1. Property tax exemption/Dakota Ag Co-op

PROPERTY TAX GUIDELINE "-d,f,' \f:.. ._<~ ~>. '-.t(f!-' /<--' ""<(-.,,-"'.' ,A' '- Office of State Tax Commissioner State Capitol, 600 E. Boulevard Avenue Bismarck, North Dakota 58505-0599 July 1999 Property Tax Incentives for New or Expanding Businesses North Dakota Century Code ch. 40-57.1 North Dakota Century Code ch. 40-57.1, first enacted in 1969, provides incentives in the form of property tax exemptions, payments in lieu of taxes, or a combination of both to a qualifying business. The incentives are granted, at the discretion of the city or county in which the property is located, to any new or expanded revenue- producing project. Definitions 1. Commencement of construction means the building or erecting of any improvements other than site preparation or excavation. 2. Commencement of project operation means "the date the plant actually goes into its planned operations. To use the example..., if a manufacturing plant actually begins manufacturing of its products in December, 1970, that would be the date of commencement of project operations. The Act does not purport to authorize granting of tax exemptions for the time of construction of plants. " 1969 N.D. OP. Att'y Gen. 415. 3. Local Development Corporation means a profit or nonprofit corporation incorporated in this state for the purpose of furthering the economic development of a specified community or area. 4. Municipality means a city or a county. 5. Project means any new revenue-producing business or an expansion to an existing business. 6. Project operator means the individual, partnership, limited liability company (LLC), corporation, or association that owns or operates the project. 7. 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 8. New and existing buildings, structures, and improvements owned or leased by a qualifying project may receive property tax incentives. 9. 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 which 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. AUowahle Incentives 10. 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. 11. The exemption period begins with the assessment date immediately following the date of commencement of project operations. 12. 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.