N.D.C.C. § 57-02-08.3 — Homestead credit for special assessments - Certification - Lien

1. Any person who has qualified for the property tax credit provided for in section
57-02-08.1 may elect to also qualify for an additional homestead credit against that
person's homestead for the portion of any special assessment levied by a taxing
district which becomes due for the same year. The total amount of credits allowed for
any one property must not exceed six thousand dollars, adjusted annually on January
first of each year after December 31, 2019, by the consumer price index, excluding
any interest charged by the body levying the special assessment. This credit may be
granted only at the election of the qualifying person. The person making the election
shall do so by filing with the county auditor a claim for the special assessment credit
on a form prescribed by the tax commissioner. The claim must be filed with the county
auditor on or before February first of the year in which the special assessment
installment thereof becomes payable. For purposes of this subsection, "consumer
price index" means the percentage change in the consumer price index for all urban
consumers in the midwest region as determined by the United States department of
labor, bureau of labor statistics, for the most recent year ending December thirty-first.
2. a. By March first of each year, the county auditor of each county shall certify to the
state tax commissioner, on forms prescribed by the tax commissioner, the
following information:
(1) The name and address of each person for whom the special assessment
credit provided for in subsection 1 was allowed for the preceding year.
(2) The amount of credit allowed for the special assessment installment thereof
due for the preceding year.
(3) The total amount of the special assessment credits due in each special
assessment district.
Page No. 17
(4) Other information that the tax commissioner requires.
b. The tax commissioner shall audit the certifications, make such corrections as may
be required, and certify to the state treasurer for payment to each county by June
first of each year the sum of the amounts computed by adding the credits allowed
for portions of special assessments which were due for each homestead in the
county for the preceding year. No more than the portion of special assessments
due for the preceding year shall be allowed as a credit for any homestead in any
year.
c. The county treasurer upon receipt of the payment from the state treasurer shall
forthwith apportion and distribute the payment to each special assessment district
in the county according to the total credits allowed for each respective special
assessment district.
d. Supplemental certifications by the county auditor and by the state tax
commissioner and supplemental payments by the state treasurer may be made
after the dates prescribed herein to make such corrections as may be necessary
because of errors therein.
3. a. Any credit allowed under subsection 1, plus interest in the amount of six percent
per year from June first of the year for which the special assessment installment
for which a credit is taken becomes payable, creates a lien in favor of the state
against the property upon which the special assessment credit is allowed and
remains a lien upon the property from the time the credit is allowed until the lien is
fully satisfied by depositing the amount of the lien in the state general fund. If the
amount of the lien exceeds the market value of the property, the state may accept
the amount of the market value of the property as payment in full on the lien.
b. (1) Except as otherwise provided in this subdivision, a transfer of title to the
homestead because of sale, death, or otherwise may not be made without
the lien being satisfied. When a credit under subsection 1 is allowed, the
county auditor shall cause a notice of lien of record to be filed against
subject property with the recorder.
(2) The recorder may not record any deed for property on which the county
auditor has determined that there is an unsatisfied lien created under this
section, except for a transfer between spouses because of the death of one
of them as provided in paragraph 3.
(3) When a transfer occurs between spouses because of the death of one of
them, the lien allowed by this section need not be satisfied until the property
is again transferred.
c. This lien has precedence over all other liens except general tax liens and prior
special assessment liens and shall not be divested at any judicial sale. A mistake
in the description of the property covered by this lien or in the name of the owner
of the property does not defeat the lien if the property can be identified by the
description in the special assessment list.