2a. 2019 Report - Laserfiche WebLink

18 | Page Exemptions Explained (Continued) 6. Disability Exemptions and Credits are available for low‐income senior citizens and disabled persons through a variety of exemptions. According to statute, these exemptions reduce the amount of tax paid by service‐connected disabled veterans, low income seniors /disabled persons, the blind, or wheel chair property owners. The exemptions and credits range from $100,000 to $160,000 of the structure’s value. Most applicants must apply annually for the credits. The State of ND refunds jurisdictions for the tax payments lost to credits. NON‐DISCRETIONARY Non‐discretionary exemptions are those properties that are given exemptions by the North Dakota statue. Local governmental agencies have no control over whether these exemptions are granted or not. Listed below are property ownership types that are entitled to non‐discretionary exemptions: 1. Government Owned Properties such as those owned by cities, schools, park districts, and state or federal government. Buildings like County Court House, the High School, or the Post Office are never added to the tax rolls. These types of property do not even have an application process but are simply granted an exemption due to ownership. 2. Religious Organization’s Properties that are used exclusively for religious purposes like churches, parsonages, parking lots, or cemeteries are exempt from taxation. If a religious organization were to hold a vacant lot among their assets not used in conjunction with the church, that lot is taxable. Along the same lines, if a church owned the apartment building next door for future expansion, the apartment building is taxable. Religious organizations file an annual application for the exemption. 3. Charitable Property that is owned by for non‐profit entities is eligible for exemptions. Some examples are Sheyenne Crossing’s nursing home facility and the home for unwed mothers. Lodges such as the VFW are exempt on portions of their building used exclusively by the organization and not open to the public. These types of organizations apply annually for their exemption. 4. Group Homes used to care for dependent individuals also are granted non‐discretionary exemptions through an annual application process. 5. Farmers are given an exemption on their buildings used for agricultural purposes and on their homes. EFFECT OF THE EXEMPTIONS 1. Exemptions reduce the tax base for all political subdivisions in which the property is located. A reduced tax base means reduced tax revenues collected by political subdivisions. When a jurisdiction grants an exemption, the loss of revenue is felt mainly by the school district which receives the largest share of the tax dollar.