4. Property tax incentive-City View Fuel LLC

Incentives for New or Expanding Businesses Guideline Page 2 7. Project operator means the individual, partnership, limited liability company (LLC), corporation,or association that owns or operates the project. * 8. Statewide general election, as provided in N.D.C.C. § 16.1-13-01,means the general election held on the first Tuesday after the first Monday in November of each even-numbered year. 9. Structure means any property where a business is conducted. The structure might be an entire building, if occupied by one business, or individual quarters within a larger building. What Qualifies 10. New and existing buildings, structures, and improvements owned or leased by a qualifying project may receive property tax incentives. 11. New buildings, structures, and improvements constructed and owned by a local development corporation may receive a partial or complete exemption from ad valorem taxation while unoccupied. Once occupied,the exemption continues until the next assessment date following the first occupancy. A qualifying project that locates in a building owned by a local development corporation qualifies for the property tax incentives, provided application is made and granted prior to occupancy. Allowable Incentives 12. A qualifying project may receive a complete or partial exemption from ad valorem taxation on structures used in or necessary to the operation of a project for up to five years following the commencement of project operations. 13. The exemption period begins with the assessment date immediately following the date of commencement of project operations. 14. Projects that produce or manufacture a product from agricultural commodities may receive a complete or partial property tax exemption on structures for up to ten years. 15. A project located in a structure leased from a governmental entity and which received a five-year property tax exemption qualifies for additional exemptions for up to five years. For the additional exemptions,the municipality grants the exemption one year at a time upon annual application. 16. Payments in lieu of taxes may be used in place of, or in combination with, property tax exemptions for qualifying projects. The municipality and project operator negotiate the amount of annual payments, when the payments begin, and the ending date,which may be no later than twenty years from the date project operations began. 17. Payments in lieu of taxes are apportioned in the same manner as the general real estate taxes unless a taxing district enters into a written agreement for an alternate method. Any agreement entered into between the municipality and other taxing districts for an alternate method of apportioning the payments in lieu of taxes may not affect the apportionment to any taxing district that is not a party to the agreement. G-16