BISMARCK — With deadlines approaching, North Dakota tax commissioner Ryan Rauschenberger is reminding individual taxpayers who claim a farm residence property tax exemption of new eligibility guidelines.

Recent legislation now requires those who qualify for the exemption to complete a Farm Residence Exemption Application with their county, as well as submit a total gross income statement in order to receive the exemption.

Some key aspects to the new guidelines include:

  • At least 66% of gross income must come from farming activities.
  • 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 limit change means more people could qualify for the exemption. For details on what is included in farm and non-farm gross income, see “Special Estimated Tax Rules for Farmers” in IRS Publication 225.
  • The gross income (farm and non-farm) must include a spouse’s gross income.
  • The application form must be completed by Feb. 1, 2020.
  • The exemption must be renewed every year, which requires submission of a new application and statement of income each year.

Contact your county director of tax equalization for more details.