CHAPTER 57-02

GENERAL PROPERTY ASSESSMENT

57-02-01. Definitions. As used in this title, unless the context or subject matter

otherwise requires:

1. "Agricultural property" means platted or unplatted lands used for raising agricultural

crops or grazing farm animals, except lands platted and assessed as agricultural

property prior to March 30, 1981, shall continue to be assessed as agricultural

property until put to a use other than raising agricultural crops or grazing farm

animals. Agricultural property includes land on which a greenhouse or other building

is located if the land is used for a nursery or other purpose associated with the

operation of the greenhouse. The time limitations contained in this section may not

be construed to prevent property that was assessed as other than agricultural

property from being assessed as agricultural property if the property otherwise

qualifies under this subsection. Property platted on or after March 30, 1981, is not

agricultural property when any four of the following conditions exist:

a. The land is platted by the owner.

b. Public improvements, including sewer, water, or streets, are in place.

c. Topsoil is removed or topography is disturbed to the extent that the property

cannot be used to raise crops or graze farm animals.

d. Property is zoned other than agricultural.

e. Property has assumed an urban atmosphere because of adjacent residential or

commercial development on three or more sides.

f. The parcel is less than ten acres [4.05 hectares] and not contiguous to

agricultural property.

g. The property sells for more than four times the county average true and full

agricultural value.

2. "Air carrier transportation property" means the operative property of each airline

whose property is assessed for taxation purposes pursuant to chapters 57-06 and

57-32.

3. "Assessed valuation" means fifty percent of the true and full value of property.

4. "Centrally assessed property" means all property which is assessed by the state

board of equalization under chapters 57-05, 57-06, and 57-32.

5. "Commercial property" means all property, or portions of property, not included in

the classes of property defined in subsections 1, 4, 11, and 12.

6. "Credits" means and includes every claim and demand for money or other valuable

thing, and every annuity or sum of money receivable at stated periods, due or to

become due, and all claims and demands secured by deeds or mortgages, due or to

become due.

7. "Governing body" means a board of county commissioners, city council, board of

city commissioners, school board, or board of education, or the similarly constituted

and acting board of any other municipality.

 

3. Whenever there are used the initial letters N.W., S.W., N.E., or S.E., whether in

capital letters or small letters, and whether each letter is followed by a period or the

two are written connectedly without a period to signify the same to be an

abbreviation of two words, and whenever said letters are used in connection with

section numbers to designate land descriptions, and in the absence of proof to the

contrary, it must be presumed that the same are abbreviations for and mean

"northwest", "southwest", "northeast", and "southeast", respectively.

4. When two or more sets of such abbreviations are used connectedly, as for example

N.E. S.E., the same must be presumed to mean the "northeast quarter of the

southeast quarter".

5. When any such initial letters are followed with a numeral placed in the position of an

algebraic exponent, as N.W.4 ,S.W.4 , N.E.4 , or S.E.4 , with the figure placed on or

above the line, the description must be taken to mean the "northwest quarter",

"southwest quarter", "northeast quarter", or "southeast quarter", respectively. The

abbreviation N.2 ,S.2 ,E.2 ,orW.2 must be presumed to mean the "north half", "south

half", "east half", or "west half", respectively, of the section or quarter or other portion

of land designated immediately following it.

6. Combinations of such letters and figures must be read accordingly, as S.2 N.E.4

must be taken as intended to mean and describe the "south half of the northeast

quarter", and similar combinations of such letters and exponents must be construed

accordingly.

7. In the absence of such figure placed in the position of an exponent, whenever

abbreviations N.W., S.W., N.E., or S.E. are used alone or with similar abbreviations,

they must be presumed to mean and be read as "northwest quarter", "southwest

quarter", "northeast quarter", or "southeast quarter", respectively, unless it appears

clearly from the context that another meaning is intended.

8. The abbreviation sec. must be taken as meaning "section", the letters "t" or "twp" or

"tp" must be taken to mean "township", the letters "r" or "rg" or "rge" must be taken

to mean "range", the abbreviations "b" or "blk" or "bk" must be taken to mean

"block", the abbreviations "add" or "ad" must be taken to mean "addition", and the

abbreviations "sub" or "subd" must be taken to mean "subdivision".

9. The abbreviation "do" or the characters " ,, " or other similar abbreviation or character,

must be construed to mean the same name, word, initial, letter, abbreviation, or

figure as the last preceding one written or the one written immediately above.

10. No description in which the foregoing abbreviations, symbols, initial letters, figures,

or characters definitely can be understood by the application of the definitions and

rules in this section may be held defective because such abbreviations are used

instead of words or figures symbolized thereby.

57-02-03. Property subject to taxation. All property in this state is subject to taxation

unless expressly exempted by law.

57-02-04. Real property defined. Real property, for the purpose of taxation, includes:

1. The land itself, whether laid out in town lots or otherwise, and improvements to the

land, such as ditching, surfacing, and leveling, except plowing and trees, and all

rights and privileges thereto belonging or in anywise appertaining, and all mines,

minerals, and quarries in and under the same and shall expressly include all such

improvements made by persons to lands held by them under the laws of the United

States, all such improvements to land the title to which still is vested in any railroad

company and which is not used exclusively for railroad purposes, and improvements

 

to land belonging to any other corporation or limited liability company whose

property is not subject to the same mode and rule of taxation as other property.

2. All structures and buildings, including manufactured homes as defined in section

41-09-02 with respect to which the requirements of subsections 1 through 3 of

section 39-05-35, as applicable, have been satisfied, including systems for the

heating, air-conditioning, ventilating, sanitation, lighting, and plumbing of such

structures and buildings, and all rights and privileges thereto belonging or in anywise

appertaining, but shall not include items which pertain to the use of such structures

and buildings, such as machinery or equipment used for trade or manufacture which

are not constructed as an integral part of and are not essential for the support of

such structures or buildings, and which are removable without materially limiting or

restricting the use of such structures or buildings.

3. Machinery and equipment, but not including small tools and office equipment, used

or intended for use in any process of refining products from oil or gas extracted from

the earth, but not including such equipment or appurtenances located on leased oil

and gas production sites.

57-02-05. Personal property defined. Repealed by S.L. 1971, ch. 534, 4.

57-02-05.1. Personal property defined. Personal property, for the purpose of taxation,

includes all property that is not included within the definition of real property.

57-02-06. Who are deemed merchants. Repealed by S.L. 1983, ch. 595, 3.

57-02-07. Who are deemed manufacturers. Repealed by S.L. 1983, ch. 595, 3.

57-02-08. Property exempt from taxation. All property described in this section to the

extent herein limited shall be exempt from taxation:

1. All property owned exclusively by the United States except any such property which

the state and its political subdivisions are authorized by the laws of the United States

to tax.

2. All property owned by this state, but no lands contracted to be sold by the state shall

be exempt.

3. All property belonging to any political subdivision.

4. Property of Indians if the title of that property is inalienable without the consent of the

United States secretary of the interior.

5. All lands used exclusively for burying grounds or cemeteries.

6. All property belonging to schools, academies, colleges, or other institutions of

learning, not otherwise used with a view to profit, and all dormitories and boarding

halls, including the land upon which they are situated, owned and managed by any

religious corporation for educational or charitable purposes for the use of students in

attendance upon any educational institution, if such dormitories and boarding halls

are not managed or used for the purpose of making a profit over and above the cost

of maintenance and operation.

7. All houses used exclusively for public worship, and lots or parts of lots upon which

such buildings are erected, and any dwellings belonging to religious organizations

intended and ordinarily used for the residence of the bishop, priest, rector, or other

minister in charge of the services of the church, together with the lots upon which the

same are situated.

 

8. All buildings belonging to institutions of public charity, including public hospitals and

nursing homes licensed pursuant to section 23-16-01 under the control of religious

or charitable institutions, used wholly or in part for public charity, together with the

land actually occupied by such institutions not leased or otherwise used with a view

to profit, and this includes any dormitory, dwelling, or residential-type structure,

together with necessary land on which such structure is located, owned by a

religious or charitable organization recognized as tax exempt under section

501(c)(3) of the United States Internal Revenue Code which is occupied by

members of said organization who are subject to a religious vow of poverty and

devote and donate substantially all of their time to the religious or charitable

activities of the owner.

9. All real property, not exceeding two acres [.81 hectare] in extent, owned by any

religious corporation or organization, upon which there is a building used for the

religious services of the organization, or upon which there is a dwelling with usual

outbuildings, intended and ordinarily used for the residence of the bishop, priest,

rector, or other minister in charge of services, must be deemed to be property used

exclusively for religious services, and exempt from taxation, whether the real

property consists of one tract or more. The exemption for a building used for the

religious services of the owner continues to be in effect if the building in whole, or in

part, is rented to another otherwise tax-exempt corporation or organization, provided

no profit is realized from the rent. All real property owned by any religious

corporation or organization and used as a parking lot by persons attending religious

services is exempt from taxation. All taxes assessed or levied on any of the

property, while the property is used for religious purposes, are void.

10. Property of an agricultural fair association duly incorporated for the purpose of

holding agricultural fairs, and not conducted for the profit of any of its members or

stockholders; provided, that all property described in this subsection shall be subject

to taxation for the cost of fire protection services furnished by any municipal

corporation in which said property is located.

11. Property owned by lodges, chapters, commanderies, consistories, farmers' clubs,

commercial clubs, and like organizations, and associations, grand or subordinate,

not organized for profit, and used by them for places of meeting and for conducting

their business and ceremonies, and all property owned by any fraternity, sorority, or

organization of college students if such property is used exclusively for such

purposes; provided, further, that any portion of such premises not exclusively used

for places of meeting and conducting the business and ceremonies of such

organization shall be subject to taxation.

Provided, further, that if any such organization as contemplated by this

subsection is licensed for the sale of alcoholic beverages as defined by the statutes

of the state of North Dakota, such portion of such premises where such alcoholic

beverages are consumed or sold shall be deemed not to be so used exclusively for

conduct of its business and meeting if such beverages are sold at a profit.

Provided, further, that if food other than that served at lodge functions and

banquets and food sold or consumed in any fraternity or sorority house, is sold at a

profit on the premises, that portion of the premises where such food is sold at a profit

shall be deemed not to be used exclusively for places of meeting or conducting the

business and ceremonies of such organization; provided, that all property described

in this subsection shall be subject to taxation for the cost of fire protection services

furnished by any municipal corporation in which said property is located.

12. Repealed by S.L. 1983, ch. 595, 3.

13. All land used as a public park or monument ground belonging to any military

organization, and not used for gain.

14. The armory, and land or lots upon which situated, owned by a regiment, battalion, or

company of the North Dakota national guard, and used for military purposes by such

organization.

15. a. All farm structures and improvements located on agricultural lands.

(1) This subsection must be construed to exempt farm buildings and

improvements only, and may not be construed to exempt from taxation

industrial plants, or structures of any kind not used or intended for use as

a part of a farm plant, or as a farm residence.

(2) "Farm buildings and improvements" includes a greenhouse or other

building used primarily for the growing of horticultural or nursery products

from seed, cuttings, or roots, if not used on more than an occasional

basis for a showroom for the retail sale of horticultural or nursery

products. A greenhouse or building used primarily for display and sale of

grown horticultural or nursery products is not a farm building or

improvement.

(3) Any structure or improvement used primarily in connection with a retail or

wholesale business other than farming, any structure or improvement

located on platted land within the corporate limits of a city, or any

structure or improvement located on railroad operating property subject

to assessment under chapter 57-05 is not exempt under this subsection.

For purposes of this paragraph, "business other than farming" includes

processing to produce a value-added physical or chemical change in an

agricultural commodity beyond the ordinary handling of that commodity

by a farmer prior to sale.

(4) The following factors may not be considered in application of the

exemption under this subsection:

(a) Whether the farmer grows or purchases feed for animals raised on

the farm.

(b) Whether animals being raised on the farm are owned by the

farmer.

(c) Whether the farm's replacement animals are produced on the

farm.

(d) Whether the farmer is engaged in contract feeding of animals on

the farm.

b. It is the intent of the legislative assembly that this exemption as applied to a

residence must be strictly construed and interpreted to exempt only a residence

that is situated on a farm and which is occupied or used by a person who is a

farmer and that the exemption may not be applied to property which is

occupied or used by a person who is not a farmer. For purposes of this

subdivision:

(1) "Farm" means a single tract or contiguous tracts of agricultural land

containing a minimum of ten acres [4.05 hectares] and for which the

farmer, actually farming the land or engaged in the raising of livestock or

other similar operations normally associated with farming and ranching,

has received annual net income from farming activities which is fifty

percent or more of annual net income, including net income of a spouse

if married, during any of the three preceding calendar years.

 

(2) "Farmer" means an individual who normally devotes the major portion of

time to the activities of producing products of the soil, poultry, livestock,

or dairy farming in such products' unmanufactured state and has

received annual net income from farming activities which is fifty percent

or more of annual net income, including net income of a spouse if

married, during any of the three preceding calendar years. For purposes

of this paragraph, "farmer" includes a:

(a) "Beginning farmer", which means an individual who has begun

occupancy and operation of a farm within the three preceding

calendar years; who normally devotes the major portion of time to

the activities of producing products of the soil, poultry, livestock, or

dairy farming in such products' unmanufactured state; and who

does not have a history of farm income from farm operation for

each of the three preceding calendar years.

(b) "Retired farmer", which means an individual who is retired because

of illness or age and who at the time of retirement owned and

occupied as a farmer the residence in which the person lives and

for which the exemption is claimed.

(c) "Surviving spouse of a farmer", which means the surviving spouse

of an individual who is deceased, who at the time of death owned

and occupied as a farmer the residence in which the surviving

spouse lives and for which the exemption is claimed. The

exemption under this subparagraph expires at the end of the fifth

taxable year after the taxable year of death of an individual who at

the time of death was an active farmer. The exemption under this

subparagraph applies for as long as the residence is continuously

occupied by the surviving spouse of an individual who at the time

of death was a retired farmer.

(3) "Net income from farming activities" means taxable income from those

activities as computed for income tax purposes pursuant to chapter

57-38 adjusted to include the following:

(a) The difference between gross sales price less expenses of sale

and the amount reported for sales of agricultural products for which

the farmer reported a capital gain.

(b) Interest expenses from farming activities which have been

deducted in computing taxable income.

(c) Depreciation expenses from farming activities which have been

deducted in computing taxable income.

(4) When exemption is claimed under this subdivision for a residence, the

assessor may require that the occupant of the residence who it is

claimed is a farmer provide to the assessor for the year or years

specified by the assessor a written statement in which it is stated that fifty

percent or more of the net income of that occupant, and spouse if

married and both spouses occupy the residence, was, or was not, net

income from farming activities.

(5) In addition to any of the provisions of this subsection or any other

provision of law, a residence situated on agricultural land is not exempt

for the year if it is occupied by an individual engaged in farming who had

nonfarm income, including that of a spouse if married, of more than forty

thousand dollars during each of the three preceding calendar years. This

 

paragraph does not apply to a retired farmer or a beginning farmer as

defined in paragraph 2.

(6) For purposes of this section, "livestock" includes "nontraditional livestock"

as defined in section 36-01-00.1.

(7) A farmer operating a bed and breakfast facility in the farm residence

occupied by that farmer is entitled to the exemption under this section for

that residence if the farmer and the residence would qualify for

exemption under this section except for the use of the residence as a bed

and breakfast facility.

16. Property now owned, or hereafter acquired, by a corporation organized, or hereafter

created, under the laws of this state for the purpose of promoting athletic and

educational needs and uses at any state educational institution in this state, and not

organized for profit.

17. Moneys and credits, including shares of corporate stock and membership interests

in limited liability companies, except moneyed capital which is so invested or used

as to come into direct competition with money invested in bank stock.

18. and 19. Repealed by S.L. 1983, ch. 595, 3.

20. Fixtures, buildings, and improvements up to the amount of valuation specified, when

owned and occupied as a homestead, as hereinafter defined, by any of the following

persons:

a. A paraplegic disabled veteran of the United States armed forces or any veteran

who has been awarded specially adapted housing by the department of

veterans' affairs, or the unremarried surviving spouse if such veteran is

deceased, for the first one hundred twenty thousand dollars of true and full

valuation of the fixtures, buildings, and improvements.

b. Any permanently and totally disabled person who is permanently confined to

use of a wheelchair, or, if deceased, the unremarried surviving spouse of a

permanently and totally disabled person. If the spouse of a permanently and

totally disabled person owns the homestead or if it is jointly owned by them, the

same reduction in assessed valuation applies as long as both reside thereon.

The provisions of this subdivision do not reduce the liability for special

assessments levied upon the homestead. The phrase "permanently confined

to use of a wheelchair" means that the person cannot walk with the assistance

of crutches or any other device and will never be able to do so and that a

physician selected by the local governing board has so certified.

Any person claiming an exemption under this subsection for the first time shall

file with the county auditor an affidavit showing the facts herein required and a

description of the property. The affidavit must be open for public inspection. A

person thereafter shall furnish to the assessor or other assessment officials when

requested to do so any information that is believed will support the claim for

exemption for a subsequent year.

For purposes of this subsection, and except as otherwise provided in this

subsection, "homestead" has the meaning provided in section 47-18-01 except that

it also applies to any person who otherwise qualifies under the provisions of this

subsection whether or not the person is the head of a family. The board of county

commissioners is hereby authorized to cancel the unpaid taxes for any year in which

the qualifying owner has held title to the exempt property.

21. Repealed by S.L. 1983, ch. 595, 3.

22. All or any part of fixtures, buildings, and improvements upon any nonfarmland up to

a taxable valuation of seven thousand two hundred dollars, owned and occupied as

a home by a blind person. Residential homes owned by the spouse of a blind

person, or jointly owned by a blind person and spouse, shall also be exempt within

the limits of this subsection as long as the blind person resides in the home. For

purposes of this subsection, a blind person is defined as one who is totally blind, has

visual acuity of not more than 20/200 in the better eye with correction, or whose

vision is limited in field so that the widest diameter subtends an angle no greater

than twenty degrees. The exemption provided by this subsection extends to the

entire building classified as residential, and owned and occupied as a residence by a

person who qualifies for the exemption as long as the building contains no more

than two apartments or rental units which are leased.

23. All, or any portion of structural improvements other than paving and surfacing to land

used exclusively for the business of operating an automobile parking lot within a city

open for general public patronage. If a portion of the structure is exempt from

taxation as being open for general public patronage, the amount of such exemption

shall be computed by determining the value of the public parking area in proportion

to the total value of the structure.

24. Repealed by S.L. 1983, ch. 595, 3.

25. All personal property is exempt except:

a. Personal property of entities, other than railroads, required by section 4 of

article X of the Constitution of North Dakota to be assessed by the state board

of equalization.

b. Any property that is subjected to a tax which is imposed in lieu of ad valorem

taxes.

c. Any particular kind or class of personal property, including mobile homes or

housetrailers, that is subjected to a tax imposed pursuant to any other provision

of law.

26. Fixtures, buildings, and improvements when owned and occupied as a homestead,

as hereinafter defined, by a paraplegic disabled person, or if the person is deceased

the unremarried spouse, if the income from all sources of the person and spouse, or

if the person is deceased the income from all sources of the unremarried surviving

spouse, in the calendar year prior to the year for which the exemption is claimed did

not exceed the maximum amount of income provided in section 57-02-08.1 for

receiving a homestead credit under that section. To obtain the exemption for the

first time, a certificate from a medical doctor who is approved by the board of county

commissioners, accompanied by an affidavit, showing the facts herein required and

a description of the property, must be filed with the county auditor. The affidavit and

accompanying certificate must be opened to public inspection. Any person claiming

the exemption for any year after the first year shall furnish to the assessor or other

assessment officials when requested to do so any information which the person

believes will support the claim for the exemption for any subsequent year. For

purposes of this subsection, "homestead" has the meaning provided in section

47-18-01 except that it also applies to any person who otherwise qualifies under the

provisions of this subsection whether or not the person is the head of a family. The

board of county commissioners is hereby authorized to cancel the unpaid taxes for

any year in which the person has held title to the exempt property.

27. Installations, machinery, and equipment of systems in new or existing buildings or

structures, designed to provide heating or cooling or to produce electrical or

mechanical power, or any combination of these, or to store any of these, by

utilization of solar, wind, or geothermal energy; provided, that if the solar, wind, or

geothermal energy device is part of a system which uses other means of energy,

only that portion of the total system directly attributable to solar, wind, or geothermal

energy shall be exempt. Provided, however, that any exemptions granted by this

subsection shall be valid for a five-year period following installation of any such

system and apply only to locally assessed property. For the purposes of this

subsection, solar or wind energy devices shall have the meaning provided in section

57-38-01.8 and geothermal energy device means a system or mechanism or series

of mechanisms designed to provide heating or cooling or to produce electrical or

mechanical power, or any combination of these, by a method which extracts or

converts the energy naturally occurring beneath the earth's surface in rock

structures, water, or steam.

28. All fixtures, buildings, and improvements owned by any cooperative or nonprofit

corporation organized under the laws of this state and used by it to furnish potable

water to its members and customers for uses other than the irrigation of agricultural

land.

29. Property to which title is held by a city pursuant to chapter 40-57 which is leased to

an entity described in subsection 8 and used by the entity as provided in

subsection 8 or subleased to a public school district for educational purposes;

provided, that the entity is qualified as an exempt organization under section

501(c)(3) of the United States Internal Revenue Code of 1954, as amended.

30. Property, but not including property used for residential purposes, owned by an

organization described in subsection 9 and leased to a public school district for

educational purposes; provided, that the property had previously been owned and

occupied by the organization for an exempt purpose described in subsection 9 for a

period of at least five years.

31. All group homes owned by nonprofit corporations, not organized with a view to profit

and recognized as tax exempt under section 501(c)(3) of the United States Internal

Revenue Code [26 U.S.C. 501(c)(3)], including those for persons with

developmental disabilities as defined in section 25-01.2-01, and the real property

upon which they are located during the period in which the group homes are under

construction or in a remodeling phase and while they are used as group homes. For

the purposes of this subsection, the term "group home" means a community-based

residential home which provides room and board, personal care, habilitation

services, or supervision in a family environment, and which, once established is

licensed by the appropriate North Dakota licensing authority.

32. Minerals in place in the earth which at the time of removal from the earth are then

subject to taxes imposed under chapter 57-51 or 57-61.

33. Property used for athletic or recreational activities when owned by a political

subdivision and leased to a nonprofit corporation organized for the purpose of

promoting public athletic or recreational activities.

34. Any building located on land owned by the state if the building is used at least in part

for academic or research purposes by students and faculty of a state institution of

higher education.

35. Up to one hundred fifty thousand dollars of the true and full value of all new

single-family and condominium and townhouse residential property, exclusive of the

land on which it is situated, is exempt from taxation for the first two taxable years

after the taxable year in which construction is completed and the residence is owned

and occupied for the first time if all of the following conditions are met:

a. The governing body of the city, for property within city limits, or the governing

body of the county, for property outside city limits, has approved the exemption

of the property by resolution. A resolution adopted under this subsection may

be rescinded or amended at any time. The governing body of the city or county

may limit or impose conditions upon exemptions under this subsection,

including limitations on the time during which an exemption is allowed.

b. Special assessments and taxes on the property upon which the residence is

situated are not delinquent.

36. The governing body of the city, for property within city limits, or of the county, for

property outside city limits, may grant a property tax exemption for the portion of

fixtures, buildings, and improvements, used primarily to provide early childhood

services by a corporation, limited liability company, or organization licensed under

chapter 50-11.1 or used primarily as an adult day care center. However, this

exemption is not available for property used as a residence.

37. a. A pollution abatement improvement. As used in this subsection, "pollution

abatement improvement" means property, exclusive of land and improvements

to the land such as ditching, surfacing, and leveling, that is:

(1) Part of an agricultural or industrial facility which is used for or has for its

ultimate purpose the prevention, control, monitoring, reducing, or

eliminating of pollution by treating, pretreating, stabilizing, isolating,

collecting, holding, controlling, measuring, or disposing of waste

contaminants; or

(2) Part of an agricultural or industrial facility and required to comply with

local, state, or federal environmental quality laws, rules, regulations, or

standards.

b. The exemption under this subsection applies only to that portion of the

valuation of property attributable to the pollution abatement improvement on

which construction or installation was commenced after December 31, 1992,

and does not apply to the valuation of any property that is not a necessary

component of the pollution abatement improvement. The governing body of

the city, for property within city limits, or the governing board of the county, for

property outside city limits, shall determine whether the property proposed for

exemption is a pollution abatement improvement and may grant an exemption

for the pollution abatement improvement based upon the requirements of this

subsection.

38. The leasehold interest in property owned by the state which has been leased for

pasture or grazing purposes or upon which payments in lieu of property taxes are

made by the state.

39. Notwithstanding any other law, all property, including any possessory interest

therein, relating to any waterworks, mains, and water distribution system leased to

the state, or any agency or institution of the state, or to a private entity pursuant to

subsection 5 of section 40-33-01, subsection 12 of section 61-24.5-09, or

subsection 23 of section 61-35-12, which property is operated by, or providing

services to, a municipality or other political subdivision or agency of the state, or its

citizens.

40. Notwithstanding any other law, all property, including any possessory interest

therein, relating to any sewage systems and facilities for the collection, treatment,

purification, and disposal in a sanitary manner of sewage leased to the state, or any

agency or institution of the state, or to a private entity pursuant to section 40-34-19

or subsection 23 of section 61-35-12, which property is operated by, or providing

services to, a municipality or other political subdivision or agency of the state, or its

citizens.

41. Notwithstanding any other law, all property, including any possessory interest

therein, leased to a private entity pursuant to section 54-01-27, which property is

operated by, or providing services to, the state or its citizens.

42. a. New single-family residential property, exclusive of the land on which it is

situated, is exempt from assessment for the taxable year in which construction

began and the next two taxable years, if the property remains owned by the

builder, remains unoccupied, and all of the following conditions are met:

(1) The governing body of the city, for property within city limits, or the

governing body of the county, for property outside city limits, has

approved the exemption of property under this subsection by resolution.

A resolution adopted under this subsection may be rescinded or

amended at any time. The governing body of the city or county may limit

or impose conditions upon exemptions under this subsection, including

limitations on the time during which an exemption is allowed.

(2) Special assessments and taxes on the property upon which the

residence is situated are not delinquent.

b. A builder is eligible for exemption of no more than ten properties under this

subsection in a taxable year within each jurisdiction that has approved the

exemption under this subsection. For purposes of this subsection, "builder"

includes an individual who builds that individual's own residence.

57-02-08.1. Homestead credit.

1. a. Any person sixty-five years of age or older or permanently and totally disabled,

in the year in which the tax was levied, with an income that does not exceed the

limitations of subdivision c is entitled to receive a reduction in the assessment

on the taxable valuation on the person's homestead. An exemption under this

subsection applies regardless of whether the person is the head of a family.

b. The exemption under this subsection continues to apply if the person does not

reside in the homestead and the person's absence is due to confinement in a

nursing home, hospital, or other care facility, for as long as the portion of the

homestead previously occupied by the person is not rented to another person.

c. The exemption must be determined according to the following schedule:

(1) If the person's income is not in excess of eighteen thousand dollars, a

reduction of one hundred percent of the taxable valuation of the person's

homestead up to a maximum reduction of four thousand five hundred

dollars of taxable valuation.

(2) If the person's income is in excess of eighteen thousand dollars and not

in excess of twenty thousand dollars, a reduction of eighty percent of the

taxable valuation of the person's homestead up to a maximum reduction

of three thousand six hundred dollars of taxable valuation.

(3) If the person's income is in excess of twenty thousand dollars and not in

excess of twenty-two thousand dollars, a reduction of sixty percent of the

taxable valuation of the person's homestead up to a maximum reduction

of two thousand seven hundred dollars of taxable valuation.

(4) If the person's income is in excess of twenty-two thousand dollars and

not in excess of twenty-four thousand dollars, a reduction of forty percent

of the taxable valuation of the person's homestead up to a maximum

reduction of one thousand eight hundred dollars of taxable valuation.

(5) If the person's income is in excess of twenty-four thousand dollars and

not in excess of twenty-six thousand dollars, a reduction of twenty

percent of the taxable valuation of the person's homestead up to a

maximum reduction of nine hundred dollars of taxable valuation.

d. Persons residing together, as spouses or when one or more is a dependent of

another, are entitled to only one exemption between or among them under this

subsection. Persons residing together, who are not spouses or dependents,

who are coowners of the property are each entitled to a percentage of a full

exemption under this subsection equal to their ownership interests in the

property.

e. This subsection does not reduce the liability of any person for special

assessments levied upon any property.

f. Any person claiming the exemption under this subsection shall sign a verified

statement of facts establishing the person's eligibility.

g. A person is ineligible for the exemption under this subsection if the value of the

assets of the person and any dependent residing with the person, excluding the

unencumbered value of the person's residence that the person claims as a

homestead, exceeds seventy-five thousand dollars, including the value of any

assets divested within the last three years. For purposes of this subdivision,

the unencumbered valuation of the homestead is limited to one hundred

thousand dollars.

h. The assessor shall attach the statement filed under subdivision f to the

assessment sheet and shall show the reduction on the assessment sheet.

i. An exemption under this subsection terminates at the end of the taxable year of

the death of the applicant.

2. a. Any person who would qualify for an exemption under subdivisions a and c of

subsection 1 except for the fact that the person rents living quarters is eligible

for refund of a portion of the person's annual rent deemed by this subsection to

constitute the payment of property tax.

b. For the purpose of this subsection, twenty percent of the annual rent, exclusive

of any federal rent subsidy and of charges for any utilities, services, furniture,

furnishings, or personal property appliances furnished by the landlord as part of

the rental agreement, whether expressly set out in the rental agreement, must

be considered as payment made for property tax. When any part of the twenty

percent of the annual rent exceeds four percent of the annual income of a

qualified applicant, the applicant is entitled to receive a refund from the state

general fund for that amount in excess of four percent of the person's annual

income, but the refund may not be in excess of four hundred dollars. If the

calculation for the refund is less than five dollars, a minimum of five dollars

must be sent to the qualifying applicant.

c. Persons who reside together, as spouses or when one or more is a dependent

of another, are entitled to only one refund between or among them under this

subsection. Persons who reside together in a rental unit, who are not spouses

or dependents, are each entitled to apply for a refund based on the rent paid by

that person.

d. Each application for refund under this subsection must be made to the tax

commissioner before the first day of June of each year by the person claiming

the refund. The tax commissioner may grant an extension of time to file an

application for good cause. The tax commissioner shall issue refunds to

applicants.

e. This subsection does not apply to rents or fees paid by a person for any living

quarters, including a nursing home licensed pursuant to section 23-16-01, if

those living quarters are exempt from property taxation and the owner is not

making a payment in lieu of property taxes.

f. A person may not receive a refund under this section for a taxable year in

which that person received an exemption under subsection 1.

3. All forms necessary to effectuate this section must be prescribed, designed, and

made available by the tax commissioner. The county directors of tax equalization

shall make these forms available upon request.

4. A person whose homestead is a farm structure exempt from taxation under

subsection 15 of section 57-02-08 may not receive any property tax credit under this

section.

5. For the purposes of this section:

a. "Dependent" has the same meaning it has for federal income tax purposes.

b. "Homestead" has the same meaning as provided in section 47-18-01.

c. "Income" means income for the most recent complete taxable year from all

sources, including the income of any dependent of the applicant, and including

any county, state, or federal public assistance benefits, social security, or other

retirement benefits, but excluding any federal rent subsidy, any amount

excluded from income by federal or state law, and medical expenses paid

during the year by the applicant or the applicant's dependent which is not

compensated by insurance or other means.

d. "Medical expenses" has the same meaning as it has for state income tax

purposes, except that for transportation for medical care the person may use

the standard mileage rate allowed for state officer and employee use of a motor

vehicle under section 54-06-09.

e. "Permanently and totally disabled" means the inability to engage in any

substantial gainful activity by reason of any medically determinable physical or

mental impairment which can be expected to result in death or has lasted or

can be expected to last for a continuous period of not less than twelve months

as established by a certificate from a licensed physician or a written

determination of disability from the social security administration.

57-02-08.2. Homestead credit - Certification.

1. Prior to the first of March of each year, the county auditor of each county shall certify

to the state tax commissioner on forms prescribed by the state tax commissioner the

name and address of each person for whom the homestead credit provided for in

section 57-02-08.1 was allowed for the preceding year, the amount of exemption

allowed, the total of the tax mill rates of all taxing districts, exclusive of any state mill

rates, that was applied to other real estate in such taxing districts for the preceding

year, and such other information as may be prescribed by the tax commissioner.

2. The tax commissioner shall audit such certifications, make such corrections as may

be required, and certify to the state treasurer for payment to each county on or

before the first of June of each year, the sum of the amounts computed by

multiplying the exemption allowed for each such homestead in the county for the

preceding year by the total of the tax mill rates, exclusive of any state mill rates, that

was applied to other real estate in such taxing districts for that year.

3. The county treasurer upon receipt of the payment from the state treasurer shall

apportion and distribute it without delay to the county and to the local taxing districts

of the county on the basis on which the general real estate tax for the preceding year

is apportioned and distributed.

4. The tax commissioner shall annually certify to the state treasurer the amount

computed by multiplying the exemption allowed for all homesteads in the state for

the preceding year by one mill for deposit into the state medical center fund.

5. 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 in this section to make such corrections as may be necessary because of

errors or because of approval of any application for abatement filed by a person

because the exemption provided for in section 57-02-08.1 was not allowed in whole

or in part.

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 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.

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.

(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 nine

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.

57-02-08.4. Conditional property tax exemption for owners of wetlands. Wetlands

qualifying under this section are exempt from taxation. To qualify for the tax exemption, the

owner of wetlands must annually file with the county director of tax equalization, on a form

prescribed by the state tax commissioner, a legal description of the wetlands for which an

exemption is claimed and an agreement to not drain, fill, pump, or concentrate water in a smaller

and deeper excavation in the wetland basin or alter the physical nature of the wetland in any

manner that reduces the wetland's ability to function as a natural system during the year for

which the exemption is claimed. To qualify for the exemption the agreement must be filed by

June thirtieth of the year for which the exemption is claimed. The exemption is not available for

years prior to filing of the agreement or for any year in which the terms of the agreement are

violated. The county director of tax equalization shall certify to the county auditor, for each

landowner receiving the exemption, the landowner's name, the amount of tax which would have

been due on the exempt acreage for the most recent past tax year, and that the landowner has

filed the required agreement. The amount of the wetlands exemption must be reflected upon the

property tax statement of each eligible taxpayer.

For purposes of this section, "wetlands" means all types 3, 4, and 5 wetlands, as

determined by the agriculture commissioner and the director of the game and fish department, in

accordance with United States fish and wildlife service circular no. 39 (1971 edition), drainage of

which would be feasible and practical.

When wetlands are drained or altered so the land no longer qualifies for the exemption

provided by this section, the land is subject to additional taxes which would have been assessed

if the property had not qualified for the exemption provided by this section. The taxes which

would have been due on the land without the exemption for the ten years preceding the year in

which the exemption is terminated must be computed, and the property owner shall pay the

difference between this amount and the taxes which were actually paid on the property in

addition to taxes currently due. Absence of water on property qualifying for the exemption under

this section, caused by drought conditions, does not disqualify the property from the exemption

under this section.

The wetlands tax exemption provided by this section does not grant the public any

additional or greater right of access to the wetlands or diminish any right of ownership to the

wetlands. The owner of property exempt under this section may use the property in any manner

which does not violate the agreement filed with the county director of tax equalization.

No property is exempt under this section unless the tax commissioner has certified to the

county auditor of each county by December tenth of the taxable year that funds are available in

the state treasury which may be used for payment in full of any state obligations under section

57-02-08.5.

57-02-08.5. Wetlands tax exemption payment - Certification. Prior to November first

of each year, the county auditor of each county shall certify to the state tax commissioner on

forms prescribed by the commissioner the total amount of property tax which would have been

due on property exempt under section 57-02-08.4 within the county and other information as may

be prescribed by the commissioner. The county auditor shall forward to the commissioner copies

of all agreements described in section 57-02-08.4 in effect in the county.

The commissioner shall audit the claims for exemption, make corrections as required,

and certify to the state treasurer for payment to each county on or before June thirtieth of each

year the sum of property taxes due on property exempt under section 57-02-08.4 for the county

in the preceding year.

The county treasurer upon receipt of the payment from the state treasurer shall apportion

and distribute it to the county and local taxing districts on the basis on which the general real

estate tax for the preceding year is apportioned and distributed.

Supplemental certifications by the county auditor and the state tax commissioner and

supplemental payments by the state treasurer may be made after the date prescribed in this

section to make corrections as may be necessary.

No certifications must be made and no apportionment or distribution of payments to

political subdivisions may be made under this section unless property was exempt under section

57-02-08.4 in the preceding year.

57-02-08.6. Authorization for receipt of funds. The state treasurer is authorized to

receive funds for this program by legislative appropriation and by gift, grant, devise, or bequest of

any money or property from any private or public source. Funds appropriated from any source

for this purpose are not subject to section 54-44.1-11 and all income and moneys derived from

the investment of the funds must be credited to the fund for this program. The director of the

game and fish department, the agriculture commissioner, and the state engineer shall work with

the governor, the United States fish and wildlife service, nonprofit conservation organizations,

and any other public official or private organization or citizen to develop a source of funding to

implement sections 57-02-08.4 and 57-02-08.5.

57-02-08.7. License fee in lieu of property taxes on leases for tourism or

concession purposes. Payment of the license fee as provided in this section by the lessee of

any leasehold interest in state-owned property leased from the director of the state historical

society or the director of the parks and recreation department is a payment in lieu of all

ad valorem taxes on the leasehold interest or any associated building or other improvement if the

lessee uses the property, building, or other improvement primarily for tourism or concession

purposes. The director of the state historical society or the director of the parks and recreation

department shall establish the license fee at an annual amount not less than one dollar and not

more than one percent of the gross receipts from the tourism or concession enterprise. The

lessee shall pay the license fee to the treasurer of the county in which the tourism or concession

enterprise is located and all fees received under this section must be deposited in the county

general fund. The lease must indicate that the director of the state historical society or the

director of the parks and recreation department approves use of the property primarily for tourism

or concession purposes and intends the license fee paid by the lessee to be in lieu of ad valorem

taxes.

57-02-08.8. Property tax credit for disabled veterans - Certification - Distribution.

1. A disabled veteran of the United States armed forces with an armed forces

service-connected disability of fifty percent or greater, who was discharged under

honorable conditions or who has been retired from the armed forces of the United

States, or the unremarried surviving spouse if the disabled veteran is deceased, is

eligible for a credit applied against the first one hundred twenty thousand dollars of

true and full valuation of the fixtures, buildings, and improvements of the person's

homestead equal to the percentage of the disabled veteran's disability compensation

rating for service-connected disabilities as certified by the department of veterans

affairs for the purpose of applying for a property tax exemption.

2. If two disabled veterans are married to each other and living together, their

combined credits may not exceed one hundred percent of one hundred twenty

thousand dollars of true and full value of the fixtures, buildings, and improvements of

the homestead. If a disabled veteran co-owns the homestead property with

someone other than the disabled veteran's spouse, the credit is limited to that

disabled veteran's interest in the fixtures, buildings, and improvements of the

homestead, to a maximum amount calculated by multiplying one hundred twenty

thousand dollars of true and full valuation by the disabled veteran's percentage of

interest in the homestead property and multiplying the result by the applicant's

certified disability percentage.

3. A disabled veteran or unremarried surviving spouse claiming a credit under this

section for the first time shall file with the county auditor an affidavit showing the

facts herein required, a description of the property, and a certificate from the United

States department of veterans affairs, or its successor, certifying to the amount of

the disability. The affidavit and certificate must be open for public inspection. A

person shall thereafter furnish to the assessor or other assessment officials, when

requested to do so, any information which is believed will support the claim for credit

for any subsequent year.

4. For purposes of this section, and except as otherwise provided in this section,

"homestead" has the meaning provided in section 47-18-01 except that it also

applies to a person who otherwise qualifies under the provisions of this section

whether the person is the head of the family.

5. This section does not reduce the liability of a person for special assessments levied

upon property.

6. The board of county commissioners may cancel the portion of unpaid taxes that

represents the credit calculated in accordance with this section for any year in which

the qualifying owner has held title to the homestead property. Cancellation of taxes

for any year before enactment of this section must be based on the law that was in

effect for that tax year.

7. Before the first of March of each year, the county auditor of each county shall certify

to the tax commissioner on forms prescribed by the tax commissioner the name and

address of each person for whom the property tax credit for homesteads of disabled

veterans was allowed for the preceding year, the amount of credit allowed, the total

of the tax mill rates of all taxing districts, exclusive of any state mill rates, that was

applied to other real estate in the taxing districts for the preceding year, and such

other information as may be prescribed by the tax commissioner.

8. The tax commissioner shall audit the certifications, make any corrections that may

be required, and certify to the state treasurer for payment to each county on or

before the first of June of each year, the sum of the amounts computed by

multiplying the credit allowed for each homestead of a disabled veteran in the county

by the total of the tax mill rates, exclusive of any state mill rates that were applied to

other real estate in the taxing districts for the preceding year.

9. The county treasurer upon receipt of the payment from the state treasurer shall

apportion and distribute the payment without delay to the county and to the local

taxing districts of the county on the basis on which the general real estate tax for the

preceding year is apportioned and distributed.

10. On or before the first day of June of each year, the tax commissioner shall certify to

the state treasurer the amount computed by multiplying the property tax credit

allowed under this section for homesteads of disabled veterans in the state for the

preceding year by one mill for deposit in the state medical center fund.

11. Supplemental certifications by the county auditor and by the tax commissioner and

supplemental payments by the state treasurer may be made after the dates

prescribed in this section to make such corrections as may be necessary because of

errors or because of approval of an application for abatement filed by a person

because the credit provided for the homestead of a disabled veteran was not

allowed in whole or in part.

57-02-09. Basis of exemptions. The exemptions provided for in section 57-02-08 must

be made in each case on the basis of the full cash valuation both of the exemption and of the

property upon which such exemption is allowed.

57-02-10. Inundated and highway easement lands exempt from taxation. The board

of county commissioners is authorized and directed to remove from the tax rolls and to declare

as exempt from taxation all inundated lands upon which the owner thereof has granted or

hereafter shall grant a permanent easement to the United States of America, its instrumentalities,

or agencies, for the purpose of constructing, maintaining, and operating water or wildlife

conservation projects, and all lands upon which the owner thereof has granted or hereafter shall

grant an easement for a highway or road right of way to the United States, its instrumentalities or

agencies, or to the state or its political subdivisions, and such lands so removed from the tax rolls

shall remain exempt until such time as such water or wildlife conservation projects or highway

shall have been abandoned. Such lands shall not be removed from the tax rolls and declared

exempt from taxation until such time as the construction of such water or wildlife conservation

projects or highway thereon shall have been completed.

57-02-11. Listing of property - Assessment thereof. Property must be listed and

assessed as follows:

1. All real property subject to taxation must be listed and assessed every year with

reference to its value, on February first of that year.

2. Whenever after the first day of February and before the first day of April in any year,

it is made to appear to the assessor by the oath of the owner that any building,

structure, or other improvement, or tangible personal property, which is listed for

taxation for the current year has been destroyed or injured by fire, flood, or tornado,

the assessor shall investigate the matter and deduct from the valuation of the

property of the owner of such destroyed property an amount which in the assessor's

judgment fairly represents such deduction as should be made.

57-02-11.1. Townhouses - Common areas - Assessment and taxation. Townhouse

property must be classified and valued as is other property except that the value of the

townhouse property must be increased by the value added by the right to use any common areas

in connection with the townhouse development. The common areas of the development may not

be separately taxed. The value of a common area of the townhouse development must be

assessed in an equal amount to each townhouse in the development unless a declaration setting

out a different apportionment is recorded in the office of the county recorder. The total value of

the townhouse property, including the value added as provided herein, must have the benefit of

any homestead credit under section 57-02-08.1 or other special classification if the townhouse

otherwise qualifies.

57-02-11.2. Confidentiality of information provided by commercial property owners

for assessment purposes. Unless directed otherwise by judicial order or as otherwise provided

by law, records and information provided by the owner or occupant of commercial property with

regard to income and expenses of the property in connection with an assessment are

confidential. This section does not prohibit the publication of statistics classified to prevent the

identification of a particular property and information relating to that property or the disclosure of

the records or information when an action or proceeding has been brought by the owner or

occupant to set aside or review the assessment.

57-02-12. Manner of listing personal property. Repealed by S.L. 1983, ch. 598, 25.

57-02-13. False list under oath - Perjury. Repealed by S.L. 1975, ch. 106, 673.

57-02-14. Valuation of real property exempt from taxation. At the time of making the

assessment of real property, the assessor shall enter in a separate list each description of

property exempt by law and shall value it in the same manner as other property, designating in

each case to whom such property belongs and for what purpose used. This section does not

apply to property of the United States, this state, or a political subdivision of this state or farm

buildings or farm residences exempt from property taxes by law.

57-02-14.1. Tax exemption certificate for real property to be filed - Exceptions. Any

person, corporations, limited liability companies, associations, or organizations owning real

property located within a municipality which claims that such real property is exempt from

assessment and taxation shall file with the assessor and with the county auditor a certificate

setting out all facts on which the claim for exemption is based, including the names of owners,

the date such property was acquired, the legal description, the use to which the property was put

during the twelve months preceding the assessment date, and any other information which the

assessor may request. This certificate shall be filed with the assessor and the county auditor

each year before the assessment date. If the certificate is not filed as provided herein, the

assessor shall regard the property as nonexempt property and shall assess it as such. The

provisions of this section shall not apply in any case when the real property is owned by the

United States or the state of North Dakota or any of its departments, institutions, agencies, or

political subdivisions.

57-02-15. Place of listing personal property. Except as otherwise provided by statute,

or by the constitution, all taxable tangible personal property shall be assessed in the county, city,

township, or district in which it is situated. Moneyed capital within the meaning of 12 U.S.C. 548

and such other moneys and credits as hereafter may be made taxable, including stocks and

bonds other than bank stock, shall be listed and assessed against the owner thereof at the

owner's place of business, and, if a corporation or limited liability company, at its principal place

of business, and if there is no principal place of business or office in this state, then such

personal property shall be listed in the assessment district in which the business of the

corporation, limited liability company, or person is carried on.

57-02-16. Nonresident's farm property. Repealed by S.L. 1963, ch. 375, 6.

57-02-17. Listing of personal property moved between April first and June first.

Repealed by S.L. 1981, ch. 558, 2.

57-02-18. Listing of range stock. Repealed by S.L. 1971, ch. 538, 1.

57-02-18.1. Taxation of livestock after thirty days. Repealed by S.L. 1971, ch. 538,

1.

57-02-18.2. Livestock tax proration after April first. Repealed by S.L. 1971, ch. 538,

1.

57-02-18.3. Livestock list submitted to auditor. Repealed by S.L. 1971, ch. 538, 1.

57-02-18.4. Livestock assessment by auditor. Repealed by S.L. 1971, ch. 538, 1.

57-02-18.5. Notice to auditor of livestock movement. Repealed by S.L. 1971,

ch. 538, 1.

57-02-18.6. Livestock tax collectible where danger of movement. Repealed by

S.L. 1971, ch. 538, 1.

57-02-18.7. Effect of prior livestock assessment. Repealed by S.L. 1971, ch. 538,

1.

57-02-19. Assessment of oil and gas drilling equipment. Repealed by S.L. 1953,

ch. 309, 1.

57-02-20. Exemption of farm machinery for one year. Repealed by S.L. 1981,

ch. 581, 4.

57-02-21. Tax exemption of personal property of certain persons with minimum

income - Penalty for false statement. Repealed by S.L. 1981, ch. 581, 4.

57-02-22. Place of listing in case of doubt. Repealed by S.L. 1981, ch. 558, 2.

57-02-23. Number or name of school district to be listed. Repealed by S.L. 1985,

ch. 604, 22.

57-02-24. Assessors to list coal and minerals. Repealed by S.L. 2009, ch. 544, 2.

57-02-25. Procedure in assessment of coal and mineral reserves. Repealed by

S.L. 2009, ch. 544, 2.

57-02-26. Certain property taxable to lessee or equitable owner - Exception.

1. Property held under a lease for a term of years, or under a contract for the purchase

thereof, belonging to the United States or to the state or a political subdivision

thereof, except such lands as have been leased for pasture or grazing purposes or

upon which the state makes payments in lieu of property taxes, or to any religious,

scientific, or benevolent society or institution, whether incorporated or

unincorporated, or to any railroad corporation whose property is not taxed in the

same manner as other property, must be considered, for all purposes of taxation, as

the property of the person so holding the same.

2. Property held under an easement or a lease for a term of years and any

improvements upon that property which are used for any purpose relating to

discovery, exploration, processing, or transportation of oil or gas must be considered

the property of the lessee or easement holder. For the purposes of this subsection,

"improvements" does not include property subject to the provisions of chapter 57-06

or property subject to the in lieu of ad valorem tax provisions of chapter 57-51.

3. Property owned by the state and held under a lease and any structure, fixture, or

improvement located on that property is not taxable to the leaseholder if the

structure, fixture, or improvement is used primarily for athletic and educational

purposes at any state institution of higher education.

57-02-26.1. Assessment to lessee of personal property owned by a bank. Repealed

by S.L. 1973, ch. 446, 4.

57-02-27. Property to be valued at a percentage of assessed value - Classification

of property - Limitation on valuation of annexed agricultural lands. All property subject to

taxation based on the value thereof must be valued as follows:

1. All residential property to be valued at nine percent of assessed value. If any

property is used for both residential and nonresidential purposes, the valuation must

be prorated accordingly.

2. All agricultural property to be valued at ten percent of assessed value as determined

pursuant to section 57-02-27.2.

3. All commercial property to be valued at ten percent of assessed value.

4. All centrally assessed property to be valued at ten percent of assessed value except

as provided in section 57-06-14.1.

The resulting amounts must be known as the taxable valuation. In determining the assessed

value of real and personal property, except agricultural property, the assessor may not adopt a

lower or different standard of value because the same is to serve as a basis of taxation, nor may

the assessor adopt as a criterion of value the price at which said property would sell at auction, or

at forced sale, or in the aggregate with all the property in the town or district, but the assessor

shall value each article or description by itself, and at such sum or price as the assessor believes

the same to be fairly worth in money. In assessing any tract or lot of real property, there must be

determined the value of the land, exclusive of improvements, and the value of all taxable

improvements and structures thereon, and the aggregate value of the property, including all

taxable structures and other improvements, excluding the value of crops growing upon cultivated

lands. In valuing any real property upon which there is a coal or other mine, or stone or other

quarry, the same must be valued at such a price as such property, including the mine or quarry,

would sell for at a fair voluntary sale for cash. Agricultural lands within the corporate limits of a

city which are not platted constitute agricultural property and must be so classified and valued for

ad valorem property tax purposes until such lands are put to another use. Agricultural lands,

whether within the corporate limits of a city or not, which were platted and assessed as

agricultural property prior to March 30, 1981, must be assessed as agricultural property for

ad valorem property tax purposes until put to another use. Such valuation must be uniform with

the valuation of adjoining unannexed agricultural land.

57-02-27.1. Property to be valued at true and full value. All assessors and boards of

equalization shall place the values of all items of taxable property at the true and full value of the

property except as otherwise specifically provided by law, and the amount of taxes that may be

levied on such property must be limited as provided in this chapter. For the purposes of sections

57-02-27, 57-02-27.1, 57-02-27.2, and 57-55-04, the term "true and full value" has the same

meaning as provided in subsection 15 of section 57-02-01, except that "true and full value" of

agricultural lands must be as determined pursuant to section 57-02-27.2.

The governing body of the city may establish valuations that recognize the supply of

vacant lots available for sale.

57-02-27.2. Valuation and assessment of agricultural lands.

1. "True and full value" of agricultural lands must be their agricultural value for the

purposes of sections 57-02-27, 57-02-27.1, 57-02-27.2, and 57-55-04. Agricultural

value is defined as the "capitalized average annual gross return", except for

inundated agricultural land. The "annual gross return" must be determined from

crop share rent, cash rent, or a combination thereof reduced by estimated property

taxes and crop marketing expenses incurred by farmland owners renting their lands

on a cash or crop share basis.

2. For purposes of this section, "annual gross return" for cropland used for growing

crops other than sugar beets and potatoes means thirty percent of annual gross

income produced, "annual gross return" for cropland used for growing sugar beets

and potatoes means twenty percent of annual gross income produced, and "annual

gross return" for land used for grazing farm animals means twenty-five percent of an

amount determined by the department of agribusiness and applied economics of

North Dakota state university to represent the annual gross income potential of the

land based upon the animal unit carrying capacity of the land.

3. The "average annual gross return" for each county must be determined as follows:

a. Total the annual gross returns for the ten years immediately preceding the

current year for which data is available and discard the highest and lowest

annual gross returns of the ten.

b. The department of agribusiness and applied economics of North Dakota state

university shall establish a base year index of prices paid by farmers using

annual statistics on that topic compiled by the national agricultural statistics

service for the seven-year period ending in 1995, discarding the highest and

lowest years' indexes, and averaging the remaining five years' indexes. The

department of agribusiness and applied economics shall gather the national

agricultural statistics service annual index of prices paid by farmers for the ten

years ending with the most recent year used under subdivision a, discard the

highest and lowest years' indexes, average the remaining eight years' indexes,

and divide the resulting amount by the base year index of prices paid by

farmers. This amount must be divided into the amount determined under

subdivision a.

c. Divide the figure arrived at in subdivision b by eight.

4. To find the "capitalized average annual gross return", the average annual gross

return must be capitalized by a rate that is a ten-year average of the gross agribank

mortgage rate of interest for North Dakota, but the rate used for capitalization under

this section may not be less than eight percent for taxable year 2009, seven and

seven-tenths percent for taxable year 2010, and seven and four-tenths percent for

taxable year 2011. The ten-year average must be computed from the twelve years

ending with the most recent year used under subdivision a of subsection 3,

discarding the highest and lowest years, and the gross agribank mortgage rate of

interest for each year must be determined in the manner provided in section

20.2032A-4(e)(1) of the United States treasury department regulations for valuing

farm real property for federal estate tax purposes, except that the interest rate may

not be adjusted as provided in section 20.2032A-4(e)(2).

5. The department of agribusiness and applied economics of North Dakota state

university shall compute annually an estimate of the average agricultural value per

acre [.40 hectare] of agricultural lands on a statewide and on a countywide basis;

shall compute the average agricultural value per acre [.40 hectare] for cropland,

noncropland, and inundated agricultural land for each county; and shall provide the

tax commissioner with this information by December first of each year. Fifty percent

of the annual gross income from irrigated cropland must be considered additional

expense of production and may not be included in computation of the average

agricultural value per acre [.40 hectare] for cropland for the county as determined by

the department of agribusiness and applied economics. Before January first of each

year, the tax commissioner shall provide to each county director of tax equalization

these estimates of agricultural value for each county.

6. For purposes of this section, "inundated agricultural land" means property classified

as agricultural property containing a minimum of ten contiguous acres if the value of

the inundated land exceeds ten percent of the average agricultural value of

noncropland for the county, which is inundated to an extent making it unsuitable for

growing crops or grazing farm animals for two consecutive growing seasons or

more, and which produced revenue from any source in the most recent prior year

which is less than the county average revenue per acre for noncropland calculated

by the department of agribusiness and applied economics of North Dakota state

university. Application for classification as inundated agricultural land must be made

in writing to the township assessor or county director of tax equalization by March

thirty-first of each year. Before all or part of a parcel of property may be classified as

inundated agricultural land, the board of county commissioners must approve that

classification for that property for the taxable year. The agricultural value of

inundated agricultural lands for purposes of this section must be determined by the

department of agribusiness and applied economics of North Dakota state university

to be ten percent of the average agricultural value of noncropland for the county as

determined under this section. Valuation of individual parcels of inundated

agricultural land may recognize the probability that the property will be suitable for

agricultural production as cropland or for grazing farm animals in the future.

Determinations made under this subsection may be appealed through the informal

equalization process and formal abatement process provided for in this title.

7. Before February first of each year, the county director of tax equalization in each

county shall provide to all assessors within the county an estimate of the average

agricultural value of agricultural lands within each assessment district. The estimate

must be based upon the average agricultural value for the county adjusted by the

relative values of lands within each assessment district compared to the county

average. In determining the relative value of lands for each assessment district

compared to the county average, the county director of tax equalization shall use soil

type and soil classification data from detailed and general soil surveys.

8. Each local assessor shall determine the relative value of each assessment parcel

within the assessor's jurisdiction and shall determine the agricultural value of each

assessment parcel by adjusting the agricultural value estimate for the assessment

district by the relative value of the parcel. Each parcel must then be assessed

according to section 57-02-27. If either a local assessor or a township board of

equalization develops an agricultural value for the lands in its assessment district

differing substantially from the estimate provided by the county director of tax

equalization, written evidence to support the change must be provided to the county

director of tax equalization. In determining the relative value of each assessment

parcel, the local assessor shall apply the following considerations, which are listed in

descending order of significance to the assessment determination:

a. Soil type and soil classification data from detailed or general soil surveys.

b. The schedule of modifiers that must be used to adjust agricultural property

assessments within the county as approved by the state supervisor of

assessments under subsection 9.

c. Actual use of the property for cropland or noncropland purposes by the owner

of the parcel.

9. Before February first of each year, the county director of tax equalization in each

county shall provide to all assessors of agricultural property within the county a

schedule of modifiers that must be used to adjust agricultural property assessments

within the county and directions regarding how those modifiers must be applied by

assessors. Before the schedule of modifiers is provided to assessors within the

county, the county director of tax equalization shall obtain the approval of the state

supervisor of assessments for use of the schedule within the county.

10. For any county that has not fully implemented use of soil type and soil classification

data from detailed or general soil surveys for any taxable year after 2011, the tax

commissioner shall direct the state treasurer to withhold five percent of that county's

allocation each month from the state aid distribution fund under section 57-39.2-26.1

until that county has fully implemented use of soil type or soil classification data from

detailed and general soil surveys. The amount withheld from the allocation must be

withheld entirely from the portion of the allocation which may be retained by the

county and may not reduce allocations to any political subdivisions within the county.