Taxes

Taxes

Property Tax

• Barnes County - rates range from 0.5% - 1% of the property's estimated market value.
• Valley City - rates range from 0.5% and 1% of the property’s estimated market value.

Tax Structure

• Taxable value of property in Valley City for 2016 is $15,947,003
• Taxable value of property in Barnes County for 2016 is $77,096,411
• Taxable value of property in the Valley City School District for 2016 is $35,733,872

Tax rate for taxes paid in 2015 (per $1,000 of taxable value)

• City: $80.81
• State & County: $101.83
• School: $96.85
• Park: $38.08
• Total: $317.57

Sales Tax

• State tax - 5%
• City tax – 2.5% limited to $62.50 per purchase

Inventory Tax

• No Inventory Taxes

Personal Property Tax

• No Personal Property Taxes

Utility Taxes

• No Sales Tax on Utilities (Electricity and Water)
• Natural gas - exempt from State and local sales taxes.

Interstate Communication Sales

• No Taxes on the Receipts of Interstate Communication Sales
• Telecommunications Carriers Tax – 2 ½%
• Two-way intrastate communication sales - taxed at 5% at the State level and 2 ½% City tax.

Corporate Income Tax

• Ranks in the lower one – third of 45 states and the District of Columbia
• Ranges 1.41% to 4.31%
• Starting in 2016, a C Corporation may elect to use an apportionment formula that gives greater weight to sales; versus 2015 and before where equally-weighted 3 factor (sales, property and payroll) apportionment was used.

Individual Income Tax

• Tax rates – 1.1% to 2.9% - correspond to five income tax brackets. Depending on the taxpayer’s filing status. For tax years after 2015, the income tax rates for individuals, estates and trusts were reduced by about 10%.
• Individuals having a new long-term capital gain may subtract 40% of that gain from their federal taxable income before applying the tax rates.
• The following items are also subtracted from federal taxable income before applying the tax rates:
  •  Interest from U.S. obligations,
  •  Other income exempted from state income tax by federal law, and
  • Income from a partnership or other pass-through entity subject to the North Dakota's financial institution tax.

Worker’s Safety & Insurance

• Lowest in the Nation
• Effective July 1, 2015 rates assessed on $37,200.
• "Out-of-State Experience Rating Program": Primary sector businesses can earn a 10% discount based on a positive experience-rate for similar operations in another jurisdiction.
• State's Safety Management Program: A 10% discount applies after the first year of participation in the Program.
• Maximum Premium Discount: 25% based on premium and positive claims history after 4 years.
• Rate classifications and amounts are based on the type of work to be performed, for example;
  • Computer/Electronics/Assembly: $1.07 per $100 of payroll
  • Professional/Business Representatives: $0.55 per $100 of payroll
  • Clerical Workers - $0.27 per $100 of payroll
  • Traveling Representatives - $0.55 per $100 of payroll
  • Manufacturing Light Metals - $1.91 per $100 of payroll
  • Welding - $4.82 per $100 of payroll

Unemployment Insurance

• Taxable Base - $37,200 as of January 1, 2016
• New Employers (non-construction workers) - Rated at 1.62%
• Construction Workers - Rated at 10.72%