57-01-01. Bond of tax commissioner. [Repealed]

Repealed by S.L. 1999, ch. 113, § 24.

57-01-02. Powers and duties.

The tax commissioner:

1. Shall perform all the duties imposed upon the tax commissioner by law.
2. Shall exercise general supervision over all assessors of general property or other taxes, over township, county, and city boards of equalization and over all other assessing officers, in the performance of their duties, to the end that all assessments of property be made relatively just and equal in compliance with the laws of the state.
3. Shall direct actions and prosecutions to be instituted to enforce the laws relating to the penalties, liabilities, and punishments of persons, officers of corporations, limited liability companies, public officers, and others, for failure or neglect to comply with the provisions of law governing the returns, assessments, and taxation of property, income, or other objects of taxation, cause complaints to be made against officers for neglect or refusal to comply with the law, and generally shall enforce all tax proceedings and revenue laws of the state in the proper courts.
4. May require state’s attorneys of the several counties to assist in the commencement and prosecution of actions and proceedings for the violation of any laws in respect to assessment or taxation.
5. May require township, city, county, and other public officers to report information as to the assessment and collection of property and other taxes, receipts from licenses and other sources, the expenditure of public funds for all purposes, and such other information as may be needful in the administration of the tax laws, in such form and upon such blanks as the tax commissioner may prescribe.
6. May summon witnesses to appear and give testimony and produce books, records, papers, and documents relating to any matter which the tax commissioner or the state board of equalization may have authority to investigate or determine, and may cause the depositions of witnesses residing within or without the state, or temporarily absent therefrom, to be taken, upon notice to the interested parties, if any, in like manner as depositions of witnesses are taken in civil actions in the district court.
7. May require a new assessment of property in any county to be made in accordance with chapter 57-14, whenever that is deemed necessary, or may require county auditors to place on the assessment rolls property which may be discovered and which has not been taxed according to law. For purposes of this subsection, “new assessment” means a new assessment as defined in section 57-14-08.
8. Shall examine carefully all cases in which evasions or violations of the laws of assessment and taxation of property or other objects or subjects of taxation are alleged, complained of, or discovered, and shall ascertain wherein existing laws are defective or are administered improperly or negligently.
9. Shall submit a biennial report to the governor and the secretary of state in accordance with section 54-06-04. The report must contain the biennial report of the state board of equalization.
10. Shall visit other states and confer with taxing officials and attend tax or other economic conferences or conventions, in person or by the tax commissioner’s authorized agent.
11. Shall certify all levies, assessments, equalizations, or valuations made by the tax commissioner or the state board of equalization, not more than thirty days after the same have been made, or at periods otherwise provided by law.
12. May execute reciprocal agreements with the appropriate officials of any other state under which the tax commissioner may waive all or any part of the requirements imposed by the laws or statutes of this state upon those who use or consume in this state gasoline, other motor vehicle fuel, or special fuel upon which the tax has been paid to that other state; provided, that the officials of that other state grant the equivalent privileges with respect to gasoline, other motor vehicle fuel, or special fuel used in that other state upon which the tax has been paid to this state.
13. May maintain an accounting system that includes a special category of accounts designated as noncurrent accounts. The noncurrent accounts must be those accounts that are uncollectible as a matter of law or those accounts in which all reasonable collection efforts over a period of six years have produced no results. After examination by the state auditor, and upon the state auditor’s recommendation for cause, specific accounts may be removed by the commissioner from noncurrent status and all records pertaining thereto immediately destroyed.
14. May waive, upon a showing of good cause, any and all tax due. A lien must have been filed against the debtor’s property prior to the request for a waiver. The attorney general shall approve the waiver. Notwithstanding the provisions of this section, if a debtor and the internal revenue service enter into an offer in compromise pursuant to section 7122 of the Internal Revenue Code [26 U.S.C. 7122], as amended, the tax commissioner may reduce a debtor’s individual income tax liability. However, if the federal offer in compromise, for any reason, is subsequently declared void by the internal revenue service, the debtor is liable for the original amount of tax due.
15. 1. May allow a taxpayer to elect to pay the tax liability to the state no later than the date the payment is required by law to be made in funds which are immediately available to the state on the date of payment. An election to pay the tax under this subdivision is binding until the taxpayer applies to the tax commissioner to rescind the election. Payment in immediately available funds may be made by wire transfer of funds through the federal reserve system or by any other means established by the commissioner which ensures the availability of the funds to the state on the date of payment. Evidence of the payment must be furnished to the commissioner on or before the due date of the tax as established by law. Failure to timely make the payment in immediately available funds or failure to provide evidence of payment in a timely manner subjects the taxpayer to penalty and interest as provided by law for delinquent or deficient tax payments.
    2. May establish by rule periodic filing and payment dates that are subsequent to the dates otherwise established by law for any taxes collected by the commissioner in those instances in which the commissioner deems it to be in the best interest of the state, provided that the alternative date may not be later than the last day of the month in which the tax was otherwise due.
    3. May adopt rules necessary for the administration of this subsection.
16. May participate in the treasury offset program administered by the United States department of treasury as prescribed by federal law and regulation. An amount equal to the amount of fees for participation in this program and any repayment of refunds erroneously received is appropriated as a standing and continuing appropriation to the tax commissioner for payment of fees due under this program and any required repayments.
17. Upon receipt of a written request from the chairman of the legislative management or the chairman of a standing committee of the legislative assembly, the tax commissioner shall disclose the amount of any tax deduction or credit that was claimed or earned by a taxpayer. This subsection does not authorize disclosure of the taxpayer’s name or any other information prohibited from disclosure under title 57. The tax commissioner shall provide notice to taxpayers of possible disclosure under this subsection, in a manner as prescribed by the tax commissioner.

57-01-02.1. Tax collection agreements with home rule cities or counties — Limitations on city or county authority.

1. The governing body of any incorporated city that has adopted the home rule provisions of chapter 40-05.1 or of any county which has adopted the home rule provisions of chapter 11-09.1 must enter a contract with the tax commissioner giving the tax commissioner authority to collect any sales, use, or gross receipts taxes assessed by such incorporated city or county.
2. The tax commissioner shall deposit with the state treasurer all money collected under a contract under this section and accompany each remittance with a certificate showing the city or county for which it was collected. The state treasurer, monthly, shall pay to the auditors of cities or counties the money to which cities or counties are entitled under a contract under this section.
3. Contracts under this section shall provide for an agreed amount to be allowed the tax commissioner for services. Any sums collected for services rendered must be paid to the state treasurer for deposit in the general fund.
4. A person required to collect and remit sales or use taxes may not be required to register with, file returns with, or remit funds to anyone other than the tax commissioner or the tax commissioner’s authorized agent. A city or county may not conduct an independent sales or use tax audit of a seller registered under the agreement adopted under chapter 57-39.4.
5. A retailer shall collect city and county sales and use taxes without regard to any cap or threshold on purchases provided by city or county ordinance, resolution, or charter and a taxpayer is eligible for refund from the tax commissioner of the difference between the amount of city and county sales, use, or gross receipts taxes paid and the amount that would have been due by application of a cap or threshold provided by city or county ordinance, resolution, or charter. At the time of purchase, a retailer may provide to the purchaser a credit or refund equal to the refund amount eligible from the tax commissioner under this section, provided the total tax identified on all invoices, cash register receipts, or other sales documentation is an amount equal to the total tax calculated less the refund or credit provided.
6. The tax commissioner may adopt rules to implement this section.
7. The tax commissioner may offset future distributions of a city’s or county’s tax imposed and collected under chapters 40-05.1 or 11-09.1 if there was a previous overpayment of the tax distributed to that city or county. The tax commissioner, after consulting the appropriate local political subdivision, may determine the offset amount and time period for recovery of the overpayment of the tax distribution.

57-01-03. Office of commissioner.

The office of the tax commissioner must be at the state capitol. The tax commissioner may appoint such deputies, employees, clerks, experts, and other persons as are necessary in maintaining the tax commissioner’s office and performing duties for which the legislative assembly may appropriate funds.

57-01-04. Salary.

The annual salary of the state tax commissioner is one hundred twenty-one thousand eight hundred fourteen dollars through June 30, 2022, and one hundred twenty-four thousand two hundred fifty dollars thereafter.

57-01-05. State supervisor of assessments.

The state tax commissioner shall appoint a state supervisor of assessments who must be a person trained and experienced in property appraisals and familiar with assessment and equalization procedures and techniques. The state supervisor of assessments serves at the pleasure of the state tax commissioner and office space must be furnished to the state supervisor of assessments by the commissioner.

The state supervisor of assessments shall perform the following duties under the direction of the tax commissioner:

1. The state supervisor of assessments shall advise and give assessors the necessary instructions and directions as to their duties under the laws of this state, to promote uniform assessment of property in this state.
2. The state supervisor of assessments shall assist and instruct assessors in use of soil surveys, land classification methods, preparation and proper use of land maps and record cards, proper classification of real and personal property, and determination of proper standards of value.
3. The state supervisor of assessments may require the attendance of groups of assessors at meetings called by the state supervisor of assessments for the purpose of giving them further assistance and instruction as to their duties.
4. The state supervisor of assessments may make sales, market, and productivity studies and other studies of property assessments in the counties and cities of this state to properly advise the assessors and directors of tax equalization in the state and to recommend to the tax commissioner changes to be made by the state board of equalization in the performance of its equalization powers and duties. In any sales, market, and productivity study made according to section 57-01-06, the county directors of tax equalization or city assessors shall compile a record of sales of property made in the county or city, and in conjunction with the board of county commissioners shall analyze the sales for the purpose of advising the state supervisor of assessments as to the value of using the sales in any such study. The compilations must be forwarded to the state supervisor of assessments with the findings of the county director of tax equalization, city assessors, and the board of county commissioners. In any county or city or any part thereof where the number of sales of properties is insufficient for making a sales, market, and productivity study, the county director of tax equalization or city assessor, as the case may be, in cooperation with the state supervisor of assessments or that person’s assistants shall make appraisals of properties in order to determine the market value.
5. The state supervisor of assessments shall cooperate with North Dakota state university in the development of a soil mapping program, a land classification system, valuation studies, and other matters relating to the assessment of property and shall provide for the use of such information and procedure at the earliest possible date by the assessors of this state.
6. The state supervisor of assessments has general supervision of assessors and county directors of tax equalization pertaining to methods and procedures of assessment of all property and has authority to require all county directors of tax equalization to do any act necessary to obtain uniform methods and procedures of assessment.
7. Whenever an investigation by the state supervisor of assessments shows there is probable cause to believe the holder of a certificate issued by the state supervisor of assessments under section 57-02-01.1 has failed to comply with any of the provisions of law pertaining to assessments, or any rules adopted by the tax commissioner, the state supervisor of assessments may petition the tax commissioner for a hearing to show cause why the certificate should be suspended or revoked.
   1. The state supervisor of assessments must provide the certificate holder at least ten days’ notice of the time and place of the hearing.
   2. If cause to suspend or revoke the certificate is shown, the tax commissioner may suspend or revoke the certificate.
   3. The tax commissioner may restore a certificate after suspension or revocation.
   4. An individual whose certificate has been suspended or revoked in the manner provided in this section may appeal that determination to the district court as provided in section 28-32-42.
8. If a certificate holder’s certificate is suspended or revoked under this section, the governing body of the county in which the certificate holder performs duties shall ensure the continued administration of assessments within that county by a person authorized under section 11-10.1-05 and be responsible for any expenses associated with the fulfillment of this responsibility. Expenses incurred by a county to fulfill the duties of a township or city assessment official whose certificate has been suspended or revoked must be charged to the political subdivision in which the certificate holder is employed and must either be paid directly to the county by the political subdivision or deducted by the county treasurer from funds coming into the treasurer’s control which are apportionable to the subdivision.
9. The state supervisor of assessments shall perform such other duties relating to assessment and taxation of property as the tax commissioner directs.
10. The tax commissioner may adopt rules under chapter 28-32 necessary for the administration of this section.

57-01-06. Sales, market, and productivity study — Contents not to be included.

Any sales, market, and productivity study which may be made by the tax commissioner may not include the following:

1. Property owned or used by public utilities.
2. Property classified as personal property.
3. A sale when the grantor and the grantee are of the same family or corporate affiliate, if known.
4. A sale which resulted as a settlement of an estate.
5. All forced sales, mortgage foreclosures, and tax sales.
6. All sales to or from religious, charitable, or nonprofit organizations.
7. All sales where there is an indicated change of use by the new owner.
8. All transfer of ownership of property for which is given a quitclaim deed.
9. Sales of property not assessable by law.
10. Agricultural lands of less than eighty acres [32.37 hectares].

57-01-06.1. Statement of legislative intent concerning use of sales, market, and productivity studies.

It is the intent of the legislative assembly that local assessors, county directors of tax equalization, and city, township, county, and state boards of equalization use the results of sales, market, and productivity studies as a guide in making assessments and in equalizing assessments of property in this state. The legislative assembly recognizes that sales of property alone provide insufficient information to make accurate judgments concerning the market value of property within the various counties of this state, particularly in view of the limited number of sales which occur within a given period of time in many counties, and that, in order to get an accurate picture of market value, consideration must be given to such factors as property appraisals, productivity, and current usage of property.

57-01-07. Review of sales, market, and productivity study by state tax commissioner — Appeal.

1. The state tax commissioner shall notify each county board of commissioners of a scheduled hearing of the sales, market, and productivity study before the state tax commissioner. Such notice must set forth the time and date and place of such hearing. After hearing objections to using certain sales in the study, the state tax commissioner is authorized to withdraw such sales that the state tax commissioner deems are not representative. Within thirty days after the close of such formal hearing, the state tax commissioner shall notify each county board of commissioners, in writing, as to the action taken as a result of such hearing. Within ten days after receiving such notice from the state tax commissioner, each board of county commissioners may appeal the decision of the state tax commissioner to the state board of equalization. Such board will review the findings of the state tax commissioner and render its final decision on such appeal.
2. No sale may be used in any sales, market, and productivity study until it has been verified by the state tax commissioner, the county supervisor of assessments, township supervisors, or the board of county commissioners or its agent that none of the exclusions set forth in section 57-01-06 have been used in the study.

57-01-08. County equalization fund payments — Sales assessment ratio — When effective. [Omitted]

Omitted.

Note.

Not repealed but omitted as a statute not of a general and permanent nature. This section can be found as S.L. 1965, ch. 382, § 3.

57-01-09. Tax commissioner’s cash change fund authorized.

For the purpose of promptly and efficiently accommodating taxpayers who make payments of taxes in person to the cashier in the state tax department, the tax commissioner may maintain, out of collections made, a cash fund in the cashier’s office in an amount reasonably necessary for making change. The tax commissioner shall obtain the written approval of the director of the office of management and budget of the amount of money to be maintained in such cash change fund.

57-01-10. Tax manuals — Distribution.

The state tax commissioner may prepare a manual or manuals in looseleaf form in which is compiled the provisions of any or several of the tax laws administered by the state tax commissioner with the rules, regulations, opinions, and other information relating to the administration of the particular law or laws included in each manual. The state tax commissioner may make each manual available for sale at a charge that will cover the cost of preparing and mailing it and also may prepare and have available for sale, at an amount sufficient to cover all costs, periodic supplements to each manual so as to provide the purchaser with current information relating to the interpretation and administration of the various tax laws the state tax commissioner administers.

All moneys received by the state tax commissioner from the sale of such manuals and the supplements for them must be transmitted by the state tax commissioner at the end of each month to the state treasurer for deposit by the state treasurer to the credit of the general fund.

57-01-11. Assessment of or determination of additional tax liability by tax commissioner — Hearing — Appeal.

1. In any case in which the provisions of any tax law are administered by the tax commissioner and the tax is collected by the tax commissioner or the amount thereof is certified by the tax commissioner to any other official for collection and the law providing for such tax authorizes the tax commissioner to assess or determine a tax liability that is in addition to that reported by the taxpayer, the taxpayer has a right to a hearing before the tax commissioner on such assessment or determination and has a right to appeal to the courts from the decision of the tax commissioner on such hearing and all of the provisions of chapter 28-32 relating to proceedings before an administrative agency, including the right to appeal to the courts from the decision of the tax commissioner in such a proceeding, are applicable to and govern the notice of hearing, the hearing, and the right of appeal from the tax commissioner’s decision thereon. Notwithstanding the provisions of any other law heretofore or hereafter enacted, it is the intent and purpose of this section to provide that in those circumstances hereinbefore described every taxpayer shall have both the right to a hearing before the tax commissioner and the right to appeal to the courts from the tax commissioner’s decision on such hearing in accordance with the provisions of chapter 28-32 unless the provisions of any such law expressly provide that the decision of the tax commissioner is final or expressly provide that the provisions of chapter 28-32 are not applicable.
2. If a tax administered by the tax commissioner is assessed under any provision of law that expressly provides the assessed tax is final and nonreviewable and the assessed tax has not been paid, the tax commissioner may accept for legal settlement purposes, a reduced amount of tax if information is received from the taxpayer that the tax as assessed exceeds the actual amount due. If the tax commissioner receives information that the tax was under-assessed, the additional amount of tax that is determined to be due may be assessed by the tax commissioner, notwithstanding the fact that the assessment made by the tax commissioner is final and nonreviewable.

57-01-11.1. Reports on auditing enhancement program and settlement of tax assessments. [Repealed]

Repealed by S.L. 1997, ch. 445, § 4.

57-01-12. Approval of refunds by tax commissioner. [Repealed]

Repealed by S.L. 1983, ch. 639, § 2.

57-01-12.1. Application of refunds and credits.

All refunds and credits for overpayment to any taxpayer may be applied to the payment of any taxpayer’s delinquent or unpaid taxes, including penalties and interest, or delayed until the taxpayer’s delinquent returns have been filed and all taxes due thereon, including penalties and interest, have been paid. This provision is applicable as to all taxes that are administered and collected by the tax commissioner and is effective for all refunds and credits determined payable or due a taxpayer after December 31, 1978.

57-01-12.2. Minimum refunds and collections.

1. Except as otherwise provided in this title, a refund may not be made by the tax commissioner to any taxpayer unless the amount to be refunded, including interest, is at least five dollars. The tax commissioner shall transfer any amount that is not refunded to a taxpayer under this subsection to the state treasurer for deposit in the same manner as other revenue relating to the tax being administered.
2. A remittance of tax need not be made and any assessment or collection of tax may not be made unless the amount is at least five dollars, including penalties and interest.

History. S.L. 2015, ch. 432, § 4, effective July 1, 2015.

57-01-13. Collection of delinquent sales, use, motor vehicle fuels, special fuels, importer for use, aviation fuel, motor vehicle excise, telecommunications carriers, income, and alcoholic beverage gross receipts taxes. [Contingent expiration date – See note]

1. Notwithstanding the secrecy and confidential information provisions in chapters 57-38, 57-39.2, and 57-40.2, the tax commissioner may, for the purpose of collecting delinquent North Dakota sales, use, motor vehicle fuels, special fuels, importer for use, aviation fuel, motor vehicle excise, telecommunications carriers, income, or alcoholic beverage gross receipts taxes due from a taxpayer not residing or domiciled in this state, contract with any collection or credit agency, within or without the state, for the collection of the delinquent sales, use, motor vehicle fuels, special fuels, importer for use, aviation fuel, motor vehicle excise, telecommunications carriers, income, or alcoholic beverage gross receipts taxes, including penalties and interest thereon. For purposes of this section, a delinquent tax is defined as a tax liability that is due and owing for a period longer than six months and for which the taxpayer has been given at least three notices in writing requesting payment. The notices must be sent by first-class mail to the taxpayer at the taxpayer’s last-known mailing address. The third notice must be sent with a copy of an affidavit of mailing. If the tax commissioner has assigned a delinquent tax liability pursuant to this section, subsequent sales, use, motor vehicle fuels, special fuels, importer for use, aviation fuel, motor vehicle excise, telecommunications carriers, income, or alcoholic beverage gross receipts taxes that become due from the same taxpayer may be assigned immediately and without further notice to the taxpayer, so long as the originally assigned liability has not been fully collected.
2. 1. Fees for services, reimbursement, or any other remuneration to a collection or credit agency must be based on the amount of tax, penalty, and interest actually collected. Each contract entered into between the tax commissioner and the collection or credit agency must provide for the payment of fees for the services, reimbursements, or other remuneration not in excess of fifty percent of the amount of delinquent sales, use, motor vehicle fuels, special fuels, importer for use, aviation fuel, motor vehicle excise, income, or alcoholic beverage gross receipts taxes, including penalties and interest actually collected.
   2. All funds collected by the collection or credit agency must be remitted to the tax commissioner monthly from the date of collection from a taxpayer. Forms to be used for the remittances must be prescribed by the tax commissioner. The tax commissioner shall transfer the funds to the state treasurer for deposit in the state general fund. An amount equal to the amount of fees for services, reimbursement, or any other remuneration to the collection or credit agency as set forth in the contract authorized by this section is appropriated as a standing and continuing appropriation to the tax commissioner for payment of fees due under the contract.
   3. Before entering into a contract, the tax commissioner shall require a bond from the collection or credit agency not in excess of ten thousand dollars, guaranteeing compliance with the terms of the contract.
3. A collection or credit agency entering into a contract with the tax commissioner for the collection of delinquent taxes pursuant to this section thereby agrees that it is doing business in this state for the purposes of the North Dakota income tax laws.

57-01-13. Collection of delinquent sales, use, motor vehicle fuels, special fuels, importer for use, aviation fuel, motor vehicle excise, telecommunications carriers, income, and alcoholic beverage gross receipts taxes. [Contingent effective date – See note]

1. Notwithstanding the secrecy and confidential information provisions in chapters 57-38 and 57-39.2, the tax commissioner may, for the purpose of collecting delinquent North Dakota sales, use, motor vehicle fuels, special fuels, importer for use, aviation fuel, motor vehicle excise, telecommunications carriers, income, or alcoholic beverage gross receipts taxes due from a taxpayer not residing or domiciled in this state, contract with any collection or credit agency, within or without the state, for the collection of the delinquent sales, use, motor vehicle fuels, special fuels, importer for use, aviation fuel, motor vehicle excise, telecommunications carriers, income, or alcoholic beverage gross receipts taxes, including penalties and interest thereon. For purposes of this section, a delinquent tax is defined as a tax liability that is due and owing for a period longer than six months and for which the taxpayer has been given at least three notices in writing requesting payment. The notices must be sent by regular mail to the taxpayer at the taxpayer’s last-known mailing address. The third notice must be sent with a copy of an affidavit of mailing. If the tax commissioner has assigned a delinquent tax liability pursuant to this section, subsequent sales, use, motor vehicle fuels, special fuels, importer for use, aviation fuel, motor vehicle excise, income, or alcoholic beverage gross receipts taxes that become due from the same taxpayer may be assigned immediately and without further notice to the taxpayer, so long as the originally assigned liability has not been fully collected.
2. 1. Fees for services, reimbursement, or any other remuneration to a collection or credit agency must be based on the amount of tax, penalty, and interest actually collected. Each contract entered into between the tax commissioner and the collection or credit agency must provide for the payment of fees for the services, reimbursements, or other remuneration not in excess of fifty percent of the amount of delinquent sales, use, motor vehicle fuels, special fuels, importer for use, aviation fuel, motor vehicle excise, income, or alcoholic beverage gross receipts taxes, including penalties and interest actually collected.
   2. All funds collected, less the fees for collection services, as provided in the contract, must be remitted to the tax commissioner monthly from the date of collection from a taxpayer. Forms to be used for the remittances must be prescribed by the tax commissioner.
   3. Before entering into a contract, the tax commissioner shall require a bond from the collection or credit agency not in excess of ten thousand dollars, guaranteeing compliance with the terms of the contract.
3. A collection or credit agency entering into a contract with the tax commissioner for the collection of delinquent taxes pursuant to this section thereby agrees that it is doing business in this state for the purposes of the North Dakota income tax laws.

57-01-14. Tax information furnished by United States secretary of the treasury — Penalty for disclosure.

Except as authorized by the United States Internal Revenue Code of 1954, it is unlawful for the state tax commissioner or any of the commissioner’s employees or legal representatives to disclose to any person any return or return information opened to inspection by or disclosed by the United States secretary of the treasury pursuant to section 6103 of the United States Internal Revenue Code of 1954 [26 U.S.C. 6103] to the state tax commissioner or any of the commissioner’s employees or legal representatives for the administration of the tax laws administered by the state tax commissioner. For the purposes of this section, the terms “return” and “return information” have the same meanings as are provided in section 6103 of the United States Internal Revenue Code of 1954 [26 U.S.C. 6103], and “state tax commissioner” and “any of the commissioner’s employees or legal representatives” include a former state tax commissioner and a former employee or legal representative of the state tax commissioner. Any person who violates this section is guilty of a class C felony as provided in section 12.1-13-01.

57-01-15. Use of tax information to administer tax laws.

For the purpose of properly administering the tax laws of this state, information filed by or on behalf of a person with the tax commissioner under this title, including information obtained for the purpose of the valuation and assessment of centrally assessed property, and any other information relating to that person which was either obtained by the tax commissioner pursuant to that tax law or furnished to the tax commissioner pursuant to section 6103 of the United States Internal Revenue Code of 1954, as amended [26 U.S.C. 6103] may be used by the tax commissioner to determine or enforce the tax liability, if any, of that person under any other tax law of this state that is administered by the tax commissioner under this title. This section does not apply to statements of full consideration filed with the state board of equalization under section 11-18-02.2.

57-01-15.1. Tax incentives — State and local tax clearance.

1. A person may not claim a state or local tax incentive identified in section 54-35-26, unless the person has satisfied all state and local tax obligations and tax liens of record for taxes owed to the state or a political subdivision.
2. A person claiming a state tax incentive shall attach to the return or other filing schedule on which the tax incentive is claimed, a property tax clearance record from each county in which the person has a fifty percent or more ownership interest in the property.
3. A city or county may not grant a local tax incentive unless the person requesting the tax incentive is not delinquent on any property taxes and the person provides a state tax clearance record. A property tax clearance is required for property in which the person has a fifty percent or more ownership interest.
4. If a tax incentive applicant or claimant is a corporation or passthrough entity, any of the corporation’s or passthrough entity’s officers, governors, managing members, or partners charged with the responsibility for filing and paying property, income, income withholding, sales, or use tax are subject to the provisions of subsections 2 and 3.
5. If a person fails to comply with this section, the tax commissioner shall disallow that person’s state tax exemption or credit claimed under any law authorizing the tax commissioner to audit and assess the additional tax due.

57-01-16. Extension of period of time to make assessments.

If the tax commissioner issues a subpoena to a taxpayer, the period of time for making an assessment against that taxpayer is automatically extended by a period equal to the time between the issuance of the subpoena to final resolution. Final resolution occurs when a court dismisses the subpoena or the taxpayer complies with the subpoena.

57-01-17. Failure to complete return or supply information.

If the tax commissioner is of the opinion that any taxpayer has failed to include in a return as filed, or to provide during the course of an audit, information necessary to determine a North Dakota tax liability, the tax commissioner may require from the taxpayer an amended return or supplementary information as is necessary to properly and accurately determine a taxpayer’s North Dakota tax liability, in the form prescribed by the tax commissioner. If the taxpayer fails to file the amended return or to furnish the supplementary information, the tax commissioner, after thirty days’ notice, may determine the North Dakota tax liability from the best information available and assess any tax due, including interest and penalty. The taxpayer may protest the determination under the protest procedure provided for the type of tax assessed.

57-01-18. Disclosure of name and address by state tax commissioner.

Notwithstanding the secrecy and confidential information provisions of this title, for the purpose of properly administering the tax laws of this state, name and address information filed on returns by or on behalf of a person with the tax commissioner pursuant to a tax law of this state, obtained by the tax commissioner pursuant to that tax law, or furnished to the tax commissioner under section 6103 of the Internal Revenue Code [26 U.S.C. 6103] may be provided by the tax commissioner to the United States postal service or a national change-of-address vendor authorized by the United States postal service, for the sole purpose of obtaining proper and correct address information on that person.

57-01-19. Claim of unconstitutionality — Refund or credit of taxes paid.

Notwithstanding any provision relating to claims for refund or credit of state taxes paid contained in title 57, any claim for a refund or credit of taxes paid based upon a claim that the tax or any provision thereof is unconstitutional under the federal or state constitution must be made within one hundred eighty days of the due date of the return or payment of the tax, whichever occurs first, for which the refund or credit is claimed. A claim for refund or credit of taxes paid before January 1, 2005, based upon a claim that the tax or any provision thereof is unconstitutional that is not filed with the commissioner before July 1, 2005, must be denied. This section does not apply to ad valorem property taxes.

57-01-20. Multistate tax audit fund — Continuing appropriation — Transfers to the general fund.

There is created in the state treasury the multistate tax audit fund. The fund consists of all moneys collected and received by the tax commissioner as a result of participation in the multistate tax commission audit and nexus programs. All moneys in the fund are appropriated to the tax commissioner on a continuing basis to pay the multistate tax commission audit and nexus program fees. On or before June thirtieth of each year, the tax commissioner shall certify to the state treasurer the amount of accumulated funds in the multistate tax audit fund which exceed the audit and nexus program fees for the following year. The state treasurer shall transfer the certified amount from the multistate tax audit fund to the general fund prior to the end of each fiscal year.

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.
   1. Property platted on or after March 30, 1981, is not agricultural property when any four of the following conditions exist:
      1. The land is platted by the owner.
      2. Public improvements, including sewer, water, or streets, are in place.
      3. Topsoil is removed or topography is disturbed to the extent that the property cannot be used to raise crops or graze farm animals.
      4. Property is zoned other than agricultural.
      5. Property has assumed an urban atmosphere because of adjacent residential or commercial development on three or more sides.
      6. The parcel is less than ten acres [4.05 hectares] and not contiguous to agricultural property.
      7. The property sells for more than four times the county average true and full agricultural value.
   2. Land that was assessed as agricultural property at the time the land was put to use for extraction of oil, natural gas, or subsurface minerals as defined in section 38-12-01 must continue to be assessed as agricultural property if the remainder of the surface owner’s parcel of property on which the subsurface mineral activity is occurring continues to qualify for assessment as agricultural property under this subsection.
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.
8. “Money” or “moneys” means gold and silver coin, treasury notes, bank notes, and every deposit which any person owning the same or holding in trust and residing in this state is entitled to withdraw as money or on demand.
9. “Municipality” or “taxing district” means a county, city, township, school district, water conservation and flood control district, Garrison Diversion Conservancy District, county park district, joint county park district, irrigation district, park district, rural fire protection district, or any other subdivision of the state empowered to levy taxes.
10. “Person” includes a firm, corporation, or limited liability company.
11. “Railroad property” means the operating property, including franchises, of each railroad operated in this state, including any electric or other street or interurban railway.
12. “Residential property” means all property, or portions of property, used by an individual or group of individuals as a dwelling, including property upon which a mobile home is located but not including hotel and motel accommodations required to be licensed under chapter 23-09 nor structures providing living accommodations for four or more separate family units nor any tract of land upon which four or more mobile homes are located.
13. “Taxable valuation” signifies the valuation remaining after deducting exemptions and making other reductions from the original assessed valuation, and is the valuation upon which the rate of levy finally is computed and against which the taxes finally are extended.
14. “Tract”, “lot”, “piece or parcel of real property”, or “piece or parcel of land” means any contiguous quantity of land in the possession of, owned by or recorded as the property of, the same claimant, person, or company.
15. “True and full value” means the value determined by considering the earning or productive capacity, if any, the market value, if any, and all other matters that affect the actual value of the property to be assessed. This shall include, for purposes of arriving at the true and full value of property used for agricultural purposes, farm rentals, soil capability, soil productivity, and soils analysis.
16. “Unencumbered cash” means the total cash on hand in any fund, less the amount belonging to the fund in closed banks and less the amount of outstanding warrants, bills, accounts, and contracts which are chargeable against the fund.
17. There shall be a presumption that a unit of land is not a farm unless such unit contains a minimum of ten acres [4.05 hectares], and the taxing authority, in determining whether such presumption shall apply, shall consider such things as the present use, the adaptability to use, and how similar type properties in the immediate area are classified for tax purposes.

57-02-01.1. Certification of assessors.

The state supervisor of assessments shall certify assessors as provided in this section.

1. To be certified as a class I assessor, an individual must:
   1. Have a high school diploma or its equivalent.
   2. Successfully complete one hundred eighty hours of assessment and appraisal instruction approved by the state supervisor of assessments. The number of hours of instruction determined necessary by the state supervisor of assessments for each of the following topics is required:
      1. Tax administration.
      2. Principles and theory of value.
      3. Residential property appraisal.
      4. Commercial property appraisal.
      5. Agricultural property valuation.
2. To be certified as a class II assessor, an individual must:
   1. Have a high school diploma or its equivalent.
   2. Successfully complete eighty hours of assessment and appraisal instruction approved by the state supervisor of assessments. The number of hours of instruction determined necessary by the state supervisor of assessments for each of the following topics is required:
      1. Tax administration.
      2. Principles and theory of value.
      3. Residential property appraisal.
      4. Commercial property appraisal.
      5. Agricultural property valuation.
3. The state supervisor of assessments may allow credit against required instruction in any topic under subdivision b of subsection 1 and subdivision b of subsection 2 upon receipt of documented training in this state or another state in the topic.
4. An individual appointed as an assessor must hold the required assessor certificate at the time of appointment or obtain that certificate within two years after initial appointment or by July 31, 2017, whichever is later. An assessor who does not obtain the required certificate within two years after initial appointment or by July 31, 2017, whichever is later, or who does not maintain that certificate in good standing is not eligible for re-appointment.
5. An assessor certificate is valid for a term of two years from the first day of the calendar year for which it becomes effective.
6. A class I assessor certificate may be renewed if the holder has completed twenty hours of approved classroom instruction or seminars during the term of the certificate. For purposes of this subsection, an assessor certificate holder is entitled to one and one-half hours of credit for each hour spent as an instructor of approved classroom instruction or seminars during the term of the certificate.
7. A class II assessor certificate may be renewed if the holder has completed ten hours of approved classroom instruction or seminars during the term of the certificate.
8. The state supervisor of assessments shall notify the holder of an assessor certificate of the time for application for renewal of the individual’s certificate. The state supervisor of assessments shall notify the governing body of the taxing district employing an assessor whose certificate is not renewed or whose certificate is suspended or revoked.
9. Any person who is denied a certificate under this section may appeal to the tax commissioner for a hearing under chapter 28-32.
10. The tax commissioner may adopt rules under chapter 28-32 for the administration of this section.

History. S.L. 2015, ch. 433, § 5, eff for taxable years beginning after December 31, 2014.

57-02-02. Abbreviations used in land descriptions.

Abbreviations used in describing real estate may be as follows:

1. In all proceedings, lists, advertisements, records, notices, and documents relative to assessing, advertising, or selling real estate for taxes or special assessments, it is sufficient to describe such real estate by the use of initial letters, abbreviations, and figures to designate the township, range, section, or part of section, and the number of a lot or block.
2. Whenever the letters N., E., S., or W. are used, they must be construed to mean north, east, south, and west, respectively.
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, or W.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]

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]

Repealed by S.L. 1983, ch. 595, § 3.

57-02-07. Who are deemed manufacturers. [Repealed]

Repealed by S.L. 1983, ch. 595, § 3.

57-02-08. Property exempt from taxation. [Effective for taxable years beginning before January 1, 2022]

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 and the leasehold interest in property leased by a political subdivision from another 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. Repealed by S.L. 2011, ch. 445, § 2.
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. The exemption provided by this subsection 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. 1. The land and any buildings on a parcel on which a church building is located, and which is owned by a religious corporation or organization and used predominantly for the religious purposes of the organization, must be deemed to be property used exclusively for religious purposes, and exempt from taxation. The land and any buildings on a parcel contiguous to the parcel on which a church building is located, which is owned by a religious corporation or organization, is exempt from taxation if any building located on the parcel is used predominantly for religious purposes.
   2. If the parsonage and residence of the bishop, priest, rector, minister, or other clergy is located on property owned by the religious corporation or organization, which is not adjacent to the church, that residence, with usual outbuildings and land on which it is located, up to two acres [.81 hectare], must be deemed to be property used exclusively for religious purposes and is exempt from taxation.
   3. Up to twenty acres of undeveloped land owned by a religious corporation or organization for the purpose of a future church building or buildings is exempt from taxation. This exemption expires ten years after the taxable year in which the property was acquired by the religious corporation or organization if construction improvements to accommodate a church building have not commenced.
   4. The exemption for a building used for the religious purposes 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.
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.
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. 1. 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, any structure or improvement used by a manufacturing facility as defined in section 19-24.1-01, 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:
          1. Whether the farmer grows or purchases feed for animals raised on the farm.
          2. Whether animals being raised on the farm are owned by the farmer.
          3. Whether the farm’s replacement animals are produced on the farm.
          4. Whether the farmer is engaged in contract feeding of animals on the farm.
    2. 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 annual gross income from farming activities which is sixty-six percent or more of annual gross income, including gross income of a spouse if married, during any of the two 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, with the exception of marijuana grown under chapter 19-24.1; poultry; livestock; or dairy farming in such products’ unmanufactured state and has received annual gross income from farming activities which is sixty-six percent or more of annual gross income, including gross income of a spouse if married, during any of the two preceding calendar years. For purposes of this paragraph, “farmer” includes a:
          1. “Beginning farmer”, which means an individual who has begun occupancy and operation of a farm within the two 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 two preceding calendar years.
          2. “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.
          3. “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. “Gross income” means gross income as defined under the federal Internal Revenue Code.
       4. Gross income from farming activities means gross income from
       5. When exemption is claimed under this subdivision for a residence, the occupant of the residence who it is claimed is a farmer shall provide to the assessor for the year or years specified by the assessor a written statement in which it is stated that sixty-six percent or more of the gross income of that occupant, and spouse if married and both spouses occupy the residence, was, or was not, gross income from farming activities.  The individual claiming the exemption also shall provide to the assessor, on a form prescribed by the tax commissioner, the necessary income information to demonstrate eligibility. Any income information provided to the assessor regarding eligibility for an exemption claimed under this subdivision is a confidential record.
       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. Repealed by S.L. 1983, ch. 595, § 3.
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:
    1. 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.
    2. 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.
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:
    1. 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.
    2. Any property that is subjected to a tax which is imposed in lieu of ad valorem taxes.
    3. 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, 57-61, or 57-65.
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:
    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 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.
    2. 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. The exemption applies regardless of whether the early childhood or adult day care service provider owns the property. However, this exemption is not available for property used as a residence.
37. 1. 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.
    2. 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. Property owned by the state 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. 1. 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.
    2. 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.
43. All residential rental property, inclusive of land and administrative and auxiliary buildings, used as affordable housing shall be exempt from taxation for the property’s period of affordability.
    1. The property is exempt under this section if the housing finance agency certifies to the county director of tax equalization that on January 1, 2013, or thereafter, the residential rental property complies with the following:
       1. The property is subject to and in compliance with a land use restriction agreement that enumerates the mandatory income and rent restrictions;
       2. The property is owned by a qualified nonprofit entity, as defined in section 42 of the Internal Revenue Code [26 U.S.C. 42]. If under a partnership agreement or other legally enforceable instrument, a for-profit entity, such as a limited partner, has an ownership interest in the property, then the agreement must provide that the nonprofit entity must have the right of first refusal in any transfer of the ownership interest in the property. The partnership agreement or other legally enforceable instrument also must provide that any transfer of the ownership interest by the for-profit entity must be without financial gain; and
       3. The general partner or other ownership entity is owned or controlled by a nonprofit entity or a political subdivision.
    2. For projects beginning after December 31, 2012, the exemption begins for the first taxable year after the owners of the rental property receive a building permit from the local jurisdiction in which the affordable housing residential rental property will be located.
    3. If part of the residential rental property is not eligible to receive assistance through local, state, or federal affordable housing programs, the exemption under this section is calculated by dividing the number of income and rent-restricted units by the total number of rental units.
    4. In lieu of the ad valorem taxes that would otherwise be assessed, the project owners shall make a payment equal to five percent of the balance of the total annual rents collected during the preceding calendar year, minus the utility costs for the property paid by the owner of the property.
    5. If an affordable housing rental property fails to comply with the requirements of this section, or fails to comply with rent and household income restrictions under a local, state, or federal affordable housing program, on or before March fifteen of each calendar year, the housing finance agency shall notify the director of tax equalization and the state supervisor of assessments that the property is no longer eligible for the exemption.
    6. For the purposes of this subsection, “affordable housing” includes property eligible for or receiving assistance through a local, state, or federal affordable housing program and in which rent and household income restrictions apply, and which is owned by nonprofit entities organized for the purpose of providing affordable housing. Affordable housing is limited to residential rental property owned by or with a controlling ownership or management interest by an organization organized and operated exclusively for exempt purposes set forth in section 501(c)(3) of the Internal Revenue Code [26 U.S.C. 501(c)(3)].

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.

farming as defined for purposes of determining if an individual is a farmer eligible to use the special estimated income tax payment rules for farmers under section 6654 of the federal Internal Revenue Code [26 U.S.C. 6654].

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.

57-02-08. Property exempt from taxation. [Effective for taxable years beginning after December 31, 2021]

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 and the leasehold interest in property leased by a political subdivision from another 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. Repealed by S.L. 2011, ch. 445, § 2.
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. The exemption provided by this subsection 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. 1. The land and any buildings on a parcel on which a church building is located, and which is owned by a religious corporation or organization and used predominantly for the religious purposes of the organization, must be deemed to be property used exclusively for religious purposes, and exempt from taxation. The land and any buildings on a parcel contiguous to the parcel on which a church building is located, which is owned by a religious corporation or organization, is exempt from taxation if any building located on the parcel is used predominantly for religious purposes.
   2. If the parsonage and residence of the bishop, priest, rector, minister, or other clergy is located on property owned by the religious corporation or organization, which is not adjacent to the church, that residence, with usual outbuildings and land on which it is located, up to two acres [.81 hectare], must be deemed to be property used exclusively for religious purposes and is exempt from taxation.
   3. Up to twenty acres of undeveloped land owned by a religious corporation or organization for the purpose of a future church building or buildings is exempt from taxation. This exemption expires ten years after the taxable year in which the property was acquired by the religious corporation or organization if construction improvements to accommodate a church building have not commenced.
   4. The exemption for a building used for the religious purposes 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.
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.
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. 1. 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, any structure or improvement used by a manufacturing facility as defined in section 19-24.1-01, 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:
          1. Whether the farmer grows or purchases feed for animals raised on the farm.
          2. Whether animals being raised on the farm are owned by the farmer.
          3. Whether the farm’s replacement animals are produced on the farm.
          4. Whether the farmer is engaged in contract feeding of animals on the farm.
    2. 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 annual gross income from farming activities which is sixty-six percent or more of annual gross income, including gross income of a spouse if married, during any of the two 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, with the exception of marijuana grown under chapter 19-24.1; poultry; livestock; or dairy farming in such products’ unmanufactured state and has received annual gross income from farming activities which is sixty-six percent or more of annual gross income, including gross income of a spouse if married, during any of the two preceding calendar years. For purposes of this paragraph, “farmer” includes a:
          1. “Beginning farmer”, which means an individual who has begun occupancy and operation of a farm within the two 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 two preceding calendar years.
          2. “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.
          3. “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. “Gross income” means gross income as defined under the federal Internal Revenue Code and does not include a gain from the sale or exchange of farm machinery as computed for federal income tax purposes. For purposes of this paragraph, “farm machinery” means all vehicular implements and attachment units designed and sold for direct use in planting, cultivating, or harvesting farm products or used in connection with the production of agricultural produce or products, livestock, or poultry on farms, which are operated, drawn, or propelled by motor or animal power. “Farm machinery” does not include vehicular implements operated wholly by hand or a motor vehicle that is required to be registered under chapter 57-40.3.
       4. “Gross income from farming activities” means gross income from farming as defined for purposes of determining if an individual is a farmer eligible to use the special estimated income tax payment rules for farmers under section 6654 of the federal Internal Revenue Code [26 U.S.C. 6654].
       5. When exemption is claimed under this subdivision for a residence, the occupant of the residence who it is claimed is a farmer shall provide to the assessor for the year or years specified by the assessor a written statement in which it is stated that sixty-six percent or more of the gross income of that occupant, and spouse if married and both spouses occupy the residence, was, or was not, gross income from farming activities. The individual claiming the exemption also shall provide to the assessor, on a form prescribed by the tax commissioner, the necessary income information to demonstrate eligibility. Any income information provided to the assessor regarding eligibility for an exemption claimed under this subdivision is a confidential record.
       6. For purposes of this subsection, “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. Repealed by S.L. 1983, ch. 595, § 3.
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:
    1. 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.
    2. 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.
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:
    1. 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.
    2. Any property that is subjected to a tax which is imposed in lieu of ad valorem taxes.
    3. 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, 57-61, or 57-65.
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:
    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 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.
    2. 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. The exemption applies regardless of whether the early childhood or adult day care service provider owns the property. However, this exemption is not available for property used as a residence.
37. 1. 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.
    2. 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. Property owned by the state 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. 1. 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.
    2. 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.
43. All residential rental property, inclusive of land and administrative and auxiliary buildings, used as affordable housing shall be exempt from taxation for the property’s period of affordability.
    1. The property is exempt under this section if the housing finance agency certifies to the county director of tax equalization that on January 1, 2013, or thereafter, the residential rental property complies with the following:
       1. The property is subject to and in compliance with a land use restriction agreement that enumerates the mandatory income and rent restrictions;
       2. The property is owned by a qualified nonprofit entity, as defined in section 42 of the Internal Revenue Code [26 U.S.C. 42]. If under a partnership agreement or other legally enforceable instrument, a for-profit entity, such as a limited partner, has an ownership interest in the property, then the agreement must provide that the nonprofit entity must have the right of first refusal in any transfer of the ownership interest in the property. The partnership agreement or other legally enforceable instrument also must provide that any transfer of the ownership interest by the for-profit entity must be without financial gain; and
       3. The general partner or other ownership entity is owned or controlled by a nonprofit entity or a political subdivision.
    2. For projects beginning after December 31, 2012, the exemption begins for the first taxable year after the owners of the rental property receive a building permit from the local jurisdiction in which the affordable housing residential rental property will be located.
    3. If part of the residential rental property is not eligible to receive assistance through local, state, or federal affordable housing programs, the exemption under this section is calculated by dividing the number of income and rent-restricted units by the total number of rental units.
    4. In lieu of the ad valorem taxes that would otherwise be assessed, the project owners shall make a payment equal to five percent of the balance of the total annual rents collected during the preceding calendar year, minus the utility costs for the property paid by the owner of the property.
    5. If an affordable housing rental property fails to comply with the requirements of this section, or fails to comply with rent and household income restrictions under a local, state, or federal affordable housing program, on or before March fifteen of each calendar year, the housing finance agency shall notify the director of tax equalization and the state supervisor of assessments that the property is no longer eligible for the exemption.
    6. For the purposes of this subsection, “affordable housing” includes property eligible for or receiving assistance through a local, state, or federal affordable housing program and in which rent and household income restrictions apply, and which is owned by nonprofit entities organized for the purpose of providing affordable housing. Affordable housing is limited to residential rental property owned by or with a controlling ownership or management interest by an organization organized and operated exclusively for exempt purposes set forth in section 501(c)(3) of the Internal Revenue Code [26 U.S.C. 501(c)(3)].

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.

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.

57-02-08.1. Homestead credit.

1. 1. 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.
   2. 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.
   3. The exemption must be determined according to the following schedule:
      1. If the person’s income is not in excess of twenty-two thousand dollars, a reduction of one hundred percent of the taxable valuation of the person’s homestead up to a maximum reduction of five thousand six hundred twenty-five dollars of taxable valuation.
      2. If the person’s income is in excess of twenty-two thousand dollars and not in excess of twenty-six thousand dollars, a reduction of eighty percent of the taxable valuation of the person’s homestead up to a maximum reduction of four thousand five hundred dollars of taxable valuation.
      3. If the person’s income is in excess of twenty-six thousand dollars and not in excess of thirty thousand dollars, a reduction of sixty percent of the taxable valuation of the person’s homestead up to a maximum reduction of three thousand three hundred seventy-five dollars of taxable valuation.
      4. If the person’s income is in excess of thirty thousand dollars and not in excess of thirty-four thousand dollars, a reduction of forty percent of the taxable valuation of the person’s homestead up to a maximum reduction of two thousand two hundred fifty dollars of taxable valuation.
      5. If the person’s income is in excess of thirty-four thousand dollars and not in excess of thirty-eight thousand dollars, a reduction of twenty percent of the taxable valuation of the person’s homestead up to a maximum reduction of one thousand one hundred twenty-five dollars of taxable valuation.
      6. If the person’s income is in excess of thirty-eight thousand dollars and not in excess of forty-two thousand dollars, a reduction of ten percent of the taxable valuation of the person’s homestead up to a maximum reduction of five hundred sixty-three dollars of taxable valuation.
   4. 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 co-owners of the property are each entitled to a percentage of a full exemption under this subsection equal to their ownership interests in the property.
   5. This subsection does not reduce the liability of any person for special assessments levied upon any property.
   6. Any person claiming the exemption under this subsection shall sign a verified statement of facts establishing the person’s eligibility. Any income information contained in the statement of facts is a confidential record.
   7. 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 exceeds five hundred thousand dollars, including the value of any assets divested within the last three years.
   8. The assessor shall attach the statement filed under subdivision f to the assessment sheet and shall show the reduction on the assessment sheet.
   9. An exemption under this subsection terminates at the end of the taxable year of the death of the applicant.
2. 1. 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.
   2. 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.
   3. 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.
   4. 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.
   5. 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.
   6. 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:
   1. “Dependent” has the same meaning it has for federal income tax purposes.
   2. “Homestead” has the same meaning as provided in section 47-18-01.
   3. “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 with the exception of income from social security benefits, and medical expenses paid during the year by the applicant or the applicant’s dependent which is not compensated by insurance or other means.
   4. “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.
   5. “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 or any federal or state agency that has authority to certify an individual’s disability.

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. On or before the first of June of each year, the tax commissioner shall audit the certifications, make the required corrections, and certify to the state treasurer for payment to each county, 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, adjusted annually on January first of each year after December 31, 2019, by the consumer price index, 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. For purposes of this subsection, “consumer price index” means the percentage change in the consumer price index for all urban consumers in the midwest region as determined by the United States department of labor, bureau of labor statistics, for the most recent year ending December thirty-first.
2. 1. 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.
   2. 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.
   3. 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.
   4. 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. 1. Any credit allowed under subsection 1, plus interest in the amount of six 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.
   2. 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.
   3. 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 may receive funds for the wetlands property tax exemption 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 the wetlands property tax exemption program. The director of the game and fish department, the agriculture commissioner, and the director of the department of water resources 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. [Effective for taxable years beginning after December 31, 2020]

1. A disabled veteran of the United States armed forces with an armed forces service-connected disability of fifty percent or greater or a disabled veteran who has an extra-schedular rating to include individual unemployability that brings the veteran’s total disability rating to one hundred percent as determined by the department of veterans’ affairs, 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 eight thousand one hundred dollars of taxable valuation of the homestead owned and occupied by the disabled veteran or unremarried surviving spouse 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 credit. An unremarried surviving spouse who is receiving department of veterans’ affairs dependency and indemnity compensation receives a one hundred percent credit as described in this subsection.
2. If two disabled veterans are married to each other and living together, their combined credits may not exceed one hundred percent of eight thousand one hundred dollars of taxable valuation 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 homestead, to a maximum amount calculated by multiplying eight thousand one hundred dollars of taxable 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 required under this section, 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 supports 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. A credit under this section terminates at the end of the taxable year of the death of the applicant.
7. 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.
8. 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.
9. On or before the first of June of each year, the tax commissioner shall audit the certifications, make the required corrections, and certify to the state treasurer for payment to each county 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.
10. 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.
11. 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.
12. 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.

Certified assessment officials must list and assess property 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. An individual property record must be kept by the appropriate assessment official for each parcel of taxable property. The record may be in electronic or paper form and must include identifying information as prescribed by the state supervisor of assessments. Assessors shall prepare the records and provide copies of all property records prepared by the assessor to the county director of tax equalization. The county director of tax equalization shall maintain those records for ten years from the date the records were received from the assessors. A city with an assessor who holds a current certification as a class I assessor under section 57-02-01.1, and which has been determined by the state supervisor of assessments to have enough sales for an adequate sales ratio study, may elect to maintain the records required under this subsection on behalf of the county. A city that makes this election must include these records in a city database of taxable property to be maintained in the office of city assessor for ten years from the assessment date.
3. 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 damaged by fire, flood, tornado, or other natural disaster, 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]

Repealed by S.L. 1983, ch. 598, § 25.

57-02-13. False list under oath — Perjury. [Repealed]

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]

Repealed by S.L. 1963, ch. 375, § 6.

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

Repealed by S.L. 1981, ch. 558, § 2.

57-02-18. Listing of range stock. [Repealed]

Repealed by S.L. 1971, ch. 538, § 1.

57-02-18.1. Taxation of livestock after thirty days. [Repealed]

Repealed by S.L. 1971, ch. 538, § 1.

57-02-18.2. Livestock tax proration after April first. [Repealed]

Repealed by S.L. 1971, ch. 538, § 1.

57-02-18.3. Livestock list submitted to auditor. [Repealed]

Repealed by S.L. 1971, ch. 538, § 1.

57-02-18.4. Livestock assessment by auditor. [Repealed]

Repealed by S.L. 1971, ch. 538, § 1.

57-02-18.5. Notice to auditor of livestock movement. [Repealed]

Repealed by S.L. 1971, ch. 538, § 1.

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

Repealed by S.L. 1971, ch. 538, § 1.

57-02-18.7. Effect of prior livestock assessment. [Repealed]

Repealed by S.L. 1971, ch. 538, § 1.

57-02-19. Assessment of oil and gas drilling equipment. [Repealed]

Repealed by S.L. 1953, ch. 309, § 1.

57-02-20. Exemption of farm machinery for one year. [Repealed]

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]

Repealed by S.L. 1981, ch. 581, § 4.

57-02-22. Place of listing in case of doubt. [Repealed]

Repealed by S.L. 1981, ch. 558, § 2.

57-02-23. Number or name of school district to be listed. [Repealed]

Repealed by S.L. 1985, ch. 604, § 22.

57-02-24. Assessors to list coal and minerals. [Repealed]

Repealed by S.L. 2009, ch. 544, § 2.

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

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 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]

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 or township 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:
   1. 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.
   2. 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.
   3. 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. 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:
   1. Soil type and soil classification data from detailed or general soil surveys.
   2. 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.
   3. 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 by February first of any taxable year after 2011, the tax commissioner shall direct the state treasurer to withhold five percent of that county’s allocation each quarter from the state aid distribution fund under section 57-39.2-26.1 beginning with the first quarter of 2013, and continuing until the tax commissioner certifies to the state treasurer that that county has fully implemented use of soil type or soil classification data. The amount withheld from the allocation must be deposited into the agricultural land valuation fund. 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.

57-02-27.3. Taxable valuation of centrally assessed wind turbine electric generators. [Repealed]

Repealed by S.L. 2007, ch. 504, § 5.

57-02-28. Basis for computation of tax.

The value of all property subject to a general property tax to be used in the computation of taxes levied thereon is its taxable valuation as computed pursuant to section 57-02-27.

57-02-29. Bond and oath of district assessor.

Every person elected or appointed to the office of assessor in an assessor district consisting of unorganized territory, at or before the time of receiving the assessment books, must be bonded for the faithful discharge of the duties of the office, in the state bonding fund or by a corporate surety company authorized to do business in this state, in the penal sum of one thousand dollars. The assessor shall take and subscribe the oath prescribed for civil officers. Failure to be bonded or to take such oath must be deemed a refusal to serve and creates a vacancy in the office.

57-02-30. Assessor may administer oaths.

The assessor may administer oaths to all persons who are required to swear to any statement or return in connection with the assessment and may examine, under oath, any person whom the assessor may believe to have knowledge of the amount or value of the personal property of any person refusing to list or to verify the list of personal property.

57-02-31. Auditor to furnish books to assessors at meeting.

The county auditor annually shall provide the necessary books and blanks at county expense for each assessment district or township in the county. Every year, the county auditor shall enter in the real property assessment book a complete list of all lands or lots subject to taxation. The list must show the name of the owner, if known, the number of acres [hectares], and the lots and parts of lots or blocks included in each description. On or before the second Wednesday in February of each year, following notice by mail from the county auditor, all the assessors in the county shall meet in the county auditor’s office for a conference on their duties as assessors, and the county auditor shall then deliver to each assessor the assessment books and blanks for each assessor’s assessment district. Each assessor must be allowed a sum not to exceed twenty dollars a day, at the discretion of the board of county commissioners, for each day’s attendance at the conference and mileage in the amounts provided in section 11-10-15.

57-02-32. Auditor to furnish tax list.

The auditor of each county shall make and transmit to the township clerk of each civil township within such county, on the first day of March of each year, a copy of the tax list of such township for the preceding year showing the owner and description of each piece or parcel of land assessed and the valuation thereof.

57-02-33. Assessor services for unorganized territory.

Any area not within an organized township or city must be assessed by a certified assessor under the supervision and direction of the county director of tax equalization. The county director of tax equalization may serve as an assessor of property under this section. Every individual performing assessor services under this section is entitled to compensation and mileage and travel expenses determined by the board of county commissioners for the time actually and necessarily employed in assessment of property. The compensation and expenses must be paid from the treasury of the county in which the assessed property is located only upon submission of an itemized statement setting forth the actual time spent in the work of the assessor and mileage traveled, approved by the board of county commissioners.

57-02-34. When and how assessment made.

The assessor shall perform the duties required of the office during the twelve-month period prior to April first in the manner provided in this section. The assessor shall determine both the true and full value as defined by law and the assessed value of each tract or lot of real property listed for taxation, and shall enter those values in separate columns, and the true and full value and assessed value of all improvements and structures taxable thereon in separate columns, opposite such description of property, and in another column shall show the total assessed value of the property by adding the totals of the two previous assessed value columns.

57-02-35. Sickness or absence of owner. [Repealed]

Repealed by S.L. 1983, ch. 598, § 25.

57-02-36. List given to auditor for persons sick or absent. [Repealed]

Repealed by S.L. 1983, ch. 598, § 25.

57-02-37. Duty of assessor upon failure to obtain assessment — Copy of assessment list to nonresident. [Repealed]

Repealed by S.L. 1983, ch. 598, § 25.

57-02-38. Units of real property for assessment.

In all assessment books and tax lists and in all proceedings for the collection of taxes and proceedings founded thereon, unplatted land and undeveloped land platted before March 30, 1981, not situated within the limits of an incorporated city must be described in subdivisions not exceeding quarter sections. Real property in the platted portion of a city or real property platted on or after March 30, 1981, that is located outside any city and is not agricultural property under the conditions set out in subsection 1 of section 57-02-01, must be assessed separately as to each lot. When a building or structure covers two or more contiguous lots or parts of lots owned by the same person the assessment may not be entered separately as to each lot or part of lot, but the tract upon which the building is located must be described and assessed as one parcel. A block which has not been subdivided may be described, assessed, and taxed in a unit of one block. A failure to comply with the provisions of this section does not impair the validity of taxes.

57-02-39. Irregularities of land to be platted into lots if required.

If any tract or lot of land is divided into irregular shapes which can be described only by metes and bounds, or if any addition or subdivision which already has been platted into blocks and lots and subsequently sold into parts of blocks or lots which can be described only by metes and bounds, or if the courses, distances, and sizes of each lot or fractional lot are not given or marked upon the plat so that the precise location of each lot and fractional lot can be ascertained accurately, surveyed, or laid out, the owner of such tract or tracts, upon the request of the county auditor, shall have such land platted or replatted, as the case may be, into lots or blocks according to deeds on record. If such plat cannot be made without an actual survey of the land, the same must be surveyed and platted and the plat thereof recorded. If the owners of any such tract refuse or neglect to cause such plat and survey, when necessary, to be made and recorded within thirty days after such request, the county surveyor, or some other competent surveyor, upon the request of the county auditor, shall make out such plat from the records of the recorder if practicable, but if it cannot be made from such records, then the surveyor shall make the necessary survey and plat thereof, and the county auditor shall have the same recorded, but no such plat may be recorded until approved by the city engineer of the city affected thereby, and if there is no city engineer, then by the county surveyor. A certificate of the approval of such plat must be made by the officer making the same endorsed on the plat or map. Such certificate also must be recorded and forms a part of the record. When such plat has been duly certified and recorded, any description of the property in accordance with the number and description set forth in such plat must be deemed a good and valid description of the lots or parcels of land so described. No such plat or description may bear the name or number which already has been applied to any plat or description previously made and recorded as a part of any such city. When the owner of such land fails to comply with the provisions of this section, the cost of surveying, platting, and recording must be paid by the county, upon allowance by the board of county commissioners, and the amount thereof must be added to the taxes upon such tracts or lots the ensuing year. Such taxes, when collected, must be credited to the county general fund. The surveyor making such survey or plat is entitled to receive for services in making the same the compensation allowed by law for doing other county surveying or platting, and such fees become a legal charge upon such tracts of land.

57-02-40. Taxes paramount lien on real estate — Statute of limitations not applicable to personal property taxes.

1. Taxes upon real property are a perpetual paramount lien thereon against all persons, except the United States and this state.
2. Taxes upon personal property shall not be affected by any general statute of limitations.
3. A tax lien includes the principal of the tax, and all costs, penalties, interest, charges, and expenses which by law accrue, attach, or are incurred.

57-02-41. Attachment of tax lien and prorating taxes as between vendor and purchaser.

All taxes, as between vendor and purchaser, become a lien on real estate on and after the first day of January following the year for which such taxes were levied. If taxable real property is acquired in any year after the assessment date by an owner in whose hands it will be exempt from taxation, the taxes on it for the portion of the year that it was not exempt, computed to the nearest month, constitute a personal charge against the person from whom it was acquired and all of the provisions of law for payment and collection of personal property taxes are applicable to such prorated taxes.

If exempt real property is acquired in any year after the assessment date by an owner in whose hands it is taxable, it must be assessed as omitted property and the taxes on it for that portion of the year that it is not exempt, computed to the nearest month, are subject to all of the provisions for payment and collection that are applicable to taxes for the same year on other real property.

57-02-42. Personal property in transit — Definition — Exemption. [Repealed]

Repealed by S.L. 1975, ch. 524, § 2.

57-02-43. Records. [Repealed]

Repealed by S.L. 1975, ch. 524, § 2.

57-02-44. Reconsignment — Report — Tax. [Repealed]

Repealed by S.L. 1975, ch. 524, § 2.

57-02-45. Criminal penalty. [Repealed]

Repealed by S.L. 1975, ch. 106, § 673; 1975, ch. 524, § 2.

57-02-46. Civil penalty. [Repealed]

Repealed by S.L. 1975, ch. 524, § 2.

57-02-47. Name of billboard owner.

No person may erect and rent or lease any billboard for advertising purposes upon any land or attached to any building, unless at the time of the erection of such billboard there is attached and firmly affixed thereto a plate or sign containing the name and address of the owner of such billboard, which plate or sign must be kept and maintained thereon at all times.

57-02-48. Failure to designate billboard owner — Penalty.

If the owner of such billboard fails to comply with the provisions of section 57-02-47 within sixty days after the erection of such billboard, such owner is guilty of an infraction.

57-02-49. Billboard reports — Contents — Filing — Penalty. [Repealed]

Repealed by S.L. 1975, ch. 524, § 2.

57-02-50. Agricultural land valuation fund — Deposits — Continuing appropriation.

There is established a special fund in the state treasury to be known as the agricultural land valuation fund. The moneys withheld under subsection 10 of section 57-02-27.2 must be deposited into the agricultural land valuation fund. All moneys deposited in the agricultural land valuation fund are appropriated as a continuing appropriation and must be allocated to the county from which the withholding was made upon certification from the tax commissioner of the implementation of subsection 7 of section 57-02-27.2 by that county.

57-02-51. Notice of township and city equalization meetings to be published — Date of equalization meeting.

Each year the county auditor shall publish in the official county newspaper for two successive weeks, a notice that proceedings for the equalization of assessments will be held by the several local equalization boards. The first publication of the notice may not be earlier than March first and the second publication may not be later than March twentieth. The notice must contain a statement that the proceedings will be held at the regular meeting place of the governing board or other place designated by that board of the township or city, as the case may be. The notice must also contain a statement that each taxpayer has the right to appear before the appropriate board of review or equalization and petition for correction of the taxpayer’s assessment. The equalization proceedings in an organized township and a city must be held within the first fifteen days of April.

57-02-52. Notice of county equalization meetings to be published — Date of equalization meeting.

Each year the county auditor shall publish in the official county newspaper for two successive weeks, a notice that proceedings for the equalization of assessments for all real property in the county will be held by the county board of equalization. The first publication of the notice may not be earlier than May first and the second publication may not be later than May twentieth, however, the second notice must be published more than ten days prior to the date of the meeting. The notice must contain the date, time, and location of the meeting. The notice must also contain a statement that each taxpayer has the right to appear before the appropriate board of review or equalization and petition for correction of the taxpayer’s assessment. The county equalization proceedings must be held no later than June tenth.

57-02-53. Assessment increase notice to property owner.

1. 1. When any assessor has increased the true and full valuation of any lot or tract of land and improvements to an amount that is an increase of three thousand dollars or more and ten percent or more from the amount of the previous year’s assessment, the assessor shall deliver written notice of the amount of increase and the amount of the previous year’s assessment to the property owner at the expense of the assessment district for which the assessor is employed. Delivery of written notice to a property owner under this subdivision must be completed at least fifteen days before the meeting of the local board of equalization.
   2. If written notice by the assessor was not required under subdivision a and action by the township, city, or county board of equalization or order of the state board of equalization has increased the true and full valuation of any lot or tract of land and improvements to an amount that results in a cumulative increase of three thousand dollars or more and ten percent or more from the amount of the previous year’s assessment, written notice of the amount of increase and the amount of the previous year’s assessment must be delivered to the property owner. The written notice under this subdivision must be mailed or delivered at the expense of the township, city, or county that made the assessment increase or at the expense of the township, city, or county that was ordered to make the increase by the state board of equalization. Delivery of written notice to a property owner under this subdivision must be completed within fifteen days after the meeting of the township, city, or county board of equalization that made or ordered the assessment increase and within thirty days after the meeting of the state board of equalization, if the state board of equalization ordered the assessment increase.
   3. The tax commissioner shall prescribe suitable forms for written notices under this subsection. The written notice under subdivision a must show the true and full value of the property, including improvements, that the assessor determined for the current year and for the previous year and must also show the date prescribed by law for the meeting of the local board of equalization of the assessment district in which the property is located and the meeting date of the county board of equalization.
   4. Delivery of written notice under this section must be by personal delivery to the property owner, mail addressed to the property owner at the property owner’s last-known address, or electronic mail to the property owner directed with verification of receipt to an electronic mail address at which the property owner has consented to receive notice.
2. The form of notice prescribed by the tax commissioner must require a statement to inform the taxpayer that an assessment increase does not mean property taxes on the parcel will increase. The notice may not contain an estimate of a tax increase resulting from the assessment increase.

History. S.L. 2015, ch. 437, § 1, effective January 1, 2016; 2017, ch. 411, § 8, eff for taxable years beginning after December 31, 2017.

57-02.1-01. Definition.

As used in this chapter, unless the context or subject matter otherwise clearly indicates, “property subject to valuation” means real property owned by the state or real property leased or held by lease or license from the United States or a political subdivision of this state, and controlled by the state game and fish department but does not include any land leased by such department if such land is being assessed for ad valorem taxation to the owner.

57-02.1-02. Imposition of payments.

The director of the game and fish department shall annually make payments, subject to legislative appropriations, to the counties in which property subject to valuation is located pursuant to the provisions of this chapter. The payments are in lieu of taxes which would otherwise be available to the counties if the real property upon which these payments are based were not owned by the state, United States, or a political subdivision of this state.

57-02.1-03. Assessment of property — Notice of county auditors.

All property subject to valuation under this chapter must be assessed and valued for the purpose of making the payments herein provided for, in the same manner as other real property in this state is assessed and valued for tax purposes, except that improvements to any real property may not be considered in the valuation. The county auditors of the counties in which the property is located, prior to June thirtieth of each year, shall give notice in writing to the director of the game and fish department and state tax commissioner of the value placed upon the property subject to valuation by the county boards of equalization.

57-02.1-04. Appearance before state board of equalization.

The state board of equalization shall equalize the value placed upon any tract of land subject to valuation under this chapter. The director of the game and fish department may appear before the state board of equalization to be heard for the purpose of opposing any unreasonable or unjust value placed upon property subject to valuation as equalized by the county board of equalization, or of opposing any increase or decrease in the valuation as proposed by the state board of equalization, to the end that all valuations of like property may be uniform and equal throughout the state.

57-02.1-05. Computation of payment — Remittance to counties.

1. Upon receipt of the decision of the state board of equalization, the director of the game and fish department shall compute the payments due to the counties in which property subject to valuation is located by extending the mill levies which apply to other taxable property in the taxing districts in which the property is located. The mill levies must be extended against the property subject to valuation in the same manner as used for other taxable property in the taxing districts. If the property subject to valuation is leased or held by lease or license from the United States, the director of the game and fish department shall deduct from the payment due to the county any amount paid to that county by the United States or any agency or instrumentality of the United States in lieu of real estate taxes on that property, up to a maximum of seventy-five cents per acre [hectare]. The payments due to each county are the figure determined as herein provided. No county may receive less in these payments for any parcel or tract of land for any year than the county received in payments made pursuant to this chapter for 1974.
2. After computing the payments due to each county, the director of the game and fish department shall remit to the counties the amounts due from the department, on or before March first of the succeeding year for which the assessments and valuations were made.

57-02.1-06. Allocation of revenue within counties.

The revenue to which the county level of government is entitled must be determined according to the proportion the county mill levy on other real property bears to the total mill levies on real property of each taxing district wherein the property subject to valuation is located. The revenue remaining after apportionment to the county level must be apportioned and distributed among the various taxing districts in which the property for which payments are made is located by the county auditor upon a pro rata basis to be determined according to the proportion the assessed value of the property subject to valuation in each taxing district bears to the total assessed value of all such property subject to valuation within the county. However, if the property subject to valuation is leased or held by lease or license from the United States, the payment made by the director of the game and fish department must be apportioned and distributed among the various taxing districts, other than the county, in which the property for which payments are made is located, by the county auditor upon a pro rata basis to be determined according to the proportion the assessed value of the property subject to valuation in each taxing district bears to the total assessed value of all such property subject to valuation within the county. The amount of revenue allocated to each taxing district in which the property subject to valuation is located must be divided among the various funds of the district according to the proportion that the mill levy for any fund bears to the total of all mill levies spread against other property in the taxing district that is assessed and taxed on an ad valorem basis.

57-02.1-07. Effective date.

The effective date of this chapter is January 1, 1964, and no payments are due under the provisions of this chapter until March 1, 1965.

57-02.2-01. Declaration and finding of public purpose.

The legislative assembly hereby declares and finds that the present method of assessment and taxation of real property discourages the investment of private capital in the rehabilitation and remodeling of commercial and residential buildings and structures with the result that such properties have been allowed by their owners to decay, become in need of repair, modernization, and replacement, and that such conditions have resulted in a decreased tax base. The legislative assembly further finds that it is in the public interest and for the welfare of the state of North Dakota, its political subdivisions, and its citizens to encourage the investment of private capital in improvements to commercial and residential buildings and structures, thereby encouraging the production of wealth, improving the volume of employment, enhancing living conditions, and preserving and increasing the property tax base. It is the intent of the legislative assembly that the exemptions from taxation provided for in this chapter provide an alternative to the property tax exemptions provided for in chapters 40-57 and 40-57.1.

57-02.2-02. Improvement defined.

In this chapter, unless the context or subject matter otherwise requires, the term “improvement” means the renovation, remodeling, or alteration, but not the replacement, of an existing building or structure for use for commercial or residential purposes. An improvement for residential purposes is limited to a building or structure at least twenty-five years old. An addition constructed to an existing building or structure to enlarge it is an improvement for the purposes of this chapter.

57-02.2-03. Tax exemption for improvements to commercial and residential buildings and structures — Property owner’s certificate.

Improvements to commercial and residential buildings and structures as defined in this chapter may be exempt from assessment and taxation for up to five years from the date of commencement of making the improvements, if the exemption is approved by the governing body of the city, for property within city limits, or the governing body of the county, for property outside city limits. The governing body of the city or county may limit or impose conditions upon exemptions under this section, including limitations on the time during which an exemption is allowed. A resolution adopted by the governing body of the city or county under this section may be rescinded or amended at any time. The exemption provided by this chapter shall apply only to that part of the valuation resulting from the improvements which is over and above the assessed valuation, exclusive of the land, placed upon the building or structure for the last assessment period immediately preceding the date of commencement of the improvements. Any person, corporation, limited liability company, association, or organization owning real property and seeking an exemption under this chapter shall file with the assessor a certificate setting out the facts upon which the claim for exemption is based. The assessor shall determine whether the improvements qualify for the exemption based on the resolution of the governing body of the city or county, and if the assessor determines that the exemption should apply, upon approval of the governing body, the exemption is valid for the prescribed period and shall not terminate upon the sale or exchange of the property but shall be transferable to subsequent owners. If the certificate is not filed as herein provided, the assessor shall regard the improvements as nonexempt and shall assess them as such.

57-02.3-01. Definition.

As used in this chapter, unless the context or subject matter otherwise clearly indicates, “property subject to valuation” means real property owned by the board of university and school lands or by the state treasurer as trustee for the state of North Dakota, title to which was obtained after January 1, 1980, by foreclosure or deed in lieu of foreclosure of a mortgage given to the Bank of North Dakota, including a mortgage assigned to the state treasurer under section 54-30-02. “Property subject to valuation” also means real property owned by the board of university and school lands or by the state treasurer as trustee for the state of North Dakota, title to which was obtained on or before January 1, 1980, and which is leased to a leaseholder who uses the property for growing hay or crops.

57-02.3-02. Imposition of in lieu of tax payments.

The board of university and school lands shall annually make payments, subject to legislative appropriations, to any county in which property subject to valuation is located. The payments are in lieu of ad valorem taxes that would be payable to the county if the real property for which the payments are made were not owned by the state. This chapter does not affect the provisions of chapter 57-29.

57-02.3-03. Assessment of property — Notice to county auditors.

All property subject to valuation must be assessed for the purpose of making the payments under section 57-02.3-02, in the same manner as other real property in this state is assessed for tax purposes, except that improvements made to any real property after foreclosure may not be considered in the valuation. Before June thirtieth of each year, the county auditor of any county in which property subject to valuation is located shall give written notice to the board of university and school lands and the state tax commissioner of the value placed by the county board of equalization upon each parcel of property subject to valuation in the county.

57-02.3-04. Appearance before state board of equalization.

The state board of equalization shall equalize the values placed upon property subject to valuation. Representatives of the board of university and school lands may appear before the state board of equalization to oppose unreasonable or unjust valuations placed upon property subject to valuation as equalized by the county board of equalization, or to oppose any change in valuations as proposed by the state board of equalization, to the end that all valuations of property subject to valuation may be uniform with valuations of comparable property throughout the state.

57-02.3-05. Computation of payment — Remittance to counties.

Upon receipt of the decision of the state board of equalization, the board of university and school lands shall compute the payments due to the counties in which property subject to valuation is located by extending the mill levies that apply to taxable property in the taxing districts in which the property is located in the same manner as is used for other taxable property in the taxing districts. After computing the payments due to each county, the board of university and school lands shall, within the limits of legislative appropriations, remit to the counties the amounts due on or before March first of the year following the year for which the assessments were made.

57-02.3-06. Allocation of revenue within counties.

The revenue to which taxing districts are entitled under this chapter must be determined according to the proportion that the taxing district’s mill levy on other real property bears to the total mill levies of all taxing districts on other real property in the taxing districts in which the property subject to valuation is located. The revenue remaining after apportionment to the county must be apportioned and distributed by the county treasurer among the various taxing districts in which the property for which payments are made is located. The amount of revenue allocated to each taxing district in which property subject to valuation is located must be divided among the various funds of the district according to the proportion that the mill levy for any fund bears to the total of all mill levies of the taxing district.

57-02.3-07. Appropriation.

There is hereby appropriated to the board of university and school lands, as a standing and continuing appropriation from the lease rentals of property subject to valuation under this chapter, the funds necessary to make the payments required by this chapter.

57-02.4-01. Definitions.

As used in this chapter:

1. “Crew housing facilities” means one or more lodging units or skid units, ordinarily designed for human living quarters or a place of business, on a temporary or permanent basis, which are not real property, as defined in section 57-02-04, and are not mobile homes, as defined in section 57-55-01. A group of crew housing facilities that are connected physically or by common ownership may be treated as a single crew housing facility for purposes of imposition of crew housing permit fees imposed under this chapter.
2. “Crew housing permit” means a right granted by a city or county to locate crew housing facilities on property within the jurisdiction of the city or county under this chapter and to enjoy attendant services and facilities provided by the city or county.
3. “Skid unit” means a structure or group of structures, either single or multisectional, which is not built on a permanent chassis and is ordinarily designed for human living quarters or a place of business, on a temporary or permanent basis.

57-02.4-02. Crew housing permit fees — Fee revenue sharing with other taxing districts.

A city, for property within city limits, or a county, for property outside city limits, may impose crew housing permit fees that apply to crew housing facilities. Crew housing permit fees imposed by a city or county must be determined on the basis of the value of services and facilities provided to the crew housing facility by the city or county, or both. A city or county imposing fees under this section may share revenues from the fees with other taxing districts in which the property is located.

57-02.4-03. Exemptions.

This chapter does not apply to:

1. Real property that is exempt from property taxation or subject to payments in lieu of taxes.
2. Mobile or manufactured homes as defined under chapter 57-55.
3. A recreational vehicle, camper, or camper trailer required to be licensed by the motor vehicle division of the department of transportation.
4. Park model trailers for which the owner has paid a park model trailer fee under section 39-18-03.2.

57-02.4-04. Reporting requirement.

A county or city may establish reporting requirements for crew housing facilities subject to permit fees within the jurisdiction of the county or city.

57-05-01. Railroad property to be assessed by state board of equalization.

The state board of equalization, at its annual meeting in July in each year, shall assess, at its actual value on the first day of January of that year, the operating property, including franchises, of each railroad operated in this state, including any electric or other street or interurban railway. If any railroad allows any portion of its railway to be used for any purpose other than the operation of a railroad, the portion of its railway while so used must be assessed in a manner provided for the assessment of other real property. To enable the board to make a correct valuation of property, it shall have access to all reports, estimates, and surveys of a line of railroad on file in the office of the public service commission and has power to summon and compel the attendance of witnesses, and to examine witnesses under oath in any matter relating to the value of the property. In fixing the value of any railroad, and of branch lines and sidetracks, the board must be governed by the rules prescribed for county and township assessors in valuing other property in this state. The board shall make a record of the value placed by it upon the property of the railroad, including the valuation per mile [1.61 kilometers] of main line and of branch lines and sidetracks. Railroad property held in trust by the public service commission for purposes of reorganization or reopening of the railway line is exempt from assessment as provided in this section.

57-05-01.1. Tentative assessment — Notice of hearing.

1. The tax commissioner, on or before June fifteenth of each year, shall ascertain and determine the value of, and a tentative assessment of, all operative property of any company required to be assessed under the provisions of this chapter. The determination of value must be made for the guidance of the state board of equalization in assessing the property at its annual meeting in July. In making this determination of value, the tax commissioner must be governed by the rules provided in this chapter.
2. The tax commissioner shall give ten days’ notice by mail to each company, or its representative in North Dakota, of the amount of its tentative assessment and the meeting of the state board of equalization on the second Tuesday of July, at which meeting each company is entitled to present evidence before the state board of equalization relating to the value of the property of the company.

57-05-02. Right of way not used for railroad purposes to be surveyed.

Where any railroad allows any portion of its roadway to be used for any purpose other than the operation of a railroad thereon, and the part so used is located on lands which can be described only by metes and bounds, the county auditor of the county in which such lands are located, or the state tax commissioner, may request such railroad company, in writing, to survey and plat such lands and file such plat with the county auditor. If the railroad company fails to cause such plat and survey to be made and filed within thirty days after such request, the county auditor or tax commissioner shall cause the said survey to be made and such land platted, and the expense thereof must be paid by such railroad company, and if not paid the same must be added to the tax against such lands and collected as other real estate taxes are collected.

57-05-03. Valuation apportioned according to mileage.

The board of equalization shall divide the valuation of each continuous line found and determined by it by the number of miles [kilometers] of such line in the state, and the result is the valuation per mile [1.61 kilometers] for which said line must be assessed. The value of each branch line must be determined in the same manner. Such valuation per mile [1.61 kilometers] must be apportioned to each county according to the number of miles [kilometers] of such line or branch line in the county.

57-05-04. Certification of mileage and valuation.

The state tax commissioner, at the time of certifying the equalized value of each organized county to the county auditor, shall certify the number of miles [kilometers] of each main line of railroad, and of the branch lines and sidetracks of railroad within the county, and the valuation per mile [1.61 kilometers] of the line and branch lines, if any, as determined by the state board of equalization, and the county auditor of the county shall apportion the valuation to the cities, townships, and districts through which the railroad and branch lines run according to the number of miles [kilometers] within the boundaries of each, as a part of the valuation of the city, township, or district for the purposes of taxation.

57-05-05. Maps of railroad right of way — Filing — Penalty.

Each railroad corporation doing business in this state shall file a map, within six months after location of its right of way, with the county auditor of each county in which such railroad or any part thereof may be located, showing:

1. The exact location of all rights of way and sidetracks, showing on which side of section and other lines its property is located in each assessment district in each county, owned or occupied by such railroad corporation;
2. The number of acres [hectares] in each parcel of land included by such railroad corporation in such county as a right of way; and
3. A description of any other property owned by said corporation in each assessment district in such county.

In subsequent years, said corporation need only file maps showing any changes that have been made since the report of the previous year. Any railroad corporation which violates any of the provisions of this section is guilty of an infraction and also is liable for the expense incurred as provided in section 57-05-10 in procuring the information in any manner other than that provided in this chapter, to be collected in a civil action in the name of the state.

57-05-06. County auditor to send maps to railroad corporation.

The county auditor of each county in the state shall provide to each railroad corporation doing business in that county, on or before the first day of February of each year, an accurate map of the county showing the boundaries of each assessment district.

57-05-07. Railroad shall file information with county auditor.

Every railroad corporation, on or before the fifteenth day of January in each year, shall file in the office of the county auditor of each county in the state in which the company’s lines are located:

1. The name of the corporation.
2. The principal place of doing business.
3. The names and post-office addresses of the president, secretary, and treasurer of the corporation.

57-05-08. Report by railroad corporation to tax commissioner.

Each railroad corporation required to be assessed under the provisions of this chapter annually shall, on or before May first of each year, under oath of the presiding or other chief executive officer, make and file in the manner prescribed by the tax commissioner, a report containing the following information:

1. The name of the company;
2. The laws of the state or country organized, the date of original organization, the date of reorganization, consolidation, or merger, with specific reference to laws authorizing the same;
3. Location of its principal office;
4. The name of the place where its books, papers, and accounts are kept;
5. The name and post-office address of the president, secretary, treasurer, auditor, superintendent, general manager, and all other general officers;
6. The name and post-office address of the chief officer or managing agent of the company in North Dakota and of all other general officers residing in this state;
7. The total number of shares of capital stock;
8. The par value of the shares of the capital stock for the whole system, showing separately the amount authorized, amount issued, amount outstanding, and dividends paid thereon;
9. If the capital stock has no market value, the actual value on the dates and for the periods designated by the tax commissioner;
10. The funded debt of the company for the whole system and a detailed statement of all series of bonds, debentures, or other securities, forming a part of the funded debt, at par value, with the date of issue, maturity, rate of interest, and amount of interest for the preceding year;
11. The market value of each series of funded debt securities for the whole system on the dates and for the periods designated by the tax commissioner, and if the whole or a part of the funded debt has no market value, then its actual value for the dates and periods as the tax commissioner may specify;
12. The general description of the operative and nonoperative real estate of the company in North Dakota as would be sufficient in a conveyance thereof, under a judicial decree, to vest in the grantee all title and interest in and to the property;
13. A description of the personal property of the company;
14. The number of miles [kilometers] of each main line of railroad, the number of miles [kilometers] of each branch line and sidetracks within North Dakota;
15. The entire gross earnings of the company from operation, expenses of operation, net earnings and income from operation, and the income from other sources, for the whole system, and in North Dakota, for the years or period the tax commissioner may request or specify, not exceeding five years;
16. The location of the property of the company within this state by counties, municipalities, and districts, in the manner and detail as the tax commissioner shall prescribe; and
17. Other facts and information as the tax commissioner may require or which the company may deem material relating to the taxation of its property in this state.

57-05-09. Failure of railroad corporation to make reports to county auditor and state tax commissioner — Penalty.

Every railroad corporation which neglects or fails to comply with the provisions of this chapter is guilty of an infraction.

57-05-10. Enforcement of railroad corporation’s liability.

In case any railroad company fails to make the reports provided for in this chapter, the county auditor or state tax commissioner, as the case may be, shall procure such information and shall report the expense in detail of procuring it to the state’s attorney of the county or the attorney general of the state, who shall collect the expense in a civil action.

57-05-11. Information deemed confidential.

It is unlawful for the commissioner, or any person having an administrative duty under this chapter, to divulge or to make known in any manner the business affairs, operations, or information obtained by an investigation of records and equipment of any person or corporation visited or examined in the discharge of official duty, or the amount or sources of income, profits, losses, expenditures, or any particulars set forth or disclosed in any report, or to permit any report or copy or any book containing any abstract of particulars to be seen or examined by any person except as provided by law. Notwithstanding the provisions of this section, hearings held by the state board of equalization under chapter 57-05 or 57-13 must be open to the public under section 44-04-19. The commissioner may authorize examination of such reports by other state officers and may furnish to the tax officials of another state, the multistate tax commission, or the United States any information contained in the reports and related schedules and documents filed under this chapter, and in the report of an audit or investigation made with respect to an audit, provided that that information be furnished solely for tax purposes. The multistate tax commission may make that information available to the tax officials of any other state and the United States for tax purposes. This section applies only to a class II and class III railroad as defined by the surface transportation board in 49 Code of Federal Regulations, part 1201.

57-06-01. Public utilities subject to chapter.

This chapter governs the assessment of the property of any public utility company defined in section 57-06-02, and of any other company used directly or indirectly in carrying or conveying persons or property, unless the operative property is subject to an in lieu tax in place of a general property tax. This chapter does not apply to the property of any railway or street railway company, nor to the 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 irrigation of agricultural land, and except as otherwise provided in chapter 57-32, does not apply to the property of any express or air transportation company.

57-06-01.1. Telecommunications service — Exceptions. [Repealed]

Repealed by S.L. 1997, ch. 483, § 15.

57-06-02. Definitions.

As used in this chapter, unless the context and subject matter otherwise clearly require:

1. “Company” includes any individual, copartnership, business trust, corporation, limited liability company, joint-stock company, or association.
2. “Gas company” means a company owning, holding, or operating under lease or otherwise any property in this state for the purpose of furnishing gas, or distributing the same, for public use, by means of pipelines.
3. “Pipeline company” means a company owning, holding, or operating under a lease or otherwise any property in this state for the purpose of transporting crude oil, natural gas, processed gas, manufactured gas, refined petroleum products, or coal and related products for public use.
4. “Power company” means a company owning or holding, under lease or otherwise, any property in this state, including wind turbine electric generation units, and operating it for the purpose of furnishing or distributing electric light, electric power, or steam heat for public use.
5. “Transmission line” means a line to transmit electrical energy which operates at a voltage of forty-one and six-tenths kilovolts or more but does not include a line owned or operated by an agency or instrumentality of the United States government.

57-06-03. Operative property defined.

The term “operative property” means any and all property that is not exempt under this chapter by reason of an election filed under chapter 57-33.2 and which is reasonably necessary for use by any company mentioned in section 57-06-02 exclusively in the operation and conduct of the particular kind of business engaged in by it. Any such property held under a contract for the purchase thereof must be considered for all purposes of taxation as the property of the company holding the same. Any such property, real or personal, held by any company under a rental lease must be assessed by the state board of equalization in the name of such company, if an agreement in writing between the owner thereof and such company is filed with the tax commissioner requesting that such leased property be so assessed. Whenever any property of a public utility company required to be assessed by the state board of equalization under the provisions of this chapter is used partly for operative purposes and partly for other purposes, either by the company or by others, all such property that is not exempt under this chapter by reason of an election filed under chapter 57-33.2 must be assessed by the state board of equalization as operative property of the company. Notwithstanding any other provision of law, all oil or gas pipeline property that is not exempt from ad valorem taxation is subject to assessment by the state board of equalization under this chapter.

57-06-04. Property jointly owned.

When property subject to assessment under the provisions of this chapter is owned jointly by two or more companies, the state board of equalization may assess such property to the company having the control, supervision, and maintenance thereof, or to the owning companies, in proportion to the values of their respective interests therein. Every company, in its return required under this chapter, shall set forth in detail property thus jointly owned so as to show specifically what interest each joint owner has therein. Notice to any company having control, supervision, and maintenance of such jointly owned property is notice to all companies interested therein.

57-06-05. Annual assessment.

The state board of equalization, at its annual meeting in July, shall assess the franchises and all operative property of power, gas, pipeline, and other companies, covered by this chapter, with reference to the value thereof on the first day of January of that year.

57-06-06. Reports of companies.

Each company required to be assessed under the provisions of this chapter annually, on or before the first day of May, under oath of the president or other chief executive officer, and the secretary or treasurer or auditor or superintendent of the company, shall make and file with the tax commissioner, in the manner prescribed by the tax commissioner, a report containing the following information, so far as applicable to the company making the report, as of January first of the year in which the report is furnished:

1. The name of the company.
2. The nature of the company, whether a person, association, corporation, or limited liability company, and under the laws of the state or country organized, the date of original organization, the date of reorganization, consolidation, or merger, with specific reference to laws authorizing the same.
3. Location of its principal office.
4. The name of the place where its books, papers, and accounts are kept.
5. The name and post-office address of the president, secretary, treasurer, auditor, superintendent, general manager, and all other general officers.
6. The name and post-office address of the chief officer or managing agent of the company in North Dakota and of all other general officers residing in this state.
7. The total number of shares of capital stock.
8. The par value of the shares of the capital stock for the whole system, showing separately the amount authorized, amount issued, amount outstanding, and dividends paid thereon.
9. If the capital stock has no market value, the actual value on the dates and for the periods designated by the tax commissioner.
10. The funded debt of the company for the whole system and a detailed statement of all series of bonds, debentures, or other securities, forming a part of the funded debt, at par value, with the date of issue, maturity, rate of interest, and amount of interest for the preceding year.
11. The market value of each series of funded debt securities for the whole system on the dates and for the periods designated by the tax commissioner, and if the whole or a part of the funded debt has no market value, then its actual value for the dates and periods as the tax commissioner may specify.
12. The general description of the operative and nonoperative real estate of the company in North Dakota as would be sufficient in a conveyance thereof, under a judicial decree, to vest in the grantee all title and interest in and to the property.
13. A description of the personal property of the company, including moneys and credits, held by the company as a whole system, and the part of the property apportioned to the line in North Dakota.
14. The whole length of the lines of the system operated by the company and the length of the lines in North Dakota, whether operated as owner, lessee, or otherwise. The length of the line operated for the whole system and in North Dakota shall be separately reported.
15. The entire gross earnings of the company from operation, expenses of operation, net earnings and income from operation, and the income from other sources, for the whole system, and in North Dakota, for the years or period the tax commissioner may request or specify, not exceeding five years.
16. The location of the property of the company within this state by counties, municipalities, and districts, in the manner and detail as the tax commissioner shall prescribe.
17. Other facts and information as the tax commissioner may require or which the company may deem material relating to the taxation of its property in this state.

57-06-07. Additional information from power companies.

Each power company shall report further as follows:

1. Number of miles [kilometers] of pole line in each taxing district in each county in the state, separated and classified as to location and character, as the tax commissioner may require; and
2. Cost of construction of such lines fully equipped, together with the present value per mile [1.61 kilometers] of such lines in each taxing district in each county.

57-06-08. Additional information from gas companies.

Each gas and pipeline company shall report further as follows:

1. The number of miles [kilometers] of pipeline in each taxing district in each county in the state, separated and classified as to location, size, and character as may be required by the tax commissioner; and
2. The cost of construction of such lines, fully equipped, together with the present value per mile [1.61 kilometers] of such lines in each taxing district in each county.

57-06-09. Penalty for failure to furnish report.

If any company refuses or neglects to make the report required by this chapter, or refuses or neglects to furnish any information requested, the tax commissioner shall obtain the best information available on the facts necessary to be known in order to discharge the tax commissioner’s duties with respect to the valuation and assessment of the property of the company. If any company fails to make the report required under this chapter on or before the first day of May of any year, the state board of equalization shall add twenty percent to the assessed value of the property of the company for that year. If any company fails to make the report required under this chapter on or before the first day of June of any year, the state board of equalization shall add an additional ten percent to the assessed value of the property of the company for that year. On or before the first day of June, for good cause shown, the tax commissioner may waive all or any part of the penalty that attached under this section.

57-06-09.1. Penalty for continued failure to furnish report.

If any company fails to make the report required under this chapter for three consecutive years, the state board of equalization shall add a penalty of five thousand dollars for each failure to make the required report, which must be collected as a part of the tax.

57-06-10. Plants under construction.

Any property of the classes mentioned in this chapter owned by a company constructing a new plant or system, even though no part of such new plant or system is in operation, must be considered operative property and is subject to assessment and taxation.

57-06-11. Tentative valuation by tax commissioner.

The tax commissioner, on or before June fifteenth of each year, shall ascertain and determine the value of all operative property of any company required to be assessed under the provisions of this chapter. This determination of value must be made for the guidance of the state board of equalization in assessing the property at its annual meeting in July. In making the determination of value, the tax commissioner must be governed by the rules provided in this chapter and by direction given to the tax commissioner by the state board of equalization.

57-06-12. Tentative assessment to be made and notice of hearing.

The tax commissioner shall give ten days’ notice in a manner determined by the tax commissioner to each company, or its representative in North Dakota, of the amount of its tentative assessment and the meeting of the state board of equalization on the second Tuesday of July, at which meeting each company is entitled to present evidence before the state board of equalization relating to the value of the property of the company.

57-06-13. General powers of investigation.

In any matter material to the valuation, assessment, or taxation of property under this chapter, the tax commissioner may exercise any and all of the powers conferred upon the tax commissioner by law. Every public officer required to do so shall make return to the tax commissioner, in such form as the tax commissioner prescribes, of all information the tax commissioner may call for. The property, records, books, accounts, and papers of any company required to be assessed under this chapter, upon order of the state board of equalization, are subject to visitation and examination by the tax commissioner or by such person as the tax commissioner designates for that purpose.

57-06-14. Method of valuation.

The operative property of each company assessed under this chapter must be assessed in the following manner:

1. For the purpose of determining the value of the property, the tax commissioner and the state board of equalization shall take into consideration the earning power of the property as shown by its gross earnings and net operating income, the market or actual value of its stocks and bonds, the value of its franchises, rights, and privileges granted under the laws of this state to do business in this state, and any other legally established evidences of value as enable the board to make a just and equitable assessment.
2. In the case of a company that owns or operates properties or lines partly within and partly without this state, the tax commissioner and state board of equalization shall value only the property within this state.
3. In determining the value of the portion within this state of an interconnected, or continuous system, the tax commissioner and state board of equalization may take into consideration the value of the entire system and of the part within this state, the mileage of the whole system and of the part within this state, the total operating earnings within and without this state, together with any other information, facts, and circumstances as will enable the officers to make a just and correct assessment.
4. The board may take into consideration the reports, annual or otherwise, filed by any company required to be assessed under this chapter with the public service commission and shall take into consideration any valuation of such company by the public service commission.

57-06-14.1. Taxation of centrally assessed wind turbine electric generators.

1. A centrally assessed wind turbine electric generation unit with a nameplate generation capacity of one hundred kilowatts or more on which construction is completed before January 1, 2015, must be valued at three percent of assessed value to determine taxable valuation of the property except:
   1. A centrally assessed wind turbine electric generation unit with a nameplate generation capacity of one hundred kilowatts or more, for which a purchased power agreement was executed after April 30, 2005, and before January 1, 2006, and construction was completed after April 30, 2005, and before July 1, 2006, must be valued at one and one-half percent of assessed value to determine taxable valuation of the property; and
   2. A centrally assessed wind turbine electric generation unit with a nameplate generation capacity of one hundred kilowatts or more, on which construction is completed after June 30, 2006, and before January 1, 2015, must be valued at one and one-half percent of assessed value to determine taxable valuation of the property.
2. A centrally assessed wind turbine electric generation unit with a nameplate generation capacity of one hundred kilowatts or more, on which construction is completed after December 31, 2014, or which is twenty years or more from the date of first assessment, is subject to taxes in lieu of property taxes, to be determined as provided in subsection 1 of section 57-33.2-04 and subject to any associated administrative provisions of chapter 57-33.2.

57-06-15. Assessment by state board of equalization — Notice of increase.

The state board of equalization may adopt the tentative assessment of the tax commissioner in whole or in part. The valuation and tentative assessments made by the tax commissioner must be considered merely findings of fact of the executive officer of the board. The state board of equalization shall review the valuation and tentative assessment at the time of its annual meeting in July of each year and then shall make a final assessment of the property. It may increase or lower the entire assessment, or any assessment contained therein, on any item contained within the assessment of any company. Before the state board of equalization may make an increase in the assessed valuation of the property of the company over the valuation contained in the tentative assessment, notice must be given to the company of the proposed increase and a hearing granted thereon. A ten-day written notice of the proposed increase and hearing must be given to the company, either by mail addressed to the company, or personally served on a duly authorized agent of the company.

57-06-16. Equalization.

It is the duty of the state board of equalization, in assessing the property of companies required to be assessed under this chapter, to equalize the assessments of the property of the companies in order to bring about, as nearly as possible, equality and uniformity in the assessment of all classes of taxable property.

57-06-17. Allocation of assessment of operative property constituting a single and continuous property. [Repealed]

Repealed by S.L. 2005, ch. 545, § 10.

57-06-17.1. Carbon dioxide pipeline exemption.

Property, not including land, is exempt from taxation during construction and for the first ten full taxable years following initial operation if it consists of a pipeline, constructed after 1996, and necessary associated equipment for the transportation or storage of carbon dioxide for secure geologic storage or use in enhanced recovery of oil or natural gas.

57-06-17.2. Payments in lieu of taxes.

Carbon dioxide pipeline property described in section 57-06-17.1 is subject to payments in lieu of property taxes during the time it is exempt from taxation under section 57-06-17.1. For the purpose of these payments, carbon dioxide pipeline property described in section 57-06-17.1 must be valued annually by the state board of equalization in the manner that other pipeline valuations are certified. The county auditor shall calculate taxes on the carbon dioxide pipeline property described in section 57-06-17.1 in the same manner that taxes are calculated on other pipeline property. Not later than December twenty-sixth of each year, each county auditor shall submit a statement of the amount of taxes that would have been assessed against carbon dioxide pipeline property, exempted under section 57-06-17.1, to the state treasurer for payment. The state treasurer shall make the required payment to each county not later than March first of the following year, and the county auditor shall distribute the payments to the political subdivisions in which the exempt pipeline property is located. Carbon dioxide pipeline property for which payments in lieu of taxes are required must be excluded from the valuation of property in the taxing district for purposes of determining the mill rate for the taxing district.

57-06-17.3. New transmission line property tax exemption.

A transmission line of two hundred thirty kilovolts or larger, and its associated transmission substations, which is not taxable under chapter 57-33.2 and is initially placed in service on or after October 1, 2002, is subject to a tax at the rate of three hundred dollars per mile [1.61 kilometers] or fraction of a mile. A transmission line subject to taxation under this section is exempt from property taxes for the first taxable year after the line is initially placed in service, and the taxes under this section must be reduced by:

1. Seventy-five percent for the second taxable year of operation of the transmission line.
2. Fifty percent for the third taxable year of operation of the transmission line.
3. Twenty-five percent for the fourth taxable year of operation of the transmission line.

After the fourth taxable year of operation of the transmission line, the transmission line and its associated transmission substations are exempt from property taxes and are subject to a tax at the rate of three hundred dollars per mile [1.61 kilometers] or fraction thereof of the line located in this state. The per mile tax imposed by this section applies to the transmission line and its associated transmission substations and is subject to allocation among counties in the proportion that the miles of that transmission line in the county bears to the miles of that transmission line in the state.

For purposes of this section, “initially placed in service” includes both new construction and substantial expansion of the carrying capacity of a pre-existing line, and “substantial expansion” means an increase in carrying capacity of fifty percent or more.

57-06-17.4. Pipeline authority exemption.

Property, not including land, is exempt from taxation during construction and for the first ten full taxable years following initial operation if it consists of a pipeline owned by the authority and constructed after 2006, and necessary associated equipment for the transportation or storage of energy-related commodities if constructed under chapter 54-17.7. Pipeline facilities property described in subsection 6 of section 54-17.7-02 is subject to payments in lieu of property taxes during the time it is exempt from taxation. For the purpose of these payments, pipeline facilities property described in subsection 6 of section 54-17.7-02, whether or not it crosses multiple geographic taxing districts, must be valued annually by the state board of equalization and certified in the manner that other pipeline valuations are certified. The county auditor shall calculate taxes on the pipeline facilities property described in subsection 6 of section 54-17.7-02 in the same manner that taxes are calculated on other pipeline property. Not later than December twenty-sixth of each year, each county auditor shall submit a statement of the amount of taxes that would have been assessed against pipeline facilities property exempted under this section to the state treasurer for payment. The state treasurer shall make the required payment to each county not later than March first of the following year, and the county auditor shall distribute the payments to the political subdivisions in which the exempt pipeline facilities property is located.

57-06-18. Allocation of assessment of other operative property.

All lots and parcels of real estate, not including rights of way, with the buildings, structures, and improvements thereon, dams and powerhouses, substations, shops, and other buildings, electric power, electric light, gas, or steam distribution systems, and other personal property not a part of any single and continuous property, must be separately assessed and the assessment must be allocated to the taxing district in which the property is located. The assessment by the state board of equalization covering the property must give a legal description of the real estate and a general description of other property sufficient for identification. The assessment by the board of the operative property must cover the aggregate valuation of the property of any company in any municipality or taxing district of the state as a unit and need not be made in detail.

57-06-19. Certification of assessment.

The state tax commissioner shall certify to the county auditor of each county in which the company assessed owns property the total true and full valuation of the company’s property, with information as to the amount in each assessment district within the county.

57-06-20. Duties of county auditor.

The county auditor, after receiving the statement from the tax commissioner, shall enter the valuations mentioned in section 57-06-19 in the assessment record of the several taxing districts of the county into or through which the lines extend, or in which the property is located. Taxes must be extended upon such percentage of full values as is required by law and at the same rate and in the same manner as taxes upon tangible personal property in such taxing districts.

57-06-21. Maps — Reports to county auditors.

1. By January first of each year, the county auditor shall provide to each company required to be assessed under this chapter a current map of the county showing the boundaries of each taxing district in the county.
2. By February fifteenth of each year, each company required to be assessed under this chapter shall file with:
   1. The county auditor of each county within which any part of its operative property is located, a report containing a copy of the information required in subsection 16 of section 57-06-06, subsection 1 of section 57-06-07, and subsection 1 of section 57-06-08. The report must provide a general description of all the company’s property located within the county, with operative and nonoperative property listed separately. The report must give the length of the line or lines within the county and the length in each taxing district of each line constituting part of a single and continuous line or property.
   2. The county auditor and the tax commissioner, a map of all the company’s lines within the county showing clearly the length of the company’s lines within each taxing district as of January first of that year.

57-06-21.1. Verification by county auditor of reports.

By May thirty-first of each year, the county auditor shall verify to the tax commissioner, in the manner and detail prescribed by the tax commissioner, the accuracy of the information filed with the county auditor under subdivision a of subsection 2 of section 57-06-21.

57-06-22. Enforcement of collection.

The property of a company assessed under the provisions of this chapter, for the purposes of assessment and taxation and the collection of taxes, must be considered personal property. The taxes assessed on such property are a perpetual paramount lien upon all the franchises and property, both real and personal, of every kind and nature belonging to the company assessed from and after the date upon which the assessment is made, and no sale or transfer of such property, or of any part thereof, divests, or in any way affects, the lien for the taxes upon such property. No company which has been assessed and taxed under the provisions of this chapter is entitled to have a transfer of any of its said property by deed, bill of sale, or otherwise entered, filed, or recorded upon the records of the office of the recorder, county treasurer, or county auditor, unless all taxes then due against the said property first are paid and satisfied. All laws not in conflict with the provisions of this chapter, relating to the enforcement of the payment of delinquent personal property taxes, are applicable to all taxes levied on such property pursuant to the provisions of this chapter, and when any taxes levied pursuant to the provisions of this chapter become delinquent, the county treasurer charged with the duty of collecting such delinquent taxes shall proceed to collect the same in the manner now provided by law for the collection of delinquent personal property taxes. If collection is made by seizure and sale, the sale must be at public auction held at the county courthouse.

57-06-23. Deposit of revenue — Report to treasurer.

The commissioner shall transfer revenue collected under section 57-06-17.3 to the state treasurer for deposit in the electric generation, transmission, and distribution tax fund. At the time of the transfer, the commissioner shall provide a report showing the information necessary for the state treasurer to allocate the revenue transferred under this section.

57-06-24. Allocation — Continuing appropriation.

1. The electric generation, transmission, and distribution tax fund is appropriated as a continuing appropriation to the state treasurer for allocation and distribution to counties by April first of each year as provided in this section. The state treasurer shall make the necessary allocations to the counties based on the report received from the tax commissioner. The county auditors shall make the necessary allocations to the taxing districts.
2. Revenue from the tax on transmission lines under section 57-06-17.3 must be allocated among counties based on the mileage of transmission lines within each county. Revenue received by a county under this subsection must be allocated one-third to the county and two-thirds among the county and other taxing districts in the county based on the mileage of that transmission line where that line is located within each taxing district. Revenue from that portion of a transmission line located in more than one taxing district must be allocated among those taxing districts in proportion to the taxing district’s most recent property tax mill rates that apply where the transmission line is located.

57-06-25. Delinquent taxes — Penalty.

Taxes under section 57-06-17.3 are due January first for the preceding taxable year and are delinquent if not received by the commissioner by March first following the due date. If any amount of tax imposed by this chapter is not paid on or before March first, or if upon an additional audit additional tax is found to be due, there must be added to the tax due a penalty at the rate of one percent of the tax due for each month or fraction of a month during the first year during which the tax remains unpaid, computed from March first. Beginning on January first of the year following the year in which the taxes become due and payable, simple interest at the rate of twelve percent per annum upon the principal of the unpaid taxes must be charged until the taxes and penalties are paid, with the interest charges to be prorated to the nearest full month for a fractional year of delinquency.

57-07-01. Duty of tax commissioner upon omission or false statement in assessment.

Whenever after the final adjournment of the state board of equalization the tax commissioner discovers that any taxable property which is subject to assessment by the board has been omitted in whole or in part in the assessment of any year or years, not exceeding six years, or that any company having property subject to assessment by the board has:

1. Filed with the tax commissioner or board a false statement as to such property;
2. Omitted from any such statement property subject to taxation; or
3. Neglected or refused to file such statement,

the tax commissioner thereupon shall assess such omitted property at its just and true value for each year in which such property was omitted or escaped taxation, not exceeding six years.

57-07-02. Notice to be given.

The tax commissioner shall give notice by mail to the company owning any property, which has escaped taxation, of the tax commissioner’s action in assessing the property and shall describe the property and the amount of such assessment and notify such company to appear before the tax commissioner at the tax commissioner’s office at a specified time within fifteen days after such notice to show cause, if any, why such property should not be added to the assessment rolls.

57-07-03. Tax commissioner to act as assessor.

If the company or agent or representative thereof, does not appear, or, if after appearance, there is a failure to give good and sufficient reasons why such assessment should not be made, the same must be made. The tax commissioner, in discharging the duties imposed upon the tax commissioner by the provisions of this chapter, may exercise the powers conferred upon the state board of equalization.

57-07-04. Appeal to state board of equalization.

If any company is aggrieved by any assessment of omitted property made by the tax commissioner under this chapter, it has the right to appeal to the state board of equalization for a review of such assessment. Such appeal must be taken by filing a notice of appeal with the tax commissioner within thirty days after the hearing date specified in the notice provided by section 57-07-02.

57-07-05. Hearing on appeal.

In case any appeal to the state board of equalization is filed, the tax commissioner shall call a meeting of the board at a specified time to be approved by the governor, at which time any company protesting the assessment of omitted property may be heard. Due notice of the time and place of the meeting must be given to the taxpayer appealing. After consideration of the facts, the board shall fix the assessment of property according to the best judgment of the board.

57-07-06. Taxation of omitted property.

The valuation of any omitted property must be apportioned to the county or counties in which located proportionately to the regular assessment of such property. Taxes levied against escaped property or omitted property must be levied and collected in the same manner as though such property had been regularly on the assessment rolls and tax lists.

57-08-01. Action to review assessment of public utility.

If any company whose property has been valued and assessed for taxation purposes by the state board of equalization under the constitution or statutes of this state, or against whom any tax is levied or assessed by the board, feels aggrieved for any reason with the assessment, the company may bring an action in the district court of the county in which the company maintains its principal place of business in this state, against the state and any subdivisions of the state which may be interested, for relief therefrom. The action must be brought on or before the date on which the taxes to be collected under the assessment involved become due. Any adjustments to an assessment brought forward after October first must be applied to the following taxable year.

57-08-02. Procedure — Action for relief by utility from assessment.

At any time after an action is brought pursuant to section 57-08-01, the district court, either before or during trial, may allow the plaintiff to pay to the state or municipalities interested any part of the taxes involved in the action under such agreement as may be made between the plaintiff or plaintiffs and the attorney general on behalf of all defendants, or under such terms as the court may fix. Such agreement, when ratified by the court, is binding upon all parties to the action. At the time the action is brought, the plaintiff is required to file with the clerk of the district court a bond payable to the state of North Dakota, in such form as may be fixed by the district court, and in an amount sufficient to cover all anticipated costs of the action, said bond to be approved as to amount and form by the clerk of the district court. The decision of the district court in such action is subject to appeal to the supreme court in the manner now provided by statute for appeal in civil actions. No application need be submitted to the board of county commissioners before such action is commenced.

57-08-03. Action against state for refund of excessive taxes paid by utility — Limitation.

Any company claiming to be aggrieved by the levy of a tax upon its property and alleging facts showing substantial injustice in the determination by the state board of equalization, within six months after the payment of the tax under protest, may bring and maintain an action against the state to recover such part of the tax as exceeds the amount the company should have paid.

57-08-04. Refund of excess paid by utility.

If the amount of tax justly and equitably due from a utility is determined finally to be less than the amount paid, the excess must be refunded to the utility by the direction of the court, and for that purpose the county auditor of each county which was a party to the action, upon the filing in the auditor’s office of a certified copy of such final determination, shall draw a warrant upon the county treasurer for the amount to be refunded. The amount refunded must be charged against the funds of the state, county, township, city, school district, or other taxing district in the hands of the county treasurer or funds which thereafter may be collected in such proportion as the amount refunded bears to the amount collected for the benefit of each such taxing district on the original assessment.

57-08-05. Tax actions by utility — Manner of trial — Tender.

In any action, suit, or proceeding brought by a utility, in the state courts, to set aside, restrain, or postpone the payment or collection of any tax levied upon the property of the utility, no injunction, order, or writ to enjoin or restrain the payment or collection of the tax may issue, or be continued in force, unless said company pays to the county treasurer of each county in which a portion of such property is located, for the use of the county, the amount of taxes which the court shall determine primarily to be justly and equitably due from such company. Such primary determination must be made by the state court in which the action, suit, or proceeding is pending, upon motion, summarily and without delay.

57-08-06. When reassessment to be made.

If any tax levied upon property which is assessed by the state board of equalization is adjudged illegal or nonenforceable, or is set aside by any state or federal court of competent jurisdiction, the board, whether any part of the taxes assessed and levied have been paid or not, forthwith shall reascertain and redetermine the value of the property involved.

57-08-07. Notice to be given.

The tax commissioner, by mail, shall give notice to the company owning such property of the action of the state board of equalization in redetermining the value of such property. In such notice, the tax commissioner shall describe the property in general terms, and shall notify such company to appear before the board at the office of the tax commissioner at a specified time within fifteen days after such notice, and show cause, if any, why such property should not be reassessed at the valuation determined by the board.

57-08-08. Hearing.

At a hearing held pursuant to section 57-08-07, the company shall present evidence relating to the value of its property. After consideration of the evidence presented at such hearing, if any, the state board of equalization shall fix the final assessment of such property according to the best judgment of the board. The proceedings for such reassessment, as near as may be, must be conducted as the proceedings for the original assessment are conducted.

57-08-09. Taxation of reassessed property.

The reassessment shall be of the same force and effect as the original assessment made in accordance with law. The valuation of reassessed property must be allocated as the valuation upon the original assessment of such property is allocated, and the provisions of law governing the levy and collection of taxes upon an original assessment are applicable to property reassessed under the provisions of this chapter.

57-08-10. How often reassessment may be made.

The power to reassess the property of any company may be exercised as often as may be necessary until the amount of taxes legally due from any company for any year under the assessment and taxation laws of this state has been determined finally and definitely. Whenever any tax or part thereof levied upon the property of any company has been declared illegal and such tax has been paid and not refunded, the payment so made must be applied, in case of reassessment, upon said property, and the reassessment of taxes to that extent must be deemed to be satisfied.

57-09-01. Membership of board — Meeting.

1. The township board of equalization consists of the members of the board of supervisors of each township, and the township clerk shall act as clerk of the board. The board shall meet in April each year at the usual place of meeting of the township board of supervisors.
2. If the same person performs the duties of assessor for two or more townships or cities, the township clerk may, after consultation with the assessor involved, designate the hour and day in the month of April at which the meeting provided for in subsection 1 must be held for each township board of equalization; provided, that notice of the hour and day must be published in the official newspaper of the political subdivisions involved and posted at the usual place of meeting by the township clerk at least ten days before the meeting.

57-09-02. Duties of clerk.

The clerk shall keep an accurate record of the proceedings of the board of equalization, showing the facts and evidence upon which its action is based, a copy of which must be furnished to the assessor and filed by the assessor with the county auditor as part of the assessment returns.

57-09-03. Notice of meeting to be posted. [Repealed]

Repealed by S.L. 1959, ch. 363, § 1.

57-09-04. Duties of board — Limitation on increase — Notice.

The township board of equalization shall ascertain whether all taxable property in its township has been properly placed upon the assessment list and duly valued by the assessor. In case any real property has been omitted by inadvertence or otherwise, the board shall place the same upon the list with the true value thereof. The board shall proceed to correct the assessment so that each tract or lot of real property is entered on the assessment list at the true value thereof. The board may not increase the valuation returned by the assessor to an amount that results in a cumulative increase of more than fifteen percent from the amount of the previous year’s assessment without giving the owner or the owner’s agent reasonable notice and opportunity to be heard regarding the intention of the board to increase it. All complaints and grievances of residents of the township must be heard and decided by the board and it may make corrections as appear to be just. Complaints by nonresidents with reference to the assessment of any real property and complaints by others with reference to any assessment made after the meeting of the township board of equalization must be heard and determined by the county board of equalization. The board must comply with any requirement for notice of an assessment increase under section 57-02-53.

57-09-05. Quorum — Time for completing equalization.

Any two members of a three-member board of equalization and any three members of a five-member board of equalization are authorized to act at the meeting of the board and they may adjourn from day to day, but the equalization must be completed within ten days.

57-09-06. Assessor’s statement and return to auditor.

The assessor shall add and note the amount of each column in the assessor’s assessment books after making the corrections ordered by the township board of equalization. The assessor also shall make in each book a tabular statement showing the footings of the several columns on the page and shall add and set down under the respective headings the total amount of the several columns. On or before the second Monday in May in each year, the assessor shall make returns to the county auditor of the assessment books, and shall deliver the lists and statements of all persons assessed, all of which must be filed and preserved in the office of the county auditor. The returns must be verified by the assessor’s affidavit substantially in the following form:

STATE OF NORTH DAKOTA ) ) ss. County of ) I, , assessor of , swear that the book to which this is attached contains a full list of all property subject to taxation in so far as I have been able to ascertain, and that the assessed value set down in the columns opposite the several kinds and descriptions of property in each case is fifty percent of the true and full value of the property, to the best of my knowledge and belief, except where and as corrected by the township board of equalization, and that the footings of the several columns in the book, and the tabular statement returned herewith, are correct, as I verily believe. Assessor Subscribed and sworn to before me on , . Auditor of County, North Dakota

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57-11-01. Membership of board — Quorum — Meeting.

1. The board of equalization of a city consists of the members of the governing body, and shall meet at the usual place of meeting of the governing body of the city within the first fifteen days of April of each year. The executive officer of the governing body shall act as chairman, but in the executive officer’s absence the governing body may elect one of its members to preside. A majority of the board constitutes a quorum to transact business, and it may adjourn from day to day until its work is completed. If a quorum is not present at any time, the clerk may adjourn from day to day and publicly announce the time to which the meeting is adjourned.
2. If the same person performs the duties of assessor for two or more cities or townships, the city auditor may, after consultation with the assessor involved, designate the hour and day in the month of April at which the meeting provided for in subsection 1 must be held for each city board of equalization; provided, that notice of the hour and day must be published in the official newspaper of the political subdivisions involved and posted at the usual place of meeting by the city auditor at least ten days before the meeting.

57-11-02. Duties of auditor.

The city auditor, as clerk, shall keep an accurate record of all changes made in valuation, and of all other proceedings, and, within ten days after the completion of the equalization of the assessment, shall deliver the assessments as equalized to the county auditor of the county in which the city is situated, with the city auditor’s certificate that the assessments are correct as equalized by the city board of equalization. The assessment as equalized must be accepted by the board of county commissioners in lieu of all other assessment rolls for the property in said city.

57-11-03. Duties of board — Limitation on increase — Notice.

At its meeting, the board of equalization shall proceed to equalize and correct the assessment roll. It may change the valuation and assessment of any real property upon the roll by increasing or diminishing the true and full valuation thereof as is reasonable and just to render taxation uniform, except that the board may not increase the valuation of any property returned by the assessor to an amount that results in a cumulative increase of more than fifteen percent from the amount of the previous year’s assessment without first giving the owner or the owner’s agent reasonable notice and opportunity to be heard regarding the intention of the board to increase it. All complaints and grievances of residents of the city must be heard and decided by the board and it may make corrections as appear to be just. Complaints by nonresidents with reference to the assessment of any real property and complaints by others with reference to any assessment made after the meeting of the city board of equalization must be heard and determined by the county board of equalization. The board shall comply with any requirement for notice of an assessment increase under section 57-02-53.

57-11-04. Application for correction of assessment.

During the session of the board, any person, or the attorney or agent of any person feeling aggrieved by anything in the assessment roll, may apply to the board for the correction of alleged errors in the listing or valuation of real property, and the board may correct the errors as it may deem just.

57-11-05. Adding property to assessment list.

The board of equalization shall place upon and add to the assessment roll any real property subject to taxation which has been omitted by the owner or the assessor and shall enter the property at a valuation which will bear an equal and just proportion of the taxation.

57-11-06. No reduction after session of board — Exception.

After the adjournment of the board each year, neither the governing body of the city nor the city board of equalization may change or alter any assessment. Neither may the governing body or the board of equalization reduce or abate, or authorize the reduction, abatement, or return, of any taxes levied upon such assessments for any cause except that the property assessed was not subject to taxation at the time the assessment was made.

57-11-07. Effect of failure of board to meet.

The failure of the board of equalization to hold its meeting does not vitiate nor invalidate any assessment or tax except as to the excess of valuation or tax thereon shown to have been made or levied unjustly.

57-12-01. Membership of board — Meeting — Required attendance of certain officials.

The board of county commissioners shall meet within the first ten days of June of each year and shall constitute a board of equalization of the assessments made within the county. The chairman of the board shall preside. The county board of equalization shall conduct a continuous day-to-day meeting, not to include Saturdays, Sundays, or legal holidays, until it has completed all duties prescribed by this chapter. The first order of business must be the equalization of assessments of property assessed by city boards of equalization. The second order of business must be the equalization of assessments of property assessed by township boards of equalization. The chairman of each city board of equalization, or the chairman’s appointed representative, and each city assessor must be present at such meeting during the first order of business. The chairman of each township board of equalization, or the chairman’s appointed representative, and each township assessor must be present at such meeting during the second order of business. Each person required by this section to attend the meeting of the county board of equalization must be compensated at a rate not to exceed ten dollars per day for each day actually and necessarily spent in attendance at such meeting plus the same mileage and expenses as are authorized for subdivision employees and officials. Such per diem and expenses must be paid by the city or township in the same manner as other city or township expenses are paid.

57-12-01.1. Spot checks of real property.

Prior to the annual meeting of the county board of equalization, the board of county commissioners of each county within this state shall provide for spot checks upon property within each county to properly verify the accuracy of the real property listings and valuations. The spot checks must be reviewed by the county boards of equalization at their annual meeting in June and such boards shall make the necessary corrections in the property assessment listings and valuations. Such changes in the assessments must be made in accordance with the provisions of this chapter.

In case any person whose duty it is to list property with the assessor refuses to list such property or intentionally omits a portion of such property in the person’s listing as indicated by the spot check, the county boards of equalization, as a penalty for such refusal or omission, may make an added assessment on such property of twenty-five percent in excess of its true valuation.

The board of county commissioners may select such persons or agencies as may be necessary to carry out the provisions of this section and provide for their compensation.

57-12-02. Duties of board as to assessments in unorganized territory.

The members of the board of county commissioners also shall meet as a board of equalization as respects all assessments made in assessment districts not embraced in a city or organized township, and shall perform the duties prescribed for a township board of equalization as respects unorganized territory, and such board must be regarded as the local board of equalization for such territory.

57-12-03. Duties of county auditor.

The county auditor shall act as clerk of the county board of equalization and shall keep an accurate journal or record of the proceedings and orders of said board, showing the facts and evidence upon which its action is based. Such record must be published as other proceedings of the board of county commissioners are published, and a copy of such published proceedings must be transmitted to the state tax commissioner with the abstract of assessment required by law.

57-12-04. Duties of board.

At its meeting, the county board of equalization shall examine and compare the assessments returned by the assessors of all the districts within the county and shall proceed to equalize the same throughout the county between the several assessment districts.

57-12-05. Requirements to be followed in equalization of individual assessments.

The county board of equalization, when equalizing individual assessments, shall observe the following rules:

1. The valuation of each tract or lot of real property which is returned below its true and full value must be raised to the sum believed by such board to be the true and full value thereof.
2. The valuation of each tract or lot of real property which, in the opinion of the board, is returned above its true and full value must be reduced to such sum as is believed to be the true and full value thereof.

57-12-06. County board of equalization — Equalizing between assessment districts and between properties — Limitation on increase — Notice.

1. The rules prescribed in section 57-12-05 apply when the board of county commissioners is equalizing assessments between the several assessment and taxing districts in the county provided that in such case, except as otherwise provided in subsection 2, the board may raise or lower the valuation of classes of property only so as to equalize the assessments as between districts. If the board orders an increase under this subsection, the board must comply with any requirement for notice of an assessment increase under section 57-02-53.
2. Notwithstanding any other provision of this section:
   1. The county board of equalization after notice to the local board of equalization may reduce the assessment on any separate piece or parcel of real estate even though such property was assessed in a city or township having a local board of equalization . The county board of equalization may not reduce any such assessment unless the owner of the property or the person to whom it was assessed first appeals to the county board of equalization, either by appearing personally or by a representative before the board or by mail or other communication to the board, in which the owner’s reasons for asking for the reduction are made known to the board. The proceedings of the board shall show the manner in which the appeal was made known to the board and the reasons for granting any reduction in any such assessment.
   2. The county board of equalization after notice to the local board of equalization may increase the assessment on any separate piece or parcel of real property even though such property was assessed in a city or township having a local board of equalization . The county board of equalization may not increase the valuation returned by the assessor or the local board of equalization to an amount that results in a cumulative increase of more than fifteen percent from the amount of the previous year’s assessment without giving the owner or the owner’s agent notice by mail to the owner of the property that such person may appear before the board on the date designated in the notice, which date must be at least five days after the mailing of the notice. The county auditor as clerk of the board shall send such notice to the person or persons concerned. If the board orders an increase under this subdivision, the board must comply with any requirement for notice of an assessment increase under section 57-02-53.
   3. If the county board of equalization during the course of its equalization sessions determines that any property of any person has been listed and assessed in the wrong classification, it shall direct the county auditor to correct the listing so as to include such assessment in the correct classification.
3. The owner of any separate piece or parcel of real estate that has been assessed may appeal the assessment thereon to the state board of equalization as provided in section 57-13-04; provided, however, that such owner has first appealed the assessment to the local equalization board of the taxing district in which the property was assessed and to the county board of equalization of the county in which the property was assessed. Notwithstanding this requirement, an owner of property which has been subjected to a new assessment authorized under section 57-14-08 may appeal the new assessment to the state board of equalization in the manner provided for in section 57-14-08.

57-12-07. Township and municipal officers to advise with board. [Repealed]

Repealed by S.L. 1963, ch. 381, § 2.

57-12-08. Auditor to correct list and send abstract to state tax commissioner.

The county auditor shall calculate the changes in the assessment lists determined by the county board of equalization and shall make corrections accordingly. After making such corrections, the county auditor shall make duplicate abstracts of the real property lists, one copy of which must be filed in the office of the county auditor and one copy of which must be forwarded to the state tax commissioner on or before the last day of June following each county equalization.

57-12-09. Notice of increased assessment to real estate owner. [Repealed]

57-13-01. Membership of board.

The governor, state treasurer, state auditor, agriculture commissioner, and state tax commissioner constitute the state board of equalization. The governor must be chairman of the board and the tax commissioner is secretary.

57-13-02. Annual meeting to assess taxable property.

The state board of equalization shall meet annually on the second Tuesday in July at the office of the state tax commissioner and shall assess all of the taxable property which such board is required to assess pursuant to and in accordance with the provisions of section 4 of article X of the Constitution of North Dakota, as amended, and the statutes of this state.

57-13-03. Annual meeting to equalize taxable property.

The state board of equalization shall meet annually on the second Tuesday in August at the office of the state tax commissioner or, if deemed advisable by the board because of inadequate space, at such other place on the grounds of the state capitol as may be adequate, and then shall examine and compare the returns of the assessment of taxable property as returned by the several counties in the state, and shall proceed to equalize the same so that all assessments of similar taxable property are uniform and equal throughout the state at the full and true value thereof in money or at such percentage of the full and true value as may be required by law.

57-13-04. General duties and powers of board.

The state board of equalization shall equalize the valuation and assessment of property throughout the state, and has power to equalize the assessment, classification, and exemption status of property in this state between assessment districts of the same county, and between the different counties of the state. It shall:

1. Equalize the assessment of real property by adding to the aggregate value thereof in any assessment district in a county and in every county in the state in which the board may believe the valuation too low, such percentage rate as will raise the same to its proper value as provided by law, and by deducting from the aggregate assessed value thereof, in any assessment district in a county and every county in the state in which the board may believe the value too high, such percentage as will reduce the same to its proper value as provided by law. City lots must be equalized in the manner provided for equalizing other real property.
2. In making such equalization, add to or deduct from the aggregate assessed valuation of lands and city lots such percentage as may be deemed by the board to be equitable and just, but in all cases of addition to or deduction from the assessed valuation of any class of property in the several assessment districts in each county and in the several counties of the state, or throughout the state, the percentage rate of addition or deduction must be even and not fractional.
3. In equalizing individual assessments:
   1. If it believes an assessment to be too high, the board may reduce the assessment on any separate piece or parcel of real estate if the owner of the property has appealed such assessment to the board either by appearing personally or by a representative before the board or by mail or other communication to the board in which the property owner’s reasons for asking for the reduction are made known to the board.
      1. The board does not have authority to reduce an assessment until the owner of the property has established to the satisfaction of the board that the owner of the property had first appealed the assessment to the local equalization board of the taxing district in which the property was assessed and to the county board of equalization of the county in which the property was assessed.
      2. The board does not have authority to reduce a new assessment provided for under section 57-14-08 until the owner of the property has established to the satisfaction of the board that the owner of the property had first appealed the assessment to the county board of equalization of the county in which the property was assessed.
   2. If it believes an assessment to be too low, the board may increase the assessment on any separate piece or parcel of real estate. The secretary of the board, by mail sent to the last-known address of the owner to whom the property was assessed, shall notify such person of the amount of increase made by the board in such assessment.
   3. The percentage of reduction or increase made by the board under this subsection in any assessment must be a whole-numbered amount and not a fractional amount.
4. Equalize the classification and taxable status of real property in any assessment district in a county and in every county in the state in which the board determines the classification or taxable status is incorrect or inequitable. The board may equalize property under this subsection if information is received indicating that property within the assessment district or county may be erroneously classified or the property’s taxable status is incorrect. The board may also equalize property under this subsection if a property owner has properly appealed the property’s classification or taxable status. In the case of an appeal, the owner of the property must establish to the satisfaction of the board that the owner of the property had first appealed the classification or taxable status determination to the local equalization board of the taxing district in which the property is situated and to the county board of equalization of the county in which the property is situated.
5. Provide for reviews of selected properties, parcels, or lots within each county by the tax commissioner, state supervisor of assessments, or their designee, to verify the accuracy of real property assessment listings, valuations, classifications, and eligibility for exemptions. The reviews must be examined by the state board of equalization at its annual meeting in August. The board may make necessary corrections in the property assessment listings, valuations, classifications, and eligibility for exemptions or direct the affected township, city, or county governing body to make the corrections ordered by the state board of equalization resulting from its examination of the reviews provided for in this section.
6. The board may prescribe rules and regulations necessary and advisable for the detailed administration of and compliance with this section.
7. If any county or county official fails to take action ordered by the state board of equalization under the authority granted to it in this chapter or chapter 57-02, the board may petition any judge of the district court to issue a restraining order, writ of mandamus, or other form of declaratory or injunctive relief requiring the county or county official to comply with the order of the board. The order or notice upon the petition shall be returnable not more than ten days after the filing of the petition. The petition must be heard and determined on the return day, or on such day thereafter as the court shall fix, having regard to the speediest possible determination of the case consistent with the rights of the parties. The county or county official must show cause why the county or county official should not comply with any directive or order of the board. The judgment must include costs in favor of the prevailing party.
8. The board may order a new assessment of any class of property, or of all the property, located within any political subdivision if, in its opinion, taxable property located within that subdivision has escaped assessment in whole or in part, has been assessed unfairly, or has not been assessed according to law. A new assessment ordered by the board must be made as provided in section 57-14-08.
9. A property owner may appeal the assessment, classification, and exempt status of the owner’s property to the state board of equalization if the property owner was foreclosed from attending assessment proceedings because of the failure to substantially comply with the notice requirements in chapters 57-02 or 57-12, or because of an irregularity in the township, city, or county assessment proceedings.

57-13-04.1. Residential and commercial property true and full value.

In equalizing valuation and assessment of property among assessment districts, the state board of equalization may not approve valuation and assessment in any taxing district in which the true and full value for residential and commercial property as assessed and equalized in that district exceeds the true and full value for those property classifications in that taxing district as determined by the sales ratio study.

57-13-05. Hearing before state board of equalization.

The board of county commissioners of any of the several counties, or any representative thereof in its place or stead, or any city council or board of city commissioners or any representative thereof, any township supervisors, or representative groups of taxpayers or taxpayers’ associations, or any individual representing the same, may appear before the state board of equalization to be heard for the purpose of opposing any unreasonable or unjust increase or decrease in the valuation or determination of classification of the taxable property of the county, city, or township represented as equalized by the county board of equalization, opposing any increase or decrease in the valuation or determination of classification as proposed by the state board of equalization, or opposing a determination of taxable status made by a county board of equalization, to the end that all valuations or classifications of like taxable property may be uniform and equal throughout the state and exemption determinations made by a county board of equalization are found reasonable by the state board of equalization.

57-13-06. Presumption of regularity.

The proceedings of the state board of equalization must be presumed to be regular and the determination of such board may not be impaired, vitiated, nor set aside upon any ground not affecting substantially the reasonableness of the tax. The provisions in this title prescribing a date or period at or within which an act must be performed or a determination must be made by the state board of equalization must be deemed directory only, and no failure to perform any such act or make such determination at or within the time prescribed therefor affects the validity of such act or of any determination made by the state board of equalization unless it appears that substantial injustice has resulted therefrom.

57-13-07. Proceedings to be published — Abstract sent to county auditors.

The secretary shall keep a record of the proceedings of the board, which must be published by the secretary in an annual report. Upon final adjournment, the secretary shall transmit to each county auditor an abstract of such proceedings specifying the percentage added to or deducted from the valuation of the real property of each of the counties, in case an equal percentage has not been added to or deducted from each, and specifying also the percentage added to or deducted from the several classes of personal property in each of the counties in the state, and such other information as will enable each auditor properly to equalize or make corrections to the valuation or classification of taxable property or status with regard to exemption of property in the auditor’s county, and to determine the taxable rates thereof.

57-13-08. Duty of county auditor after equalization by state board.

Upon receipt of the report of the proceedings of the state board of equalization, the county auditor shall add to or deduct from each tract or lot of real property in the auditor’s county the required percentage of the valuation thereof, as it stands after the same has been equalized by the county board of equalization, adding in each case any fractional sum of fifty cents or more, and deducting in each case any fractional sum of less than fifty cents, so that the value of any separate tract or lot contains no fraction of a dollar. The county auditor shall revalue each tract or lot of real property that is reclassified by the state board of equalization using the proper valuation method for the class of taxable property as specified by the state board of equalization. The county auditor shall adjust the status of a tract or lot to comply with any determinations made by the state board of equalization in which the tract or lot is found by the state board of equalization to be taxable or exempt.

57-14-01. Duty of county auditor upon discovery of clerical error, omission, or false statement in assessment.

Whenever the county auditor discovers that:

1. Taxable real property has been omitted in whole or in part in the assessment of any year or years;
2. Any building or structure has been listed and assessed against a lot or tract of land other than the true site or actual location of such building;
3. The assessor has not returned the full amount of all property required to be listed in the district or has omitted property subject to taxation; or
4. The assessor has made a clerical error in valuing real property, provided the assessor furnishes the county auditor with a written statement describing the nature of the error, which statement the county auditor shall keep on file,

the county auditor shall proceed to correct the assessment books and tax lists in accordance with the facts in the case and shall correct such error or omission in assessment, and shall add such omitted property and assess it at its true and full value, and if a building or other structure, assessed as real estate in the assessment thereof, is described as though situated upon a lot or tract of land other than that upon which it in fact is situated, the county auditor shall correct the description and add the assessment thereof to the assessment of the lot upon which it actually is located, if the rights of a purchaser for value without actual or constructive notice of such error or omission are not prejudiced by such correction, addition, or assessment.

57-14-02. Notice to be given.

The county auditor shall give notice by mail to the person who owns or is in possession of any omitted property, or to that person’s agent, of the county auditor’s action in adding property upon the assessment books and shall describe the property and notify such person to appear before the county auditor at the county auditor’s office at a specified time within fifteen days after the date of mailing such notice, to show cause, if any, why such property should not be added to the assessment rolls or such other correction made.

57-14-03. County auditor to act as assessor.

If the party notified as provided in section 57-14-02 does not appear, or if the party appears and fails to give a good and sufficient reason why the assessment should not be made, the same must be made, and the county auditor may exercise all the powers of an assessor in discharging the duties assigned to the county auditor by this chapter.

57-14-04. Board of county commissioners to hear complaints and equalize.

The board of county commissioners, at its regular meeting next after the assessment of any omitted property, shall hear all grievances and complaints thereon, and then shall proceed to review and equalize any such assessment so as to harmonize it with the equalized assessed value of other like property.

57-14-05. Auditor to enter property on tax lists — Correcting errors.

The county auditor shall enter the valuation of property as equalized by the board of county commissioners and shall extend the taxes thereon, and, upon completing such assessment and extending the taxes thereon, shall correct the current year’s tax list in accordance with such assessment, if the current year’s tax list has not been certified to the treasurer for collection. In case the current year’s tax list has been certified to the treasurer for collection, the county auditor shall certify to the county treasurer a tax list covering omitted property which has been added to the tax list for the current year. The county treasurer shall correct the current year’s tax list accordingly without obliterating any name, description, or figure in the original tax list as delivered. The county auditor always has the power to correct clerical errors occurring in making up tax lists so as to make them conform to the assessment books. If the tax list has been delivered to the county treasurer, the county auditor shall certify such corrections to the treasurer, and the treasurer shall make the indicated corrections in the tax lists.

57-14-06. Auditor to keep roll of omitted property.

The county auditor of each county shall keep a book to be called “Assessment Roll of Property Which has Escaped Taxation”, in which the county auditor shall enter from time to time all real property, which has been omitted in the assessment of any previous year or years, or the assessment of which has been set aside by the judgment of any court, such property thereby having escaped taxation. If omitted property is assessed for a prior year or years, the county auditor shall enter the assessment of such property in the assessment roll of property which has escaped taxation at the rate and in the amount for which such omitted property should have been assessed in said year or years. Omitted property must be assessed for each year during which it escaped assessment and taxation.

57-14-07. Entry on delinquent lists.

After review by the board of county commissioners, the taxes against escaped property for prior years must be entered upon the tax list. In the case of personal property, such taxes must be entered upon the most recent delinquent personal property tax list. If such list, at the time, is in the hands of the treasurer, the auditor shall certify such taxes to the treasurer, and the treasurer shall enter them upon such delinquent tax list. If the most recent delinquent personal property tax list, at the time, is in the hands of the sheriff, the auditor shall certify such taxes to the sheriff, and the sheriff shall enter them upon such tax list. In the case of escaped real property, such taxes, if entered between the first day of July and the first day of November, must be entered upon the most recent delinquent real property tax list. If entered between November first and July first following, such taxes must be entered upon the current real property tax list. In either case, such real property taxes must be certified to the treasurer by the auditor and entered in the tax list by the treasurer. Taxes upon escaped property for prior years, whether upon real or personal property, are subject to the same penalties as other taxes, and such taxes must be enforced and apportioned as other taxes upon the lists upon which they are entered are enforced and apportioned.

57-14-08. New assessment of property — Allowance.

For purposes of this section, a “new assessment” means an assessment ordered by a board of county commissioners, or as authorized under section 57-01-02 or 57-13-04, of any class of property, or of all property, located within any political subdivision of the county if taxable property located within a subdivision has escaped assessment in whole or in part, has been assessed unfairly, or has not been assessed according to law. A new assessment may be made as follows:

1. Upon the filing of a petition signed by not less than ten freeholders in a political subdivision, or by the governing body of that subdivision, requesting a new assessment of property in the subdivision or upon investigation by the board of county commissioners, the board of county commissioners, before October first, may order a new assessment of any class of property, or of all property, located within the subdivision or within any subdivision. The state board of equalization or the tax commissioner may order a new assessment of any class of property or all property located in any political subdivision. The new assessment and equalization must be conducted under the terms and conditions as set forth in the state board of equalization or tax commissioner’s order. The local governing body responsible for performing the new assessment may petition the state board of equalization or tax commissioner for a modification of any or all of the order’s terms and conditions. The state board of equalization or tax commissioner may for good cause shown grant all or part of the modification request.
2. The board of county commissioners then may appoint a competent citizen of this state as a special assessor who shall make a new assessment of the property specified by the board and who shall proceed in accordance with the provisions of law governing assessors. The special assessor may be selected by competitive bidding or a process determined by the board of county commissioners. The special assessor is entitled to reasonable compensation by the board of county commissioners for the special assessor’s services, together with meals and lodging as allowed by law, and mileage expense at the rate allowed by law for each mile [1.61 kilometers] actually and necessarily traveled in the performance of that person’s duties, which must be audited and allowed by the board of county commissioners and paid out of the county treasury upon warrant of the county auditor. If the new assessment was ordered by the state board of equalization or tax commissioner, the state board of equalization or tax commissioner shall appoint a competent citizen of this state as a special assessor who shall make a new assessment of the property specified by the state board of equalization or tax commissioner to be completed under the terms and conditions set forth in the order; the special assessor shall proceed in accordance with the provisions of the law governing assessors; the special assessor is entitled to reasonable compensation by the state board of equalization or tax commissioner for that person’s services plus meals, lodging, and mileage expense at the rates provided by law, and the state board of equalization or tax commissioner shall audit and allow the bill, and the same must be paid out of the county treasury. In either case, the compensation must be charged to the political subdivision in which the new assessment was made and must be deducted by the county treasurer from funds coming into the treasurer’s hands apportionable to the subdivision. The board of county commissioners, state board of equalization, or tax commissioner who appoints a special assessor may authorize such assistants as may be necessary to aid the special assessor and shall allow reasonable compensation for each of the assistants plus meals, lodging, and mileage expense at the rates provided by law, which amounts must be audited, allowed, and paid and must be charged to the political subdivision in which the new assessment occurred in the manner provided for the special assessor.
3. Upon completion of the terms and conditions of the new assessment order, the assessor shall certify the result to the county auditor, who forthwith shall give notice by mail to the state tax commissioner and the board of county commissioners and the governing boards of each township, city, and school district which is wholly or partially within the newly assessed district, that a new assessment has been completed in the named assessment district as provided under this section and that a meeting for the purpose of equalizing the assessment will be held in the county courthouse on the day and at the time specified for the meeting of the county board of equalization. Each board shall appoint one of its members to attend the equalization meeting and the tax commissioner shall attend or appoint a representative from the commissioner’s office to attend the meeting. A notice that the new assessment provided for under this section will be considered during the meeting of the county board of equalization must be published at least once in the official newspaper of the county in which the new assessment was made not less than one week prior to the meeting. The claims for mileage expense and necessary expenses for meals and lodging of the tax commissioner or the commissioner’s appointee in attending the special equalization meeting must be audited, allowed, and paid as are other similar claims made by them.
4. When any special assessor has increased the true and full valuation of any lot or tract of land including any improvements to that lot or tract of land by three thousand dollars or more and by ten percent or more of the last assessment as a result of the new assessment provided for under this section, written notice of the amount of increase over the last assessment and the amount of the last assessment must be delivered in writing by the special assessor to the property owner, mailed in writing to the property owner at the property owner’s last-known address, or provided to the property owner by electronic mail directed with verification of receipt to an electronic mail address at which the property owner has consented to receive notice. The tax commissioner shall prescribe suitable forms for this notice and the notice must also show the true and full value as defined by law of the property, including improvements, that the special assessor used in making the new assessment and must also show the date prescribed by law for the meeting of the county board of equalization of the county in which the property is located. Delivery of notice to the property owner under this section must be completed at least fifteen days in advance of the meeting date of the county board of equalization and at the expense of the assessment district for which the special assessor is employed.
5. At the meeting, the county board of equalization shall hear all grievances and complaints in regard to the new assessment provided for under this section and shall proceed to equalize the same. All tax lists must be corrected to comply with the action.
6. Any property owner aggrieved by a decision of the county board of equalization with regard to the new assessment provided for under this section may appeal that decision to the state board of equalization at its August meeting. The board does not have authority to reduce a new assessment until the owner of property has established to the satisfaction of the board that the owner of the property had first appealed the new assessment to the county board of equalization of the county in which the property was assessed.

57-15-01. Levy in specific amounts — Exceptions.

With the exception of special assessment taxes and such general taxes as may be definitely fixed by law, all state, county, city, township, school district, and park district taxes must be levied or voted in specific amounts of money.

57-15-01.1. Protection of taxpayers and taxing districts.

Each taxing district may levy the lesser of the amount in dollars as certified in the budget of the governing body, or the amount in dollars as allowed in this section, subject to the following:

1. No taxing district may levy more taxes expressed in dollars than the amounts allowed by this section.
2. For purposes of this section:
   1. “Base year” means the taxing district’s taxable year with the highest amount levied in dollars in property taxes of the three taxable years immediately preceding the budget year;
   2. “Budget year” means the taxing district’s year for which the levy is being determined under this section;
   3. “Calculated mill rate” means the mill rate that results from dividing the base year taxes levied by the sum of the taxable value of the taxable property in the base year plus the taxable value of the property exempt by local discretion or charitable status, calculated in the same manner as the taxable property; and
   4. “Property exempt by local discretion or charitable status” means property exempted from taxation as new or expanding businesses under chapter 40-57.1; improvements to property under chapter 57-02.2; or buildings belonging to institutions of public charity, new single-family residential or townhouse or condominium property, property used for early childhood services, or pollution abatement improvements under section 57-02-08.
3. A taxing district may elect to levy the amount levied in dollars in the base year. Any levy under this section must be specifically approved by a resolution approved by the governing body of the taxing district. Before determining the levy limitation under this section, the dollar amount levied in the base year must be:
   1. Reduced by an amount equal to the sum determined by application of the base year’s calculated mill rate for that taxing district to the final base year taxable valuation of any taxable property and property exempt by local discretion or charitable status which is not included in the taxing district for the budget year but was included in the taxing district for the base year.
   2. Increased by an amount equal to the sum determined by the application of the base year’s calculated mill rate for that taxing district to the final budget year taxable valuation of any taxable property or property exempt by local discretion or charitable status which was not included in the taxing district for the base year but which is included in the taxing district for the budget year.
   3. Reduced to reflect expired temporary mill levy increases authorized by the electors of the taxing district. For purposes of this subdivision, an expired temporary mill levy increase does not include a school district general fund mill rate exceeding one hundred ten mills which has expired or has not received approval of electors for an extension under subsection 2 of section 57-64-03.
   4. Reduced by the amount of state aid under chapter 15.1-27, which is determined by multiplying the budget year taxable valuation of the school district by the lesser of the base year mill rate of the school district minus sixty mills or fifty mills, if the base year is a taxable year before 2013.
4. In addition to any other levy limitation factor under this section, a taxing district may increase its levy in dollars to reflect new or increased mill levies authorized by the legislative assembly or authorized by the electors of the taxing district.
5. Under this section a taxing district may supersede any applicable mill levy limitations otherwise provided by law, or a taxing district may levy up to the mill levy limitations otherwise provided by law without reference to this section, but the provisions of this section do not apply to the following:
   1. Any irrepealable tax to pay bonded indebtedness levied pursuant to section 16 of article X of the Constitution of North Dakota.
   2. The one-mill levy for the state medical center authorized by section 10 of article X of the Constitution of North Dakota.
6. A school district choosing to determine its levy authority under this section may apply subsection 3 only to the amount in dollars levied for general fund purposes under section 57-15-14 or, if the levy in the base year included separate general fund and special fund levies under sections 57-15-14 and 57-15-14.2, the school district may apply subsection 3 to the total amount levied in dollars in the base year for both the general fund and special fund accounts. School district levies under any section other than section 57-15-14 may be made within applicable limitations but those levies are not subject to subsection 3.
7. Optional levies under this section may be used by any city or county that has adopted a home rule charter unless the provisions of the charter supersede state laws related to property tax levy limitations.

57-15-02. Determination of rate.

The tax rate of all taxes, except taxes the rate of which is fixed by law, must be calculated and fixed by the county auditor within the limitations prescribed by statute. If any municipality levies a greater amount than the prescribed maximum legal rate of levy will produce, the county auditor shall extend only such amount of tax as the prescribed maximum legal rate of levy will produce. The rate must be based and computed on the taxable valuation of taxable property in the municipality or district levying the tax. The rate of all taxes must be calculated by the county auditor in mills, tenths, and hundredths of mills.

57-15-02.1. Property tax levy increase notice and public hearing. [Repealed effective for taxable years beginning after December 31, 2017]

57-15-02.2. Estimated property tax and budget hearing notice.

1. On or before August tenth of each year the governing body of a taxing district shall provide to the county auditor in each county in which the taxing district has taxable property a preliminary budget statement and the date, time, and location of the taxing district’s public hearing on its property tax levy, which may be no earlier than September seventh. A taxing district that fails to provide the information required under this subsection on or before August tenth may not impose a property tax levy in a greater amount of dollars than was imposed by the taxing district in the prior year.
2. By August thirty-first of each year the county treasurer shall provide a written notice to the owner of each parcel of taxable property with a total estimated property tax of at least one hundred dollars. The text of the notice must contain:
   1. The date, time, and location of the public budget hearing for each of the taxing districts in which the property owner’s parcel is located, which anticipate levying in excess of one hundred thousand dollars in the current year, and the location at which the taxing district’s budget is available for review;
   2. The true and full value of the property based on the best information available;
   3. A column showing the actual property tax levy in dollars against the parcel by the taxing district that levied taxes against the parcel in the immediately preceding taxable year and a column showing the estimated property tax levy in dollars against the parcel by the taxing district levying tax in the taxable year for which the notice applies based on the preliminary budget statements of all taxing jurisdictions;
   4. A column indicating the difference between the taxing district’s total levy from the previous year and the taxing district’s estimated levy with the word “INCREASE” printed in boldface type if the proposed tax levy is larger in dollars than the levy in dollars in the previous year;
   5. Information identifying the estimated property tax savings that will be provided pursuant to section 57-20-07.1 based on the best information available; and
   6. A statement that there will be an opportunity for citizens to present oral or written comments regarding each taxing district’s property tax levy.
3. Delivery of written notice under this section must be by personal delivery to the property owner, mail addressed to the property owner at the property owner’s last-known address, or electronic mail to the property owner directed with verification of receipt to an electronic mail address at which the property owner has consented to receive notice. If a parcel of taxable property is owned by more than one owner, notice must be sent to only one owner of the property. Failure of an owner to receive a notice under this section will not relieve the owner of property tax liability or modify the qualifying date under section 57-20-09 for which an owner may receive a discount for early payment of tax.
4. The tax commissioner shall prescribe suitable forms for written notices under this section.
5. The direct cost of providing taxpayer notices under this section may be allocated in a manner proportionate to the number of notices mailed on behalf of each taxing district that intends to levy in excess of one hundred thousand dollars in property taxes in the current year.

57-15-03. State tax levy. [Repealed]

Repealed by S.L. 1981, ch. 567, § 2.

57-15-04. State taxes — When levied — Certification. [Repealed]

Repealed by S.L. 1981, ch. 567, § 2.

57-15-05. County tax levy.

The board of county commissioners, in levying county taxes, is limited to the amount necessary to meet the appropriations included in the county budget for the ensuing fiscal year, and to provide a reserve fund as limited in this chapter, together with a tax sufficient in amount to pay the interest on the bonded debt of the county and to provide a sinking fund to pay the principal at maturity. The county budget shall show the complete expenditure program of the county for the ensuing fiscal year and the sources of revenue from which it is to be financed.

57-15-06. County general fund levy.

The board of county commissioners may levy property taxes for county general fund purposes at a tax rate not exceeding sixty mills per dollar of taxable valuation of property in the county.

A county that levied more than sixty mills for taxable year 2015 for the combined number of mills levied for general fund purposes plus the number of mills levied for other purposes which were combined into the general fund for taxable years after 2014 may levy for general fund purposes for taxable year 2016 the same number of mills that was levied for those purposes for taxable year 2015. A county may levy for general fund purposes for taxable year 2017 sixty mills plus seventy-five percent of the combined number of mills exceeding sixty that was levied for those purposes for taxable year 2015. A county may levy for general fund purposes for taxable year 2018 sixty mills plus fifty percent of the combined number of mills exceeding sixty that was levied for those purposes for taxable year 2015. A county may levy for general fund purposes for taxable year 2019 sixty mills plus twenty-five percent of the combined number of mills exceeding sixty that was levied for those purposes for taxable year 2015.

Unless a specific exception is provided by statute, the county general fund levy limitation under this section applies to all property taxes the board of county commissioners is authorized to levy for general county purposes.

57-15-06.1. County tax levy for farm-to-market road — Election. [Repealed]

Repealed by omission from this code.

57-15-06.2. Farm-to-market roads’ fund — Use. [Repealed]

Repealed by omission from this code.

57-15-06.3. County road program of farm-to-market and federal-aid roads — Tax levy — Use of excess funds. [Repealed]

57-15-06.4. Levy authorized for county veterans’ service officer’s salary, traveling, and office expenses.

The county commissioners of each county may levy annually a tax not exceeding the limitation in subsection 7 of section 57-15-06.7 to provide a fund for the payment of the salary, traveling, and office expenses of the county veterans’ service officer authorized to be appointed by section 37-14-18.

57-15-06.5. Tax levy for planning purposes. [Repealed]

57-15-06.6. County capital projects levy. [For taxable years beginning after December 31, 2020]

1. The board of county commissioners of each county may levy an annual tax not exceeding ten mills plus any voter-approved additional levy as provided in subsection 8 of section 57-15-06.7 for the purpose of the following capital projects:
   1. Constructing, equipping, and maintaining structural and mechanical components of regional or county corrections centers or for the purpose of contracting for corrections center space capacity from another public or private entity.
   2. Acquiring real estate as a site for public parks and construction, equipping, and maintaining structural and mechanical components of recreational facilities under section 11-28-06.
   3. Acquiring real estate as a site for county buildings and operations and constructing, equipping, and maintaining structural and mechanical components of county buildings and property.
   4. Acquiring real estate as a site for county fair buildings and operations and constructing, equipping, and maintaining structural and mechanical components of county fair buildings and property as provided in section 4-02-26.
   5. Acquiring and developing real estate, capital improvements, buildings, pavement, equipment, and debt service associated with financing for county supported airports or airport authorities.
   6. Expenditures for the cost of leasing as an alternative means of financing for any of the purposes for which expenditures are authorized under subdivisions a through e.
   7. Improvement of the county road system, including the acquisition of land; construction of new paved and unpaved roads, bridges, or public places; replacement of existing paved and unpaved roads, bridges, or public places; and maintenance and repair of existing paved and unpaved roads, bridges, or public places.
2. Any voter-approved levy for the purposes specified in this section approved by the electors before January 1, 2015, remains effective through 2024 or the period of time for which it was approved by the electors, whichever is less, under the provisions of law in effect at the time it was approved. After January 1, 2015, approval or reauthorization by electors of increased levy authority under this section may not be effective for more than ten taxable years.

57-15-06.7. Additional levies — Exceptions to tax levy limitations in counties.

The tax levy limitations specified in section 57-15-06 do not apply to the following mill levies, which are expressed in mills per dollar of taxable valuation of property in the county:

1. A county supporting an airport or airport authority may levy a tax not exceeding four mills in accordance with section 2-06-15.
2. A county levying a tax for extension work as provided in section 11-38-01 may levy a tax not exceeding two mills and if a majority of the electors of the county have approved additional levy authority under section 11-38-01, the county may levy a voter-approved tax not exceeding an additional tax of two mills.
3. A county levying a tax for historical works in accordance with section 11-11-53 may levy a tax not exceeding one-quarter of one mill, except that if sixty percent of the qualified electors voting on the question of a levy limit increase as provided in section 11-11-53 shall approve, the tax levy limitation may be increased to not exceeding three-quarters of one mill.
4. A county levying a tax for a county or community hospital association as provided in section 23-18-01 may levy a tax for not more than five years not exceeding eight mills in any one year or, in the alternative, for not more than ten years at a mill rate not exceeding five mills.
5. A county levying a tax for county roads and bridges as provided in section 24-05-01 may levy a tax at a tax rate not exceeding ten mills. When authorized by a majority of the qualified electors voting upon the question at a primary or general election in the county, the county commissioners may levy and collect an additional tax for road and bridge purposes as provided in section 24-05-01, not exceeding a combined additional tax rate of twenty mills.
6. A county levying a tax to establish and maintain a public library service as provided in section 40-38-02 may levy a tax not exceeding four mills.
7. A county levying a tax for a county veterans’ service officer’s salary, traveling, and office expenses in accordance with section 57-15-06.4 may levy a tax not exceeding two mills.
8. A county levying a tax for capital projects under section 57-15-06.6 may levy a tax not exceeding ten mills. When authorized by a majority of the qualified electors voting upon the question of a specific capital project or projects at a primary or general election in the county, the county commissioners may levy and collect an additional voter-approved tax for capital projects under section 57-15-06.6 not exceeding a tax rate of ten mills per dollar of the taxable valuation of property in the county. After January 1, 2015, approval or reauthorization by electors of increased levy authority under this subsection may not be effective for more than ten taxable years. Any voter-approved levy in excess of ten mills for the purposes specified in section 57-15-06.6 approved by the electors before January 1, 2015, remains effective through 2024 or the period of time for which it was approved by the electors, whichever is less, under the provisions of law in effect at the time it was approved.
9. A county levying a tax for emergency purposes as provided in section 57-15-28 may levy a tax not exceeding two mills in a county with a population of thirty thousand or more, four mills in a county with a population under thirty thousand but more than five thousand, or six mills in a county with a population of five thousand or fewer.
10. A county levying a tax for county emergency medical service according to section 57-15-50 may levy a tax not exceeding fifteen mills.
11. A county levying a tax for weed control as provided in section 4.1-47-14 may levy a tax not exceeding four mills.
12. A county levying a tax for programs and activities for senior citizens according to section 57-15-56 may levy a tax not exceeding two mills.
13. Tax levies made for paying the principal and interest on any obligations of the county evidenced by the issuance of bonds.
14. A county levying a tax for a job development authority as provided in section 11-11.1-04 may levy a tax not exceeding four mills on the taxable valuation of property within the county. However, if any city within the county is levying a tax for support of a job development authority and the total of the county and city levies exceeds four mills, the county tax levy within the city levying under subsection 12 of section 57-15-10 must be reduced so the total levy in the city does not exceed four mills.
15. A levy for an extraordinary expenditure under section 11-11-24 approved by the electors of the county before January 1, 2015, may continue to be levied and collected under provisions of law in effect when the levy was approved and for the term it was approved by the electors. When the levy authority for an extraordinary expenditure ends under this subsection, the fund must be closed out and any unobligated balance in the fund must be transferred to the county general fund.
16. Levies dedicated under section 57-15-59 before January 1, 2015, for lease payments may be continued to be levied and collected for the duration of the lease. When the levy authority for lease payments ends under this subsection, the fund must be closed out and any unobligated balance in the fund must be transferred to the county general fund. A lease for county facilities effective after December 31, 2014, is subject to the capital projects levy limitations of section 57-15-06.6.

Tax levy or mill levy limitations do not apply to any statute which expressly provides that taxes authorized to be levied therein are not subject to mill levy limitations provided by law.

57-15-06.8. County tax levies and limitations not in addition to the general fund levy. [Repealed]

57-15-06.9. Tax levy for county parks and recreational facilities. [Repealed]

57-15-06.10. Optional consolidation of county mill levies. [Repealed]

57-15-07. City tax levies.

The governing body, in levying city taxes, is limited by the amount necessary to meet the appropriations included in the city budget for the ensuing fiscal year and to provide a reserve fund as limited in this chapter, together with a tax sufficient in amount to pay the interest on the bonded debt of the municipality, and to provide a sinking fund to pay the principal at maturity.

57-15-08. General fund levy limitations in cities.

The aggregate amount levied for city general fund purposes may not exceed an amount produced by a levy of one hundred five mills on the taxable valuation of property in the city. A city, when authorized by a majority vote of the electors of the city voting on the question at a regularly scheduled or special election called for such purpose pursuant to a resolution approved by the governing body of the city, may increase the maximum mill levy for general city purposes by not more than ten mills.

A city that levied more than one hundred five mills for taxable year 2015 in the combined number of mills levied for general fund purposes plus the number of mills levied for other purposes which were combined into the general fund for taxable years after 2014 may levy for general fund purposes for taxable year 2016 the same number of mills that was levied for those purposes for taxable year 2015. A city may levy for general fund purposes for taxable year 2017 one hundred five mills plus seventy-five percent of the combined number of mills exceeding one hundred five that was levied for those purposes for taxable year 2015. A city may levy for general fund purposes for taxable year 2018 one hundred five mills plus fifty percent of the combined number of mills exceeding one hundred five that was levied for those purposes for taxable year 2015. A city may levy for general fund purposes for taxable year 2019 one hundred five mills plus twenty-five percent of the combined number of mills exceeding one hundred five that was levied for those purposes for taxable year 2015.

57-15-09. Tax levy limitations in villages. [Repealed]

Repealed by S.L. 1967, ch. 323, § 285.

57-15-10. Exceptions to tax levy limitations in cities.

The tax levy limitations specified in section 57-15-08 do not apply to the following tax levies:

1. Taxes levied pursuant to law for a proportion of the cost of a special improvement project by general taxation.
2. Taxes levied pursuant to law for the purpose of paying a deficiency in connection with a special improvement project.
3. Taxes levied to pay interest on a bonded debt, or the principal of such debt, at maturity.
4. Taxes, not exceeding four mills, levied for the purpose of establishing and maintaining a library fund for public library services in accordance with section 40-38-02.
5. Taxes levied on property of an agricultural fair association, a nonprofit club or like organization, or an organization of college students located within a municipality and otherwise exempt under subsection 10 or 11 of section 57-02-08, to pay such property’s proportionate share of the cost of fire protection services maintained by the municipal corporation.
6. Taxes, not exceeding five mills, levied for the purpose of establishing and maintaining a municipal arts council in accordance with section 40-38.1-02.
7. Taxes levied for airport purposes in accordance with section 2-06-15 may be levied in an amount not exceeding four mills.
8. Taxes levied for a capital improvements fund approved by a majority of the electors of the city in accordance with section 57-15-38 for specified purposes may be levied in a specified amount not exceeding ten mills. Taxes levied for a capital improvements fund approved by sixty percent or more of the electors of the city in accordance with section 57-15-38 for general purposes may be levied in an amount not exceeding ten mills. Taxes levied for a capital improvements fund approved by sixty percent or more of the electors of the city in accordance with section 57-15-38 for specified purposes may be levied in a specified amount not exceeding an additional ten mills.
9. Taxes levied for emergency purposes pursuant to section 57-15-48 may be levied in an amount not exceeding two and one-half mills.
10. Taxes levied for public transportation in accordance with section 57-15-55 may be levied in an amount not exceeding five mills.
11. Taxes levied for programs and activities for senior citizens in accordance with section 57-15-56 may be levied in an amount not exceeding two mills.
12. Taxes levied for a city job development authority or industrial development organization as provided in section 40-57.4-04 may be levied in an amount not exceeding four mills.
13. Taxes levied for a city public recreation system approved by electors as provided in section 40-55-09 may be levied in the amount approved by the electors, not exceeding six mills.
14. Taxes levied for maintenance and improvement of cemeteries owned by the city under section 57-15-27.1 may be levied in an amount not exceeding two mills.
15. Taxes levied for retirement of bonds issued before January 1, 2015, under section 40-57-19 or 40-57-19.1 may be levied in the amount required for annual payments until the bonds are retired.
16. Levies dedicated under section 57-15-59 before January 1, 2015, for lease payments may be continued to be levied and collected for the duration of the lease. When the levy authority for lease payments ends under this subsection, the fund must be closed out and any unobligated balance in the fund must be transferred to the city general fund.

57-15-10.1. Counties and cities may levy for certain advertising purposes.

The board of county commissioners of any county or the governing body of any city may provide funding for the purpose of advertising the resources and opportunities in the county or city and promoting industrial development from revenues derived from the county or city general fund levy authority.

When any county or city makes the levy provided for by this section, the expenditure of the fund must be under the direction of the governing board of the county or city.

57-15-10.2. Tax levy for port purposes. [Repealed]

57-15-11. Park district tax levies.

The board of park commissioners, in levying park district taxes, is limited by the amount necessary to meet the appropriations included in the park district budget for the ensuing fiscal year, and to provide a reserve fund as limited in this chapter, together with a tax sufficient in amount to pay the interest on the bonded debt of the municipality and to provide a sinking fund to pay the principal at maturity.

57-15-12. General fund levy limitations in park districts.

1. A park district may levy for general fund purposes up to thirty-eight mills on the taxable valuation of property in the district, subject to the higher of the number of mills determined under the following limitations:
   1. The general fund mill levy determined based upon the highest amount in dollars the park district levied for general fund purposes for the three taxable years immediately preceding the current year, plus twelve percent; or
   2. The general fund mill levy determined by combining the highest number of mills the park district levied for general fund purposes plus the number of mills levied for employee pension contributions under section 40-49-22, old-age and survivors’ insurance under section 52-09-08, an employee retirement program established by the governing body, and for forestry purposes for any one of the three taxable years immediately preceding the current year.
2. Notwithstanding the limitation in subsection 1, if a city public recreation system established under chapter 40-55 is merged with a park district, the park district may levy up to thirty-eight mills on the taxable valuation of property in the district for general fund purposes for the first taxable year in which mills are levied for the merged district.
3. A park district may increase its general fund levy under this section to any number of mills approved by a majority of the electors of the park district voting on the question at a regular or special park district election, up to a maximum levy under this section of thirty-eight mills on the dollar of the taxable valuation of the district for the current year. After January 1, 2015, approval or reauthorization by electors of voter-approved levy authority under this section may not be effective for more than ten taxable years.

57-15-12.1. City or park district tax funding for forestry activities.

1. The governing body of a city or park district may provide funding from revenues derived from its general fund levy authority for the establishment, operation, and maintenance of forestry activities within the city or park district. The proceeds of any funding under this section may be used for forestry activities, including prevention or control of Dutch elm disease or other diseases which may affect trees, shrubs, and other vegetation; purchasing, planting, or removal of trees, shrubs, and other vegetation; pruning and maintenance of trees, shrubs, and other vegetation; purchasing of necessary equipment; hiring of personnel; contracting for services; public information and technical assistance; and other items related to forestry activities which may be necessary to provide for proper care, maintenance, propagation, and improvement of forestry resources within the city or park district.
2. In lieu of funding from revenues derived from general fund levy authority as described in subsection 1, a city or park district may propose a service charge as an alternative form of financing. Such alternative form of financing must be approved by a majority vote of the qualified electors voting on the question at any citywide or districtwide election. The proceeds of any service charge may be used for forestry activities, as specified in subsection 1.

57-15-12.2. Exceptions to tax levy limitations for park districts. [Repealed]

57-15-12.3. Park district levy for land acquisition and development of recreational facilities.

In addition to its general fund levy authority, a board of park commissioners established pursuant to chapter 40-49 may levy taxes annually not exceeding five mills per dollar of taxable valuation in the district for a fund for the purpose of acquiring real estate as a site for public parks, construction of recreational facilities, renovation and repair of recreational facilities, and the furnishing of recreational facilities. The tax is to be levied, spread, and collected in the same manner as are other taxes in the park district. The question of whether the levy is to be discontinued must be submitted to the qualified electors at the next regular election upon petition of twenty-five percent or more of the qualified electors voting in the last regular park district election, if the petition is filed not less than sixty days before the election. If the majority of the qualified electors voting on the question vote to discontinue the levy, it may not again be levied without a majority vote of the qualified electors voting on the question at a later regular election on the question of relevying the tax, which question may be submitted upon petition as above provided or by decision of the governing board.

57-15-13. School district tax levies.

School district taxes must be levied by the governing body of each school district on or before the tenth day of August of each year. The governing body of the school district may increase or decrease its tax levy and budget for the current fiscal year on or before the tenth day of October of each year but the certification must be filed with the county auditor within the time limitations under section 57-15-31.1. Taxes for school district purposes must be based upon an itemized budget statement which must show the complete expenditure program of the district for the current fiscal year and the sources of the revenue from which it is to be financed. The school board of each public school district, in levying taxes, is limited by the amount necessary to be raised for the purpose of meeting the appropriations included in the school budget of the current fiscal year, and the sum necessary to be provided as an interim fund, together with a tax sufficient in amount to pay the interest on the bonded debt of the district and to provide a sinking fund to pay and discharge the principal thereof at maturity.

57-15-14. Voter approval of excess levies in school districts.

1. Unless authorized by the electors of the school district in accordance with this section, a school district may not impose greater levies than those permitted under section 57-15-14.2.
   1. In any school district having a total population in excess of four thousand according to the last federal decennial census there may be levied any specific number of mills that upon resolution of the school board has been submitted to and approved by a majority of the qualified electors voting upon the question at any regular or special school district election.
   2. In any school district having a total population of fewer than four thousand, there may be levied any specific number of mills that upon resolution of the school board has been approved by fifty-five percent of the qualified electors voting upon the question at any regular or special school election.
   3. After June 30, 2009, in any school district election for approval by electors of increased levy authority under subsection 1 or 2, the ballot must specify the number of mills proposed for approval, and the number of taxable years for which that approval is to apply. After June 30, 2009, approval by electors of increased levy authority under subsection 1 or 2 may not be effective for more than ten taxable years.
   4. The authority for a levy of up to a specific number of mills under this section approved by electors of a school district before July 1, 2009, is terminated effective for taxable years after 2015. If the electors of a school district subject to this subsection have not approved a levy for taxable years after 2015 of up to a specific number of mills under this section by December 31, 2015, the school district levy limitation for subsequent years is subject to the limitations under section 57-15-01.1 or this section.
   5. For taxable years beginning after 2012:
      1. The authority for a levy of up to a specific number of mills, approved by electors of a school district for any period of time that includes a taxable year before 2009, must be reduced by one hundred fifteen mills as a precondition of receiving state aid in accordance with chapter 15.1-27.
      2. The authority for a levy of up to a specific number of mills, approved by electors of a school district for any period of time that does not include a taxable year before 2009, must be reduced by forty mills as a precondition of receiving state aid in accordance with chapter 15.1-27.
      3. The authority for a levy of up to a specific number of mills, placed on the ballot in a school district election for electoral approval of increased levy authority under subdivision a or b, after June 30, 2013, must be stated as a specific number of mills of general fund levy authority and must include a statement that the statutory school district general fund levy limitation is seventy mills on the dollar of the taxable valuation of the school district.
   6. The authority for an unlimited levy approved by electors of a school district before July 1, 2009, is terminated effective for taxable years after 2015. If the electors of a school district subject to this subsection have not approved a levy of up to a specific number of mills under this section by December 31, 2015, the school district levy limitation for subsequent years is subject to the limitations under section 57-15-01.1 or this section.
2. 1. The question of authorizing or discontinuing such specific number of mills authority in any school district must be submitted to the qualified electors at the next regular election upon resolution of the school board or upon the filing with the school board of a petition containing the signatures of qualified electors of the district equal in number to ten percent of the number of electors who cast votes in the most recent election in the school district. No fewer than twenty-five signatures are required.
   2. The approval of discontinuing such authority does not affect the tax levy in the calendar year in which the election is held.
   3. The election must be held in the same manner and subject to the same conditions as provided in this section for the first election upon the question of authorizing the mill levy.

57-15-14.1. Levies for support of county agricultural and training schools. [Repealed]

Repealed by S.L. 1973, ch. 211, § 3.

57-15-14.2. School district levies. [Effective for taxable years through December 31, 2024]

1. The board of a school district may levy a tax not exceeding the amount in dollars that the school district levied for the prior year, plus twelve percent and the dollar amount of the adjustment required in section 15.1-27-04.3, up to a levy of seventy mills on the taxable valuation of the district, for any purpose related to the provision of educational services. The proceeds of this levy must be deposited into the school district’s general fund and used in accordance with this subsection. The proceeds may not be transferred into any other fund.
2. The board of a school district may levy no more than twelve mills on the taxable valuation of the district, for miscellaneous purposes and expenses. The proceeds of this levy must be deposited into a special fund known as the miscellaneous fund and used in accordance with this subsection. The proceeds may not be transferred into any other fund.
3. The board of a school district may levy no more than three mills on the taxable valuation of the district for deposit into a special reserve fund, in accordance with chapter 57-19.
4. The board of a school district may levy no more than the number of mills necessary, on the taxable valuation of the district, for the payment of tuition, in accordance with section 15.1-29-15. The proceeds of this levy must be deposited into a special fund known as the tuition fund and used in accordance with this subsection. The proceeds may not be transferred into any other fund.
5. The board of a school district may levy no more than five mills on the taxable valuation of the district, pursuant to section 57-15-15.1, for purposes of developing a school safety plan in accordance with section 15.1-09-60. The proceeds of this levy must be deposited into a special fund known as the school safety plan fund and used in accordance with this subsection.
6. Nothing in this section limits the board of a school district from levying:
   1. Mills for a building fund, as permitted in sections 15.1-09-49 and 57-15-16; and
   2. Mills necessary to pay principal and interest on the bonded debt of the district, including the mills necessary to pay principal and interest on any bonded debt incurred under section 57-15-17.1 before July 1, 2013.

57-15-14.2. School district levies. [Effective for taxable years beginning after December 31, 2024]

1. The board of a school district may levy a tax not exceeding the amount in dollars that the school district levied for the prior year, plus twelve percent, up to a levy of seventy mills on the taxable valuation of the district, for any purpose related to the provision of educational services. The proceeds of this levy must be deposited into the school district’s general fund and used in accordance with this subsection. The proceeds may not be transferred into any other fund.
2. The board of a school district may levy no more than twelve mills on the taxable valuation of the district, for miscellaneous purposes and expenses. The proceeds of this levy must be deposited into a special fund known as the miscellaneous fund and used in accordance with this subsection. The proceeds may not be transferred into any other fund.
3. The board of a school district may levy no more than three mills on the taxable valuation of the district for deposit into a special reserve fund, in accordance with chapter 57-19.
4. The board of a school district may levy no more than the number of mills necessary, on the taxable valuation of the district, for the payment of tuition, in accordance with section 15.1-29-15. The proceeds of this levy must be deposited into a special fund known as the tuition fund and used in accordance with this subsection. The proceeds may not be transferred into any other fund.
5. The board of a school district may levy no more than five mills on the taxable valuation of the district, pursuant to section 57-15-15.1, for purposes of developing a school safety plan in accordance with section 15.1-09-60. The proceeds of this levy must be deposited into a special fund known as the school safety plan fund and used in accordance with this subsection.
6. Nothing in this section limits the board of a school district from levying:
   1. Mills for a building fund, as permitted in sections 15.1-09-49 and 57-15-16; and
   2. Mills necessary to pay principal and interest on the bonded debt of the district, including the mills necessary to pay principal and interest on any bonded debt incurred under section 57-15-17.1 before July 1, 2013.

57-15-14.3. Mill levies requiring voter approval — Proceeds to general fund account. [Repealed]

Repealed by S.L. 1987, ch. 232, § 8.

57-15-14.4. School district mill levies for bonded indebtedness excepted. [Repealed]

57-15-14.5. Long-distance learning and educational technology levy. [Repealed]

57-15-15. Exceptions to tax levy limitations in school districts. [Repealed]

Repealed by S.L. 1983, ch. 608, § 22.

57-15-15.1. Tax levy for school safety plan fund.

The school board of a school district may levy taxes for a school safety plan fund, subject to the limitations in section 57-15-14.2, when authorized to do so by a majority of the qualified electors of a school district voting upon the question at any regular or special school district election. The ballot must specify the number of mills proposed for approval and the number of years for which that approval is to apply. Approval or reauthorization by electors of levy authority under this section may not be effective for more than five taxable years.

57-15-16. Tax levy for building fund in school districts.

1. The governing body of any school district shall levy taxes annually for a school building fund, not in excess of twenty mills, which levy is in addition to and not restricted by the levy limitations prescribed by law, when authorized to do so by sixty percent of the qualified electors voting upon the question at a regular or special election in any school district. The governing body of the school district may create the building fund by appropriating and setting up in its budget for an amount not in excess of twenty percent of the current annual appropriation for all other purposes combined, exclusive of appropriations to pay interest and principal of the bonded debt, and not in excess of the limitations prescribed by law. If a portion or all of the proceeds of the levy have been allocated by contract to the payment of rentals upon contracts with the state board of public school education as administrator of the state school construction fund, the levy must be made annually by the governing body of the school district until the full amount of all such obligations is fully paid. Any portion of a levy for a school building fund which has not been allocated by contract with the state board of public school education must be allocated by the governing body pursuant to section 57-15-17. Upon the completion of all payments to the state school construction fund, or upon payment and cancellation or defeasance of the bonds, the levy may be discontinued at the discretion of the governing body of the school district, or upon petition of twenty percent of the qualified electors who voted in the last school election, the question of discontinuance of the levy must be submitted to the qualified electors of the school district at any regular or special election and, upon a favorable vote of sixty percent of the qualified electors voting, the levy must be discontinued. Any school district, executing a contract or lease with the state board of public school education or issuing general obligation bonds, which contract or lease or bond issue requires the maintenance of the levy provided in this section, shall immediately file a certified copy of the contract, lease, or bond issue with the county auditor or auditors of the county or counties in which the school district is located. The county auditor or auditors shall register the contract, lease, or bond issue in the bond register in substantially the manner provided in section 21-03-23. Upon the filing of the contract, lease, or bond issue with the county auditor or auditors, the school district may not discontinue the levy and the levy must automatically be included in the tax levy of the school district from year to year by the county auditor or auditors until a sufficient sum of money has been collected to pay to the state treasurer for the retirement of all obligations of the school district with the state board of public school education or to pay to the custodian of the bond sinking fund all amounts due or to become due on the bonds.
2. The school board of any school district, in levying taxes for a school building fund as provided for in subsection 1, shall specify on the ballot the number of mills to be levied and may in its discretion submit a specific plan for which such fund shall be used. The plan shall designate the general area intended to be served by use of such fund. The area intended to be served shall be described in the plan but need not be described in the building fund ballot. After approval of the levy and the plan no change shall be made in the purpose of expenditure of the building fund except that upon a favorable vote of sixty percent of the qualified electors residing in any specific area intended to be served, material changes may be made in such plan as it affects such area to the extent such changes do not conflict with contractual obligations incurred. The provisions of this section and of subsection 1 of section 57-15-17 in regard to the purpose for which the building fund may be expended shall not apply to expenditures for major repairs.

57-15-17. Disposition of building fund tax.

1. 1. All revenue accruing from appropriations or tax levies for a school district building fund, together with any amount as may be realized for building purposes from all other sources, must be placed in a separate fund known as a building fund and must:
      1. Be deposited, held, or invested in the same manner as the sinking funds of such school district; or
      2. Be used for the purchase of shares or securities of federal or state-chartered savings and loan associations, within the limits of federal insurance.
   2. Moneys in the building fund may only be used for:
      1. The construction of school district buildings and facilities;
      2. The renovation, repair, or expansion of school district buildings and facilities;
      3. The improvement of school district buildings, facilities, and real property;
      4. The leasing of buildings and facilities;
      5. The payment of rentals upon contracts with the state board of public school education;
      6. The payment of rentals upon contracts with municipalities for career and technical education facilities financed pursuant to chapter 40-57; and
      7. The payment of principal, premiums, and interest on bonds issued in accordance with subsection 7 of section 21-03-07.
   3. The custodian of the funds may pay out the funds only upon order of the school board, signed by the president and the business manager of the school district. The order must recite upon its face the purpose for which payment is made.
2. Any moneys remaining in a building fund after the completion of payments for any school building project that has cost seventy-five percent or more of the amount in the building fund at the time of letting the contracts, must be returned to the general fund of the school district, upon the order of the school board.
3. The board of a school district may pay into the general fund of the school district any moneys that have remained in the building fund for ten years or more and any moneys transferred from the general fund of the school district into the building fund after March 13, 2020, and before July 1, 2020. The board may include these amounts as part of its cash on hand in making up its budget for the ensuing year. In determining what amounts have remained in the fund for ten years or more, all payments that have been made from the building fund for building purposes must be considered as having been paid from the funds first acquired. Any moneys transferred from the general fund of the school district into the building fund after March 13, 2020, and before July 1, 2020, may be transferred back into the general fund of the school district through June 30, 2021.
4. 1. If collections from the taxes levied for the current budget and other income are insufficient to meet the requirements for general operating expenses, the board of a school district may transfer unobligated funds from the building fund into the general fund of the school district, provided the school district has issued certificates of indebtedness equal to fifty percent of the outstanding uncollected general fund property tax.
   2. A board may not transfer funds from the building fund into the general fund for more than two years.

57-15-17.1. Discontinuation of special funds — Required transfers. [Repealed]

57-15-18. Penalty for unlawful withdrawal of building funds. [Repealed]

Repealed by S.L. 1975, ch. 106, § 673.

57-15-18.1. Tax levy for rental of property. [Repealed]

Repealed by S.L. 1983, ch. 608, § 22.

57-15-18.2. School district levy for unemployment compensation benefits. [Repealed]

Repealed by S.L. 1983, ch. 608, § 22.

57-15-19. Township tax levies.

The electors of each township have power at the annual meeting to vote to raise such sums of money for the repair and construction of roads and bridges, and for all township charges and necessary expenses as they deem expedient, within the limitations prescribed in section 57-15-20, and on the fourth Tuesday in March, or within ten days thereafter, of each year, the board of supervisors of each civil township shall levy annual taxes for the ensuing year, as voted at the annual township meeting, and the tax levy must be limited by the amount voted to be raised at such annual meeting. The electors at such annual meeting may direct the expenditure of the road tax, or a part of it, in an adjoining township under the joint direction of the boards of supervisors of the townships interested and furnishing such funds.

57-15-19.1. Levies for surfacing highways in unorganized townships. [Repealed]

Repealed by S.L. 1961, ch. 347, § 3.

57-15-19.2. Township supervisors authority to transfer funds into special road fund — Limitations — Use.

The board of supervisors, at the time of the annual township meeting, upon resolution, may transfer or set aside a part or all of any funds into a special road fund, which fund must be separate and distinct from all other funds. The special road fund may not exceed the sum of one hundred thousand dollars for any one congressional township. The special road fund may be expended, at the option of the board of supervisors, for the purpose of road construction, graveling, snow removal, or surfacing.

57-15-19.3. Funds not considered in determining budget.

The special road fund may not be considered in determining the budget of the amount to be levied for each township fiscal year, for normal tax purposes, but must be shown in such budget as a special road fund and may not be deducted therefrom as otherwise provided by law.

57-15-19.4. Township levy for roads.

1. The electors of each township at the annual meeting may levy a tax not to exceed the limitation in subsection 1 of section 57-15-20.2 for the purpose of cooperating with the county in constructing and maintaining roads and bridges that are part of the county road system and located within the township. This tax levy may be made only if notice of the question of the approval of such levy has been included with or upon the notice of the annual meeting provided for in section 58-04-01. A township levy for roads approved by qualified electors of a township under this section before January 1, 2015, may continue to be imposed for five taxable years or the period of time for which it was approved by the electors, whichever is less, under the provisions of law in effect at the time it was approved. After January 1, 2015, approval by electors of increased levy authority under this section may not be effective for more than five taxable years.
2. If funds from a levy under subsection 1 are not expended for purposes of cooperating with the county in constructing and maintaining roads and bridges that are part of the county road system and located within the township, the board of township supervisors may by resolution authorize the expenditure of all such funds collected and accumulated and the earnings thereon for the construction, improvement, or maintenance of other roads or for any other township purpose.

57-15-19.5. Township funding for law enforcement — Authorization — Cooperation with other political subdivisions.

The electors of an organized township may authorize the township to provide funding from revenues derived from its general fund levy authority for the purpose of hiring law enforcement personnel. In providing for law enforcement services, the board of supervisors may cooperate with one or more additional townships, with a city, or with the county in accordance with the provisions of chapter 54-40.

57-15-19.6. Township funding for mowing or snow removal.

The budget of each township approved at the annual meeting may include provision of funding from revenues derived from the general fund levy authority of the township for the purpose of mowing or snow removal.

57-15-19.7. Township levy for emergency purposes. [Effective for taxable years beginning after December 31, 2020]

1. Upon approval of a majority of electors of the township voting on the question, a township may levy the number of mills necessary for the purpose of addressing natural disasters or other emergency conditions.
2. The levy under this section may be made only if notice of the question of the approval of the levy has been included with the notice of the annual or special meeting provided in chapter 58-04.
3. Approval by the electors of increased levy authority under this section may not be effective for more than five taxable years.

57-15-20. Township general fund levy — Approval of increased general fund levy authority.

The general fund levy in a civil township, exclusive of levies to pay interest on any bonded debt and to provide a sinking fund to pay and discharge the principal of bonded debt at maturity, may not exceed the amount produced by a levy of eighteen mills on the dollar of the taxable valuation of property in the township.

Upon approval of a majority of electors of the township voting on the question, a civil township general fund levy may be increased by an additional amount not to exceed the amount produced by a levy of eighteen mills on the dollar of the taxable valuation of property in the township. The increased levy under this section may be made only if notice of the question of the approval of such levy has been included with or upon the notice of the annual meeting provided for in section 58-04-01. An excess levy approved by electors of a township under chapter 57-17 before January 1, 2015, may continue to be imposed for five taxable years or the period of time for which it was approved by the electors, whichever is less, under the provisions of law in effect at the time it was approved. After January 1, 2015, approval by electors of increased levy authority under this section may not be effective for more than five taxable years.

57-15-20.1. Excess levies in townships — Authorization for more than one year.

The board of township supervisors may submit the question of authorizing an excess levy for not to exceed a total of five years, provided the notice of election and the ballot upon which the authorization for the excess levy is submitted both contain the specific years for which such authorization is sought. Upon approval by the voters as provided in section 57-17-05, such excess levy may be levied for the years specified in the ballot.

57-15-20.2. Exceptions to tax levy limitations in townships. [Effective for taxable years beginning after December 31, 2020]

1. The tax levy limitations specified in section 57-15-20 do not apply to the following mill levies, which are expressed in mills per dollar of taxable valuation of property in the township:
   1. A township levying a tax for the purpose of cooperating with the county in constructing and maintaining roads and bridges that are part of the county road system and located within the township in accordance with section 57-15-19.4 may levy a tax not exceeding five mills.
   2. A township levying a tax for airport purposes in accordance with section 2-06-15 may levy a tax not exceeding four mills.
   3. A township levying a tax for special assessment districts in accordance with chapter 58-18.
   4. A township levying tax for emergency purposes in accordance with section 57-15-19.7.
2. Tax levy or mill levy limitations do not apply to any statute which expressly provides that taxes authorized to be levied therein are not subject to mill levy limitations provided by law.

57-15-20.3. Township levy for port purposes. [Repealed]

57-15-20.4. Township levy for commerce authority purposes. [Repealed]

57-15-21. Tax levies in unorganized townships.

The board of county commissioners has the same jurisdiction in an unorganized township as the board of township supervisors has in an organized township. Such board may levy taxes in an unorganized township for road and bridge purposes and shall make such levy on the fourth Tuesday in July in each year, or within ten days thereafter. Such levy has no relation to nor effect upon the county taxes for any purpose levied by the board of county commissioners.

57-15-22. Tax levy limitations in unorganized townships.

The total tax levied by the board of county commissioners in any unorganized township for the construction, maintenance, and improvement of any roads and bridges may not exceed eighteen mills on the dollar of the taxable valuation of the township or the amount in dollars that the township would have been entitled to levy under section 57-15-01.1 if the township had remained organized, but this does not prohibit the levy of general county road and bridge taxes in such unorganized township.

57-15-22.1. Board of county commissioners may transfer unexpended balance in road and bridge fund in unorganized townships.

The board of county commissioners, by resolution, may transfer any unexpended balance of the revenues produced under section 57-15-22 in any unorganized township to a special road and bridge fund to the credit of such unorganized township. Such special road and bridge fund may not be taken into consideration in determining the budget for the amount to be levied for road and bridge purposes in an unorganized township for the current fiscal year.

57-15-22.2. Township legal contingency funding.

The board of township supervisors of an organized township or the board of county commissioners for an unorganized township, may provide funding from revenue derived from the general fund levy authority for the township levy on property within the township for a legal contingency expenditure. Funding authorized under this section may be used only for purposes of expenses of legal actions authorized or entered into by the governing body of the township or the county, on behalf of unorganized townships. A levy under this section authorized by electors of an organized or unorganized township before January 1, 2015, remains effective for five taxable years or the period of time for which it was approved by the electors, whichever is less. Upon expiration of any mill levy authorized by electors of an organized or unorganized township before January 1, 2015, under this section, the governing body of the township or county may, by resolution, transfer any unobligated balance in the legal contingency fund to the general fund of the township or county.

57-15-23. Per capita school tax — Levy — Apportionment. [Repealed]

Repealed by S.L. 1969, ch. 528, § 24.

57-15-24. County mill levy for schools. [Repealed]

Repealed by S.L. 1981, ch. 198, § 18.

57-15-25. County equalization fund — How constituted. [Repealed]

Repealed by omission from this code.

57-15-25.1. County high school equalization fund — Tax levy. [Repealed]

Repealed by S.L. 1959, ch. 170, § 25.

57-15-26. Apportionment of funds withheld for failure to maintain school. [Repealed]

Repealed by S.L. 1959, ch. 170, § 25.

57-15-26.1. General tax levy of recreation service districts.

The board of recreation service district commissioners of a recreation service district created under chapter 11-28.2 may, upon resolution of the board, levy a tax for general purposes in addition to all other levies permitted by law, not exceeding one mill on the taxable valuation of property in the district.

57-15-26.2. Limitations in vector control districts.

Vector control district levies are limited to a tax levy not exceeding one mill on the dollar of taxable valuation in the district in accordance with sections 23-24-08 and 23-24-09.

57-15-26.3. General tax levy of fire protection districts. [Repealed]

57-15-26.4. General tax levy of hospital districts.

The board of directors of a hospital district may annually certify to the proper county auditor or county auditors the probable expense for operating the hospital district. The auditor or auditors may levy a tax not exceeding five mills on the taxable valuation of property within the district for the maintenance of the district for the fiscal year as provided in section 23-30-07.

57-15-26.5. General tax levy of rural ambulance service districts. [Repealed]

57-15-26.6. Water resource district’s general tax levy.

The board of directors of a water resource district shall estimate expenses of the district and transmit them to the board of county commissioners according to section 61-16.1-06. The board of county commissioners may, by resolution, levy and authorize the county auditor to extend upon the county or portion of the county in the district a tax not exceeding four mills on each dollar of taxable valuation in the county or portion of the county in the district.

57-15-26.7. West river water supply district general tax levy. [Repealed]

Repealed by S.L. 1993, ch. 607, § 2.

57-15-26.8. Garrison Diversion Conservancy District general tax levy.

The board of directors of the Garrison Diversion Conservancy District may levy a tax not exceeding one mill on the taxable valuation of property within the district according to sections 61-24-08 and 61-24-09.

57-15-27. Interim fund.

The governing body of any county, city, park district, or municipality, other than a school district, which is authorized to levy taxes may include in its budget an item to be known as the “interim fund” which must be carried over to the next ensuing fiscal year to meet the cash requirements of all funds or purposes to which the credit of the municipality may be legally extended, for that portion of such fiscal year prior to the receipt of taxes therein. In no case may the interim fund be in excess of the amount reasonably required to finance the municipality for the first nine months of the next ensuing fiscal year. The interim fund may not be in excess of three-fourths of the current annual appropriation for all purposes other than debt retirement purposes and appropriations financed from bond sources.

57-15-27.1. Cemetery tax levies.

A city may levy a tax, not exceeding the limitation in subsection 14 of section 57-15-10 to be used exclusively for the care, maintenance, and improvement of established cemeteries, owned and maintained by the city. An organized township may provide funding from revenues derived from its general fund levy authority for the care, maintenance, and improvement of established cemeteries maintained by the township.

57-15-27.2. Abandoned cemetery tax levies. [Repealed]

57-15-28. Emergency fund — County.

The governing body of any county may levy a tax for emergency purposes not exceeding the limitation in subsection 9 of section 57-15-06.7. The emergency fund may not be considered in determining the budget or the amount to be levied for each fiscal year for normal tax purposes but must be shown in the budget as an “emergency fund” and may not be deducted from the budget as otherwise provided by law. Each county may create an emergency fund, and all taxes levied for emergency purposes by any county, when collected, must be deposited in the emergency fund, and must be used only for emergency purposes caused by the destruction or impairment of any county property necessary for the conduct of the affairs of the county or emergencies caused by nature. The emergency fund may not be used for the purchase of road equipment. The emergency fund may not be used for any road construction or maintenance, except for repair of roads damaged by nature within sixty days preceding the determination to expend emergency funds; however, the emergency fund may be used to match federal funds appropriated to mitigate damage to roads related to a federally declared disaster that occurred more than sixty days preceding the determination. Any unexpended balance remaining in the emergency fund at the end of any fiscal year must be kept in the fund. When the amount of money in the emergency fund, plus the amount of money due the fund from outstanding taxes, equals the amount produced by a levy of five mills on the taxable valuation of property in a county with a population of thirty thousand or more, ten mills on the taxable valuation of property in a county with a population of less than thirty thousand but more than five thousand, or fifteen mills on the taxable valuation of property in a county with a population of five thousand or fewer, the levy authorized by this section must be discontinued, and no further levy may be made until required to replenish the emergency fund.

57-15-28.1. Judgment or claim payment levy limitations in political subdivisions.

A political subdivision, except a school district, levying a tax for the payment of a judgment or a settlement of a claim in accordance with section 32-12.1-11 may levy a tax not exceeding five mills. If the political subdivision held a liability insurance policy or insurance contract, purchased by a political subdivision or a government self-insurance pool in which the political subdivision participates pursuant to chapter 32-12.1, which provides coverage to at least the liability limits under section 32-12.1-03 and that coverage was in force at the time of the occurrence that gave rise to the claim of relief, the political subdivision may levy a tax not exceeding a total of ten mills for the payment of a judgment or a settlement of a claim in accordance with section 32-12.1-11. The tax levy limitations specified by law do not apply to mill levies under this section, expressed in mills per dollar of taxable valuation of property in the political subdivision.

57-15-29. War emergency fund — Cities. [Repealed]

Repealed by omission from this code.

57-15-29.1. War emergency fund may be transferred into general fund. [Repealed]

Repealed by omission from this code.

57-15-30. When tax in townships and cities to be levied by county commissioners.

Whenever any city or township having an existing liability or indebtedness is authorized to levy taxes for the payment of the same and fails or refuses to elect proper officers for the government of the municipality, the board of county commissioners of the county in which the municipality is located, upon a proper showing by any person having a legal or subsisting claim against the municipality that there are no legal officers in the municipality authorized to levy a tax for the payment of such indebtedness, shall levy a tax as the governing body would be authorized to levy the same for the payment of such indebtedness. Any person having a claim against such municipality has the same right to enforce the levy of such tax by the board of county commissioners that the person would have had to compel such levy by the officers of the municipality had they been properly elected and qualified.

57-15-30.1. Tax levy for township debt or debt existing upon dissolution — Duty of county auditor — Duty of county treasurer.

1. Whenever any township is indebted to the county in which such township is located and such debt is more than one year past due, the county auditor, upon resolution of the board of county commissioners, shall levy a tax on the property within the township in an amount sufficient to pay the indebtedness, but in no case may the amount of the levy cause the total levy for such township to exceed the maximum levy limitations, including excess levy limitations, provided by law. The county treasurer shall place the taxes collected to the credit of the county in payment or partial payment of the township’s indebtedness.
2. Upon the dissolution of a civil township, the board of county commissioners of the county in which the township lies shall attach the territory embraced within such township to such assessment district of the county as the board may deem advisable for the purpose of assessment and taxation. In addition to the other levies provided by law, the board shall levy on the taxable property in the township a sum sufficient to discharge all debts and liabilities of the township. The county auditor shall enter the levy on the county tax list to be collected by the county treasurer as other county taxes are collected. The county treasurer shall credit the money derived from such levy to a special fund to be used to pay the dissolved township’s debts and liabilities. Any balance remaining in the special fund after the payment of the debts and liabilities must be transferred for use for road and bridge purposes within the assessment district to which the territory is attached.

57-15-30.2. Financial reporting requirements for taxing entities.

The governing body of any county, city, township, school district, park district, recreation service district, rural fire protection district, rural ambulance service district, soil conservation district, conservancy district, water authority, or any other taxing entity authorized to levy property taxes or have property taxes levied on its behalf, in the year for which the levy will apply, shall file with the county auditor of each county in which the taxing entity is located, at a time and in a format prescribed by the county auditor, a financial report for the preceding calendar year showing the ending balances of each fund or account held by the taxing entity during that year.

History. S.L. 2015, ch. 92, § 21, effective January 1, 2016; 2021, ch. 91, § 13, effective July 1, 2021.

57-15-31. Determination of levy.

1. The amount to be levied by any county, city, township, school district, park district, or other municipality authorized to levy taxes must be computed by deducting from the amount of estimated expenditures for the current fiscal year as finally determined, plus the required reserve fund determined upon by the governing board from the past experience of the taxing district, the total of the following items:
   1. The available surplus consisting of the free and unencumbered cash balance;
   2. Estimated revenues from sources other than direct property taxes;
   3. The total estimated collections from tax levies for previous years;
   4. Expenditures that must be made from bond sources;
   5. The amount of distributions received from an economic growth increment pool under section 57-15-61; and
   6. The estimated amount to be received from payments in lieu of taxes on a project under section 40-57.1-03.
2. Allowance may be made for a permanent delinquency or loss in tax collection not to exceed five percent of the amount of the levy.

57-15-31.1. Deadline date for amending budgets and certifying taxes.

No taxing district may certify any taxes or amend its current budget and no county auditor may accept a certification of taxes or amended budget after the tenth day of October of each year if such certification or amendment results in a change in the amount of tax levied. The current budget, except for property taxes, may be amended during the year for any revenues and appropriations not anticipated at the time the budget was prepared.

57-15-32. Certification of levy.

The taxes levied or voted by any city, township, school district, park district, or other municipality authorized to levy taxes must be certified by the officer acting as business manager or clerk of the governing body of such municipality to the county auditor immediately following the action of the governing body, or within ten days thereafter.

57-15-33. Penalty for failure to certify levy. [Repealed]

Repealed by S.L. 1975, ch. 106, § 673.

57-15-34. Duty of county auditor upon certification of levy.

The county auditor of each county, upon receipt of tax levies certified to the county auditor by the proper authorities of the state or any taxing district or municipality shall acknowledge receipt thereof to the official so certifying them immediately upon receiving such levies.

57-15-35. Penalty for extending tax beyond levy limit.

Any county auditor who extends taxes in excess of the limitations prescribed by the terms of this chapter shall forfeit a sum of not less than twenty-five dollars and not more than one thousand dollars, the amount to be determined by the court in an action brought in district court by the state’s attorney in the name of the state for the benefit of the county general fund, and if such action of the county auditor is willful, the county auditor also is guilty of a class A misdemeanor.

57-15-36. Tax levy for airport purposes. [Repealed]

57-15-37. Tax levy for airport purposes in park districts. [Repealed]

Repealed by S.L. 2001, ch. 510, § 13.

57-15-37.1. Township levy for airport purposes. [Repealed]

57-15-38. City capital improvements fund levy.

1. The governing body of any city may levy a tax for a capital improvements fund not exceeding ten mills under section 57-15-10, to be used for one of the purposes specified under subsection 5, when authorized to do so by a majority of the electors voting upon the question at a primary or general election. A ballot submitted to the electors under this subsection may contain multiple questions and each question must specify:
   1. The singular purpose, selected from the purposes specified under subsection 5, for which the levy authority is being sought;
   2. The number of mills requested for the purpose specified in subdivision a; and
   3. The duration of the requested levy authority.
2. The governing body of any city may levy a tax for a capital improvements fund not exceeding ten mills under section 57-15-10, to be used for any of the purposes specified under subsection 5, when authorized to do so by sixty percent or more of the qualified electors voting upon the question at a primary or general election.
3. The governing body of any city may levy an additional tax for a capital improvements fund exceeding ten mills but not exceeding twenty mills under subsection 57-15-10, to be used for one of the purposes specified under subsection 5, when authorized to do so by sixty percent or more of the electors voting upon the question at a primary or general election. A ballot submitted to the electors under this subsection may contain multiple questions and each question must specify:
   1. The singular purpose, selected from the purposes specified under subsection 5, for which the levy authority is being sought;
   2. The number of mills requested for the purpose specified in subdivision a; and
   3. The duration of the requested levy authority.
4. Any excess levy for capital improvements under this section approved by the electors of a city before July 1, 2015, remains effective for ten taxable years or the period of time for which it was approved by the electors, whichever is less, after it was approved, under the provisions of law in effect at the time it was approved. After June 30, 2015, approval or reauthorization by electors of increased levy authority under this section may not be effective for more than ten taxable years.
5. The capital improvements fund may be used for:
   1. Paying all or part of the construction of waterworks systems, sewage systems, public buildings, or any other public improvements;
   2. Acquiring real estate as a site for public buildings, maintaining structural and mechanical components of public buildings, and furnishing of public buildings;
   3. A city’s participating share in urban renewal programs;
   4. Capital improvements and equipment acquisition and maintaining structural and mechanical components for fire department stations;
   5. Capital improvements and equipment acquisition and maintaining structural and mechanical components for stations for police protection services and correctional facilities; and
   6. Acquiring and developing real estate, capital improvements, buildings, pavement, equipment, and supporting debt service associated with financing for city-supported airports or airport authorities.
6. The governing body of the city may create the capital improvements fund which may be accumulated in an amount not in excess of twenty percent of the current annual appropriation for all other purposes combined, exclusive of the appropriations to pay interest and principal of the bonded debt, and not in excess of the limitations prescribed by law.

57-15-39. Disposition of construction fund tax.

Revenues raised for construction purposes must be disposed of as follows:

1. All revenues accruing from appropriations or tax levies for a construction fund, together with such amounts as may be realized for construction purposes from all other sources, must be placed in a separate fund known as a city construction fund, and must be deposited and held as the sinking funds of such cities are held. Such fund must be used solely and exclusively for the purpose of constructing waterworks systems, sewage systems, public buildings, or such other public improvements as the electors may have authorized and must be paid out by the custodian thereof, only upon order of the governing body of such city, signed by the mayor or president of the board of city commissioners and the city auditor of said city; such order must recite upon its face the purpose for which such payment is made.
2. Any moneys remaining in a construction fund, after the completion of the payments for any city construction fund project which has cost seventy-five percent or more of the amount in such construction fund at the time of letting the contracts therefor, must be returned to the general fund of the city upon the order of the governing body of such city.
3. Upon the first day of June of each year, the custodian of any city construction fund shall pay into the general fund of such city any moneys which have remained in such fund for a period of ten years or more. The custodian shall consider that all payments which have been paid from the city construction fund for building purposes have been paid from the fund first acquired.

57-15-40. Penalty for unlawful withdrawal of construction fund. [Repealed]

Repealed by S.L. 1975, ch. 106, § 673.

57-15-41. Political subdivision tax levies for payment of special assessments exempt from levy limitations.

No tax levy limitations provided by any statute of this state apply to tax levies by any county, city, school district, park district, or township for the purpose of paying any special assessments or paying debt service on bonds issued to prepay special assessments made in accordance with the provisions of title 40, against property owned by such county, city, school district, park district, or township. Any surplus in the special assessment fund after all of the special assessments for which the fund was created have been paid shall be placed in the general fund of the political subdivision.

57-15-42. City fire department capital improvements and equipment acquisition funding.

The governing body of any city may provide funding from revenues derived from the capital improvements fund levy under section 57-15-38 for a fire department capital improvements and equipment acquisition and maintaining structural and mechanical components for fire department stations. Any levy under this section approved by the electors of a city before January 1, 2015, remains effective for ten taxable years or the period of time for which it was approved by the voters, whichever is less, under the provisions of this section in effect at the time it was approved. When the authority to levy under this section expires in a city, any unobligated balance in the fire department reserve fund must be transferred to the city capital improvements fund.

57-15-43. Tax levy for city having an organized firefighters relief association — Limitations — Disbursement. [Repealed]

57-15-44. City tax levy for acquiring real estate for public building. [Repealed]

57-15-45. Resolution and notice of election. [Repealed]

Repealed by S.L. 1967, ch. 430, § 2.

57-15-46. Form of ballot. [Repealed]

Repealed by S.L. 1967, ch. 430, § 2.

57-15-47. Conduct of election. [Repealed]

Repealed by omission from this code.

57-15-48. City levy for emergency purposes.

The governing body of any city by a two-thirds vote may levy a tax annually for snow removal, natural disaster, or other emergency conditions not exceeding the limitation in subsection 9 of section 57-15-10. No city may make this levy after the amount of the unexpended funds raised by this levy plus the amount of money due the fund from outstanding taxes equals the amount produced by a levy of five mills on the taxable valuation of property within the city or five dollars per capita, whichever is greater.

57-15-49. School district levy for school library fund. [Repealed]

Repealed by S.L. 1983, ch. 608, § 22.

57-15-50. County emergency medical service levy.

Upon petition of ten percent of the number of qualified electors of the county voting in the last election for governor or upon its own motion, the board of county commissioners of each county shall levy annually a tax not exceeding the limitation in subsection 10 of section 57-15-06.7, for the purpose of subsidizing county emergency medical services; provided, that this tax must be approved by a majority of the qualified electors of the county voting on the question at a regular or special countywide election. The county may budget, in addition to its annual operating budget for subsidizing emergency medical service, no more than ten percent of its annual operating budget as a depreciation expense to be set aside in a dedicated emergency medical services sinking fund deposited with the treasurer for the replacement of equipment and ambulances. The ten percent emergency medical services sinking fund must be in addition to the annual operating budget for subsidization, but the total of the annual operating budget and the annual ten percent emergency medical services sinking fund may not exceed the approved mill levy. If the county contains a rural ambulance service district or rural fire protection district that levies for and provides emergency medical service, the property within that district is exempt from the county tax levy under this section upon notice from the governing body of the district to the board of county commissioners of the existence of the district.

57-15-51. City emergency medical service funding.

The governing body of a city may provide funding from revenues derived from its general fund levy authority for the purpose of subsidizing city emergency medical services. Whenever a tax for county emergency medical services is levied by a county, any city subsidizing city emergency medical services, shall upon written application to the county board of such county be exempted from such county tax levy. The city may set aside, as a depreciation expense, up to ten percent of its annual emergency medical service operating or subsidization budget in a dedicated emergency medical services sinking fund, deposited with the auditor for replacement of equipment and ambulances. The ten percent emergency medical services sinking fund may be in addition to the actual annual emergency medical services budget but the total of the annual emergency medical services budget.

57-15-51.1. Funding for township emergency medical service.

The qualified electors of an organized township may authorize the township to provide funding from revenues derived from its general fund levy authority for the purpose of subsidizing township emergency medical service. In providing for emergency medical service, the board of supervisors may cooperate with one or more additional townships or with a city, county, or rural ambulance service district in accordance with chapter 54-40.

57-15-52. School district levy to equip and maintain two-way radios for schoolbuses. [Repealed]

Repealed by S.L. 1983, ch. 608, § 22.

57-15-52.1. School district levy for schoolbus costs. [Repealed]

Repealed by S.L. 1983, ch. 608, § 22.

57-15-53. Police department stations and correctional facilities capital improvements funding.

The governing body of any city may provide funding from revenues derived from the capital improvements fund levy authority under section 57-15-38 for the purpose of providing additional funds to meet the construction costs and costs of maintaining structural and mechanical components of stations for police protection services and correctional facilities. Any levy under this section approved by the electors of a city before January 1, 2015, remains effective for ten taxable years or for the period of time for which it was approved by the voters, whichever is less, under the provisions of this section in effect at the time it was approved. When the authority to levy under this section expires in a city, any unobligated balance in the police station and correctional facility fund must be transferred to the city capital improvements fund.

57-15-54. Destruction of weeds along highways — Election to be held on question — Tax levy. [Repealed]

57-15-55. Tax levy for public transportation.

The governing body of any city, upon approval by a majority vote of the qualified electors of the city voting on the question at any citywide election, may annually levy a tax not exceeding the limitation in subsection 10 of section 57-15-10 to provide funds for the provision and operation of a public transportation system within the city under a contract approved by the governing body with a private contractor, or by the city itself.

57-15-55.1. City tax levy for transportation of public school students. [Repealed]

57-15-56. Authorization of tax levy for services and programs for senior citizens — Elections to authorize or remove the levy — State bonding fund coverage — State matching program for senior citizen services and programs.

1. The board of county commissioners of any county is hereby authorized to levy a tax, or if no levy is made by the board of county commissioners, the governing body of any city in the county is authorized to levy a tax, in addition to all levies now authorized by law, for the purpose of establishing or maintaining services and programs for senior citizens including the maintenance of existing senior citizen centers which will provide informational, health, welfare, counseling, and referral services for senior citizens, and assisting such persons in providing volunteer community or civic services. If the tax authorized by this section is levied by the board of county commissioners, any existing levy under this section by a city in the county becomes void for subsequent taxable years. The removal of the levy is not subject to the requirements of subsection 3. This tax may not exceed the limitation in subsection 12 of section 57-15-06.7 or subsection 11 of section 57-15-10. The proceeds of the tax must be kept in a separate fund and used exclusively for the public purposes provided for in this section. This levy must be in addition to any moneys expended by the board of county commissioners pursuant to section 11-11-58 or by the governing body of any city pursuant to section 40-05-16.
2. The levy authorized by this section may not be used to defray any expenses of any organization or agency until the organization or agency is incorporated under the laws of this state as a nonprofit corporation. Governing bodies may enter into contracts with county councils on aging or comparable representative groups in counties or cities that do not have a council on aging to determine jointly and to administer distribution of funds in accordance with the contract and the provisions of this section. To receive any funds under this section, an organization or agency must file with the governing body from which funds are being requested a report of its program for the fiscal year for which the funds are requested. The report must show all financial resources available to the organization or agency and its program, how those resources are budgeted or intended to be used in that fiscal year or in the future, and the purposes for which funds being requested under this section are to be used. An organization or agency and its program which receives funds under the provisions of this section must be reviewed or approved annually by the board of county commissioners or the governing body of the city to determine its eligibility to receive funds under the provisions of this section.
3. The levy authorized by this section may be imposed or removed only by a vote of a majority of the qualified electors of the county or city voting on the question directing the governing body to do so. The levy authorized by this section may not be increased to a levy of more than one mill under the authority of this section unless approved by a vote of a majority of the qualified electors of the county or city voting on the question. The governing body shall put the issue before the qualified electors either on its own motion or when a petition in writing, signed by qualified electors of the county or city equal in number to at least ten percent of the total vote cast in the county or city for the office of governor of the state at the last general election, is presented to the governing body.
4. The officers or employees of a nonprofit corporation under contract with the board of county commissioners or the governing body of the city, in regard to the manner in which the funds shall be expended and the services are to be provided, are authorized to receive, and shall be eligible for, bonding coverage through the state bonding fund.
5. The state treasurer shall provide matching funds as provided in this subsection for counties for senior citizen services and programs funded as required by this section. The grants must be made on or before March first of each year to each eligible county. A county receiving a grant under this section which has not levied a tax under this section shall transfer the amount received to a city within the county which has levied a tax under this section. A grant may not be made to any county that has not filed with the state treasurer a written report verifying that grant funds received in the previous year under this subsection have been budgeted for the same purposes permitted for the expenditure of proceeds of a tax levied under this section. The written report must be received by the state treasurer on or before February first of each year following a year in which the reporting county received grant funds under this subsection. A matching fund grant must be provided from the senior citizen services and programs fund to each eligible county equal to eighty-seven and one-half percent of the amount appropriated in dollars in the county under this section for the taxable year, but the matching fund grant applies only to an amount equal to a levy of up to one mill under this section.

57-15-57. Levy for county welfare. [Repealed]

57-15-58. Penalty for unlawful withdrawal from fund.

Every officer participating in the unlawful withdrawal from any fund established by this chapter is guilty of a class A misdemeanor.

57-15-59. Counties’ and cities’ authority to enter leases for court, corrections, and law enforcement facilities and dedicate mill levies. [Repealed]

57-15-60. Authorization of tax levy for programs and activities for handicapped persons — Elections to authorize or remove the levy — Handicapped person programs and activities. [Repealed]

57-15-61. Economic growth districts.

In counties that are part of a joint job development authority, an economic growth district may be established by resolution approved by the board of county commissioners of each county that will be part of the economic growth district. The resolution approved by each board of county commissioners must specify which of the counties in the economic growth district will have the responsibility to administer the economic growth increment pool, unless the boards of county commissioners otherwise agree in writing to different terms and conditions.

1. Upon establishment of an economic growth district, the auditor of each county in the economic growth district shall compute and certify the taxable value of each lot or parcel of commercial property, as defined in section 57-02-01, in that county as most recently assessed and equalized. In each subsequent year, the county auditor of each county in an economic growth district shall compute and certify the amount by which the taxable valuation of all commercial lots and parcels of real property in that county, as most recently assessed and equalized, has increased in comparison with the original taxable value of all commercial lots and parcels. The amount of increase determined is the gross commercial growth of that county. If there is a decrease or no increase in gross commercial growth, the auditor shall certify the gross commercial growth as zero. The auditor shall compute and certify the net commercial growth of the county as thirty percent of the gross commercial growth.
2. The county auditor of each county in an economic growth district shall exclude the net commercial growth determined under subsection 1 from the taxable valuation upon which the auditor computes the mill rates of taxes levied in that year by the state and every political subdivision having power to levy taxes on the property. The auditor shall extend the aggregate mill rate against the net commercial growth as well as the taxable valuation upon which the aggregate mill rate was determined. The amount of taxes received from application of the aggregate mill rate against the net commercial growth is the economic growth increment revenue for that year.
3. The county auditor of each county in an economic growth district shall segregate all economic growth increment revenue in a special fund.
4. The county treasurer shall remit the economic growth increment revenue to the county auditor of the county that administers the economic growth increment pool when the county treasurer distributes collected taxes to the state and to political subdivisions.
5. Before annual certification of county tax levies to the county auditor, the county auditor in the county that administers the economic growth increment pool shall distribute to the county auditors of the other counties in the economic growth district the proportion of the economic growth increment pool which the population of the receiving county bears to the total population of all counties in the economic growth district. Revenue received by a county under this subsection must be deposited in the county general fund.
6. An economic growth district may be dissolved by discontinuation of a joint job development authority or by approval of a resolution by the board of county commissioners of each county in the economic growth district. Upon dissolution of an economic growth district, any funds remaining in the economic growth increment pool must be distributed in accordance with subsection 5.

57-15-62. Levy authorized for county automation and telecommunications. [Repealed]

57-15-63. Mistake in levy — Levy increase in later year — Levy reverts. [Expired]

Expired under S.L. 2003, ch. 517, § 2.

57-15-63.1. Mistake in levy — Levy increase in later year — Levy reverts. [Expired]

Expired under S.L. 2007, ch. 508, § 2.

57-15-63.2. Mistake in township levy — Levy increase in later year — Levy reverts. [Expired]

Expired under S.L. 2009, ch. 537, § 1.

57-16-01. Electors may exceed tax limitations. [Repealed]

Repealed by S.L. 2011, ch. 457, § 12.

57-16-02. Governing board may declare necessity. [Repealed]

Repealed by S.L. 2011, ch. 457, § 12.

57-16-03. Election to be held — Notice. [Repealed]

Repealed by S.L. 2011, ch. 457, § 12.

57-16-04. Increase may be for five years — Extension — Discontinuance. [Repealed]

Repealed by S.L. 2011, ch. 457, § 12.

57-16-05. Vote necessary for approval. [Repealed]

Repealed by S.L. 1983, ch. 608, § 22.

57-16-06. Form of ballot. [Repealed]

Repealed by S.L. 2011, ch. 457, § 12.

57-16-07. Certification of election results. [Repealed]

Repealed by S.L. 2011, ch. 457, § 12.

57-17-01. Governing body may declare tax insufficient. [Repealed]

57-17-02. Election to authorize excess levy of taxes. [Repealed]

57-17-03. Notice of election. [Repealed]

57-17-04. Form of ballot. [Repealed]

57-17-05. Vote required to grant authority. [Repealed]

57-17-06. Limitation of amount of excess levy. [Repealed]

57-17-07. Certification of results of election. [Repealed]

57-19-01. School district — Establishment of special reserve fund.

Each school district in this state may establish and maintain a special reserve fund, subject to the limitations in section 57-15-14.2. The balance of moneys in the fund may not exceed that which could be produced by a levy of fifteen mills in that district for that year.

57-19-02. Special reserve fund — Transfer.

1. Moneys in the special reserve fund may be deposited, held, or invested in the same manner as the sinking fund of the district or in the purchase of shares or securities of federal savings and loan associations or state-chartered building and loan associations, within the limits of federal insurance.
2. Each July first, the board of the school district shall transfer from the special reserve fund to the district’s general fund any amount that exceeds the limitation in section 57-19-01.

57-19-03. Transfer of other funds to special reserve fund.

Any school district having on hand funds, other than sinking or building funds, which are not otherwise encumbered, and which are not required for the payment of the items contained in the current operating budget, by a resolution of the governing board of the school district, may set aside a part or all of such surplus funds in such a special reserve fund, subject to the limitation contained in section 57-19-01 on the size of such fund.

57-19-04. May levy tax beyond levy limitations. [Repealed]

57-19-05. Fund not considered in fixing budget.

Such special reserve fund and the funds therein may not be considered in determining the budget or the amount to be levied for each school fiscal year, for normal tax purposes, but must be shown in such budget as a special trust fund, and may not be deducted therefrom as otherwise provided by law.

57-19-06. Special reserve fund — How and when used. [Repealed]

Repealed by S.L. 1997, ch. 489, § 4.

Note.

For present provisions, see § 57-19-11.

57-19-07. Limitation on amount drawn from fund — Tax collections used to restore fund. [Repealed]

Repealed by S.L. 1997, ch. 489, § 4.

Note.

For present provisions, see § 57-19-11.

57-19-08. When officers personally liable. [Repealed]

Repealed by S.L. 1997, ch. 489, § 4.

Note.

For present provisions, see 57-19-11.

57-19-09. Special reserve fund — Correction of error.

If a school district considered all or part of its special reserve fund in determining its budget and deducted all or part of its special reserve fund from the amount necessary to be levied for a fiscal year, the district may transfer from its special reserve fund into its general fund all or part of the amount that was so considered, contrary to section 57-19-05.

57-19-10. Special reserve funds — Transfer of control. [Repealed]

Repealed by S.L. 2013, ch. 13, § 64.

57-19-11. Special reserve fund — Use.

If collections from taxes levied for the current budget are insufficient to meet the requirements of the budget for teacher salaries, heat, light, and fuel, a majority of the school board may direct the school district business manager to draw on funds in the special reserve fund of the district. The school board, by resolution, may withdraw without repayment fifty percent of the funds from the special reserve fund of the school district.

57-20-01. Real and personal property taxes — When due and delinquent — Penalties.

All real and personal property taxes and yearly installments of special assessment taxes become due on the first day of January following the year for which the taxes were levied. The first installment of real estate taxes, all personal property taxes, and yearly installments of special taxes become delinquent after the first day of March following and, if not paid on or before said date, are subject to a penalty of three percent, and on May first following an additional penalty of three percent, and on July first following an additional three percent, and an additional penalty of three percent on October fifteenth following. From and after January first of the year following the year in which the taxes become due and payable, simple interest at the rate of twelve percent per annum upon the principal of the unpaid taxes on personal property must be charged until the taxes and penalties are paid, with the interest charges to be prorated to the nearest full month for a fractional year of delinquency. The second installment of real estate taxes becomes delinquent after October fifteenth, and, if not paid on or before that date becomes subject to a penalty of six percent.

57-20-01.1. Extension of due date for property taxes when county treasurer’s office is closed.

When the due date for full or installment payment of any property taxes or special assessments falls on a day on which the county treasurer’s office is not open for business, the payment may be made on the first day following on which the office is open without penalty or loss of discount.

57-20-01.2. Penalty and interest waiver. [Expired]

Expired under S.L. 2007, ch. 510, § 5.

57-20-02. Tax list made out by county auditor.

As soon as practicable after the taxes are levied, and after the levies of the several taxing districts within the county have been certified, the county auditor shall make out the tax lists according to the prescribed form to correspond with the assessment districts of the county. The tax percentage rate necessary to raise the required amount of the various taxes must be calculated on the taxable valuation of property after equalization by the state board of equalization, but no rate may be used which results in any fraction of less than one-half of one-tenth of a mill, and in extending any tax, it, whenever it amounts to the fractional part of a cent, must be made one cent.

57-20-03. Form of tax list.

The tax list must be made out to correspond with the assessment books with respect to ownership and description of property, with columns for the valuation and for the various items of tax included in the total amount of all taxes set down opposite such description of property. The amounts of special taxes must be entered in appropriate columns, but the general taxes may be shown by entering the rate of each tax at the head of the proper column without extending the same, in which case a schedule of the rates of such taxes must be made on the first page of each tax list. The tax lists also must show, in a separate column, the years for which a tax lien has been foreclosed upon any piece or parcel, if the same has not been redeemed or deeded for such taxes.

57-20-04. Abstract of tax list to be sent to tax commissioner — Reports.

1. The county auditor, on or before December thirty-first following the levy of the taxes, shall prepare and transmit to the tax commissioner a complete abstract of the tax list of the auditor’s county.
2. In addition to the tax list required in subsection 1, the county auditor, on or before December thirty-first following the levy of the taxes, shall prepare and transmit to the tax commissioner a report providing each taxing district’s property valuation and property tax levy and any other information the tax commissioner deems necessary to prepare the report required in subsection 3. For taxing districts with property in more than one county, information must be collected and transmitted by the county auditor of the county in which the main office of that taxing district is located.
3. The tax commissioner shall compile information received from the county auditors in subsection 2 and prepare a statewide report of property tax increase. The report must include the annual increase in property taxes levied by each taxing district of the state after adjusting for property that was not taxable in the preceding year and property that is no longer taxable which was taxable in the preceding year. The report must be provided to the legislative management by April first of each year.
4. The tax commissioner shall prescribe the form and manner of providing the reports and certifications required under this section.
5. On or before December 31, 2017, the county auditor shall provide a report to the tax commissioner providing the information identified in subsection 2 for the 2015 and 2016 tax years.

57-20-05. Certificate of county auditor to tax list. [Repealed]

57-20-06. Tax lists delivered to treasurer.

On or before December tenth in each year, the county auditor shall deliver the tax lists of the several districts of the county to the county treasurer, taking the treasurer’s receipt therefor. Such lists are authority for the county treasurer to receive and collect taxes therein levied. The county auditor, immediately upon delivering such lists to the county treasurer, shall charge such treasurer with the amount of the lists delivered to the treasurer, as shown in the recapitulation thereof in a book prepared for that purpose, and the county auditor also shall charge the county treasurer in such tax list account with all additional assessments made after such lists are delivered and shall credit the treasurer with all amounts collected thereon and such other amounts as may be deducted lawfully from such lists.

57-20-07. County treasurer to be collector of taxes.

The county treasurer must be the receiver and collector of all taxes extended upon the list, including the state levy and the levies of every other taxing district or municipality, and including special taxes for local improvements in municipalities, and all fines, forfeitures, or penalties received by any person or officer for the school fund, or for the use of the county. The county treasurer shall proceed to collect the same according to law and shall place the same when collected to the credit of the proper funds, but the county treasurer may not be the receiver or collector of any fines or penalties accruing to any municipal corporation for the violation of its ordinances.

57-20-07.1. County treasurer to mail real estate tax statement — Contents of statement.

1. On or before December twenty-sixth of each year, the county treasurer shall mail a real estate tax statement to the owner of each parcel of real property at the owner’s last-known address. The form of the real estate tax statement to be used in every county must be prescribed and approved for use by the tax commissioner. The statement must be provided in a manner that allows the taxpayer to retain a printed record of the obligation for payment of taxes and special assessments as provided in the statement. If a parcel of real property is owned by more than one individual, the county treasurer shall send only one statement to one of the owners of that property. Additional copies of the tax statement will be sent to the other owners upon their request and the furnishing of their names and addresses to the county treasurer. The tax statement must:
   1. Include a dollar valuation of the true and full value as defined by law of the property and the total mill levy applicable.
   2. Include, or be accompanied by a separate sheet, with three columns showing, for the taxable year to which the tax statement applies and the two immediately preceding taxable years, the property tax levy in dollars against the parcel by the county and school district and any city or township that levied taxes against the parcel.
   3. Provide information identifying the property tax savings provided by the state of North Dakota. The tax statement must include a line item that is entitled “legislative tax relief” and identifies the dollar amount of property tax savings realized by the taxpayer under chapter 50-34 for taxable years before 2019, chapter 50-35 for taxable years after 2018, and chapter 15.1-27.
      1. For purposes of this subdivision, legislative tax relief under chapter 15.1-27 is determined by multiplying the taxable value for the taxable year for each parcel shown on the tax statement by the number of mills of mill levy reduction grant under chapter 57-64 for the 2012 taxable year plus the number of mills determined by subtracting from the 2012 taxable year mill rate of the school district in which the parcel is located the lesser of:
         1. Fifty mills; or
         2. The 2012 taxable year mill rate of the school district minus sixty mills.
      2. Legislative tax relief under chapter 50-35 is determined by multiplying the taxable value for the taxable year for each parcel shown on the tax statement by the number of mills of relief determined by dividing the amount calculated in subsection 1 of section 50-35-03 for a human service zone by the taxable value of taxable property in the zone for the taxable year.
2. Failure of an owner to receive a statement will not relieve that owner of liability, nor extend the discount privilege past the February fifteenth deadline.

57-20-07.2. State-paid property tax relief credit. [Repealed]

57-20-07.3. Centrally assessed company credit against payments in lieu of taxes.

1. The owner, operator, or lessee of transmission lines, for which payments in lieu of property taxes are assessed by the state board of equalization under section 57-06-17.3, is entitled to a credit against tax in the amount provided in subsection 3. The credit for each transmission company must be allocated to the counties in the same manner as the tax collected from that company is allocated.
2. The owner, operator, or lessee of electric transmission or distribution property, for which payments in lieu of property taxes are assessed by the state board of equalization under sections 57-33.2-02 or 57-33.2-03, is entitled to a credit against the transmission or distribution tax in the amount provided in subsection 3. The credit for each transmission or distribution company must be allocated and distributed to counties in the same manner as the tax collected from that company is allocated.
3. The amount of credit is determined by multiplying the company’s assessed tax by a fraction, the numerator of which is the total of all formula payments calculated for the subsequent calendar year under section 50-35-03 and the denominator of which is the total statewide ad valorem property tax levied in the prior taxable year.
4. The tax commissioner shall annually calculate the amount of credit to which a company is entitled under this section.

57-20-08. Tax receipts filed with county auditor — Copies retained and filed numerically by county treasurer.

Upon the payment of any tax, if directed by the board of county commissioners, the county treasurer shall give to the county auditor a receipt therefor showing the name and post-office address of the person who paid the tax, the amount and date of payment, the land, lot, or other property upon which the tax is levied, according to the description on the tax list, or in some other sufficient manner, and the year or years for which the tax was levied. If for current taxes on real estate, the receipt must have written or stamped across its face “taxes for” (giving the year in figures) or “first installment taxes” (giving the year in figures) or “second installment taxes” (giving the year in figures), as the case may be. Each year’s tax must be on a separate receipt. If the county treasurer has given notice of tax lien for land and the tax lien has not been foreclosed, the receipt for such taxes must have written or stamped across the face “tax lien”, with a statement of the years for which any of the real estate described therein is subject to a tax lien. If directed by the board of county commissioners, the treasurer shall provide receipts at the end of each day to the county auditor, who shall file and preserve them in the auditor’s office charging the treasurer with the amount thereof. A copy of each receipt must be preserved in the office of the county treasurer and filed in numerical order.

57-20-09. Discount for early payment of tax.

Except as provided in section 57-20-21.1, the county treasurer shall allow a five percent discount to all taxpayers who shall pay all of the real estate taxes levied on any tract or parcel of real property in any one year in full on or before February fifteenth prior to the date of delinquency. Such discount applies to all general real estate taxes levied for state, county, city, township, school district, fire district, park district, and any other taxing districts but does not apply to personal property taxes or special assessment installments. Whenever the board of county commissioners, by resolution, determines that an emergency exists in the county by virtue of weather or other catastrophe, it may extend the discount period for an additional thirty days.

57-20-10. Installment payments of real estate tax.

Real estate taxes, either current or delinquent, may be paid in installments of not less than ten percent of the amount of the tax, plus penalty and interest if any, but each such installment in no event may be less than ten dollars. Credit must be given on the tax records for the installment payments so made, and penalty and interest must be computed only upon the balance of the tax remaining unpaid.

57-20-11. County warrants receivable for taxes.

The county treasurer shall receive in payment of taxes, county warrants on the several funds for which taxes may be levied, to the amount of the tax for such fund, without regard to priority of the numbers of the warrants, except when otherwise provided by law, and the county treasurer shall write or stamp across the face of all such warrants the date of their receipt and the name of the person from whom received.

57-20-12. Endorsement of road warrants.

When any person desiring to pay any taxes due and unpaid presents a warrant on the road fund of that person’s road district, in payment of such taxes as it may be applied to, which shall exceed the amount that the treasurer is authorized to receive in such warrants in payment of such taxes, the treasurer shall endorse on the back of such warrant in part payment the amount the treasurer is authorized by law to receive and shall date the same. The treasurer shall take two receipts from the holder thereof for the amount so endorsed and paid, showing the date of the endorsement, a full description of such warrant, including the date thereof, to whom issued, the amount for which it was given, and all the endorsements, including registration, if registered. On the day the receipts are received, the county treasurer shall file one receipt with the county auditor and shall retain the other as the treasurer’s voucher.

57-20-13. Negotiable paper may be accepted for taxes and fees.

The county treasurer, and other officials charged with the duty of collecting public moneys, in their discretion, may accept bank checks, bank drafts, and express and post-office money orders in payment of any tax, assessment, fee, or license. Upon payment of taxes, the treasurer shall note on the tax receipt the method or manner, whether in cash, or by check, draft, or money order, and a like notation must be made on the tax list, and in case of satisfaction of tax lien, the notation as to method or manner of payment must be made on the auditor’s satisfaction of tax lien record.

57-20-14. Acceptance subject to payment.

The acceptance of any check, draft, or money order in payment of any tax, fee, or license does not constitute payment until it has been duly honored and paid, and acceptance is subject to collection.

57-20-15. Deposit and refund.

The county treasurer or other official, accepting checks, drafts, or money orders in payment of any tax, assessment, fee, or license, shall deposit the same in the manner provided by law. If thereafter any check, draft, or money order is returned unpaid to the bank with which it was deposited, such bank shall return such unpaid check, draft, or money order to the officer who deposited the same and if such amount has been included in any cashier’s check given by said bank, such bank is entitled to a refund in the amount of such unpaid check, draft, or money order.

57-20-16. Cancellation on nonpayment of paper.

If, on the due presentment, any check, draft, or money order accepted in payment of any tax, fee, or license, for any reason, is not honored or paid, any record of payment or redemption that may have been made on any official record because of the acceptance of such check, draft, or money order, must be canceled, and the tax, assessment, fee, or license stands as a charge and lien just as though no credit had been given or payment attempted. For the purpose of making certain such cancellation, the officer accepting any check, draft, or money order shall make whatever memoranda may be necessary to enable the officer to make the proper cancellation upon the return of any such instrument unpaid.

57-20-17. Notice of cancellation.

Whenever a cancellation of a credited payment has been made in accordance with section 57-20-16, the officer making such cancellation shall make a record thereof in a book to be kept by the officer for that purpose. The officer shall give notice by registered or certified mail to the person who attempted to make payment by such unpaid check, draft, or money order, of the cancellation of the payment, by mailing the same to that person at the post-office address given on the tax records of the officer’s office, or if no address is given, then to that person’s last-known post-office address. The validity of any tax, assessment, fee, or license, or of any penalties accruing thereon, is not affected by any failure to give, nor by irregularity in giving, such notice.

57-20-18. Refund to balance books.

Whenever the collection as evidenced by the treasurer’s receipt has been entered upon the treasurer’s collection register, and the books have been closed for the month, so that the treasurer cannot void the receipts issued for any check, draft, or money order received in payment of any tax, assessment, fee, or license, and unpaid, without disturbing the balances for the month, the county auditor, upon the application of the county treasurer, shall issue a refund voucher to balance such voided receipts, and such application is sufficient without the approval of any governing body or the state tax commissioner. The county treasurer, within twenty-four hours after the receipt of notice of nonpayment of credited items, shall make an entry in red ink on the tax list, or other record wherein credit has been entered, and likewise upon the collection register, and the receipt so voided. Such entry must be substantially as follows: “Receipt voided on account of bad check (or other instrument) and auditor’s refund voucher No. _________ issued to balance”.

57-20-19. Right to pay up contracts for taxes.

Any owner of real property who has entered into an extension contract under the provisions of chapter 240 of the 1937 Session Laws, or under chapter 227 of the 1939 Session Laws, if such contract is in force, has the right to discharge the interest in full upon that person’s obligation by paying interest at four percent from April 1, 1941. Any owner who has entered into such an extension contract, or that owner’s successor in interest, or any lien or mortgageholder, has the right to pay the full amount remaining unpaid upon such extension contract at any time while such contract is in force.

57-20-20. Payment of tax under protest — Determination of uncontested amount.

Any person against whom any tax is levied, or who may be required to pay the same, may pay such tax under protest to the county treasurer, by giving notice in writing to such treasurer at the time of payment, specifying the reasons for such protest, and thereafter, within sixty days, that person may apply in writing to the board of county commissioners for an abatement, adjustment, or refund of taxes thus paid, or any portion thereof, and if such application is rejected, in whole or in part, or if the board fails to act upon the person’s application within sixty days, it shall notify the applicant of the disposition of the person’s application and of the person’s right to appeal as provided by law. The application to the board of county commissioners must show the post-office address of the taxpayer and notice to such address by registered or certified mail is sufficient service of the notice of rejection or approval of the taxpayer’s application.

The uncontested amount of taxes paid under protest is the amount of taxes that would be payable if the application for abatement, adjustment, or refund is approved by the board of county commissioners as submitted.

57-20-21. Segregation of contested amount of taxes paid under protest.

Whenever taxes have been paid under protest, the county treasurer shall deduct the uncontested amount of the taxes paid under protest as determined under section 57-20-20 and keep the contested amount of the money thus paid and collected in a separate fund known as “taxes paid under protest fund”. The uncontested amount of taxes paid under protest may be allocated immediately as provided by law. The amount deposited in the taxes paid under protest fund may not be paid or disbursed to the state, to any fund of the county, nor to any local taxing district, until the period prescribed in section 57-20-20 has expired, and in case an action is commenced, the county treasurer shall retain the contested amount in such fund, until such action is finally determined.

57-20-21.1. Priority for delinquent taxes.

When payment is made for any real or personal property taxes or special assessments, payments must be applied first to the oldest unpaid delinquent taxes or special assessments due, if any, shown to exist upon the property for which the tax payments are made, including any penalty and interest. The discounts applicable to payment of taxes set out in section 57-20-09 do not apply to payment of taxes made on property upon which tax payments are delinquent.

57-20-22. Disposition of penalty and interest.

All penalties on general taxes and interest on certificates of sale issued, or deemed to be issued to the county, or tax liens against the property belong to the county and become a part of the general fund or of any other fund as the county commissioners may direct, except penalties and interest collected on taxes and parts of taxes due to townships, cities, school districts, and park districts and on special assessments for public improvements, which must be paid to the municipality levying the same, or whatever other taxing district or agency thereof is entitled to the original amount of the taxes or assessments.

57-20-23. County responsible for collecting and transmitting state taxes.

Each county is responsible to the state for the full amount of the taxes levied for state purposes, except such amounts or taxes as have been canceled as uncollectible, or canceled or abated, as provided by law. If any county treasurer proves to be a defaulter, to any amount, of state revenue, the county shall make up the deficiency from revenues derived from the county’s general fund levy authority over a period of three years, without interest, and the county can have recourse to the official bond of the county treasurer for indemnity.

57-20-24. Warrants to be drawn for money due owners. [Repealed]

Repealed by S.L. 1999, ch. 503, § 47.

57-20-25. County treasurer to transmit delinquent list to auditor. [Repealed]

Repealed by S.L. 1999, ch. 503, § 47.

57-20-26. Treasurer to give notice of tax lien by mail.

Between the first and fifteenth of November of each year, the county treasurer shall mail to each owner of any lot or tract of land for which taxes are delinquent a notice giving the legal description of that lot or tract and stating that the taxes are delinquent and constitute a lien against the property. The notice must advise the owner that unless the delinquent taxes and special assessments with penalty, simple interest at the rate of twelve percent per annum from and after January first following the year in which the taxes become due and payable, and costs established under subsection 5 of section 57-28-04 are paid by October first of the second year following the year in which the taxes became delinquent, the county auditor will foreclose on the tax lien and issue a tax deed to the county.

57-20-27. Mistake in name of owner does not invalidate tax lien.

A tax lien may not be considered invalid for the reason that the real estate has been charged in any name other than that of the rightful owner.

57-20-28. Collection of real estate taxes on leasehold or other possessory interest.

1. If any holder of a leasehold or other possessory interest in exempt real property neglects or refuses to pay any real estate taxes legally assessed and levied on that property at the time required by law for the payment of real property taxes, the taxes shall constitute a personal charge against the holder of the lease or other possessory interest from and after the day they become due, and all of the provisions of law with respect to the enforcement of collection of personal property taxes are applicable.
2. For property subject to assessment under the provisions of subsection 2 of section 57-02-26, taxes upon the property constitute a personal charge against the lease or easement holder from and after the day they become due, and all of the provisions of law with respect to the enforcement of collection of personal property taxes are applicable.

57-21-01. Application to district court.

At any time after any taxes or special assessments or any installment thereof, heretofore or hereafter levied and assessed upon any real property within this state, have been delinquent for more than twelve months, and remain due and unpaid, the county treasurer, if the said property produces rents, may petition, and, by direction of the board of county commissioners, shall petition, the district court, in the name of the county, for an order directed to the tenant or subtenant, if any, and to the owner of said property, directing that said rents be paid to the county treasurer.

57-21-02. Notice to be given.

A copy of the petition prescribed by section 57-21-01, and a notice of hearing thereon, must be served upon the tenant and upon the owner of the real property in the manner provided by law for the service of a summons in district court, or, upon order of the court endorsed upon the notice of hearing, the said petition and notice may be served by mailing a copy of each by registered or certified mail to the tenant, and a like copy to the owner of the record title of said property, at the tenant’s and owner’s last-known post-office address, or to such address as may appear of record in the office of the recorder or of the county treasurer, and in such case the return registry receipt of the post office is prima facie proof of the mailing of such notice and of its receipt by the tenant and the owner to whom it was mailed.

57-21-03. Order of court.

After hearing, the court may issue an order directing the tenant to pay to the county treasurer all rents payable under the terms of the lease of the property, either due or to become due, and also directing the county treasurer to apply the said payments of rent to the delinquent and current taxes and special assessments, including penalty and interest, and the costs and expenses of the proceeding as determined and taxed by the court. In such order, or thereafter, upon application and hearing, the court, in its discretion, may allow to the taxpayer a percentage of rents, property, and crops, as to the court may seem just, up to and including fifty percent thereof, and may order the treasurer to pay such percentage to such taxpayer at such times and under such circumstances as to the court may seem just and equitable.

57-21-04. Duty of tenant and owner.

A tenant, pursuant to an order made as provided in section 57-21-03, shall pay to the county treasurer all of the rent for the property described in such order, and if the owner reserves title to property as security for rent, the tenant or owner shall pay said taxes and special assessments out of the owner’s portion of such crops or other property, or the proceeds thereof, and a failure to comply with the provisions of the order of the court constitutes contempt and is punishable as such.

57-21-05. Receipts a defense in action for rent.

The treasurer shall give a receipt to the tenant for any rents paid pursuant to the order of the court, and the payment thereof and the receipt therefor constitutes a complete defense to a suit by any person for such rent.

57-21-06. Appeal.

The owner of any property described in a petition made as provided in section 57-21-01 has the right to appeal to the supreme court of this state from any order issued by the district court under the provisions of this chapter. Pending the final determination of such appeal, the treasurer shall continue to receive and the tenant to pay the rents provided in said order, and the treasurer shall hold the said payments in trust for the final determination of such appeal.

57-21-07. Priority of liens and assignments.

The payment of the rents provided for in the order of the court has precedence over and must be paid prior to any subsequent assignment of such rents, or lien upon such rents, and no part of such rents is exempt from the payments required under this chapter. The payment of the rents provided for in the order of the court, however, is subject and inferior to any lien which the government of the United States or any agency thereof may acquire as security for the payment of any seed, feed, or crop production loans.

57-21-08. Vacation of order requiring payment of rents for taxes and special assessment.

Whenever the delinquent and current taxes and special assessments, including penalty and interest, and the costs and expenses of the proceeding, have been fully satisfied out of the rents, property, and crops as provided in this chapter, the treasurer shall apply to the court for an order vacating the order directing the payment of rents, which must be served upon the tenant and upon the owner in the manner provided for the service of the original notice.

57-21-09. Tax and special assessment receipts.

Whenever the payments of rents result in the payment of any year’s taxes or special assessments, with penalties, interest, and costs thereto attached, the county treasurer shall issue a receipt for such year’s tax or special assessment in the usual manner. In like manner, the county auditor shall issue a certificate of redemption for any taxes or special assessments which have been sold.

57-21-10. Payments under protest.

Nothing in this chapter may be construed to prevent any taxpayer from exercising the right provided by law as to the payment of taxes or special assessments under protest.

57-21-11. State’s attorney to represent county.

The state’s attorney, in the county where proceedings under this chapter lie, shall prepare the necessary papers in connection with the proceedings and shall appear at any hearing in said matter as counsel for the county and treasurer.

57-21-12. Remedy cumulative.

The remedy provided in this chapter is in addition to any other remedy which may be provided by law for the collection of taxes or special assessments levied and assessed against real property.

57-22-01. Treasurer to give notice.

The county treasurer, during the month of January preceding the time when personal property taxes shall become delinquent, shall give to each person, firm, corporation, or limited liability company from whom such a tax is due a written notice stating the amount of the tax due, the date when the same shall become delinquent, a schedule of the penalties which will accrue after delinquency, that unless such taxes are paid on or before the fifteenth day of October of that year the taxes will be placed in the hands of the sheriff for collection, and that in January of the next year the list of unpaid delinquent personal property taxes will be published in the official newspaper in the county.

57-22-02. Treasurer to make list of delinquent taxes — Notice by mail.

On or before the first day of September in each year, the county treasurer shall make out a list of the unpaid delinquent personal property taxes, in the order in which they appear on the tax list, and, on or before the fifteenth day of September thereafter, shall notify each of the delinquents by mail that unless such taxes are paid on or before the fifteenth day of October of that year the taxes will be placed in the hands of the sheriff for collection.

57-22-02.1. County auditor to maintain record of delinquent personal property taxes.

The county auditor, upon receiving a list of the delinquent personal property taxes as required by law, shall cause the same to be entered in individual accounts by taxpayers in a record to be kept in the county auditor’s office. Such record must show the names of delinquent taxpayers alphabetically arranged, the amount of the tax of each, for what year or years, and all other information as shown on the original tax list. Subsequent payments must be posted from duplicate copies of tax receipts transmitted by the treasurer and sheriff.

57-22-03. List to be delivered to sheriff — Duties of sheriff.

The county treasurer, on the fifteenth day of October, shall deliver the list of unpaid delinquent personal property taxes to the sheriff of the county, who immediately shall proceed to collect all such taxes, and if they are not paid upon demand, the sheriff shall distrain sufficient goods and chattels belonging to the person charged with such taxes to pay the same with penalties and costs. The list given to the sheriff must show the information contained in the original tax list and must include the name and post-office address of the taxpayer, the taxing district and school district in which the taxpayer resides, the valuation, the amount of consolidated taxes, the amount of school per capita or other taxes, and the total tax.

57-22-04. Distraint — Notice of sale — Sale — Surplus.

Whenever personal property taxes are collected by distraint, the sheriff shall take the specific property distrained into possession, and immediately shall proceed to advertise the same by posting notices in three public places in the district or municipality where such property is taken, stating the time when and the place where the property will be sold, and the amount of the delinquent tax with penalties. If the taxes for which said property is distrained, with penalties and cost, are not paid before the day appointed for such sale, which may not be less than ten days after the taking of such property, the sheriff or the sheriff’s deputy shall proceed, at public auction, to sell the property, or so much thereof as is sufficient to pay the taxes and the penalties and costs of distress and sale, and any surplus arising from the sale must be disposed of as in the case of the sale of mortgaged personal property.

57-22-05. Property exempt from distraint.

No personal property is exempt from distraint and sale for the payment of personal property taxes, except personal property consisting of household furniture, wearing apparel, and necessary provisions belonging to the head of a family, to the value of one hundred dollars.

57-22-06. Sheriff may use other process.

If a taxpayer charged with a personal property tax has not sufficient property which the sheriff can find to distrain to pay such tax, but has moneys or credits due the taxpayer or coming to the taxpayer from any person, corporation, limited liability company, governmental agency, municipality, or from this state, known to the sheriff, or if such taxpayer has removed from this state, and has property or moneys or credits due the taxpayer or coming to the taxpayer in this state, known to the sheriff, the sheriff shall collect such personal property taxes and penalties by garnishment, attachment, distress, or other process of law, and such remedy is in addition to any other remedy provided by law.

57-22-07. Sheriff to give receipts for taxes collected.

Upon receiving payment of any personal property tax, the sheriff shall make four copies of a receipt therefor, which must contain the information required by section 57-22-03 to be given to the sheriff by the county treasurer and the amount of taxes and interest and penalty collected. One of such receipts must be given to the taxpayer, one must be retained by the sheriff, one must accompany the statement furnished to the county treasurer as aforesaid, and one must be delivered to the county auditor together with a duplicate of the statement furnished to the county treasurer.

57-22-08. Sheriff to file statement with and pay collections to county treasurer.

On the first day of each month after the sheriff receives the delinquent personal property tax list from the county treasurer, the sheriff shall make out and file with the county treasurer a statement of the personal property taxes collected by the sheriff during the preceding month and shall pay the same to the treasurer as shown by the statement of the personal property taxes collected, giving each receipt number, the name of the taxpayer, the year assessed, the amount of the tax, and the amount of penalty and interest collected thereon. The sheriff shall pay to the county treasurer all personal property taxes collected as shown by the sheriff’s said statement at the time of delivering said statement to the county treasurer.

57-22-09. Sheriff to file annual report with county auditor.

The sheriff, on or before January first of each year, also shall file with the county auditor a full and complete list of uncollected taxes and shall append to such list the sheriff’s affidavit, or the affidavit of the sheriff’s deputy, stating that the sheriff has made diligent search and inquiry for goods and chattels out of which to make collection of the taxes remaining uncollected, and that the sheriff is unable to collect the same. In case of the removal of any delinquent taxpayer, the sheriff shall note on the margin of the list the place to which the delinquent taxpayer has moved, with the date of removal, if the sheriff can ascertain such facts.

57-22-10. County auditor to maintain record of delinquent personal taxes. [Repealed]

Repealed by S.L. 1957, ch. 357, § 1.

57-22-11. Cancellation of uncollectible taxes.

At its regular meeting in January of each year, the board of county commissioners shall examine the sheriff’s report on personal property taxes and compare the same with the tax lists of the auditor and treasurer, and, upon such report, may cancel such taxes as the board is satisfied cannot be collected. The items of tax so canceled must be noted on the tax lists of the treasurer and auditor. The auditor forthwith shall make a report to the sheriff of the tax items canceled and the same must be credited to the county.

57-22-12. Sheriff to retain tax lists.

The sheriff shall maintain in the sheriff’s office a record of the original delinquent taxes furnished to the sheriff by the county treasurer, and it is the sheriff’s duty to collect at any time any taxes remaining uncanceled, unabated, or unpaid. Upon sending the sheriff’s notices for each succeeding year, the sheriff shall include any unpaid balances, with interest, penalty, and costs, with the new delinquent amount, which must be collected in the same manner as the current delinquent tax.

57-22-13. When tax becomes lien.

Personal property taxes, for the purpose of distraint, are a lien upon all the personal property in possession of the person assessed from and after the date when the assessment is made.

57-22-13.1. Notice of sale given to county treasurer.

No security interest in or other lien upon personal property is foreclosed by the sale of such property unless the secured party, the secured party’s agent or attorney, or the editor or publisher of the printing concern or company which prints such foreclosure notice, at least five days before the date of such sale, has mailed or delivered to the county treasurer of the county in which the sale is to be held a copy of such notice of foreclosure sale. The notice must be mailed to the county treasurer by registered or certified mail and must contain a list of the personal property to be sold, with the name and address of the owners of such property. An affidavit reciting the mailing or delivery of such notice to the county treasurer must be filed with the report of sale required to be filed in the office of the recorder, and no such foreclosure sale is valid unless such notice of sale has been mailed or delivered to the county treasurer as herein provided.

57-22-13.2. Property distrained by sheriff when taxes not paid.

Upon receipt of the notice of foreclosure of a security interest in or other lien upon personal property, the county treasurer shall ascertain whether the owner of such personal property has paid the taxes levied against the owner and if the county treasurer finds that such taxes are due and owing the county treasurer immediately shall notify the sheriff who, unless upon demand such taxes are paid, shall distrain such property, or so much thereof as may be necessary, to pay such taxes. No transfer of personal property to the secured party or to the holder of a lien thereon in any way affects the lien of personal property taxes assessed against such property.

57-22-14. Unlawful to dispose of personal property without paying tax — Penalty.

Any person who removes from this state, or disposes of any personal property which has been assessed for personal property taxes, with intent to avoid the payment of such taxes and without paying the same, is guilty of a class A misdemeanor.

57-22-15. Tax receipt required for shipment of emigrant movables. [Repealed]

Repealed by S.L. 1963, ch. 375, § 6.

57-22-16. Procedure when personal property is about to be sold or removed without payment of tax.

If a township, city, or county officer learns or believes that there is danger that personal property which has been assessed and upon which any personal property taxes are due or will be due, will be sold, or removed from the county, without payment of the taxes and without leaving sufficient property to pay the whole of such taxes, the officer shall report such fact to the sheriff, who forthwith shall collect the taxes, or distrain and sell sufficient property to pay the same, if they are not paid on demand, or require an undertaking from the owner in favor of the county treasurer, conditioned that all taxes levied upon such property will be paid when due. Such undertaking must be approved by the recorder, unless the board of county commissioners designates a different official. If the taxes involved have not been levied, they must be ascertained by the county auditor by applying the aggregate mill levy of the previous year for the taxing district in which the property is assessed to the current taxable valuation, and if, after the tax for the current year is levied, there is any excess, it must be refunded to the taxpayer on order of the board of county commissioners. In case a bond has been given, and the taxes are not paid when due, the county treasurer shall bring an action for the taxes and costs in the district court of the county, and the state’s attorney shall represent the treasurer in such action on the bond.

57-22-17. Personal property individually assessed — Paramount lien.

Any person owing personal property taxes is liable civilly to the purchaser of any property assessed therefor, but the property purchased or transferred is liable in the hands of the purchaser for such taxes if it can be shown that the property transferred was assessed individually. In that case, the taxes constitute a paramount lien on any item of property assessed individually, and no sale or transfer affects such lien.

57-22-18. Conditional sales — Taxes payable before change of possession.

If personal property has been sold or transferred under a conditional sale contract, the owner, holder, or assignee of such contract may not attach nor repossess such property nor acquire it by bill of sale, on account of the cancellation or foreclosure of such contract, until the taxes levied upon the said property have been paid as follows:

1. For property other than mobile homes subject to tax under chapter 57-55, all taxes levied upon the property must be paid in full.
2. For mobile homes subject to tax under chapter 57-55, the tax levied upon the property for the current year and the most recent preceding year must be paid in full.

57-22-19. Lien of tax follows sale in bulk.

Taxes upon a stock of goods or merchandise of any nature, and upon furniture and fixtures in any type of business or industry, continue to constitute a lien thereon when sold in bulk, and may be collected from the owner or purchaser, who is liable personally therefor.

57-22-20. Precedence of lien for taxes.

The state, and each county thereof, to the extent of the amount of taxes assessed and levied against particular personal property and property included in the same class, as disclosed by the statutory assessment list, has a lien upon such property prior to all other liens on or against the same. Any person holding a lien on personal property of any tax debtor may demand and require the property of the tax debtor not covered by a lien to be first exhausted in the payment of such taxes.

57-22-21. Personal property taxes made lien on real estate.

Personal property taxes must be made a lien upon real estate of the tax debtor as follows:

1. At its January meeting in each year, the board of county commissioners shall declare by resolution that all unpaid and uncanceled personal property taxes, from and after the date of the extension and entry thereof as provided in this chapter, constitute a lien on any real estate owned by the tax debtor, or which the tax debtor thereafter may acquire, and shall make such taxes a specific lien on particular descriptions of real property owned by the tax debtor as of the date of the extension and entry of such lien.
2. The county auditor shall extend to and enter upon the tax list of real estate then in the hands of the county treasurer, for the year immediately preceding, opposite the descriptions of real estate designated by the board of county commissioners which belong to the personal property tax debtor, the year for which the personal property taxes are uncollected and the amount thereof. Such entry must be made without regard to any prior payment of real estate taxes on said descriptions, and the treasurer is without authority thereafter to issue any receipt in full for said real estate taxes without making collection at the same time of the personal property taxes so extended; a taxpayer holding a specific superior lien on said descriptions ahead of personal property taxes charged thereon is entitled to tax receipts without regard to nonpayment of such inferior personal taxes.
3. If the tax debtor afterwards acquires any real property in the county, such delinquent personal property taxes may be entered in like manner upon any subsequent tax list, and from the time of such entry is a lien on any real property of the tax debtor against which they were entered in the same manner and to the same extent as the taxes upon such real property.

57-22-21.1. Immediate assessment of personal property taxes.

It is the duty of the assessor, upon discovery of any personal property in the county, belonging to transients or nonresidents, the taxes upon which cannot in the assessor’s opinion be made a lien upon sufficient real property, or upon discovery of personal property within the county belonging to a resident of this state but normally located in another state or province, to secure the payment of such taxes, as provided in section 57-22-21, to immediately, and in any event not more than five days thereafter, make a report to the treasurer, setting forth the nature, kind, description, and character of such property, in such a definite manner that the treasurer can identify the same, and the amount and assessed valuation of such property, where the same is located, and the name and address of the owner, claimant, or other person in possession of the same.

57-22-21.2. Immediate collection of personal property taxes.

The county treasurer must collect the taxes on all personal property, and in the case provided in the preceding section, it is the duty of the treasurer immediately upon receipt of such report from the assessor to notify the person or persons against whom the tax is assessed that the amount of such tax is due and payable at the county treasurer’s office. The county sheriff shall at the time of receiving the assessor’s report, and in any event within thirty days from the receipt of such report, levy upon and take into possession such personal property against which a tax is assessed and proceed to sell the same, in the same manner as property is sold on execution by the sheriff, and the county treasurer may for the purpose of making such levy and sale, designate and appoint the sheriff as the treasurer’s deputy, and such sheriff is entitled to receive the same fees as the sheriff is entitled to in making a seizure and sale under execution. For the purpose of determining the taxes due, on such personal property, the treasurer shall use the levy made during the previous year, if the levy for the current year has not yet been made. Nothing herein may be construed as to prevent the county treasurer or the county sheriff from collecting taxes due on personal property by distraint thereof at any time after the expiration of the period hereinbefore mentioned.

57-22-22. Extended personal property taxes to be collected with real estate taxes.

Collection of personal property taxes entered and extended as a lien on real estate may be enforced by foreclosure of tax lien. The lands to be foreclosed for personal property taxes entered and extended thereon must be designated by resolution of the board of county commissioners.

57-22-23. Priority of lien of extended personal property tax.

The lien of personal property taxes charged against real estate has priority over any judgment, mortgage, or other lien or claim, placed of record subsequent to the date when such personal property taxes are entered against such real property, except that the lien for real estate taxes for a subsequent year has priority over personal property tax liens formerly charged and spread.

57-22-24. Collection of personal property taxes by action.

Whenever it is deemed expedient by the board of county commissioners of any county to collect delinquent personal property taxes by action, the board has the power to institute an action in the name of the county for and on behalf of the county against the person charged with such taxes.

57-22-25. Fees of sheriff for distraint.

The sheriff or the sheriff’s deputy must be allowed the same fees for making distraint and sale of goods and chattels for the payment of taxes as are allowed by law for making a levy and sale of personal property on execution, and travel fees must be allowed as determined by law. Such fees and mileage must be added to any tax and collected by the sheriff, and when presenting a statement and bill for such fees and mileage a full and complete description of the route traveled must be given. In no case may mileage be charged more than once from the county seat of the county in which the services required are performed.

57-22-26. Deduction of personal property taxes from salaries, wages, and claims against public funds. [Repealed]

Repealed by S.L. 1977, ch. 530, § 1.

57-22-27. Who are subject to deductions. [Repealed]

Repealed by S.L. 1977, ch. 530, § 1.

57-22-28. Contract for payment of taxes shall not affect deductions. [Repealed]

Repealed by S.L. 1977, ch. 530, § 1.

57-22-29. Contract for tax collection — Contracts validated.

1. In any county where for any reason personal property taxes that have been delinquent more than one year remain unpaid and uncanceled, whether put into judgment or not, the board of county commissioners may contract with the sheriff of the county, or with any elector of the state, to pay a percentage of the delinquent personal property taxes, not exceeding ten percent of the amount collected, as compensation for collecting the same, in lieu of, or in addition to, the compensation provided by law for said sheriff. When a contract is made with any person other than the sheriff, the county commissioners may in their discretion pay any reasonable salary or expenses or a percentage of the tax collected, or combination thereof, and the contract may cover all or only certain taxing districts within the county, and contracts may be made with different collectors for different portions of the county. In the event delinquent personal property taxes are owed by a person not residing in North Dakota, the county commissioners may contract with any person, firm, corporation, or limited liability company, to pay a reasonable percentage of the delinquent taxes collected, as compensation for the collection. Such contractors shall execute either a personal or corporate surety bond conditioned upon satisfactory performance of the provisions of the contract and shall be in an amount and of a type approved by the county commissioners.
2. All contracts heretofore made and entered into by county commissioners for the collection and recovery of personal property taxes are declared legal and valid notwithstanding the provisions of law to the contrary.

57-22-30. Bond and reports of collectors.

Any collector, other than the sheriff, with whom the county has contracted for the collection of personal property taxes, shall furnish a good and sufficient bond, in an amount to be fixed by the board of county commissioners, for the faithful discharge of the collector’s duties and for the payment to the county of all moneys collected. The collector, on the second day of each month, shall file with the county treasurer a verified report and account of the taxes collected by the collector the preceding month, showing the name of each person from whom taxes were collected and the amount collected and at the same time shall pay to the county treasurer the full amount collected. The expenses of such collection, whether made by the sheriff or other collector, according to the contract, must be borne pro rata by the state and every other political subdivision or municipality having an interest in the taxes collected and must be paid to the collector on order of the board of county commissioners.

57-22-31. Payment of taxes after judgment.

Upon payment to the county treasurer of any personal property taxes for which judgment has been obtained, the treasurer shall deliver a certificate of the fact of payment to the clerk of the court. The clerk shall file the certificate and enter the satisfaction of the judgment in the judgment docket, stating the date of payment and the number of the receipt.

57-22-32. Collection from tax debtor who moves to another county — Duty of county auditor.

Upon the removal of a delinquent tax debtor from the county, collection must be made from the debtor in the manner following:

1. In case of the removal of any delinquent tax debtor from the county in which the debtor’s personal property was taxed to any other county in this state, the assessor immediately shall make a proper effort to ascertain the place of the debtor’s destination and to report the place to the county auditor. The county auditor shall prepare and forward to the recorder of the county to which the tax debtor has removed, unless the board of county commissioners designates a different official of that county, a statement of the amount of the delinquent taxes, including penalties and costs that may have attached, specifying the value of property on which the taxes were levied.
2. On receipt of the statement, the recorder, or designated official, receiving the statement shall issue a warrant to the sheriff of the county, and the sheriff shall proceed immediately to collect the taxes in the manner in which the sheriff collects delinquent taxes in the county. The sheriff shall collect from the tax debtor an additional sum of ten dollars. The sum must be paid to the recorder, or designated official, as the fee for issuing the warrant, and all taxes collected must be remitted by the sheriff to the treasurer of the county to which the taxes belong, together with the original statement of account, and if any taxes remain unpaid a statement must be made of the reason, and proper entries must be made on the tax lists of the county where the tax was levied.

57-22-33. Penalties. [Repealed]

Repealed by S.L. 1975, ch. 106, § 673.

57-23-01. Correcting excessive assessment.

All assessments of any taxable property in excess of the full and true value in money are subject to correction and abatement and refund under the provisions of this chapter.

57-23-02. Notice of equalization meetings to be published. [Repealed]

Repealed by S.L. 2013, ch. 443, § 41.

57-23-03. Abatement of invalid, inequitable, or unjust assessments. [Repealed]

Repealed by S.L. 1985, ch. 604, § 22.

57-23-04. County commissioners may abate or refund taxes.

1. Upon application filed in the office of the county auditor on or before November first of the year following the year in which the tax becomes delinquent, as in this chapter provided, the board of county commissioners may abate or refund, in whole or in part, any assessment or tax upon real property, in the following cases:
   1. When an error has been made in any identifying entry or description of the property, in entering the valuation thereof, or in the extension of the tax, to the injury of the complainant.
   2. When improvements on any real property were considered or included in the valuation thereof which did not exist thereon at the time fixed by law for making the assessment.
   3. When the complainant, or the property, is exempt from the tax.
   4. When the complainant had no taxable interest in the property assessed against the complainant at the time fixed by law for making the assessment.
   5. When taxes have been erroneously paid, or errors made in noting payment, or in issuing receipts therefor.
   6. When the same property has been assessed against the complainant more than once in the same year, and the complainant produces satisfactory evidence that the tax thereon for such year has been paid.
   7. When any building, mobile home, structure, or other improvement has been destroyed or damaged by fire, flood, tornado, or other natural disaster, the abatement or refund must be granted only for that part of the year remaining after the property was damaged or destroyed.
   8. When the assessment on the complainant’s property is invalid, inequitable, or unjust.
2. An application for refund of taxes paid with respect to any part of an assessment abated under this section must be granted, regardless of whether or not such taxes were paid under protest, oral or written.
3. Any person aggrieved by any decision of the board of county commissioners may appeal in the manner provided by law.

57-23-05. Application for abatement or refund — Who may make.

An application for an abatement or refund must be in writing and must be filed in duplicate with the county auditor. It must state the grounds relied upon for such abatement or refund and give the post-office address of the applicant. The county auditor shall note the date of filing, shall file the same, and, within five business days of the filing date, shall present a copy to the city auditor or the township clerk if the applicant’s assessed property is within a city or an organized township. The county auditor shall present the application to the board of county commissioners at its next regular meeting. The county auditor shall give the applicant notice by mail of the time and place of hearing on any abatement or refund not less than ten days prior to such hearing.

Any person having any estate, right, title, or interest in or lien upon any real property who claims that the assessment made or the tax levied against the same is excessive or illegal, in whole or in part, is entitled to make an application for abatement, refund, or compromise, as the case may be, and have such application granted if the facts upon which the application is based bring it within the provisions of this chapter for abatement, refund, or compromise. In addition, if an abatement is based upon any of the grounds specified in section 57-23-04 and if the application for abatement will not result in a refund of tax or a compromise of a tax, the abatement application may be signed and submitted by either the county auditor or the assessor who made the assessment resulting in the tax specified in the abatement application.

57-23-05.1. Appraisal of property — Premises open to inspection.

The applicant, by filing an application for an abatement, refund, or compromise of a tax with the county auditor, consents to inspection of the premises involved in the application by the board of county commissioners, the governing body of the city or township, or the state tax commissioner or the duly authorized agents thereof for the purpose of making an appraisal of said property. The premises must be open to inspection to the person having authorization to make the appraisal upon giving reasonable notice to the applicant.

57-23-06. Hearing on application.

1. Within ten days after receiving an application for abatement, the city auditor or the township clerk shall give the applicant a notice of a hearing to be held before the governing body of the city or township, or such other committee as it may designate, in which the assessed property is located. Said hearing must be set for no more than sixty days after the date of the notice of hearing, and in any event, must be held before the recommendations provided for in subsection 2 are made. The applicant may waive, in writing, the hearing before such governing body or designated committee at any time before the hearing. Any recommendations provided for in subsection 2 must be transmitted to the county auditor no more than thirty days after the date set for the hearing. The provisions of this subsection do not apply to applications for abatement pursuant to section 57-02-08.2.
2. At the next regular meeting of the board of county commissioners following the filing of an application for abatement or, if forthcoming, at the next regular meeting of the board of county commissioners following transmittal of the recommendations of the governing body of the municipality, the applicant may appear, in person or by a representative or attorney, and may present such evidence as may bear on the application. The applicant shall furnish any additional information or evidence requested by the board of county commissioners. The recommendations of the governing body of the municipality in which such assessed property is located must be endorsed upon or attached to every application for an abatement or refund, and the board of county commissioners shall give consideration to such recommendations. The board of county commissioners, by a majority vote, either shall approve or reject the application, in whole or in part. If rejected, in whole or in part, a written explanation of the rationale for the decision, signed by the chairman of the board, must be attached to the application, and a copy thereof must be mailed by the county auditor to the applicant at the post-office address specified in the application.
3. At a hearing before the board of county commissioners on an application for abatement, the applicant or the applicant’s representative or attorney is limited to the relief claimed in the application for abatement submitted to the board of county commissioners. The applicant or applicant’s representative or attorney may not submit evidence during a hearing on an application for abatement suggesting a lower valuation, a lower tax levy, or a different taxable status than was requested in the application for abatement submitted to the board of county commissioners.

57-23-07. County commissioners may compromise tax.

If tax on any real estate remains unpaid after the second Tuesday in December in the year it is due, the board of county commissioners, subject to the approval of the state tax commissioner, by reason of depreciation in the value of the property or for other valid cause, may compromise with the owner of the property by abating a portion of the delinquent taxes, with any penalty and interest on that portion, on payment of the remainder. The county commissioners may not compromise the tax after the county auditor has issued a tax deed to the county.

57-23-08. Duties of county auditor and county commissioners after abatement action.

After the granting of any application for abatement or refund or compromise of any tax, the county auditor shall correct all tax lists in accordance with the order of abatement or compromise, and the applicant is relieved of further liability for the tax abated or compromised and any penalties and interest on the abated or compromised portion of the tax. If the board of county commissioners disapproves any application for abatement or refund or compromise, in whole or in part, the reasons for disapproval must be stated thereon, and the applicant may appeal the rejection of the application for abatement or refund or compromise as provided by law.

57-23-09. Procedure when refund is made.

When any application for refund is granted, the county auditor shall issue and deliver to the applicant a warrant drawn on the county treasurer for the amount ordered refunded, and the county treasurer shall refund the same, and shall write opposite such tax in the treasurer’s list the word “refund”, with the date and the number of the warrant. The amount so refunded must be charged to the state, county, city, township, school district, park district, or any other taxing district, which may have received any part of such money, in proportion to the levies for the year for which the tax was extended. The refund must include any penalties and interest previously paid on the portion of any tax abated or compromised.

57-23-10. Appeal. [Repealed]

Repealed by S.L. 1971, ch. 552, § 2.

57-23-11. Provisions of chapter retroactive. [Repealed]

Repealed by S.L. 1973, ch. 459, § 7.

57-23-12. Limitations of chapter.

The right to proceed to recover taxes paid under protest, as provided by law, is not qualified or limited by this chapter.

57-25-01. Application for division of property for satisfaction of tax lien.

In case a mortgage, lien, or sheriff’s certificate, or any other instrument conveying an interest in property, affects only a part of the real estate taxed as a unit, any person interested therein may petition the county auditor that the person be permitted to pay taxes and satisfy any outstanding tax lien as to that part only of the real estate in which the party is interested. Such petition must set forth the petitioner’s interest in the property. It must be verified and may be in the form of an affidavit. Immediately upon the receipt of such petition, the county auditor shall consider the same and shall make a fair and equitable valuation of the whole tract. The county auditor shall apportion to the petitioner a part of the taxes, interest, and penalty to be paid by the petitioner in order to effect satisfaction, which must bear to the taxes, special assessments, interest, penalty, and costs accrued on the whole tract the ratio which the value of the part or parcel of land in which the petitioner claims an interest bears to the value of the entire assessed tract of land. Thereupon the county auditor, by certified mail, shall notify all persons interested in such real property according to the record, either as owner or as the holder of a mortgage or other lien or sheriff’s certificate, of the filing of such petition and of the auditor’s assessment of such tract or parcel of land and of the auditor’s apportionment of the taxes thereon, and the date when the same will be considered and heard by the auditor. Such hearing may not be less than ten days after the mailing of such notice. Upon the date set, the county auditor shall hear the parties interested and shall assess such tract and apportion the taxes thereon as the auditor deems fair and equitable.

57-25-02. Appeal to board of county commissioners.

If any interested person is dissatisfied with the determination of the county auditor as provided in section 57-25-01, the person, within five days after such hearing and determination, shall file with the auditor a written request that the matter be considered by the board of county commissioners. The county auditor thereupon shall give notice, by certified mail, to all persons having an interest of record in such land, of the date when the matter will be heard by the board. Such date may not be less than ten days after the mailing of such notice. The hearing must be held at the next regular meeting of the board of county commissioners after said ten-day period has expired. Upon the date fixed, the board of county commissioners shall hear the parties interested and shall make a division of the assessed valuation of the tract of land in question and shall apportion the taxes thereon as said board deems fair and equitable.

57-25-03. Appeal to district court.

Any person dissatisfied with the order and determination of the board of county commissioners may appeal to the district court in accordance with the procedure provided in section 28-34-01.

57-25-04. Tax deed proceedings to be stayed.

When any person files with the county auditor a petition, as provided in this chapter, that the person be permitted to pay taxes, or to satisfy any outstanding tax lien as to a part only of the real estate sold, the issuance of a tax deed thereon and all proceedings preliminary thereto must be stayed until the matter is finally determined and settled.

57-25-05. Procedure on payment of tax or satisfaction of tax lien of portion of tract.

Upon payment by the petitioner of the amount as finally apportioned, a tax receipt or satisfaction of tax lien, or both, as the case may be, must be issued to such petitioner by the county auditor.

57-28-01. Notice of foreclosure of tax lien to be given.

On or before June first in each year, the county auditor shall give notice of foreclosure of tax lien for all property for which two or more years have passed since the tax became due.

57-28-02. When tax lien is foreclosed.

The tax lien foreclosure date is October first after the service of the notice of foreclosure.

57-28-03. Contents of notice of tax lien.

Notice of foreclosure of tax lien must include:

1. The description of the property.
2. The amount of delinquent property taxes and special assessments, with penalties, interest, and foreclosure costs, for the tax year foreclosed.
3. The total amount required to satisfy the property tax lien.
4. The time when the foreclosure will occur.

57-28-04. Service of notice of foreclosure of lien.

1. If the current assessment records show that a residential building is located on the property, the county auditor shall deliver the notice of foreclosure of tax lien to the sheriff who shall serve it or cause it to be served personally upon the owner, if known to be a resident of this state. If the owner is a nonresident of this state, the county auditor shall serve the notice by certified mail addressed to the owner at the owner’s last-known post-office address and determine whether personal service upon any person is required under subsection 3. If the current assessment records show that no residential building is located on the property, the auditor shall serve the notice by certified mail addressed to the owner at the owner’s last-known post-office address.
2. By March first, the county auditor shall request from the recorder and the clerk of the district court a list giving the names and addresses of all persons who appear to be interested as owners, mortgagees, lienholders, or judgment creditors. Ownership does not include an easement or right of way recorded or a mineral interest that was severed from the surface estate. The recorder and the clerk of the district court shall provide the county auditor with the requested lists by April fifteenth following the request.
3. On or before June first, the county auditor shall serve the notice of tax lien foreclosure personally upon any person actually residing upon the property subject to tax lien and by certified mail upon any other person entitled to the possession of the property as may appear from the records of the recorder or clerk of the district court.
4. The county auditor shall serve the notice of foreclosure of tax lien upon each mortgagee, lienholder, and other person with an interest in the property except a person whose only interest is in a mineral interest that was severed from the surface estate before the filing of any unsatisfied lien or mortgage or before January first of the year following the year for which the taxes were levied and to which the notice of foreclosure of tax lien relates, and upon whom personal service is not required by this section, as shown by the records of the recorder or the clerk of the district court of the county. The notice must be served by certified mail. If a mortgagee, lienholder, or other person entitled to notice under this subsection has an agent registered with the secretary of state for the purpose of accepting service, the notice required under this subsection must be served on that registered agent.
5. The expense of service of the notice, publication, and other foreclosure costs under this chapter in the amount of fifty dollars or actual costs whichever is higher must be added to the amount required to satisfy the tax lien. The auditor or sheriff shall make proof of service by mail by affidavit showing the names and addresses of all parties upon whom the notice was served with the date of mailing in each case and shall attach the registry, certification, and return receipts and file the affidavit and receipts with the original notice of foreclosure of tax lien. Service by publication under this chapter must be shown of record by filing of an affidavit of publication.

57-28-05. Form of notice of foreclosure of tax lien service by certified mail.

The notice of foreclosure of tax lien which the county auditor is required to serve by certified mail must be substantially in the following form:

NOTICE OF FORECLOSURE OF TAX LIEN To , the owner of the record title of the real estate hereinafter described, and to all mortgagees, lienholders, and other persons interested in the real estate: I, , county auditor of County, North Dakota, give notice that the real estate hereinafter described has a lien for delinquent taxes against it for the year and unless the tax and special assessments, with interest, penalties, and cost of foreclosure action are paid on or before October first, after the date of this notice, tax deeds will be issued to the county, granting to and vesting in it, the absolute title in fee to the real property, subject, however, to the lien for installments of special assessments certified or to be certified to the county auditor or which may become due subsequent to the time of service of this notice, and foreclosing all rights of the owner, mortgagees, lienholders, and other persons interested therein, as may appear from the records of the recorder and the clerk of the district court of the county. There is given herewith the description of the parcels of real estate, and set opposite each description is the amount which will be required to satisfy the tax lien for the year . The property is described as follows, with the amount required to satisfy the tax lien set out opposite each description: Given pursuant to authority of law on , . County auditor of County, North Dakota.

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57-28-06. Service of notice by publication.

The county auditor shall serve notice of foreclosure by publication as to all property for which notice is served upon the owner by certified mail. The notice may include any number of parcels of property and only one heading is necessary for the entire list. The notice must contain the description and any street address of each parcel of property. However, the failure to include the street address in the notice does not affect the validity of the notice. The notice must be published once on or before August first in the official newspaper of the county.

57-28-07. Form of notice for publication.

The notice of foreclosure of tax lien to be served by publication must be substantially in the following form:

I, , county auditor, of County, North Dakota, give notice that the real estate hereinafter described has a lien for delinquent taxes against it for the year , and unless the tax and special assessments, with interest, penalties, and cost of foreclosure action are paid, on or before October first after the date of this notice, the real estate will become the absolute property in fee of this county, subject to the lien for installments of special assessments certified or to be certified to the county auditor or which may become due subsequent to the time of service of this notice, and the former owner, mortgagees, lienholders, and other interested persons therein will be forever foreclosed and barred from asserting any further rights to the real estate. The following is a list of the real estate on which the tax lien will be foreclosed on October first. Opposite each description of the real estate appears any street address of the property, the name of the owner of the record title, and the amount which must be paid to satisfy the tax lien. (List descriptions, names of owners, and amount necessary to satisfy the tax lien.) Given pursuant to authority of law on , .

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The failure to include the street address in the notice does not affect the validity of the notice.

57-28-08. Effect of failure to satisfy tax lien.

The failure of the owner, any mortgagee, or other lienholder to satisfy the tax lien before the date of foreclosure shall:

1. Pass any interest of the owner, mortgagee, or lienholder in the property to the county. The interest acquired by the county is subject to the lien for installments of special assessments certified to the county auditor or which may become due after the service of the notice of foreclosure of tax lien. The interest acquired by the county is subject to an easement or right of way recorded with an effective date that precedes the date of official notice to the record titleholder which states that property taxes are delinquent and constitute a property lien.
2. Foreclose all rights of satisfaction.
3. Waive all errors, irregularities, or omissions which do not affect the substantial rights of the parties, except jurisdictional defects.

57-28-09. Tax deed to be issued.

After the date of foreclosure for property with an unsatisfied tax lien, the county auditor shall issue a tax deed to the county or, in cases in which the department of water resources has made an assessment against the property under section 61-03-21.3, the county auditor shall issue a tax deed to the state or, if the property was sold by another political subdivision of this state within the ten years preceding the foreclosure, the county auditor shall issue a tax deed to that political subdivision. The tax deed passes the property in fee to the county, the state, or political subdivision, free from all encumbrances except installments of special assessments certified to the county auditor or which may become due after the service of the notice of foreclosure of tax lien, a homestead credit for special assessments lien provided for in section 57-02-08.3, and an easement or right of way recorded with an effective date that precedes the date of official notice to the record titleholder which states that property taxes are delinquent and constitute a property lien. While the county, the state, or political subdivision holds title under a tax deed, it is not liable for the payment of any installments of special assessments which become due unless the board of county commissioners, the state, or political subdivision has leased or contracted to sell the property. A deed issued under this section is prima facie evidence of the truth and regularity of all facts and proceedings before the execution of the deed.

57-28-09.1. Form of tax deed.

A tax deed must be substantially in the following form:

TAX DEED This deed is made by (name of county auditor), county auditor of County, North Dakota, in the name of the state to (name of county) County, as provided by the laws of the state of North Dakota: Whereas, there was assessed for (year) the following real property: (legal description of the property); and Whereas, the taxes for (year) levied against the property amounted to $; and Whereas, the taxes were not paid and a property tax lien for the payment of the taxes attached; and Whereas, notice was given to interested parties under chapter 57-28 of foreclosure of the tax lien and that the issuance of a tax deed was pending; and Whereas, the property tax lien has not been satisfied by (name of former owner) or any other person entitled to satisfy it. Now, therefore, I (auditor’s name), county auditor of County, North Dakota, in the name of the state, hereby grant to (name of county) County, all the property situated in County, North Dakota, described in this document. Witness my hand on this date (date, including year). , County Auditor County, North Dakota

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57-28-10. Appraisal for annual sale — Minimum sale price.

All property acquired by the county by tax deed must be appraised by the board of county commissioners at least thirty days before the annual sale under this chapter. The appraised price must be sufficient to cover all taxes, special assessments, homestead credit for special assessments, penalties, interest, and costs which were due against the property at the time of the service of the notice of foreclosure of tax lien, plus an amount equal to the estimated taxes and special assessments for the current assessment year. If the fair market value of the property is more than the total amount due against the property, the minimum sale price of the property must be at least equal to the total amount due against the property. If the fair market value of the property is less than the total amount due against the property, the board shall fix a fair minimum sale price for the property.

57-28-11. Hearing on appraisal or reappraisal.

After an appraisal or reappraisal of property acquired by tax deed, the board of county commissioners shall set a date for hearing objections to the minimum sale price determined. At least ten days before the hearing, the county auditor shall mail to the auditor of any city, or the clerk of the board of supervisors of any township, in which appraised property is located a written notice stating the time when objections to the established minimum sale price will be heard. Any member or representative of the governing body of any taxing district may appear at the hearing with reference to the fair market value of appraised property, and the board may make appropriate changes in the minimum sale price of property.

57-28-12. Appeal.

If dissatisfied with the determination of the board of county commissioners under section 57-28-11, the governing body of any taxing district may appeal to the district court under section 28-34-01. Appeals under this section must be heard by the court without a jury. The county auditor shall make any changes in minimum sale price ordered by the court.

57-28-13. Time and place of annual sale.

The annual sale of land acquired by tax deed must be held at the county auditor’s office or the usual place of holding district court in the county beginning on the third Tuesday of November of each year.

57-28-14. Notice of annual sale — Contents.

Notice of the annual sale must include a description, any street address, and minimum sale price for each parcel of property to be sold. Notice must be given in both of the following manners:

1. By posting a notice at the county auditor’s office at least fifteen days before the date of sale.
2. By publishing a notice in the official newspaper of the county once, not less than ten days before the date of sale.

The failure to include the street address in the notice does not affect the validity of the notice.

57-28-15. Annual sale at auction — Sale price — Terms of payment.

The annual sale must be conducted in the following manner:

1. Each parcel of land must be sold at auction to the highest qualified bidder for no less than the minimum sale price as fixed before the sale. The sale may be made either for cash or one-fourth of the purchase price in cash, and the balance in equal annual installments over a period of not more than ten years. The purchaser may pay any or all annual installments with interest before the agreed due date of the installments.
2. If the sale is for cash, the purchaser shall promptly pay the amount bid to the county treasurer.
3. If the purchase price is to be paid in installments, the purchaser shall pay the first installment to the county treasurer and be given a contract for deed setting forth the terms of the sale. The contract for deed must be executed by the purchaser, the chairman of the board of county commissioners, and the county auditor. The contract must be in a form prescribed by the state tax commissioner. The contract must give the county the right to cancel the contract by resolution and due notice upon default by the purchaser.
4. The original contract for deed must be filed with the county treasurer, who shall record upon it all payments made by the purchaser. The interest rate for the contract must be established by the board of county commissioners at no more than twelve percent.
5. Upon completion of a cash sale or payments under a contract for deed, the county auditor shall execute and deliver a deed conveying to the purchaser the entire interest of the county in the property.
6. Upon the execution and delivery of the deed or contract for deed, the property becomes taxable to the purchaser.
7. A person is unqualified to be the highest bidder for property if the person owes delinquent taxes to any county.

57-28-16. Form of deed to purchaser.

The deed which the county shall execute and deliver to the purchaser must be substantially in the following form:

COUNTY DEED This indenture made on , , between the county of , North Dakota, party of the first part, and , party of the second part, witnesseth: WHEREAS, the real property hereinafter described was acquired by the county through tax deed proceedings for the nonpayment of taxes levied and extended against the property for the years of to inclusive, with interest and penalties, amounting to the sum of dollars; and WHEREAS, the real property was offered for sale, and sold, pursuant to authority of law, on , , and at the sale, the second party became the purchaser of the whole thereof, for the sum of dollars, which has been paid in full; NOW, THEREFORE, the county as party of the first part, in consideration of the premises, and pursuant to authority of law, hereby does grant, bargain, sell, and convey to the second party, the second party’s heirs and assigns, that certain real property situated in the county of , North Dakota, described as follows: To have and to hold the above described real property with all of the appurtenances thereunto belonging to the party of the second part, heirs and assigns forever. IN WITNESS WHEREOF and , as chairman of the board of county commissioners and county auditor, respectively, of said county, hereby do set their hands the day and year first above written and do cause the seal of said county to be affixed thereto. County, North Dakota Chairman, board of county commissioners County auditor STATE OF NORTH DAKOTA County of On , , personally appeared before me, a notary public within the aforesaid county and state, and , to me personally known to be the chairman of the board of county commissioners and the auditor, respectively, of said county, and acknowledged to me that they executed the foregoing deed for and on behalf of said county. My commission expires . Notary Public, for County, North Dakota.

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57-28-17. Sale between annual sales — Reappraisal.

1. If the county continues to retain the property acquired by tax deed after the initial appraisal is conducted and the annual sale is held, the board may reappraise the value of the property at any time deemed necessary by the board. The reappraisal of the property must be completed at least thirty days before a subsequent annual sale under this chapter. Any property not sold at the annual November sale may be sold by the county auditor at private sale before the next annual November sale for not less than the property’s minimum sale price. A parcel of real estate against which an unpaid special assessment continues as a lien under section 57-28-09 may be sold by the county auditor free of the lien if the governing body of the city in which the property is located finds that the sum of the minimum sale price and the unpaid special assessment exceeds the market value of the property. If the governing body of the city makes this finding, it may cancel all or part of the special assessment lien against the property to reduce the lien to an amount which, when added to the minimum sale price, will be equal to the market value of the property. The action of the governing body shall be certified by the city auditor or clerk to the county auditor. The county auditor may then sell the property at private sale before the next annual November sale for not less than the resulting amount. The purchaser acquires the property free from any part of any lien for special assessment which was canceled by the governing body of the city, and the county auditor shall remove from the record any canceled special assessments.
2. Notwithstanding the provisions of this section or other provisions of law, any property acquired by the county which is subject to a special assessment lien for improvements made by a city may be sold to that city for cash at any price agreed upon by the board of county commissioners and the governing body of the city.

57-28-17.1. Private sale between annual sales by nonexclusive listing agreements.

The board of county commissioners may by resolution engage licensed real estate brokers to attempt to sell property not sold at the annual November sale. The resolution must authorize sale by way of nonexclusive listing agreements; describe the real property to be sold; provide a maximum rate of fee, compensation, or commission; and provide that the county reserves the right to reject any and all offers determined to be insufficient. Property that is subject to a special assessment lien for improvements made by a city must first be offered for sale to the city.

57-28-18. Terms of private sale and distribution of proceeds.

1. Any private sale of real property made between the annual November sales must be made upon the same terms and conditions as a sale may be made at the November sale, unless the board of county commissioners has had the property reappraised and has consented, by majority, to value the property at the reappraised price. The sale of farmland acquired by the county by tax deed is subject to any existing lease of the property for the year of the sale. If the farmland is to be sold by private sale to any person other than the former owner or other interested person, a deed or contract for deed may not be delivered to the purchaser until thirty days after service by certified mail upon the former owner or other interested party of the pending sale, the date when the sale will become final, and the amount required to repurchase the property. For the purposes of this section, “other interested party” means the executor, administrator, parent, spouse, or child of the former owner who has notified the county auditor in writing of that status, the address at which service may be made, and that the person should be notified of the expiration of the period of repurchase in connection with any private sale of the property.
2. In case of the sale, contract for sale, or repurchase by the former owner of tax deed property during January, the property must be assessed and taxed for that year, and the purchaser or repurchaser is entitled to the rental and landlord’s share of crops on the property for the year. In case of the sale, contract for sale, or repurchase by the former owner of tax deed land after January, the property may not be assessed and taxed for that year, and the county is entitled to the rental and landlord’s share of the crops on the property for the year. The proceeds realized from a sale between annual November sales must be apportioned in the same manner as the proceeds of the annual November sale.

57-28-19. Rights of repurchase.

The former owner; the former owner’s executor or administrator; or any parent, spouse, or child of the former owner may repurchase any property forfeited to the county under tax deed proceedings, so long as the tax title to the property remains in the county. If any city has made a special assessment for public improvements against the property and the special assessment has become delinquent and remains unpaid, the city has a right to purchase the property for cash, at the appraised value, prior to that of any party. Upon appraisal of the property, the county auditor shall give notice to the auditor of any such city and the city has thirty days within which to exercise its priority right to purchase the property under this section. A repurchase by a private party under this section may be for cash or contract for deed made by and between the board of county commissioners and the former owner; the executor or administrator of the former owner; or any parent, spouse, or child of the former owner. The consideration of the repurchase contract with a private party must include:

1. The total amount required to be paid to effect a satisfaction of tax lien.
2. The total amount of all subsequent taxes and special assessments with interest, penalties, and costs.

If the fair market value of the property at the time of the repurchase is less than the amount to be paid under subsections 1 and 2, the board shall fix a fair sale price for the property. If a repurchase under this section is by contract for deed, the party making the repurchase must pay at least twenty-five percent of the total contract price in cash and the remainder must be payable in no more than ten annual equal installments. The board of county commissioners shall establish the rate of interest for a contract for deed under this section, not exceeding the prime rate of interest established by the Bank of North Dakota for the month immediately preceding the month in which the contract was entered. A contract for deed under this section must provide that if the repurchaser or the successor in interest fails to pay one or more of the installments when due, with interest, the board of county commissioners may cancel the contract and all payments and improvements made by the repurchaser or the successor in interest will be forfeited to the county as liquidated damages for breach of contract unless otherwise expressly provided. Upon the completion of a cash sale or payments under a contract for deed under this section, the county auditor shall execute and deliver a deed conveying to the repurchaser the entire interest of the county in the property. Upon the execution and delivery of a deed or contract for deed under this section, the property becomes taxable to the repurchaser. In case of repurchase or contract for repurchase of tax deed property during January, the property must be assessed and taxed for that year, and the repurchaser is entitled to the rental and landlord’s share of crops on the property for the year. In case of the repurchase or contract for repurchase of tax deed land after January, the property must not be assessed and taxed for the current year, and the county is entitled to the rental and landlord’s share of crops on the property for the year. The repurchase or contract for repurchase of tax deed farmland is subject to any existing farm lease of the property for the year in which the repurchase or contract for repurchase is made.

57-28-19.1. Real estate sold to city or acquired by the county by tax deed to be marketable.

A city that has purchased property or a county that has acquired a tax deed to property under this chapter is deemed to have marketable record title to the property if all of the following apply:

1. The county deed conveying the property has been recorded.
2. The city or county has entered into possession of the property and continued its possession for three months or longer.
3. No lis pendens giving notice of the pendency of an action challenging the validity of tax proceedings or of the deed has been recorded within three months of the date on which the city or county entered into possession of the property.

A city or county that is deemed to have marketable record title may convey title free of any claims based on a defect in the process through which the city or county obtained title to the property. If title of the city or county is deemed marketable under this section, a claimant who would be entitled to some claim on the property because of a defect in the process by which the city or county obtained title has instead the right to recover from the city or county the net value of that claim, subject to the statutory restrictions on claims against a city or county. For the purpose of this section, the fact of possession by the city or county may be shown of record by one or more affidavits that contain the legal description of the property and show that the city or county entered into possession of the property and continued possession for three months or longer. The posting on the property of a sign or notice, legible from the street adjacent to the property, stating that the property is owned or for sale by the city or county is an act of possession by the city or county, but is not required.

57-28-20. Disposition of proceeds of sales.

All proceeds from the public or private sale of property under this chapter must be apportioned as regular tax payments are apportioned among and within taxing districts in which the property is located, as follows:

1. The county treasurer shall issue a regular tax receipt in the name of the county, beginning with the earliest year for which the taxes are delinquent. Tax receipts must be written for the amount of the tax, with penalty and interest. If the property was sold for an amount sufficient to cover all outstanding taxes, special assessments, penalties, interest, and costs associated with selling the property, tax receipts must be written for all such years, and any remaining amount must be retained by the county for ninety days following the date of the sale. After the ninety-day retention period, any excess proceeds must be distributed:
   1. To the owner of the record title of the real estate listed in the notice of foreclosure of tax lien if the owner of record submitted an undisputed claim for the excess proceeds within the ninety-day retention period;
   2. To the clerk of the district court in the county in which all or a majority of the property is located if a disputed claim or multiple claims for the excess proceeds were submitted within the ninety-day retention period; or
   3. To the unclaimed property administrator under chapter 47-30.2 if a claim for the excess proceeds was not submitted within the ninety-day retention period.
2. If the property is sold under a contract, the county treasurer shall issue tax receipts, beginning with the earliest year for which taxes or special assessments are delinquent, with penalty and interest, and all subsequent payments made on the contract must be applied to the earliest remaining unpaid taxes or special assessments. Any payment under the contract after all taxes, special assessments, penalties, interest, and costs associated with selling the property are paid must be retained by the county for ninety days following the date of the sale. After the ninety-day retention period, any excess proceeds must be distributed in the manner provided in subsection 1.
3. If the property is sold for less than the total amount of the taxes due, the treasurer shall write tax receipts beginning with the earliest year and for as many subsequent years as the proceeds realized from the sale will satisfy, and the remainder of any unpaid general taxes or special assessments must be canceled by the board of county commissioners.
4. A city or county that acquires a tax deed to property shall make reasonable efforts to sell the property for the amount necessary to satisfy the outstanding taxes, penalties, and interest owed on the property and shall distribute any remaining sale proceeds in the manner provided in this chapter.

57-28-21. Cancellations from record. [Repealed]

Repealed by S.L. 1999, ch. 503, § 47.

57-28-22. Sale of property owned by county more than ten years.

The board of county commissioners may sell property acquired by the county at tax sale or by foreclosure of tax lien more than ten years ago without further notice.

57-28-23. County lands may be leased.

The board of county commissioners may lease any property acquired by the county by tax deed. A mineral lease in farmland acquired by the county by tax deed may not be entered until thirty days after giving the former owner or other interested party notice of the right to repurchase the property from tax lien foreclosure in the manner provided in section 57-28-18.

57-28-24. Terms of leases.

All leases of property under this chapter must be made subject to sale and limited to a term not exceeding five years. However, property may be leased for grazing purposes without being subject to sale for a term not exceeding ten years.

57-28-25. Board of county commissioners may act as leasing agents or may employ a county land agent.

The board of county commissioners may not expend more than ten percent of the total lease revenue collected under this chapter for costs in connection with the supervision and collection of rentals. The board may authorize one or more of its members to act as the county land agent or employ a county land agent to manage, lease, and collect rentals for any property owned by the county. The county land agent must be bonded by the state bonding fund, in an amount determined by the board of county commissioners. The agent shall deposit all amounts collected with the county treasurer and obtain a receipt. The board of county commissioners shall fix the compensation and expenses of the agent, but the compensation and expenses may not exceed ten percent of the total revenue collected by the agent and must be paid out of the revenue from the rentals of county lands.

57-28-26. Disposition of rental revenue.

All the net revenue from leases of property under this chapter and all federal payments for property acquired by the county by tax deed must be paid into the county treasury. On or before January tenth in each year, the county treasurer shall apportion these amounts received in the previous calendar year to the county, city, school district, township, or other taxing districts in which the property is located in the proportion that the previous year’s general fund levy in the taxing district bears to the total of general fund levies of all taxing districts in which the property is located.

57-28-27. Discretion of county commissioners in lease or sale of tax deed lands.

The board of county commissioners may refuse to sell or lease any agricultural lands held by the county under a tax deed if the board finds that any of the following would result:

1. The use would seriously impair the fertility of the property or adjoining property due to wind or water erosion.
2. The property will become a part of an agricultural unit that will be too small or too large to be operated in the best interests of the community and taxing districts and the use may result in failure of the owner or lessee to pay taxes upon the property.
3. The use would result in lessening the value or marketability of adjacent property held by the county.

The board of county commissioners may classify agricultural lands held by the county according to suitability for tillage, haying, or grazing purposes. Applicants for deeds or leases may file with the county auditor a statement of the size of the farming unit for which the property is desired, the uses intended for the property, and any other information relative to the planned operation of the property which is required by the board of county commissioners.

57-28-28. County lien for costs of improvement to distressed property forfeited in tax foreclosure.

1. If property sold by the county under this chapter is sold for less than the total amount of the taxes due and the costs to improve salability of the property which were incurred by the county in cleanup, repairs, demolition, or other action necessary because of damage, neglect, or waste by the prior owner, those costs incurred by the county to improve salability which were not recovered by the county from the sale constitute a lien on any real property owned, or later acquired, in the county by that prior owner.
2. The county auditor shall extend and enter upon the tax list of real estate then in the hands of the county treasurer, opposite the description of real estate designated by the board of county commissioners which belongs to the prior owner, the year for which an obligation to the county exists under this section and the amount of that obligation. The entry must be made without regard to any prior payment of real estate taxes on those properties and the treasurer may not thereafter issue any receipt in full for real estate taxes on those properties without making collection at the same time of the obligation under this section. A taxpayer holding a specific superior lien on those properties ahead of a lien under this section is entitled to tax receipts without regard to nonpayment of obligations under this section.

57-28-29. Notice of tax delinquency — Central indexing system. [Repealed]

57-29-01. Suspension of tax liens on state-acquired lands.

In any transaction in which the state of North Dakota or any of its agencies, departments, or instrumentalities, prior to the taking effect of this code, has acquired, or thereafter acquires, title to any tract of land and there are listed and legally charged against the tract unpaid general property or other taxes or tax deeds, the holders of the liens of the taxes or tax titles are without power to enforce or to effectuate the same. All remedies for the enforcement or enjoyment of the liens or titles are suspended wholly and all proceedings to enforce or effectuate the liens or titles subsequent to the acquisition of the tract of land by the state of North Dakota or any of its agencies, departments, or instrumentalities and during the time the tract is owned by the state of North Dakota or any of its agencies, departments, or instrumentalities, are null and void, except that any tax title acquired previous to the acquisition of title by the state of North Dakota or any of its agencies, departments, or instrumentalities may be made effectual and may be enjoyed until the time the state of North Dakota or any of its agencies, departments, or instrumentalities acquires title based upon a mortgage or other conveyance previous in time to the due date of the taxes upon which the tax title is based, whereupon all rights, interests, powers, privileges, and immunities theretofore owned and enjoyed under the tax title are suspended forthwith, and the state of North Dakota or any of its agencies, departments, or instrumentalities may enter into possession of the tracts of land and shall have the entire control, use, and enjoyment thereof.

57-29-02. Reinstatement of tax liens upon sale.

Upon the sale of tracts of land by the state of North Dakota or any of its agencies, departments, or instrumentalities, and upon payment to the state of North Dakota or any of its agencies, departments, or instrumentalities of not less than twenty percent of the sale price of the particular tract or tracts sold, the provisions of section 57-29-01 become inoperative with respect to such lands, and the general statutory remedies to enforce and effectuate tax liens and titles again are applicable.

57-29-03. Payment of tax liens.

The trustee for the state of North Dakota, or the Bank of North Dakota, as agent for the trustee, when the income received or in prospect from any particular tract of land acquired warrants it, shall pay to any county owning and holding any tax lien, tax sale certificate, or tax title suspended under the provisions of section 57-29-01 but otherwise legally sufficient, moneys equal in amount to the original amount of the general taxes upon which such lien, certificate, or title is based, and the treasurer of such county shall accept such moneys in full payment of the amount due on or invested in such tax lien, certificate, or title, which thereafter is null and void, and the evidences of which thereupon must be canceled from the tax records of the state and of its subdivisions by the appropriate fiscal officers.

57-29-04. Abatement to purchaser of tax sale certificates on state-acquired land. [Repealed]

Repealed by S.L. 2007, ch. 501, § 6.

57-29-05. Auditor to give tax information on lands in which state is interested.

The county auditor of each county is required and directed, on or before July first of each year, to inform the Bank of North Dakota of any delinquent and unpaid taxes upon real estate in the auditor’s county owned or mortgaged to the Bank of North Dakota or assigned by it to the state treasurer as trustee for the state of North Dakota. The county auditor shall give a description of the land for which the taxes are unpaid, the amount of unpaid taxes for each year, showing special assessment taxes if any, and the names of the purchaser, if the land was sold for taxes.

57-30-01. Counties may maintain actions to determine adverse claims.

Any county may maintain and prosecute any action to determine adverse claims and to quiet title to all lands acquired by it through tax deed proceedings, against any person claiming an estate or interest in, or lien or encumbrance upon, any such lands.

57-30-02. Joinder of claims for relief.

In any action brought by any county to determine adverse claims and to quiet title to real estate acquired through tax deed proceedings, the county may unite in the same complaint as many separate claims for relief as the state’s attorney determines to be advisable, but each description of real estate and the name of any person claiming an adverse estate or interest therein must be stated separately so that any answering defendant can take issue with the county by challenging the truth of the facts alleged in the particular paragraph applicable to the property of such answering defendant.