3. Abatement hearing-Vern Williams

I. ,': Klein, Frank From: Sent: To: Subject: Dickerson, Marcy D. [mdickerson@nd.gov] Thursday, August 23,2007 12:58 PM Klein, Frank RE: Interpretation of "construction is begun" regarding residential exemption Frank, the statute does not provide an answer to your question. However, Guideline G-13 states: 16. Modular, off-site built residences, etc., are eligible for the exemption. The governing body must have proof of when construction began. 17. If a residence that is built off site is not placed on the site until after February 1 of the first taxable year after construction of the residence began, there is no exemption for the first taxable year because there is no tax for that year. For example, if construction began in 2004 and the residence was placed on the site in March 2005, the residence would be exempt for 2006 only, the second taxable year after construction began. No. 17 seems to imply that the date of commencement of construction of the structure that is constructed off site controls the years for which the exemption is effective. There is no mention of construction of footings or foundation. An Attorney General's Letter Opinion to Mr. Allen Koppy, Morton County State's Attorney, dated October 12,1992, states in part: "Thus, it is my opinion that the property tax exemptions outlined in subsections 35 and 36 of N.D.C.C. section 57-02-08 do not apply when a preexisting structure is moved into Morton County from outside the county and placed upon a newly constructed basement foundation in Morton County. Likewise, it is my further opinion that the exemptions do not apply to a preexisting structure that is moved into Morton County when part of the old structure is remodeled or improved in Morton County. These opinions are consistent with the property tax guidelines issued by the Office of the Tax Commissioner. The guidelines include an exemption for new modular, off-site built buildings as long as the governing body has proof of when construction began and that the other requirements of the statute have been met. II [Emphasis supplied.] Both the guideline and the Attorney General's language indicate to me that the controlling date to determine when "construction is begun" is the date construction of the off-site- built structure began, not when construction of the footings or foundation upon which the structure is placed began. In the case of Mr. Williams' off-site-built house to which you refer, I believe construction, for the purpose of this exemption, started in February 2004 when construction of the off-site-built house started (assuming the dates provided to you are correct). The residence is exempt for 2005 and 2006. Marcy Dickerson State Supervisor of Assessments ND Office of State Tax Commissioner mdickerson@nd.gov (701) 328-3128 From: Klein, Frank [mailto:KleinF@casscountynd.gov] Sent: Thursday, August 23, 2007 10:16 AM To: Dickerson, Marcy D. Subject: Interpretation of "construction is begun" regarding residential exemption 1