number

Name of Occupant, if Different from Owner	

Legal Description of Property

Property Address

See separate instructions
A. Enter the calendar year for which the exemption is being requested _____________
B. Check the box for the category under which the exemption is being requested and answer the question(s):
Active farmer category
1.	
Is the residence located on a tract or contiguous tracts of agricultural land containing 10 or more
acres farmed by the occupant?..............................................................................................................	Yes	
2. Is the major portion of the occupant’s time devoted to farming activities?...................................................	Yes	
3. Is the annual gross income from farming activities of the occupant and spouse, if married, 66% or more
of their total annual gross income in either of the two preceding calendar years?..........................................	Yes	
4. Has a Statement of Farm Gross Income been completed for either of the two preceding calendar years?....	

	

No
No
No
No

 If yes, submit the statement with this application.
 If no, a statement must be completed and either submitted with this application or submitted
separately no later than March 31 of the calendar year for which the exemption is being requested.

Vacant residence category

1.	
Is the residence intended for use as a farm residence?..............................................................................	Yes	
2. Was the residence last used as a farm residence or as part of a farm plant?.................................................	Yes	

Farm laborer residence category

		
Is the residence being used as part of a farm plant to provide housing for that farmer’s worker(s)?................	Yes	

No
No
No

Retired farmer category
		
Is the residence occupied by an individual who (1) is retired because of illness or age and (2) owned and
occupied the residence as a farmer at the time of retirement?....................................................................	Yes	

No

Beginning farmer category
1.	
Is the residence occupied by an individual who began occupancy and operation of a farm in either of the
two preceding calendar years?...............................................................................................................	Yes	
2. Is the major portion of the occupant’s time devoted to farming activities?...................................................	Yes	

No
No

3. Did the occupant have no income or loss from farming activity in either of the two preceding calendar
years?................................................................................................................................................	Yes	

No

Surviving spouse category
1.	
Is the residence occupied by the surviving spouse of an individual who, at the time of death,
occupied the residence as a qualified farmer?..........................................................................................	Yes	
2. Was the deceased spouse an active farmer at the time of death? ...............................................................	Yes	
3. Was the deceased spouse a retired farmer at the time of death?................................................................	Yes	
4. Deceased spouse’s date of death __________________
I declare under penalty of N.D.C.C. § 12.1-11-02, which provides for a	
Class A misdemeanor for making false statement in a governmental
matter, that this application is true, correct, and complete.	

For Assessor or Director of Tax Equalization only

Signature of Property Owner	

Signature of Assessor or Director of Tax Equalization	

Date	

Application is:		

Approved	

Not approved
Date

No
No
No

Application For Farm Residence Property Tax Exemption Instructions
SFN 24737 (9-2019)

Purpose of form

Use this application form to apply
for either of the following two farm
residence property tax exemptions:
•	 Farmer’s residence exemption under
N.D.C.C. § 57-02-08(15)(b).
•	 Farm worker residence exemption
under N.D.C.C. § 57-02-08(15)(a).
A new application form must be filed
each year to continue the exemption.

Eligible residence

The residence must be located on a farm
for purposes of the farmer’s residence
exemption or on agricultural land as part
of a farm plant for purposes of the farm
worker residence exemption. Following
are special situations in which a residence
is eligible or not eligible for exemption.
Residence on unplatted land. A residence
located on unplatted land within the
boundaries of an incorporated city is
eligible for exemption if it (1) is located
on agricultural land, (2) is used as a
farmer’s residence or is part of a farm
plant, and (3) otherwise satisfies the
exemption requirements.
Residence on platted land. A residence
located on platted land within the
boundaries of an incorporated city or on
railroad operating property is not eligible
for exemption.
Bed and breakfast. A residence in which
a bed and breakfast is operated is eligible
for exemption provided the farmer
resides in it and the other requirements
for exemption are satisfied.
Vacant residence. A vacant residence is
eligible for exemption if, at the time it
was last occupied or used, it was exempt
as a farmer’s residence or as part of a
farm plant. A vacant residence becomes
ineligible for exemption upon nonqualifying occupation or use.

Farm worker residence
exemption

A residence is eligible for exemption
from property tax as a farm structure
under N.D.C.C. § 57-02-08(15)(a) if all
of the following conditions apply:
•	 It is located on agricultural lands.
•	 It is part of a farm plant.
•	 It is used to provide housing for an
employee who is paid wages as a farm
worker.

Farmer’s residence
exemption

A residence is eligible for exemption
from property tax under N.D.C.C.
§ 57-02-08(15)(b) if it is located on a
farm and is occupied or used by a farmer.
Farm
The term “farm” means a single tract or
contiguous tracts of land containing 10
or more acres on which a farmer carries
on operations normally associated with
farming and ranching.
Farmer
The term “farmer” means an individual
who satisfies the following requirements:
•	 The individual normally devotes the
major portion of his or her time to
the activities of producing, in their
unmanufactured state, products of the
soil (except marijuana grown under
N.D.C.C. ch. 19-24.1), dairy farming,
poultry, or livestock (including
nontraditional livestock defined under
N.D.C.C. § 36-01-00.1).
•	 The individual and spouse, if married,
received annual gross income from
farming activities which is 66% or
more of their annual gross income
during either of the two preceding
calendar years.
	 The individual must complete and
provide a Statement of Farm Gross
Income to demonstrate compliance
with this requirement. See “Statement
of Farm Gross Income” later in these
instructions.
The above requirements describe
an active farmer. Subject to certain
conditions, the term “farmer” also
includes a beginning farmer, retired
farmer, and surviving spouse of a farmer,
each of which is described below.
Beginning farmer. A “beginning farmer”
means an individual who begins
occupation and operation of a farm to
which he or she normally devotes the
major portion of time to farming and
who did not have any income or loss
from a farm operation in either of the two
preceding calendar years.
Retired farmer. A “retired farmer” means
an individual living in the residence
who is retired because of illness or age
and owned and occupied the residence
as a farmer at the time of retirement. It

does not include an individual who quit
farming to change occupations. A retired
farmer’s residence remains eligible for
the exemption even though the farm’s
acreage decreases below 10 acres after
retirement provided the residence
qualified for exemption at the time of
retirement.
Surviving spouse. A “surviving spouse
of a farmer” means an individual living
in the residence who is the surviving
spouse of a deceased individual who, at
the time of death, owned and occupied
the residence as a farmer. If the deceased
individual was an active farmer at time
of death, the exemption is only available
for the first five years following the year
of death. If the deceased individual was
a retired farmer at time of death, the
exemption is available for as long as the
surviving spouse continuously occupies
the residence.
Statement of Farm Gross
Income
If an exemption is being applied for
under the active farmer requirements, the
individual occupying the residence must
complete a Statement of Farm Gross
Income to show compliance with the farm
gross income requirement in one of the
two calendar years preceding the year for
which the exemption is being requested.
A married occupant must include the
spouse’s gross income in the calculation.
The source of the farm gross income
is not limited to the particular tract or
contiguous tracts on which the residence
is located; all farm and nonfarm gross
income, regardless of source, must be
included.
Submit the Statement of Farm Gross
Income with the application for the
farm residence exemption, which is
due February 1 of the year for which
the exemption is being requested. If
the statement cannot be filed with the
application form by February 1, it must
be submitted no later than March 31 of
the year for which the exemption is being
requested.

When and where to file

The application must be filed on or before
February 1 of the year for which the
exemption is being requested. File the
application with the assessor’s office for
the county in which the farm residence is
located.