North Dakota

Property Classification:

Property in North Dakota is classified as "real" or "property." Property in the following classes is valued for taxation at a percentage of assessed value (Sec. 57-02-27, NDCC):

(1) residential property;	9%
(2) agricultural property;	10%
(3) commercial, air carrier transportation, and railroad property; and	10%
(4) centrally assessed property, except air carrier transportation and railroad property.	10%

In participating counties, the owner of qualified forest land may apply to pay a "forest stewardship tax" in lieu of other property taxes. The county commission must have approved by resolution the application of this tax to all qualifying property within the county (Sec. 57-57-02, NDCC). Qualifying property consists of the following

1. Natural forest cover ten acres or larger in size; or

2. Planted forest cover five acres or larger in size and not less than sixty feet in width; or

3. Any combination of natural and planted forest cover ten acres or larger in size,

Application - The owner of forest property meeting the qualifications may file an application with the county commission of the county in which the property is located. The application should include a description of the property that the owner desires to place under the forest stewardship tax and on which land the owner will practice forestry. If the county commission has approved application the county commission shall forward each application received to the state forester for a determination of whether the property qualifies under this chapter. Upon the receipt of the application provided for in section 57-57-02, the state forester shall examine the land and report to the county commission whether the property qualifies for taxation.

Contract - Acceptance of the application by the board of county commissioners constitutes a contract, running with the land, for a period of five years, unless otherwise terminated. Any order issued on or before February first of any year takes effect in that year, but all orders issued after February first of any year take effect the following year. If at the end of five years the contract is not renewed by mutual consent of the owner or agent of the owner and the board of county commissioners, the land is declassified and returns to the regular tax rolls.

Declassification - If a forest is cleared, grazed, burned, cut, or otherwise dealt with in a destructive manner as determined by the state forester, it may be subject to declassification and return to the regular tax rolls.

At the request of the owner or the agent of the owner, the state forester or the county designee of the state forester may assist in preparing and carrying out a forest management plan for the orderly development of each forest. The plan must cover a five-year period and must recognize the individual management objectives of the landowner. The plan must contain written recommendations for managing timber and other associated forest resources. Approval and implementation of the forest management plan must be by mutual consent of the landowner and the state forester.

Valuation and Assessment:

The owner shall pay to the county treasurer at the time taxes on other real property are due, a forest stewardship tax computed at a rate of fifty cents (¢.50) per acre. The tax is a part of the total real property taxes on the land of the owner and subject to collection in the same manner as any other real property taxes.

The payment of the forest stewardship tax is in lieu of all ad valorem taxes by the state, counties, towns, townships, school districts, and other municipalities upon any property rights attached to the forest. It is expressly provided that the forest stewardship tax is not in lieu of income taxes nor excise taxes upon the sale of forest products or services that may be derived from the forest. (Sec. 57-57-06)

The state of North Dakota does not have a severance or yield tax on timber or timber products.

North Dakota State Forest Service. Forest Stewardship Tax Law.

North Dakota State Forest Service. Forest Stewardship Tax Law Highlights.