Download pdf
Loading PDF...


CHAPTER 40-57.1TAX EXEMPTIONS FOR NEW AND EXPANDING BUSINESSES40-57.1-01.Declaration and finding of public purpose.The legislative assemblydeclares and finds that it is and has been its purpose in preparing and adopting the provisions of<br>this chapter to sanction, authorize, and encourage activities in the public interest and for the<br>welfare of the state, its subdivisions, and people by assisting in the establishment of additional<br>industrial plants, the expansion and retention of existing business, and promotion of economic<br>activities within the state and thereby increasing production of wealth and adding to the volume of<br>employment, particularly during those seasons when employment in farming and ranching is<br>slack, thus alleviating unemployment among the people of the state.It is the intent of the legislative assembly that political subdivisions and the state board ofequalization in their determination of whether the tax exemptions authorized by this chapter shall<br>be granted shall give due weight to their impact and effect upon existing industry and business to<br>the end that an unfair advantage shall not be given to new or expanded enterprises which is to<br>the substantial detriment of existing enterprises.40-57.1-02. Definitions. As used in this chapter, unless a different meaning clearlyappears from the context:1.&quot;Local development organization&quot;, as used in section 40-57.1-04.3, means a profit or<br>nonprofit corporation incorporated under the laws of this state or a limited liability<br>company organized under the laws of this state, formed for the purpose of furthering<br>the economic development of its community and environs, with authority to promote<br>and assist the growth and development of business concerns in the areas covered<br>by its operations. The operations of the corporation or limited liability company must<br>be limited to a specified area in this state. The controlling interest in the corporation<br>or limited liability company must be held by at least twenty-five persons residing or<br>doing business in the community or its environs. These persons must control not<br>less than seventy-five percent of the voting control of the corporation or limited<br>liability company. No shareholder or member of the corporation or limited liability<br>company may own in excess of twenty-five percent of the voting control in the<br>corporation or limited liability company if that shareholder or member has a direct<br>pecuniary interest in any project or business concern which will occupy the property<br>of the corporation or limited liability company.The primary objective of thecorporation or limited liability company must be to benefit the community through<br>increased employment, payroll, business volume, and corresponding factors rather<br>than monetary profits to its shareholders or members. Any monetary profits or other<br>benefits going to the shareholders or members must be merely incidental to the<br>primary objective of the corporation or limited liability company.2.&quot;Municipality&quot; means counties as well as municipalities of the types listed in<br>subsection 4 of section 40-01-01.3.&quot;Primary sector business&quot; means an individual, corporation, limited liability company,<br>partnership, or association which through the employment of knowledge or labor<br>adds value to a product, process, or service that results in the creation of new<br>wealth.4.&quot;Project&quot; means any revenue-producing enterprise, or any combination of two or<br>more of these enterprises. For the purpose of the income tax exemption, &quot;project&quot;<br>means both &quot;primary sector business&quot; and &quot;tourism&quot; as defined by this section and<br>includes the establishment of a new qualifying business or the expansion of a<br>qualifying existing business.Page No. 15.&quot;Tourism&quot; means all tourism-related businesses and activities, including recreation,<br>historical and cultural events, guide services, and unique lodging and food services<br>which serve as destination attractions.40-57.1-03. Municipality's authority to grant tax exemption or payments in lieu oftaxes - Notice to competitors - Limitations. After negotiation with a potential project operator,<br>a municipality may grant a partial or complete exemption from ad valorem taxation on all<br>buildings, structures, fixtures, and improvements used in or necessary to the operation of a<br>project for a period not exceeding five years from the date of commencement of project<br>operations. A municipality may also grant a partial or complete exemption from ad valorem<br>taxation on buildings, structures, fixtures, and improvements used in or necessary to the<br>operation of a project that produces or manufactures a product from agricultural commodities for<br>all or part of the sixth year through the tenth year from the date of commencement of project<br>operations.In addition to, or in lieu of, a property tax exemption granted under this section, amunicipality may establish an amount due as payments in lieu of ad valorem taxes on buildings,<br>structures, fixtures, and improvements used in the operation of a project. The governing body of<br>the municipality shall designate the amount of the payments for each year and the beginning<br>year and the concluding year for payments in lieu of taxes, but the option to make payments<br>in lieu of taxes under this section may not extend beyond the twentieth year from the date of<br>commencement of project operations. To establish the amount of payments in lieu of taxes, the<br>governing body of the municipality may use actual or estimated levels of assessment and<br>taxation or may establish payment amounts based on other factors. The governing body of the<br>municipality may designate different amounts of payments in lieu of taxes in different years to<br>recognize future project expansion plans or other considerations.By November first of each year, the municipality that granted the option to makepayments in lieu of taxes shall certify to the county auditor the amount of payments in lieu of<br>taxes due under this section in the following year.After receiving the statement from themunicipality, the county auditor shall certify the payments in lieu of taxes to the county treasurer<br>for collection at the time when, and in the manner in which, ad valorem taxes must be certified.<br>Upon receipt by the county treasurer of the amount of payments in lieu of taxes under this<br>section, the county treasurer shall apportion and distribute that amount to taxing districts on the<br>basis on which the general real estate tax levy is apportioned and distributed. The municipality<br>may enter into a written agreement with the local school district and any other local taxing<br>districts that wish to enter the agreement for an alternate method of apportionment and<br>distribution.If such an agreement is entered into, the county treasurer shall apportion anddistribute the money according to the written agreement.All provisions of law relating toenforcement, administration, collection, penalties, and delinquency proceedings for ad valorem<br>taxes apply to payments in lieu of taxes under this section. However, the discount for early<br>payment of taxes under section 57-20-09 does not apply to payments in lieu of taxes under this<br>section. The buildings, structures, fixtures, and improvements comprising a project for which<br>payments in lieu of taxes are allowed under this section must be excluded from the valuation of<br>property in the taxing district for purposes of determining the mill rate for the taxing district.Negotiations with potential project operators for tax exemption or payments in lieu oftaxes must be carried on by the city council or commission if the project is proposed to be<br>located within the boundaries of a city, and by the board of county commissioners if the project is<br>proposed to be located outside the corporate limits of any city. A partial exemption must be<br>stated as a percentage of the total ad valorem taxes assessed against the property. Unless the<br>governing body of the municipality determines that there is no existing business within the<br>municipality for which the potential project would be a competitor, the potential project operator<br>shall publish two notices to competitors, the form of which must be prescribed by the tax<br>commissioner, of the application for tax exemption or payments in lieu of taxes in the official<br>newspaper of the municipality at least one week apart. The publications must be completed not<br>less than fifteen nor more than thirty days before the governing body of the municipality is to<br>consider the application. The municipality shall determine whether the granting of the exemptionPage No. 2or payments in lieu of taxes, or both, is in the best interest of the municipality, and if it so<br>determines, shall give its approval.During the negotiation and deliberation of a property tax exemption or the option to makepayments in lieu of taxes under this chapter, a municipality shall include, as nonvoting ex officio<br>members of its governing body, a representative appointed by the school board of each school<br>district affected by the proposed action and a representative appointed by the board of township<br>supervisors of each township affected by the proposed action.40-57.1-04. Exemption from income tax - Notice to competitors - Limitations. Uponapplication by a project operator to the state board of equalization, the net income of a project<br>may be exempt from state income tax for a period not exceeding five years from commencement<br>of project operations. The application for the exemption must be reviewed as to the eligibility of<br>the project by the department of commerce division of economic development and finance and<br>its recommendations forwarded to the state board of equalization. The project operator shall<br>provide notice to competitors in the manner prescribed by the state board of equalization. The<br>board shall determine whether the granting of the exemption is in the best interest of the people<br>of North Dakota and, if it so determines, approve the exemption. The board shall, after making<br>its determination, certify the findings back to the applicant and to the tax commissioner. Nothing<br>contained herein shall have the effect of exempting the project from filing an annual income tax<br>return.40-57.1-04.1. Ad valorem tax exemption for existing structures - Requirements.Notwithstanding any other provision of this chapter, a project operator who otherwise qualifies<br>under this chapter may, upon application consistent with the provisions of this chapter, receive a<br>partial or complete exemption from ad valorem taxation on any existing structure used in or<br>necessary to the operation of the project for a period not exceeding five years from the date of<br>commencement of project operations in the structure.For taxable years beginning afterDecember 31, 1988, the governing body of a municipality may grant additional exemptions of<br>property under this section during a period not exceeding ten years from the date of<br>commencement of project operations in the structure if the structure is owned by the United<br>States, the state, or a political subdivision of the state and leased to the project operator. The<br>project operator shall apply to the governing body of the municipality annually for the exemption<br>and the governing body of the municipality may grant the exemption for only one year at a time.40-57.1-04.2. Local development corporation defined - Requirements - Purpose.Repealed by S.L. 1991, ch. 447,</div></article><aside class="right-sidebar"><div class="related-sidebar"><h3><span class="emoji">⚖️</span> State Laws</h3><ul class="state-laws-list"><li><a href="https://state-laws.laws.com/state-of-alabama">The State Laws of <!-- -->Alabama</a></li><li><a href="https://state-laws.laws.com/state-of-alaska">The State Laws of <!-- -->Alaska</a></li><li><a href="https://state-laws.laws.com/state-of-arizona">The State Laws of <!-- -->Arizona</a></li><li><a href="https://state-laws.laws.com/state-of-arkansas">The State Laws of <!-- -->Arkansas</a></li><li><a href="https://state-laws.laws.com/state-of-california">The State Laws of <!-- -->California</a></li><li><a href="https://state-laws.laws.com/state-of-colorado">The State Laws of <!-- -->Colorado</a></li><li><a href="https://state-laws.laws.com/state-of-connecticut">The State Laws of <!-- -->Connecticut</a></li><li><a href="https://state-laws.laws.com/state-of-delaware">The State Laws of <!-- -->Delaware</a></li><li><a href="https://state-laws.laws.com/state-of-florida">The State Laws of <!-- -->Florida</a></li><li><a href="https://state-laws.laws.com/state-of-georgia">The State Laws of <!-- -->Georgia</a></li><li><a href="https://state-laws.laws.com/state-of-hawaii">The State Laws of <!-- -->Hawaii</a></li><li><a href="https://state-laws.laws.com/state-of-idaho">The State Laws of <!-- -->Idaho</a></li><li><a href="https://state-laws.laws.com/state-of-illinois">The State Laws of <!-- -->Illinois</a></li><li><a href="https://state-laws.laws.com/state-of-indiana">The State Laws of <!-- -->Indiana</a></li><li><a href="https://state-laws.laws.com/state-of-iowa">The State Laws of <!-- -->Iowa</a></li><li><a href="https://state-laws.laws.com/state-of-kansas">The State Laws of <!-- -->Kansas</a></li><li><a href="https://state-laws.laws.com/state-of-kentucky">The State Laws of <!-- -->Kentucky</a></li><li><a href="https://state-laws.laws.com/state-of-louisiana">The State Laws of <!-- -->Louisiana</a></li><li><a href="https://state-laws.laws.com/state-of-maine">The State Laws of <!-- -->Maine</a></li><li><a href="https://state-laws.laws.com/state-of-maryland">The State Laws of <!-- -->Maryland</a></li><li><a href="https://state-laws.laws.com/state-of-massachusetts">The State Laws of <!-- -->Massachusetts</a></li><li><a href="https://state-laws.laws.com/state-of-michigan">The State Laws of <!-- -->Michigan</a></li><li><a href="https://state-laws.laws.com/state-of-minnesota">The State Laws of <!-- -->Minnesota</a></li><li><a href="https://state-laws.laws.com/state-of-mississippi">The State Laws of <!-- -->Mississippi</a></li><li><a href="https://state-laws.laws.com/state-of-missouri">The State Laws of <!-- -->Missouri</a></li><li><a href="https://state-laws.laws.com/state-of-montana">The State Laws of <!-- -->Montana</a></li><li><a href="https://state-laws.laws.com/state-of-nebraska">The State Laws of <!-- -->Nebraska</a></li><li><a href="https://state-laws.laws.com/state-of-nevada">The State Laws of <!-- -->Nevada</a></li><li><a href="https://state-laws.laws.com/state-of-new-hampshire">The State Laws of <!-- -->New Hampshire</a></li><li><a href="https://state-laws.laws.com/state-of-new-jersey">The State Laws of <!-- -->New Jersey</a></li><li><a href="https://state-laws.laws.com/state-of-new-mexico">The State Laws of <!-- -->New Mexico</a></li><li><a href="https://state-laws.laws.com/state-of-new-york">The State Laws of <!-- -->New York</a></li><li><a href="https://state-laws.laws.com/state-of-north-carolina">The State Laws of <!-- -->North Carolina</a></li><li><a href="https://state-laws.laws.com/state-of-north-dakota">The State Laws of <!-- -->North Dakota</a></li><li><a href="https://state-laws.laws.com/state-of-ohio">The State Laws of <!-- -->Ohio</a></li><li><a href="https://state-laws.laws.com/state-of-oklahoma">The State Laws of <!-- -->Oklahoma</a></li><li><a href="https://state-laws.laws.com/state-of-oregon">The State Laws of <!-- -->Oregon</a></li><li><a href="https://state-laws.laws.com/state-of-pennsylvania">The State Laws of <!-- -->Pennsylvania</a></li><li><a href="https://state-laws.laws.com/state-of-rhode-island">The State Laws of <!-- -->Rhode Island</a></li><li><a href="https://state-laws.laws.com/state-of-south-carolina">The State Laws of <!-- -->South Carolina</a></li><li><a href="https://state-laws.laws.com/state-of-south-dakota">The State Laws of <!-- -->South Dakota</a></li><li><a href="https://state-laws.laws.com/state-of-tennessee">The State Laws of <!-- -->Tennessee</a></li><li><a href="https://state-laws.laws.com/state-of-texas">The State Laws of <!-- -->Texas</a></li><li><a href="https://state-laws.laws.com/state-of-utah">The State Laws of <!-- -->Utah</a></li><li><a href="https://state-laws.laws.com/state-of-vermont">The State Laws of <!-- -->Vermont</a></li><li><a href="https://state-laws.laws.com/state-of-virginia">The State Laws of <!-- -->Virginia</a></li><li><a href="https://state-laws.laws.com/state-of-washington">The State Laws of <!-- -->Washington</a></li><li><a href="https://state-laws.laws.com/state-of-west-virginia">The State Laws of <!-- -->West Virginia</a></li><li><a href="https://state-laws.laws.com/state-of-wisconsin">The State Laws of <!-- -->Wisconsin</a></li><li><a href="https://state-laws.laws.com/state-of-wyoming">The State Laws of <!-- -->Wyoming</a></li></ul></div></aside></div></section><!--$--><!--/$--><footer class="footer"></footer><script src="/_next/static/chunks/2a2449c32e1f321b.js?dpl=dpl_AQPhqj6aLt1ver5KqnebmCuHPZxR" id="_R_" async=""></script><script>(self.__next_f=self.__next_f||[]).push([0])</script><script>self.__next_f.push([1,"1:\"$Sreact.fragment\"\n2:I[39756,[\"/_next/static/chunks/ff1a16fafef87110.js?dpl=dpl_AQPhqj6aLt1ver5KqnebmCuHPZxR\",\"/_next/static/chunks/d2be314c3ece3fbe.js?dpl=dpl_AQPhqj6aLt1ver5KqnebmCuHPZxR\"],\"default\"]\n3:I[37457,[\"/_next/static/chunks/ff1a16fafef87110.js?dpl=dpl_AQPhqj6aLt1ver5KqnebmCuHPZxR\",\"/_next/static/chunks/d2be314c3ece3fbe.js?dpl=dpl_AQPhqj6aLt1ver5KqnebmCuHPZxR\"],\"default\"]\n4:I[79520,[\"/_next/static/chunks/744355e03808d4c7.js?dpl=dpl_AQPhqj6aLt1ver5KqnebmCuHPZxR\"],\"\"]\n6:I[97367,[\"/_next/static/chunks/ff1a16fafef87110.js?dpl=dpl_AQPhqj6aLt1ver5KqnebmCuHPZxR\",\"/_next/static/chunks/d2be314c3ece3fbe.js?dpl=dpl_AQPhqj6aLt1ver5KqnebmCuHPZxR\"],\"OutletBoundary\"]\n7:\"$Sreact.suspense\"\n9:I[97367,[\"/_next/static/chunks/ff1a16fafef87110.js?dpl=dpl_AQPhqj6aLt1ver5KqnebmCuHPZxR\",\"/_next/static/chunks/d2be314c3ece3fbe.js?dpl=dpl_AQPhqj6aLt1ver5KqnebmCuHPZxR\"],\"ViewportBoundary\"]\nb:I[97367,[\"/_next/static/chunks/ff1a16fafef87110.js?dpl=dpl_AQPhqj6aLt1ver5KqnebmCuHPZxR\",\"/_next/static/chunks/d2be314c3ece3fbe.js?dpl=dpl_AQPhqj6aLt1ver5KqnebmCuHPZxR\"],\"MetadataBoundary\"]\nd:I[68027,[\"/_next/static/chunks/ff1a16fafef87110.js?dpl=dpl_AQPhqj6aLt1ver5KqnebmCuHPZxR\",\"/_next/static/chunks/d2be314c3ece3fbe.js?dpl=dpl_AQPhqj6aLt1ver5KqnebmCuHPZxR\"],\"default\"]\n:HL[\"https://fonts.googleapis.com/css2?family=SF+Pro+Display:wght@300;400;500;600;700\u0026display=swap\",\"style\"]\n:HL[\"/includes/statutes-pages.css?v=2\",\"style\"]\n"])</script><script>self.__next_f.push([1,"0:{\"P\":null,\"b\":\"QO7shand-zMNSFf865LMc\",\"c\":[\"\",\"north-dakota\",\"t-40\",\"t-40-c-571\",\"\"],\"q\":\"\",\"i\":false,\"f\":[[[\"\",{\"children\":[[\"state\",\"north-dakota\",\"d\"],{\"children\":[[\"slug\",\"t-40/t-40-c-571\",\"c\"],{\"children\":[\"__PAGE__\",{}]}]}]},\"$undefined\",\"$undefined\",true],[[\"$\",\"$1\",\"c\",{\"children\":[[[\"$\",\"script\",\"script-0\",{\"src\":\"/_next/static/chunks/744355e03808d4c7.js?dpl=dpl_AQPhqj6aLt1ver5KqnebmCuHPZxR\",\"async\":true,\"nonce\":\"$undefined\"}]],[\"$\",\"html\",null,{\"lang\":\"en\",\"children\":[[\"$\",\"head\",null,{\"children\":[[\"$\",\"meta\",null,{\"charSet\":\"UTF-8\"}],[\"$\",\"meta\",null,{\"name\":\"viewport\",\"content\":\"width=device-width, initial-scale=1.0\"}],[\"$\",\"link\",null,{\"rel\":\"preconnect\",\"href\":\"https://fonts.googleapis.com\"}],[\"$\",\"link\",null,{\"rel\":\"preconnect\",\"href\":\"https://fonts.gstatic.com\",\"crossOrigin\":\"anonymous\"}],[\"$\",\"link\",null,{\"href\":\"https://fonts.googleapis.com/css2?family=SF+Pro+Display:wght@300;400;500;600;700\u0026display=swap\",\"rel\":\"stylesheet\"}],[\"$\",\"link\",null,{\"rel\":\"stylesheet\",\"href\":\"/includes/statutes-pages.css?v=2\"}]]}],[\"$\",\"body\",null,{\"children\":[[\"$\",\"header\",null,{\"className\":\"header\"}],[\"$\",\"$L2\",null,{\"parallelRouterKey\":\"children\",\"error\":\"$undefined\",\"errorStyles\":\"$undefined\",\"errorScripts\":\"$undefined\",\"template\":[\"$\",\"$L3\",null,{}],\"templateStyles\":\"$undefined\",\"templateScripts\":\"$undefined\",\"notFound\":[[[\"$\",\"title\",null,{\"children\":\"404: This page could not be found.\"}],[\"$\",\"div\",null,{\"style\":{\"fontFamily\":\"system-ui,\\\"Segoe UI\\\",Roboto,Helvetica,Arial,sans-serif,\\\"Apple Color Emoji\\\",\\\"Segoe UI Emoji\\\"\",\"height\":\"100vh\",\"textAlign\":\"center\",\"display\":\"flex\",\"flexDirection\":\"column\",\"alignItems\":\"center\",\"justifyContent\":\"center\"},\"children\":[\"$\",\"div\",null,{\"children\":[[\"$\",\"style\",null,{\"dangerouslySetInnerHTML\":{\"__html\":\"body{color:#000;background:#fff;margin:0}.next-error-h1{border-right:1px solid rgba(0,0,0,.3)}@media (prefers-color-scheme:dark){body{color:#fff;background:#000}.next-error-h1{border-right:1px solid rgba(255,255,255,.3)}}\"}}],[\"$\",\"h1\",null,{\"className\":\"next-error-h1\",\"style\":{\"display\":\"inline-block\",\"margin\":\"0 20px 0 0\",\"padding\":\"0 23px 0 0\",\"fontSize\":24,\"fontWeight\":500,\"verticalAlign\":\"top\",\"lineHeight\":\"49px\"},\"children\":404}],[\"$\",\"div\",null,{\"style\":{\"display\":\"inline-block\"},\"children\":[\"$\",\"h2\",null,{\"style\":{\"fontSize\":14,\"fontWeight\":400,\"lineHeight\":\"49px\",\"margin\":0},\"children\":\"This page could not be found.\"}]}]]}]}]],[]],\"forbidden\":\"$undefined\",\"unauthorized\":\"$undefined\"}],[\"$\",\"footer\",null,{\"className\":\"footer\"}],[\"$\",\"$L4\",null,{\"src\":\"/includes/statutes-inject.js?v=1\",\"strategy\":\"afterInteractive\"}]]}]]}]]}],{\"children\":[[\"$\",\"$1\",\"c\",{\"children\":[null,[\"$\",\"$L2\",null,{\"parallelRouterKey\":\"children\",\"error\":\"$undefined\",\"errorStyles\":\"$undefined\",\"errorScripts\":\"$undefined\",\"template\":[\"$\",\"$L3\",null,{}],\"templateStyles\":\"$undefined\",\"templateScripts\":\"$undefined\",\"notFound\":\"$undefined\",\"forbidden\":\"$undefined\",\"unauthorized\":\"$undefined\"}]]}],{\"children\":[[\"$\",\"$1\",\"c\",{\"children\":[null,[\"$\",\"$L2\",null,{\"parallelRouterKey\":\"children\",\"error\":\"$undefined\",\"errorStyles\":\"$undefined\",\"errorScripts\":\"$undefined\",\"template\":[\"$\",\"$L3\",null,{}],\"templateStyles\":\"$undefined\",\"templateScripts\":\"$undefined\",\"notFound\":\"$undefined\",\"forbidden\":\"$undefined\",\"unauthorized\":\"$undefined\"}]]}],{\"children\":[[\"$\",\"$1\",\"c\",{\"children\":[\"$L5\",[[\"$\",\"script\",\"script-0\",{\"src\":\"/_next/static/chunks/7c92e96509cd355e.js?dpl=dpl_AQPhqj6aLt1ver5KqnebmCuHPZxR\",\"async\":true,\"nonce\":\"$undefined\"}]],[\"$\",\"$L6\",null,{\"children\":[\"$\",\"$7\",null,{\"name\":\"Next.MetadataOutlet\",\"children\":\"$@8\"}]}]]}],{},null,false,false]},null,false,false]},null,false,false]},null,false,false],[\"$\",\"$1\",\"h\",{\"children\":[null,[\"$\",\"$L9\",null,{\"children\":\"$La\"}],[\"$\",\"div\",null,{\"hidden\":true,\"children\":[\"$\",\"$Lb\",null,{\"children\":[\"$\",\"$7\",null,{\"name\":\"Next.Metadata\",\"children\":\"$Lc\"}]}]}],null]}],false]],\"m\":\"$undefined\",\"G\":[\"$d\",[]],\"S\":false}\n"])</script><script>self.__next_f.push([1,"a:[[\"$\",\"meta\",\"0\",{\"charSet\":\"utf-8\"}],[\"$\",\"meta\",\"1\",{\"name\":\"viewport\",\"content\":\"width=device-width, initial-scale=1\"}]]\n8:null\nc:[[\"$\",\"title\",\"0\",{\"children\":\"T-40-C-571 - North Dakota Statutes - LAWS.com\"}],[\"$\",\"meta\",\"1\",{\"name\":\"description\",\"content\":\"T-40-C-571 - North Dakota State Statutes and Laws\"}],[\"$\",\"link\",\"2\",{\"rel\":\"canonical\",\"href\":\"https://statutes.laws.com/north-dakota/t-40/t-40-c-571/\"}]]\n"])</script><script>self.__next_f.push([1,"e:I[22016,[\"/_next/static/chunks/744355e03808d4c7.js?dpl=dpl_AQPhqj6aLt1ver5KqnebmCuHPZxR\",\"/_next/static/chunks/7c92e96509cd355e.js?dpl=dpl_AQPhqj6aLt1ver5KqnebmCuHPZxR\"],\"\"]\n"])</script><script>self.__next_f.push([1,"5:[[\"$\",\"nav\",null,{\"className\":\"breadcrumb\",\"children\":[\"$\",\"ul\",null,{\"className\":\"breadcrumb-list\",\"children\":[[\"$\",\"li\",null,{\"children\":[\"$\",\"a\",null,{\"href\":\"https://laws.com/\",\"children\":\"LAWS\"}]}],[\"$\",\"li\",null,{\"className\":\"breadcrumb-separator\",\"children\":\"\u003e\"}],[\"$\",\"li\",null,{\"children\":[\"$\",\"a\",null,{\"href\":\"/\",\"children\":\"STATUTES\"}]}],[\"$\",\"li\",null,{\"className\":\"breadcrumb-separator\",\"children\":\"\u003e\"}],[\"$\",\"li\",null,{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/\",\"children\":\"NORTH DAKOTA\"}]}],[[\"$\",\"span\",\"0\",{\"children\":[[\"$\",\"li\",null,{\"className\":\"breadcrumb-separator\",\"children\":\"\u003e\"}],[\"$\",\"li\",null,{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-40/\",\"children\":\"T-40\"}]}]]}],[\"$\",\"span\",\"1\",{\"children\":[[\"$\",\"li\",null,{\"className\":\"breadcrumb-separator\",\"children\":\"\u003e\"}],[\"$\",\"li\",null,{\"children\":[\"$\",\"span\",null,{\"children\":\"T-40-C-571\"}]}]]}]]]}]}],[\"$\",\"section\",null,{\"className\":\"article-section\",\"children\":[\"$\",\"div\",null,{\"className\":\"article-grid\",\"children\":[[\"$\",\"aside\",null,{\"className\":\"sidebar-nav\",\"children\":[\"$\",\"div\",null,{\"className\":\"sidebar-card\",\"children\":[[\"$\",\"h3\",null,{\"children\":[[\"$\",\"span\",null,{\"className\":\"emoji\",\"children\":\"📚\"}],\" \",\"North Dakota\",\" Statutes\"]}],[\"$\",\"ul\",null,{\"className\":\"toc-list\",\"children\":[[\"$\",\"li\",\"859214\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-1/\",\"children\":\"Chapter 1 General Provisions\"}]}],[\"$\",\"li\",\"859232\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-2/\",\"children\":\"Chapter 2 Aeronautics\"}]}],[\"$\",\"li\",\"859252\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-3/\",\"children\":\"Chapter 3 Agency\"}]}],[\"$\",\"li\",\"859265\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-4/\",\"children\":\"Chapter 4 Agriculture\"}]}],[\"$\",\"li\",\"859448\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-5/\",\"children\":\"Chapter 5 Alcoholic Beverages\"}]}],[\"$\",\"li\",\"859458\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-6/\",\"children\":\"Chapter 6 Banks and Banking\"}]}],[\"$\",\"li\",\"859532\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/cct-7/\",\"children\":\"Chapter 7 Building and Loan Associations\"}]}],[\"$\",\"li\",\"859534\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-8/\",\"children\":\"Chapter 8 Carriage\"}]}],[\"$\",\"li\",\"859570\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-9/\",\"children\":\"Chapter 9 Contracts and Obligations\"}]}],[\"$\",\"li\",\"859609\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-10/\",\"children\":\"Chapter 10 Corporations\"}]}],[\"$\",\"li\",\"859704\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-11/\",\"children\":\"Chapter 11 Counties\"}]}],[\"$\",\"li\",\"859802\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-12/\",\"children\":\"Chapter 12 Corrections, Parole, and Probation\"}]}],[\"$\",\"li\",\"860058\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-13/\",\"children\":\"Chapter 13 Debtor and Creditor Relationship\"}]}],[\"$\",\"li\",\"860088\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-14/\",\"children\":\"Chapter 14 Domestic Relations and Persons\"}]}],[\"$\",\"li\",\"860181\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-15/\",\"children\":\"Chapter 15 Education\"}]}],[\"$\",\"li\",\"860479\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-16/\",\"children\":\"Chapter 16 Elections\"}]}],[\"$\",\"li\",\"860581\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-17/\",\"children\":\"Chapter 17 Energy\"}]}],[\"$\",\"li\",\"860600\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-18/\",\"children\":\"Chapter 18 Fires\"}]}],[\"$\",\"li\",\"860633\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-19/\",\"children\":\"Chapter 19 Foods, Drugs, Oils, and Compounds\"}]}],[\"$\",\"li\",\"860709\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/cct-20/\",\"children\":\"Chapter 20 Game, Fish, and Predators\"}]}],[\"$\",\"li\",\"860747\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-21/\",\"children\":\"Chapter 21 Governmental Finance\"}]}],[\"$\",\"li\",\"860779\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-22/\",\"children\":\"Chapter 22 Guaranty, Indemnity, and Suretyship\"}]}],[\"$\",\"li\",\"860800\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-23/\",\"children\":\"Chapter 23 Health and Safety\"}]}],[\"$\",\"li\",\"860968\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-24/\",\"children\":\"Chapter 24 Highways, Bridges, and Ferries\"}]}],[\"$\",\"li\",\"861007\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-25/\",\"children\":\"Chapter 25 Mental and Physical Illness or Disability\"}]}],[\"$\",\"li\",\"861058\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/cct-26/\",\"children\":\"Chapter 26 Insurance\"}]}],[\"$\",\"li\",\"861267\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-27/\",\"children\":\"Chapter 27 Judicial Branch of Government\"}]}],[\"$\",\"li\",\"861335\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-28/\",\"children\":\"Chapter 28 Judicial Procedure, Civil\"}]}],\"$Lf\",\"$L10\",\"$L11\",\"$L12\",\"$L13\",\"$L14\",\"$L15\",\"$L16\",\"$L17\",\"$L18\",\"$L19\",\"$L1a\",\"$L1b\",\"$L1c\",\"$L1d\",\"$L1e\",\"$L1f\",\"$L20\",\"$L21\",\"$L22\",\"$L23\",\"$L24\",\"$L25\",\"$L26\",\"$L27\",\"$L28\",\"$L29\",\"$L2a\",\"$L2b\",\"$L2c\",\"$L2d\",\"$L2e\",\"$L2f\",\"$L30\",\"$L31\",\"$L32\",\"$L33\",\"$L34\",\"$L35\",\"$L36\",\"$L37\",\"$L38\",\"$L39\",\"$L3a\",\"$L3b\"]}]]}]}],\"$L3c\",\"$L3d\"]}]}]]\n"])</script><script>self.__next_f.push([1,"f:[\"$\",\"li\",\"861417\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-29/\",\"children\":\"Chapter 29 Judicial Procedure, Criminal\"}]}]\n10:[\"$\",\"li\",\"861522\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-30/\",\"children\":\"Chapter 30 Judicial Procedure, Probate\"}]}]\n11:[\"$\",\"li\",\"861661\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-31/\",\"children\":\"Chapter 31 Judicial Proof\"}]}]\n12:[\"$\",\"li\",\"861694\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-32/\",\"children\":\"Chapter 32 Judicial Remedies\"}]}]\n13:[\"$\",\"li\",\"861823\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-33/\",\"children\":\"Chapter 33 County Justice Court\"}]}]\n14:[\"$\",\"li\",\"861847\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-34/\",\"children\":\"Chapter 34 Labor and Employment\"}]}]\n15:[\"$\",\"li\",\"861886\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-35/\",\"children\":\"Chapter 35 Liens\"}]}]\n16:[\"$\",\"li\",\"861967\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-36/\",\"children\":\"Chapter 36 Livestock\"}]}]\n17:[\"$\",\"li\",\"862032\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-37/\",\"children\":\"Chapter 37 Military\"}]}]\n18:[\"$\",\"li\",\"862098\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-38/\",\"children\":\"Chapter 38 Mining and Gas and Oil Production\"}]}]\n19:[\"$\",\"li\",\"862174\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-39/\",\"children\":\"Chapter 39 Motor Vehicles\"}]}]\n1a:[\"$\",\"li\",\"862279\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-40/\",\"children\":\"Chapter 40 Municipal Government\"}]}]\n1b:[\"$\",\"li\",\"859412\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-41/\",\"children\":\"Chapter 4.1 Agriculture\"}]}]\n1c:[\"$\",\"li\",\"862438\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-41/\",\"children\":\"Chapter 41 Uniform Commercial Code\"}]}]\n1d:[\"$\",\"li\",\"862465\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-42/\",\"children\":\"Chapter 42 Nuisances\"}]}]\n1e:[\"$\",\"li\",\"862485\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-43/\",\"children\":\"Chapter 43 Occupations and Professions\"}]}]\n1f:[\"$\",\"li\",\"862642\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-44/\",\"children\":\"Chapter 44 Offices and Officers\"}]}]\n20:[\"$\",\"li\",\"862667\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-45/\",\"children\":\"Chapter 45 Partnerships\"}]}]\n21:[\"$\",\"li\",\"862721\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-46/\",\"children\":\"Chapter 46 Printing Laws\"}]}]\n22:[\"$\",\"li\",\"862733\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-47/\",\"children\":\"Chapter 47 Property\"}]}]\n23:[\"$\",\"li\",\"862824\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-48/\",\"children\":\"Chapter 48 Public Buildings\"}]}]\n24:[\"$\",\"li\",\"862854\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-49/\",\"children\":\"Chapter 49 Public Utilities\"}]}]\n25:[\"$\",\"li\",\"862918\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-50/\",\"children\":\"Chapter 50 Public Welfare\"}]}]\n26:[\"$\",\"li\",\"863036\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-51/\",\"children\":\"Chapter 51 Sales and Exchanges\"}]}]\n27:[\"$\",\"li\",\"863101\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-52/\",\"children\":\"Chapter 52 Social Security\"}]}]\n28:[\"$\",\"li\",\"863135\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-53/\",\"children\":\"Chapter 53 Sports and Amusements\"}]}]\n29:[\"$\",\"li\",\"863182\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-54/\",\"children\":\"Chapter 54 State Government\"}]}]\n2a:[\"$\",\"li\",\"863420\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-55/\",\"children\":\"Chapter 55 State Historical Society and State Parks\"}]}]\n2b:[\"$\",\"li\",\"863439\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/cct-56/\",\"children\":\"Chapter 56 Succession and Wills\"}]}]\n2c:[\"$\",\"li\",\"863442\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-57/\",\"children\":\"Chapter 57 Taxation\"}]}]\n2d:[\"$\",\"li\",\"863663\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-58/\",\"children\":\"Chapter 58 Townships\"}]}]\n2e:[\"$\",\"li\",\"863706\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-59/\",\"children\":\"Chapter 59 Trusts\"}]}]\n2f:[\"$\",\"li\",\"863755\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-da"])</script><script>self.__next_f.push([1,"kota/t-60/\",\"children\":\"Chapter 60 Warehousing and Deposits\"}]}]\n30:[\"$\",\"li\",\"863775\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-61/\",\"children\":\"Chapter 61 Waters\"}]}]\n31:[\"$\",\"li\",\"863895\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/cct-62/\",\"children\":\"Chapter 62 Weapons\"}]}]\n32:[\"$\",\"li\",\"863910\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-63/\",\"children\":\"Chapter 63 Weeds\"}]}]\n33:[\"$\",\"li\",\"863924\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-64/\",\"children\":\"Chapter 64 Weights, Measures, and Grades\"}]}]\n34:[\"$\",\"li\",\"863933\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-65/\",\"children\":\"Chapter 65 Workforce Safety and Insurance\"}]}]\n35:[\"$\",\"li\",\"859952\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-121/\",\"children\":\"Chapter 12.1 Criminal Code\"}]}]\n36:[\"$\",\"li\",\"860400\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-151/\",\"children\":\"Chapter 15.1 Elementary and Secondary Education\"}]}]\n37:[\"$\",\"li\",\"860536\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-161/\",\"children\":\"Chapter 16.1 Elections\"}]}]\n38:[\"$\",\"li\",\"860710\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-201/\",\"children\":\"Chapter 20.1 Game, Fish, Predators, and Boating\"}]}]\n39:[\"$\",\"li\",\"861060\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-261/\",\"children\":\"Chapter 26.1 Insurance\"}]}]\n3a:[\"$\",\"li\",\"861578\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-301/\",\"children\":\"Chapter 30.1 Uniform Probate Code\"}]}]\n3b:[\"$\",\"li\",\"863897\",{\"children\":[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/t-621/\",\"children\":\"Chapter 62.1 Weapons\"}]}]\n3e:T30b9,"])</script><script>self.__next_f.push([1,"\u003ca href=\"https://law.justia.com/codes/north-dakota/2009/t40/pdf/t40c571.pdf\"\u003eDownload pdf\u003c/a\u003e\u003cbr\u003e\u003cdiv id=\"embed_document\" style=\"width:625px; height:815px; text-align:center;\"\u003eLoading PDF...\u003c/div\u003e\u003cscript type=\"text/javascript\"\u003e var pdf_url = 'https://law.justia.com/codes/north-dakota/2009/t40/pdf/t40c571.pdf'; $(document).ready(function() { var embedwindow = $(\"#embed_document\"); if ($.browser.msie){ embedwindow.html('\u003cembed src=\"'+pdf_url+'\" width=\"100%\" height=\"100%\"\u003e\u003c/embed\u003e'); } else { embedwindow.html('\u003ciframe style=\"width:100%; height:100%;\" src=\"https://docs.google.com/gview?url='+window.escape(pdf_url)+'\u0026embedded=true\" frameborder=\"0\"\u003e\u003c/iframe\u003e'); } });\u003c/script\u003e\u003cbr\u003e\u003cbr\u003e\u003cnoframes\u003eCHAPTER 40-57.1TAX EXEMPTIONS FOR NEW AND EXPANDING BUSINESSES40-57.1-01.Declaration and finding of public purpose.The legislative assemblydeclares and finds that it is and has been its purpose in preparing and adopting the provisions of\u003cbr\u003ethis chapter to sanction, authorize, and encourage activities in the public interest and for the\u003cbr\u003ewelfare of the state, its subdivisions, and people by assisting in the establishment of additional\u003cbr\u003eindustrial plants, the expansion and retention of existing business, and promotion of economic\u003cbr\u003eactivities within the state and thereby increasing production of wealth and adding to the volume of\u003cbr\u003eemployment, particularly during those seasons when employment in farming and ranching is\u003cbr\u003eslack, thus alleviating unemployment among the people of the state.It is the intent of the legislative assembly that political subdivisions and the state board ofequalization in their determination of whether the tax exemptions authorized by this chapter shall\u003cbr\u003ebe granted shall give due weight to their impact and effect upon existing industry and business to\u003cbr\u003ethe end that an unfair advantage shall not be given to new or expanded enterprises which is to\u003cbr\u003ethe substantial detriment of existing enterprises.40-57.1-02. Definitions. As used in this chapter, unless a different meaning clearlyappears from the context:1.\u0026quot;Local development organization\u0026quot;, as used in section 40-57.1-04.3, means a profit or\u003cbr\u003enonprofit corporation incorporated under the laws of this state or a limited liability\u003cbr\u003ecompany organized under the laws of this state, formed for the purpose of furthering\u003cbr\u003ethe economic development of its community and environs, with authority to promote\u003cbr\u003eand assist the growth and development of business concerns in the areas covered\u003cbr\u003eby its operations. The operations of the corporation or limited liability company must\u003cbr\u003ebe limited to a specified area in this state. The controlling interest in the corporation\u003cbr\u003eor limited liability company must be held by at least twenty-five persons residing or\u003cbr\u003edoing business in the community or its environs. These persons must control not\u003cbr\u003eless than seventy-five percent of the voting control of the corporation or limited\u003cbr\u003eliability company. No shareholder or member of the corporation or limited liability\u003cbr\u003ecompany may own in excess of twenty-five percent of the voting control in the\u003cbr\u003ecorporation or limited liability company if that shareholder or member has a direct\u003cbr\u003epecuniary interest in any project or business concern which will occupy the property\u003cbr\u003eof the corporation or limited liability company.The primary objective of thecorporation or limited liability company must be to benefit the community through\u003cbr\u003eincreased employment, payroll, business volume, and corresponding factors rather\u003cbr\u003ethan monetary profits to its shareholders or members. Any monetary profits or other\u003cbr\u003ebenefits going to the shareholders or members must be merely incidental to the\u003cbr\u003eprimary objective of the corporation or limited liability company.2.\u0026quot;Municipality\u0026quot; means counties as well as municipalities of the types listed in\u003cbr\u003esubsection 4 of section 40-01-01.3.\u0026quot;Primary sector business\u0026quot; means an individual, corporation, limited liability company,\u003cbr\u003epartnership, or association which through the employment of knowledge or labor\u003cbr\u003eadds value to a product, process, or service that results in the creation of new\u003cbr\u003ewealth.4.\u0026quot;Project\u0026quot; means any revenue-producing enterprise, or any combination of two or\u003cbr\u003emore of these enterprises. For the purpose of the income tax exemption, \u0026quot;project\u0026quot;\u003cbr\u003emeans both \u0026quot;primary sector business\u0026quot; and \u0026quot;tourism\u0026quot; as defined by this section and\u003cbr\u003eincludes the establishment of a new qualifying business or the expansion of a\u003cbr\u003equalifying existing business.Page No. 15.\u0026quot;Tourism\u0026quot; means all tourism-related businesses and activities, including recreation,\u003cbr\u003ehistorical and cultural events, guide services, and unique lodging and food services\u003cbr\u003ewhich serve as destination attractions.40-57.1-03. Municipality's authority to grant tax exemption or payments in lieu oftaxes - Notice to competitors - Limitations. After negotiation with a potential project operator,\u003cbr\u003ea municipality may grant a partial or complete exemption from ad valorem taxation on all\u003cbr\u003ebuildings, structures, fixtures, and improvements used in or necessary to the operation of a\u003cbr\u003eproject for a period not exceeding five years from the date of commencement of project\u003cbr\u003eoperations. A municipality may also grant a partial or complete exemption from ad valorem\u003cbr\u003etaxation on buildings, structures, fixtures, and improvements used in or necessary to the\u003cbr\u003eoperation of a project that produces or manufactures a product from agricultural commodities for\u003cbr\u003eall or part of the sixth year through the tenth year from the date of commencement of project\u003cbr\u003eoperations.In addition to, or in lieu of, a property tax exemption granted under this section, amunicipality may establish an amount due as payments in lieu of ad valorem taxes on buildings,\u003cbr\u003estructures, fixtures, and improvements used in the operation of a project. The governing body of\u003cbr\u003ethe municipality shall designate the amount of the payments for each year and the beginning\u003cbr\u003eyear and the concluding year for payments in lieu of taxes, but the option to make payments\u003cbr\u003ein lieu of taxes under this section may not extend beyond the twentieth year from the date of\u003cbr\u003ecommencement of project operations. To establish the amount of payments in lieu of taxes, the\u003cbr\u003egoverning body of the municipality may use actual or estimated levels of assessment and\u003cbr\u003etaxation or may establish payment amounts based on other factors. The governing body of the\u003cbr\u003emunicipality may designate different amounts of payments in lieu of taxes in different years to\u003cbr\u003erecognize future project expansion plans or other considerations.By November first of each year, the municipality that granted the option to makepayments in lieu of taxes shall certify to the county auditor the amount of payments in lieu of\u003cbr\u003etaxes due under this section in the following year.After receiving the statement from themunicipality, the county auditor shall certify the payments in lieu of taxes to the county treasurer\u003cbr\u003efor collection at the time when, and in the manner in which, ad valorem taxes must be certified.\u003cbr\u003eUpon receipt by the county treasurer of the amount of payments in lieu of taxes under this\u003cbr\u003esection, the county treasurer shall apportion and distribute that amount to taxing districts on the\u003cbr\u003ebasis on which the general real estate tax levy is apportioned and distributed. The municipality\u003cbr\u003emay enter into a written agreement with the local school district and any other local taxing\u003cbr\u003edistricts that wish to enter the agreement for an alternate method of apportionment and\u003cbr\u003edistribution.If such an agreement is entered into, the county treasurer shall apportion anddistribute the money according to the written agreement.All provisions of law relating toenforcement, administration, collection, penalties, and delinquency proceedings for ad valorem\u003cbr\u003etaxes apply to payments in lieu of taxes under this section. However, the discount for early\u003cbr\u003epayment of taxes under section 57-20-09 does not apply to payments in lieu of taxes under this\u003cbr\u003esection. The buildings, structures, fixtures, and improvements comprising a project for which\u003cbr\u003epayments in lieu of taxes are allowed under this section must be excluded from the valuation of\u003cbr\u003eproperty in the taxing district for purposes of determining the mill rate for the taxing district.Negotiations with potential project operators for tax exemption or payments in lieu oftaxes must be carried on by the city council or commission if the project is proposed to be\u003cbr\u003elocated within the boundaries of a city, and by the board of county commissioners if the project is\u003cbr\u003eproposed to be located outside the corporate limits of any city. A partial exemption must be\u003cbr\u003estated as a percentage of the total ad valorem taxes assessed against the property. Unless the\u003cbr\u003egoverning body of the municipality determines that there is no existing business within the\u003cbr\u003emunicipality for which the potential project would be a competitor, the potential project operator\u003cbr\u003eshall publish two notices to competitors, the form of which must be prescribed by the tax\u003cbr\u003ecommissioner, of the application for tax exemption or payments in lieu of taxes in the official\u003cbr\u003enewspaper of the municipality at least one week apart. The publications must be completed not\u003cbr\u003eless than fifteen nor more than thirty days before the governing body of the municipality is to\u003cbr\u003econsider the application. The municipality shall determine whether the granting of the exemptionPage No. 2or payments in lieu of taxes, or both, is in the best interest of the municipality, and if it so\u003cbr\u003edetermines, shall give its approval.During the negotiation and deliberation of a property tax exemption or the option to makepayments in lieu of taxes under this chapter, a municipality shall include, as nonvoting ex officio\u003cbr\u003emembers of its governing body, a representative appointed by the school board of each school\u003cbr\u003edistrict affected by the proposed action and a representative appointed by the board of township\u003cbr\u003esupervisors of each township affected by the proposed action.40-57.1-04. Exemption from income tax - Notice to competitors - Limitations. Uponapplication by a project operator to the state board of equalization, the net income of a project\u003cbr\u003emay be exempt from state income tax for a period not exceeding five years from commencement\u003cbr\u003eof project operations. The application for the exemption must be reviewed as to the eligibility of\u003cbr\u003ethe project by the department of commerce division of economic development and finance and\u003cbr\u003eits recommendations forwarded to the state board of equalization. The project operator shall\u003cbr\u003eprovide notice to competitors in the manner prescribed by the state board of equalization. The\u003cbr\u003eboard shall determine whether the granting of the exemption is in the best interest of the people\u003cbr\u003eof North Dakota and, if it so determines, approve the exemption. The board shall, after making\u003cbr\u003eits determination, certify the findings back to the applicant and to the tax commissioner. Nothing\u003cbr\u003econtained herein shall have the effect of exempting the project from filing an annual income tax\u003cbr\u003ereturn.40-57.1-04.1. Ad valorem tax exemption for existing structures - Requirements.Notwithstanding any other provision of this chapter, a project operator who otherwise qualifies\u003cbr\u003eunder this chapter may, upon application consistent with the provisions of this chapter, receive a\u003cbr\u003epartial or complete exemption from ad valorem taxation on any existing structure used in or\u003cbr\u003enecessary to the operation of the project for a period not exceeding five years from the date of\u003cbr\u003ecommencement of project operations in the structure.For taxable years beginning afterDecember 31, 1988, the governing body of a municipality may grant additional exemptions of\u003cbr\u003eproperty under this section during a period not exceeding ten years from the date of\u003cbr\u003ecommencement of project operations in the structure if the structure is owned by the United\u003cbr\u003eStates, the state, or a political subdivision of the state and leased to the project operator. The\u003cbr\u003eproject operator shall apply to the governing body of the municipality annually for the exemption\u003cbr\u003eand the governing body of the municipality may grant the exemption for only one year at a time.40-57.1-04.2. Local development corporation defined - Requirements - Purpose.Repealed by S.L. 1991, ch. 447,"])</script><script>self.__next_f.push([1,"3c:[\"$\",\"article\",null,{\"className\":\"article-content\",\"children\":[[\"$\",\"header\",null,{\"className\":\"article-header\",\"children\":[[\"$\",\"$Le\",null,{\"href\":\"/north-dakota/\",\"className\":\"article-category\",\"children\":[\"North Dakota\",\" Statutes\"]}],[\"$\",\"h1\",null,{\"className\":\"article-title\",\"children\":\"40-57.1 Tax Exemptions for New and Expanding Businesses\"}]]}],[\"$\",\"div\",null,{\"className\":\"article-body statute-content\",\"dangerouslySetInnerHTML\":{\"__html\":\"$3e\"}}],false]}]\n"])</script><script>self.__next_f.push([1,"3d:[\"$\",\"aside\",null,{\"className\":\"right-sidebar\",\"children\":[\"$\",\"div\",null,{\"className\":\"related-sidebar\",\"children\":[[\"$\",\"h3\",null,{\"children\":[[\"$\",\"span\",null,{\"className\":\"emoji\",\"children\":\"⚖️\"}],\" State Laws\"]}],[\"$\",\"ul\",null,{\"className\":\"state-laws-list\",\"children\":[[\"$\",\"li\",\"state-of-alabama\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-alabama\",\"children\":[\"The State Laws of \",\"Alabama\"]}]}],[\"$\",\"li\",\"state-of-alaska\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-alaska\",\"children\":[\"The State Laws of \",\"Alaska\"]}]}],[\"$\",\"li\",\"state-of-arizona\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-arizona\",\"children\":[\"The State Laws of \",\"Arizona\"]}]}],[\"$\",\"li\",\"state-of-arkansas\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-arkansas\",\"children\":[\"The State Laws of \",\"Arkansas\"]}]}],[\"$\",\"li\",\"state-of-california\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-california\",\"children\":[\"The State Laws of \",\"California\"]}]}],[\"$\",\"li\",\"state-of-colorado\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-colorado\",\"children\":[\"The State Laws of \",\"Colorado\"]}]}],[\"$\",\"li\",\"state-of-connecticut\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-connecticut\",\"children\":[\"The State Laws of \",\"Connecticut\"]}]}],[\"$\",\"li\",\"state-of-delaware\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-delaware\",\"children\":[\"The State Laws of \",\"Delaware\"]}]}],[\"$\",\"li\",\"state-of-florida\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-florida\",\"children\":[\"The State Laws of \",\"Florida\"]}]}],[\"$\",\"li\",\"state-of-georgia\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-georgia\",\"children\":[\"The State Laws of \",\"Georgia\"]}]}],[\"$\",\"li\",\"state-of-hawaii\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-hawaii\",\"children\":[\"The State Laws of \",\"Hawaii\"]}]}],[\"$\",\"li\",\"state-of-idaho\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-idaho\",\"children\":[\"The State Laws of \",\"Idaho\"]}]}],[\"$\",\"li\",\"state-of-illinois\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-illinois\",\"children\":[\"The State Laws of \",\"Illinois\"]}]}],[\"$\",\"li\",\"state-of-indiana\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-indiana\",\"children\":[\"The State Laws of \",\"Indiana\"]}]}],[\"$\",\"li\",\"state-of-iowa\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-iowa\",\"children\":[\"The State Laws of \",\"Iowa\"]}]}],[\"$\",\"li\",\"state-of-kansas\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-kansas\",\"children\":[\"The State Laws of \",\"Kansas\"]}]}],[\"$\",\"li\",\"state-of-kentucky\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-kentucky\",\"children\":[\"The State Laws of \",\"Kentucky\"]}]}],[\"$\",\"li\",\"state-of-louisiana\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-louisiana\",\"children\":[\"The State Laws of \",\"Louisiana\"]}]}],[\"$\",\"li\",\"state-of-maine\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-maine\",\"children\":[\"The State Laws of \",\"Maine\"]}]}],[\"$\",\"li\",\"state-of-maryland\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-maryland\",\"children\":[\"The State Laws of \",\"Maryland\"]}]}],[\"$\",\"li\",\"state-of-massachusetts\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-massachusetts\",\"children\":[\"The State Laws of \",\"Massachusetts\"]}]}],[\"$\",\"li\",\"state-of-michigan\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-michigan\",\"children\":[\"The State Laws of \",\"Michigan\"]}]}],[\"$\",\"li\",\"state-of-minnesota\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-minnesota\",\"children\":[\"The State Laws of \",\"Minnesota\"]}]}],[\"$\",\"li\",\"state-of-mississippi\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-mississippi\",\"children\":[\"The State Laws of \",\"Mississippi\"]}]}],[\"$\",\"li\",\"state-of-missouri\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-missouri\",\"children\":[\"The State Laws of \",\"Missouri\"]}]}],\"$L3f\",\"$L40\",\"$L41\",\"$L42\",\"$L43\",\"$L44\",\"$L45\",\"$L46\",\"$L47\",\"$L48\",\"$L49\",\"$L4a\",\"$L4b\",\"$L4c\",\"$L4d\",\"$L4e\",\"$L4f\",\"$L50\",\"$L51\",\"$L52\",\"$L53\",\"$L54\",\"$L55\",\"$L56\",\"$L57\"]}]]}]}]\n"])</script><script>self.__next_f.push([1,"3f:[\"$\",\"li\",\"state-of-montana\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-montana\",\"children\":[\"The State Laws of \",\"Montana\"]}]}]\n40:[\"$\",\"li\",\"state-of-nebraska\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-nebraska\",\"children\":[\"The State Laws of \",\"Nebraska\"]}]}]\n41:[\"$\",\"li\",\"state-of-nevada\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-nevada\",\"children\":[\"The State Laws of \",\"Nevada\"]}]}]\n42:[\"$\",\"li\",\"state-of-new-hampshire\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-new-hampshire\",\"children\":[\"The State Laws of \",\"New Hampshire\"]}]}]\n43:[\"$\",\"li\",\"state-of-new-jersey\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-new-jersey\",\"children\":[\"The State Laws of \",\"New Jersey\"]}]}]\n44:[\"$\",\"li\",\"state-of-new-mexico\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-new-mexico\",\"children\":[\"The State Laws of \",\"New Mexico\"]}]}]\n45:[\"$\",\"li\",\"state-of-new-york\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-new-york\",\"children\":[\"The State Laws of \",\"New York\"]}]}]\n46:[\"$\",\"li\",\"state-of-north-carolina\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-north-carolina\",\"children\":[\"The State Laws of \",\"North Carolina\"]}]}]\n47:[\"$\",\"li\",\"state-of-north-dakota\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-north-dakota\",\"children\":[\"The State Laws of \",\"North Dakota\"]}]}]\n48:[\"$\",\"li\",\"state-of-ohio\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-ohio\",\"children\":[\"The State Laws of \",\"Ohio\"]}]}]\n49:[\"$\",\"li\",\"state-of-oklahoma\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-oklahoma\",\"children\":[\"The State Laws of \",\"Oklahoma\"]}]}]\n4a:[\"$\",\"li\",\"state-of-oregon\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-oregon\",\"children\":[\"The State Laws of \",\"Oregon\"]}]}]\n4b:[\"$\",\"li\",\"state-of-pennsylvania\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-pennsylvania\",\"children\":[\"The State Laws of \",\"Pennsylvania\"]}]}]\n4c:[\"$\",\"li\",\"state-of-rhode-island\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-rhode-island\",\"children\":[\"The State Laws of \",\"Rhode Island\"]}]}]\n4d:[\"$\",\"li\",\"state-of-south-carolina\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-south-carolina\",\"children\":[\"The State Laws of \",\"South Carolina\"]}]}]\n4e:[\"$\",\"li\",\"state-of-south-dakota\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-south-dakota\",\"children\":[\"The State Laws of \",\"South Dakota\"]}]}]\n4f:[\"$\",\"li\",\"state-of-tennessee\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-tennessee\",\"children\":[\"The State Laws of \",\"Tennessee\"]}]}]\n50:[\"$\",\"li\",\"state-of-texas\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-texas\",\"children\":[\"The State Laws of \",\"Texas\"]}]}]\n51:[\"$\",\"li\",\"state-of-utah\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-utah\",\"children\":[\"The State Laws of \",\"Utah\"]}]}]\n52:[\"$\",\"li\",\"state-of-vermont\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-vermont\",\"children\":[\"The State Laws of \",\"Vermont\"]}]}]\n53:[\"$\",\"li\",\"state-of-virginia\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-virginia\",\"children\":[\"The State Laws of \",\"Virginia\"]}]}]\n54:[\"$\",\"li\",\"state-of-washington\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-washington\",\"children\":[\"The State Laws of \",\"Washington\"]}]}]\n55:[\"$\",\"li\",\"state-of-west-virginia\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-west-virginia\",\"children\":[\"The State Laws of \",\"West Virginia\"]}]}]\n56:[\"$\",\"li\",\"state-of-wisconsin\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https://state-laws.laws.com/state-of-wisconsin\",\"children\":[\"The State Laws of \",\"Wisconsin\"]}]}]\n57:[\"$\",\"li\",\"state-of-wyoming\",{\"children\":[\"$\",\"a\",null,{\"href\":\"https:"])</script><script>self.__next_f.push([1,"//state-laws.laws.com/state-of-wyoming\",\"children\":[\"The State Laws of \",\"Wyoming\"]}]}]\n"])</script></body></html>