TAXPAYER BILL
OF RIGHTS
Brian Kroshus
Tax Commissioner
North Dakota Office of State Tax Commissioner tax.nd.gov
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TAXPAYER BILL
OF RIGHTS
Brian Kroshus
Tax Commissioner
North Dakota Office of State Tax Commissioner tax.nd.gov
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NORTH DAKOTA TAXPAYER BILL OF RIGHTS
The North Dakota Taxpayer Bill of Rights Fairness
represents a joint effort of the public and You are liable only for the correct amount of tax
private sectors. It provides for greater uniformity, that is due under the law. We must apply the
consistency, and equity. law consistently and fairly to all taxpayers.
While taxes are inevitable, they do not have
to be overly complicated or intimidating. As a Confidentiality
taxpayer, you deserve to know how the system You have the right to confidentiality of
works and where to get help if you need it. information provided on tax returns for
individual income tax, corporation income
The mission of the Office of State Tax
tax, and sales and use taxes. This information
Commissioner is to fairly and effectively
may be released only if you give written
administer the tax laws of North Dakota. We
authorization.
work hard to ensure that tax laws are enforced
correctly and that honest taxpayers do not
shoulder an unfair burden. This publication Recording Conversations
highlights your basic rights and responsibilities
You and the Tax Commissioner have the right
as a taxpayer. Your confidence in the integrity,
to record, electronically or otherwise, any audit
efficiency, and fairness of North Dakota’s tax
conference or meeting, provided advance
system depends, in part, on these rights. We
notice is given of intent to record.
encourage you to learn about them and
exercise them to the fullest.
Penalty and Interest Waiver
You have the right to request a waiver of
Appeal and Explanation
penalty and interest charges. Part or all of these
If you do not agree with an assessment made
charges may be waived for “good cause.”
by the Tax Commissioner, you have the right to
appeal. We must explain to you how to appeal
an assessment. Taxpayer Representative
You have the right to represent yourself or to
designate someone else, such as a certified
Courtesy
public accountant (CPA) or an attorney, to
You have the right to courteous and
represent you. Contact the Office of State
considerate treatment. These criteria will
Tax Commissioner for the proper written
be taken into account when evaluating an
authorization forms necessary to designate
employee’s performance. If you feel that you
someone else to represent you.
are not being treated with fairness, courtesy,
and consideration by any department
employee, please speak with the employee’s
Note: The above information applies only to
supervisor.
taxes administered and collected by the North
Dakota Office of State Tax Commissioner.
Because property taxes are locally assessed,
the information above does not apply to
property taxes.
North Dakota Taxpayer Bill of Rights 2
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TAXPAYER ASSISTANCE
Timely Response For More Information
You have the right to prompt, courteous, and For confidential and personal assistance,
accurate answers to your questions. We will contact the Office of State Tax Commissioner.
answer or acknowledge your inquiry within
two weeks. Address: Office of State Tax Commissioner
Tax Administration Division
Written Opinion 600 E. Boulevard Ave., Dept. 127
You have the right to rely on a formal written Bismarck, ND 58505-0599
“Opinion of the Tax Commissioner” if you have
fully disclosed the facts and circumstances Website: tax.nd.gov
necessary for a proper opinion.
Phone: 701-328-7088
877-328-7088 (toll free)
Help with Filing
800-366-6888 (TTD)
You have the right to assistance with your North
Dakota tax returns. Help is available year-round
in our Bismarck office. Office hours are Monday
through Friday (except holidays), 8:00 a.m. to
5:00 p.m. (Central Time).
INDIVIDUAL INCOME TAX, CORPORATION INCOME TAX, OIL & GAS GROSS
PRODUCTION TAX, OIL EXTRACTION TAX
Tax Commissioner’s Deadlines Deadlines
In certain cases, when the Tax Commissioner A deadline is computed using the postmark of
does not complete an activity within the the notice or statement. Counting begins the
prescribed time period, you may be entitled to day after the postmark and includes the last
a waiver of interest. day. A deadline falling on a Saturday, Sunday,
or legal holiday moves to the next business day.
Three days are added to a deadline if a notice
Extensions is sent by mail (six days if mailed out of state).
In certain cases, if you are unable to respond
within the prescribed time period, you may
Time for Assessment and Refund
request and receive an extension of time.
Individual & Corporation Income Taxes
• 3 years for assessments and refunds
Records Requests • 6 years if there is a 25 percent change in
You may protest the Tax Commissioner’s request taxable income or tax liability
for records by challenging a subpoena in North
Oil and Gas Gross Production Tax and Oil
Dakota District Court.
Extraction Tax
• 3 years for assessments and refunds
• 6 years if there is a 25 percent change in tax
liability
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INCOME TAX & OIL TAX AUDIT & ASSESSMENT PROCEDURE
Audit Notice of Reconsideration
An audit is an examination of your records No later than nine months, plus extensions, after
for the purpose of verifying a tax return or the statement of grounds, the Tax Commissioner
determining whether a tax liability exists. must send to you a Notice of Reconsideration,
which states the amount of the final assessment
and the reasons.
Notice of Determination
A Notice of Determination stating the amount
and reason for the assessment is sent to you by Administrative Complaint
the Tax Commissioner no later than 12 months,
If you still disagree with the Tax Commissioner’s
plus extensions, from the commencement of
assessment, you may file an administrative
the audit.
complaint up to 30 days after the Notice of
Reconsideration.
Refund Denials
You have the right to protest a refund denial
(Notice of Refund Change). The process for Notice of Intent to Proceed to Hearing
protesting a refund denial is identical to the A Notice of Intent to proceed to hearing is sent
process for protesting an assessment. by the Tax Commissioner to you no later than
30 days after the administrative complaint.
Protest
A protest stating your disagreement with Administrative Answer
the assessment is sent by you to the Tax
The Tax Commissioner must file an administrative
Commissioner within 30 days of the Notice of
answer in response to the complaint no later
Determination.
than 20 days after the Notice of Hearing.
Statement of Grounds
Administrative Hearing
A statement of grounds, stating in detail your
An administrative hearing must be held no
reasons for the protest, is also sent by you to the
later than 18 months after the administrative
Tax Commissioner. The statement of grounds
complaint.
may be filed up to 90 days after the Notice of
Determination. If the Tax Commissioner believes
the statement of grounds is incomplete, the Independent Hearing Officer
Tax Commissioner must provide you with an An independent hearing officer must be
opportunity to perfect your statement. appointed to preside at your administrative
hearing. An independent hearing officer may
Tax Commissioner’s Response participate earlier in the hearing process, once
an administrative complaint has been filed, if
The Tax Commissioner must, within 90 days,
you so request.
provide to you a detailed response to your
statement of grounds. If you wish further
explanation, the Tax Commissioner must
Decision of the Tax Commissioner
provide clarification.
If at all possible, the Tax Commissioner must
issue a decision no later than 30 days from the
Informal Conference conclusion of the hearing. You may appeal
At any point in this process, you may request the Tax Commissioner’s decision to the North
an informal conference with the Office of State Dakota District Court.
Tax Commissioner to discuss the audit and
assessment.
North Dakota Taxpayer Bill of Rights 4
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SALES & SPECIAL TAXES
Tax Commissioner’s Deadlines Deadlines
In certain cases, when the Tax Commissioner A deadline is computed using the postmark of
does not complete an activity within the the notice or statement. Counting begins the
prescribed time period, you may be entitled to day after the postmark and includes the last
a waiver of interest. day. A deadline falling on a Saturday, Sunday,
or legal holiday moves to the next business day.
Three days are added to a deadline if a notice
Extensions
is sent by mail (six days if mailed out of state).
In certain cases, if you are unable to respond
within the prescribed time period, you may
request and receive an extension of time. Time for Assessment and Refund
An assessment or refund may be issued any
time within three years after the due date of the
Records Requests
tax return. However, if the tax is understated by
You may protest the Tax Commissioner’s request more than 25 percent, the assessment may be
for records by challenging a subpoena in North issued within six years.
Dakota District Court.
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SALES & SPECIAL TAXES AUDIT & ASSESSMENT PROCEDURE
Audit Informal Conference
An audit is an examination of your records At any point in this process, you may request
for the purpose of verifying a tax return or an informal conference with the Office of State
determining whether a tax liability exists. Tax Commissioner to discuss the audit and
assessment.
Notice of Determination
A Notice of Determination stating the amount Administrative Complaint & Notice of Intent to
and reason for the assessment is sent to you by Proceed to Hearing
the Tax Commissioner no later than 12 months,
No later than nine months after the statement
plus extensions, from the commencement of
of grounds, if the assessment remains
the audit.
unresolved, the Tax Commissioner must file an
administrative complaint and a Notice of Intent
Refund Denials to proceed to hearing.
You have the right to protest a refund denial
(Notice of Refund Change). The process for Administrative Answer
protesting a refund denial is identical to the
No later than 20 days after the complaint, you
process for protesting an assessment. You must
must file an administrative answer in response, if
submit a protest stating your disagreement
you wish to continue your appeal.
with the refund denial to the Tax Commissioner
within 30 days of the Notice of Refund Change.
Administrative Hearing
Protest An administrative hearing must be held no
later than 18 months after the administrative
A protest stating your disagreement with
complaint.
the assessment is sent by you to the Tax
Commissioner within 30 days of the Notice of
Determination. Independent Hearing Officer
An independent hearing officer must be
Statement of Grounds appointed to preside at your administrative
hearing. An independent hearing officer may
A statement of grounds, stating in detail your
participate earlier in the hearing process, once
reasons for the protest, is also sent by you to the
an administrative complaint has been filed, if
Tax Commissioner. The statement of grounds
you so request.
may be filed up to 90 days after the Notice of
Determination. If the Tax Commissioner believes
the statement of grounds is incomplete, the Decision of the Tax Commissioner
Tax Commissioner must provide you with an If at all possible, the Tax Commissioner must
opportunity to perfect your statement. issue a decision no later than 30 days from the
conclusion of the hearing. You may appeal
Tax Commissioner’s Response the Tax Commissioner’s decision to the North
Dakota District Court.
The Tax Commissioner must, within 90 days,
provide to you a detailed response to your
statement of grounds. If you wish further
explanation, the Tax Commissioner must
provide clarification.
North Dakota Taxpayer Bill of Rights 6
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PROPERTY TAX
Assessment Process The Appeal Process
All real property subject to taxation is assessed In North Dakota there are two procedures for
according to its value on February 1 of each appealing an assessment (valuation).
year. When the value of property changes
there should be corresponding changes in the One procedure is informal and allows a
property’s valuation for tax purposes. property owner to appeal the current year’s
assessment by contacting the local assessor
Written notice must be sent to a property owner and the various boards of equalization before
whenever the true and full value of a property the assessment is finalized. This method will not
has increased since the previous year’s result in any court action.
assessment to one or more of the following
levels: The other procedure is formal and allows a
property owner to appeal either a current
1. The assessor has increased the true and or prior year’s assessment by completing
full valuation to a level of 10 percent or and filing an application for abatement and
more and $3,000 or more from the previous refund of taxes. This procedure begins after the
year’s assessment. Delivery must occur at assessment is finalized, follows a strict schedule
least 15 days prior to the local equalization of hearings, and may result in court action as
meeting. the final step of appeal.
2. The township, city, or county board of • The steps for informal and formal appeals
equalization proposes to increase the true are on the next page.
and full value returned by the assessor
resulting in a cumulative increase of more • The following pages will also provide you
than 15 percent from the amount of the with helpful information regarding the
previous year’s assessment. Reasonable application process and compromise of
notice and opportunity to be heard unpaid taxes.
regarding the intention of the board to
increase the assessment must be given prior
to the board taking action.
3. The township, city, or county board of
equalization, or action by the State Board
of Equalization has increased the true and
full valuation to a level of 10 percent or
more and $3,000 or more from the previous
year’s assessment. Delivery must occur
within 15 days after the meeting of the
township, city, or county board that ordered
the increase and within 30 days after the
meeting of the State Board of Equalization if
the state board ordered the increase.
The notice must be delivered in writing to
the property owner’s last known address, or
provided to the property owner by electronic
mail directed with verification of receipt to an
email address at which the property owner has
consented to receive notice.
The notice must provide the true and full values
used to make the assessment and the dates,
times, and locations of the local, county, and
state boards of equalization meetings.
North Dakota Taxpayer Bill of Rights 7
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PROPERTY TAX — INFORMAL APPEAL
LOCAL ASSESSOR LOCAL BOARD COUNTY BOARD STATE BOARD
Before April 1 Township: Within April Within first 10 days in Second Tuesday in
City: Within the first June August
15 days in April
A property owner who has questions about an The county board may reduce an assessment
assessment (valuation) should contact the local upon the property owner’s presentation of
(township, city, or district) assessor before April 1. evidence to support the appeal.
A property owner may appeal the assessor’s The final step is an appeal to the State Board
valuation for the current year to the local board of Equalization. The state board meets the
of equalization. The township board meets second Tuesday in August and may reduce
within the month of April. The city board meets an assessment only if the property owner has
within the first 15 days of April. The local board appealed to both the local and county boards
may reduce an assessment upon the property of equalization. The decision of the state board
owner’s presentation of evidence to support the is final. However, a property owner may file an
appeal. application for abatement and refund of taxes
by following the procedures for formal appeals
The property owner may continue the appeal to described below.
the county board of equalization, which meets
during the first 10 days in June.
PROPERTY TAX — FORMAL APPEAL
Who May Apply • The property is exempt.
Any person who has an estate, right, title, or
• The taxes were erroneously paid.
interest in a property may file an application
for abatement or refund of taxes if the person • The property was assessed and taxed more
claims an assessment is excessive or illegal. than once in the same year.
The application procedures are described on
the next page. This includes, but is not limited • The building, mobile home, structure, or
to, the property owner, lessee, contract for improvement was destroyed or damaged
deed purchaser, person who paid the tax, or by fire, flood, tornado, or other natural
person who has an interest in the property. disaster.
Mobile home owners have the same right to
• The applicant is eligible to receive the
abatement or refund as do owners of real
property tax credit for senior citizens or
property. Special assessments are not subject to
individuals with disabilities.
abatement procedures.
Time for Filing Application
Grounds for Abatement
A person may file an application for abatement
• The assessment is invalid, inequitable, or
of the current year’s assessment after the
unjust.
State Board of Equalization finalizes valuations
• An error has been made in the entry, following the August meeting. The application
description, valuation, or extension of tax. must be filed by November 1 of the year
following the year in which the tax becomes
• The improvements did not exist on the payable. For example, the application for
assessment date (February 1). abatement of a 2019 tax (payable in 2020) must
be filed no later than November 1, 2021.
• The applicant had no taxable interest in the
property on the assessment date.
North Dakota Taxpayer Bill of Rights 8
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PROPERTY TAX — APPLICATION PROCEDURES
File Application Applications are available from the county auditor or county director of tax
equalization. Or, find the Application for Abatement on the North Dakota
Office of State Tax Commissioner’s website at www.tax.nd.gov/individuals/
property/forms. The applicant files two copies of the completed application
with the county auditor. By filing the application, the applicant agrees to allow
assessment officials to inspect the property.
Hearing Notice The county auditor presents a copy of the application to the appropriate city
auditor or township clerk within five business days after the filing date. Within 10
60 Days days after receiving the application, the city auditor or township clerk notifies the
applicant of the time and place of the hearing before the local governing body.
Local Hearing Within 60 days after the date of the hearing notice, the local governing body
considers the application.
30 Days
Recommendations The local governing body recommends either to grant or reject the application
in whole or in part, and sends the recommendation to the county auditor no
later than 30 days after the local hearing.
Hearing Notice At least 10 days before the hearing before the board of county commissioners,
the county auditor notifies the applicant of the time and place of the hearing.
10 Days
County Hearing At its next regular meeting, the board of county commissioners considers the
application. The applicant has the opportunity to present information in support
of the appeal at the hearing. The applicant is limited to the relief claimed in the
application for abatement submitted to the board of county commissioners.
County Action If the board of county commissioners approves the application, the assessment
is corrected. If the tax has been paid, a refund is issued. If the board of county
commissioners rejects the application in whole or part, it must mail a written
30 Days explanation of the rationale for the decision to the applicant.
Court Appeal The decision of the board of county commissioners may be appealed to North
Dakota District Court. The Notice of Appeal must be filed with the clerk of court
within 30 days of the county decision. A copy of the Notice of Appeal must be
served on the board of county commissioners and the State Tax Commissioner.
A property owner may want to consult with an attorney if contemplating an
appeal to the court.
SFN 26407
Updated 08/21
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