North Dakota Code 15.1-12-29 – Dissolution of school district – Unobligated cash balance – Tax credits or refunds
1. After ten thousand dollars is set aside, as required by section 15.1-12-28, and after the required amount is deposited in the reimbursement account for job service North Dakota, as required by section 15.1-12-28.1, any remaining unobligated cash balance, up to an amount equaling a dissolved school district’s general fund expenditure for the last school year before the district’s dissolution is a credit for real property owners within the boundaries of the dissolved school district, against taxes levied by the district to which their property is now attached. If property from the dissolved district is attached to more than one school district, the percentage of the total credit to which each eligible real property owner is entitled must equal the percentage that the taxable valuation of the individual‘s real property bears to the total taxable valuation of the dissolved district’s property at the time of the attachment order.
Terms Used In North Dakota Code 15.1-12-29
- Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
- Individual: means a human being. See North Dakota Code 1-01-49
- Lien: A claim against real or personal property in satisfaction of a debt.
- Property: includes property, real and personal. See North Dakota Code 1-01-49
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- year: means twelve consecutive months. See North Dakota Code 1-01-33
2. Upon approval of the board of county commissioners, any school district required to provide a tax credit under subsection 1 may provide a cash refund in lieu of the tax credit. At the request of the county auditor, the school district holding the unobligated cash balance available under subsection 1 shall pay to the county treasurer the amount to be paid to those who own real property within the dissolved district. The treasurer shall issue the refund to the owner of the property as shown on the county’s assessment list at the time of payment. If there is a lien for unpaid taxes against the property, the treasurer shall first apply the property owner’s tax credit toward any outstanding balance. Any amount remaining may then be paid to the property owner. The cash refunds must be calculated proportionately to the total taxable value of the dissolved district during the last year taxes were levied.
3. After the requirements of subsection 1 have been met, the county auditor shall distribute any remaining unobligated cash balance among the school districts to which the real property of the dissolved district was attached. The percentage of the remaining unobligated cash balance to which each school district is entitled equals that percentage of the dissolved district’s total taxable valuation which was attached to the receiving school district.