172 
TAXATION AND REVENUE SYSTEMS—NORTH DAKOTA. 
A special tax may be voted for the support of high 
schools. Cities, towns and school districts may vote 
to levy a special tax to supplement the public school 
fund. 
LEGISLATION AFFECTING REVENUE LAWS: 1913. 
Poll tax, $1.43; state tax, 47| cents on the $100. 
An inheritance tax law was enacted as follows: 
All property of whatever kind or nature passing by will or the 
intestate laws of the state from any person who may die seized or 
possessed of same while a resident of the state, or if decedent was 
not a resident of the state at the time of his death, such property or 
part thereof as may be within the state, or which may be transferred 
by deed, grant, sale, or gift, made in contemplation or to take effect 
after death, to any person or persons, or to bodies corporate or poli 
tic, is subject to a tax for the benefit of the state as follows: 
Parsing to lineal issue or lineal ancestor or husband or wife or to 
a person to whom the decedent has stood in the relation of a parent, 
at the rate of 1 per cent of the clear value; $10,000 to a widow, 
$5,000 to each child under twenty-one years of age, and $2,000 to 
each of the other persons mentioned is exempt. Grandchildren 
are allowed only the single exemption of the child they represent. 
Passing to the brother or sister or a descendant of a brother or 
sister of the decedent at the rate of 3 per cent of the clear value. 
Passing to the brother or sister of the father or mother or a 
descendant of a brother or sister of the father or mother of the 
decedent, at the rate of 5 per cent of the clear value. 
NORTH 
North Dakota depends almost entirely upon the 
general property tax for state, county, and municipal 
revenues. An inheritance tax was adopted in 1903. 
There are no special corporation taxes, except a tax 
on fire insurance premiums, which goes to the support 
of the municipal fire departments. 
CONSTITUTIONAL PROVISIONS. 
ARTICLE II. 
Sec. 174. The legislative assembly shall provide for raising rev 
enue sufficient to defray the expenses of the state for each year, not 
to exceed in any one year 4 mills on the dollar of the assessed valua 
tion of all taxable property in the state, to be ascertained by the last 
assessment made for state and county purposes, and also a sufficient 
sum to pay the interest on the state debt. 
Sec. 175. No tax shall be levied except in pursuance of law, and 
every law imposing a tax shall state distinctly the object of the same, 
to which only it shall be applied. 
Sec. 176. Laws shall be passed taxing by uniform rule all property 
according to its true value in money, but the property of the United 
States and of state, county, and municipal corporations, both real 
and personal, shall be exempt from taxation; and the legislative 
assembly shall by a general law exempt from taxation property used 
exclusively for school, religious, cemetery, or charitable purposes 
and personal property to any amount not exceeding in value $200 
for each individual liable to taxation; but the legislative assembly 
may, by law, provide for the payment of a per centum of gross earn 
ings of railroad companies to be paid in lieu of all state, county, 
township, and school taxes on property exclusively used in and 
about the prosecution of the business of such companies as common 
1 This compilation is derived mainly from the following sources: 
Revenue and Taxation Laws of the State of North Dakota, 1905. 
Published by authority. 
The Revised Code of the State of North Dakota, 1899 and 1905. 
The Session Laws to 1913. 
Passing to the brother or sister of the grandfather or grandmother 
or a descendant of the brother or sister of the grandfather or grand 
mother of the decedent or to any person of any other degree of 
consanguinity, or to a stranger in blood or to a body politic or cor 
porate, at the rate of 10 per cent of the clear value. 
If this tax is not paid at the end of two years after the death of 
the decedent 6 per cent interest is charged until same is paid. 
Income tax.—In excess of $1,250 to $2,500 the rate is 1 per cent; 
$2,500 to $5,000, 1J per cent; $5,000 to $10,000, 2 per cent; $10,000 
and over, 2} per cent. 
Corporations are required to pay a franchise tax of one-twenty- 
fifth of 1 per cent upon their subscribed or issued and outstanding 
capital stock, but the tax shall not be less than $7.50. Foreign 
corporations pay the same tax rate. 
The legislature appropriated the sum of $250,000 to be appor 
tioned annually among the counties by the state board of education 
according to the per capita of school population; $1,500 of above 
sum is to be deducted annually for the part payment of the salary 
and expenses of the superintendent of the state colored normal 
schools and inspector and director of the county teachers’ institutes 
and of the teachers’ training work of the state; there shall also be 
deducted biennially therefrom in advance $7,500 to be used for the 
establishment of rural libraries. 
There shall be set aside 5 cents on the $100 of the ad valorem tax 
collected by the state to be known as “The state equalizing school 
fund” to be used for the purpose of providing six months school 
terms in every school district in the state or as nearly as the fund 
will permit. 
DAKOTA. 1 
carriers, but no real estate of said corporation shall be exempted 
from taxation in the same manner and on the same basis as other 
real estate is taxed, except roadbed, right of way, shops, and build 
ings used exclusively in their business as common carriers, and 
whenever and so long as such law providing for the payment of a per 
centum on earnings shall be in force, that part of section 179 of this 
article relating to assessment of railroad property shall cease to be in 
force. 
The legislative assembly may further provide that grain grown 
within the state and held therein in elevators, warehouses, and 
granaries may be taxed at a fixed rate. 
Sec. 177. All improvements on land shall be assessed in accord 
ance with section 179, but plowing shall not be considered as 
an improvement or add to the value of land for the purpose of 
assessment. 
Sec. 178. The power of taxation shall never be surrendered or sus 
pended by any grant or contract to which the state or any county or 
other municipal corporation shall be a party. 
Sec. 179. All property, except as hereinafter in this section pro 
vided, shall be assessed in the county, city, township, town, village, 
or district in which it is situated, in the manner prescribed by law. 
The franchise, roadway, roadbed, rails, and rolling stock of all rail 
roads; and the franchise and all other property of all express com 
panies, freight line companies, car equipment companies, sleeping 
car companies, dining car companies, telegraph or telephone com 
panies, or corporations operated in this state, and used directly or 
indirectly in carrying persons, property, ormessages, shall be assessed 
by the state board of equalization at their actual value, and such 
assessed valuation shall be apportioned to the counties, cities, towns, 
villages, townships, and districts in which such railroad companies, 
express companies, sleeping car companies, telegraph and telephone 
companies are located or through which they are operated, as a basis 
for taxation for such property, in proportion to the number of miles 
of such property within such counties, cities, towns, villages, town 
ships, and districts. But should any railroad allow any portion of 
its roadway to be used for any purpose other than the operation 
of a railroad thereon, such portion of its roadway, while so used, shall 
be assessed in the manner provided for the assessment of other real 
property.