Deadline approaching for farm residence tax exemption

Deadline approaching for farm residence tax exemption

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Morton County Tax Equalization Office wants residents to understand the new eligibility guidelines for the farm residence tax exemption and to submit the required paperwork before the tax season deadlines.

Recent legislation put in place requires those that qualify for the exemption to complete an application as well as a total gross income statement in order to receive the exemption. These documents can be filled out online at http://www.mortonnd.org/farmresidenceexemption, but then they must be printed and submitted via email, mail or in person to our office.

The application and income statement worksheet must be submitted by Feb. 1 and March 31, respectively.

“We expect more Morton County residents will qualify for this tax exemption than in years past, so we want them to get started on their applications and income statements as soon as possible,” said Tax Equalization Director William Schafer. “Morton County does not plan to automatically offer abatements if filing deadlines are not met. We expect abatements will be the exception, not standard practice. If the forms are not submitted on time, the applicant will miss the opportunity for consideration for the exemption.”

Some key aspects to the new guidelines include:

  1. At least 66% of gross income must come from farming activities, an increase from 50% in previous years.
  2. 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.
  3. The gross income (farm and non-farm) must include a spouse’s gross income. 
  4. Application form must be completed by Feb. 1. Income statement is due March 31.
  5. The exemption must be renewed every year, which requires submission of a new application and statement of income each year.

More information is available by contacting the county tax equalization office or the North Dakota tax department.

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