North Dakota 2025-2026 Regular Session

North Dakota House Bill HB1474 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	25.1184.~~02000~~
	1	+	25.1184.01000
2	2		Sixty-ninth
3	3		Legislative Assembly
4	4		of North Dakota
5	5		Introduced by
6	6		Representatives Toman, Dockter, Kasper, Schatz, Steiner, VanWinkle, Koppelman, D.
7	7		Johnston, Louser
8	8		Senators Meyer, Castaneda, Paulson
9		-	A BILL for an Act to provide for a legislative management study of property tax reform for
10		-	residential property.
	9	+	A BILL for an Act to create and enact a new section to chapter 57-02, a new chapter to title 57,
	10	+	a new section to chapter 57-09, a new section to chapter 57-11, two new sections to chapter
	11	+	57-12, two new sections to chapter 57-13, and a new section to chapter 57-15 of the North
	12	+	Dakota Century Code, relating to imposition of a square footage tax on residential property,
	13	+	provision of a solar or wind energy device or geothermal device credit and new single-family,
	14	+	condominium, and townhouse residential property credit, duties of the state and county boards
	15	+	of equalization, application of mill levy limits, and valuation requirements; to amend and reenact
	16	+	sections 11-23-05, 11-28.3-03, 11-28.3-04, and 11-28.3-09, subsection 2 of section 11-28.3-17,
	17	+	subsection 4 of section 15.1-27-04.1, sections 18-10-07, 18-10-12.1, 40-40-06, 40-40-10, and
	18	+	40-58-20, subsection 2 of section 40-58-20.2, sections 57-02-11, 57-02-51, 57-02-52, 57-09-04,
	19	+	57-11-03, 57-15-02, 57-15-02.2, 57-15-05, 57-15-07, 57-15-11, 57-15-13, 57-15-31, 57-15-31.1,
	20	+	57-20-01, 57-20-01.1, 57-20-02, 57-20-03, 57-20-04, 57-20-07.1, 57-20-09, 57-20-10, and
	21	+	57-20-21.1, subdivision a of subsection 1 of section 57-23-04, section 57-23-06, subsection 2 of
	22	+	section 57-28-03, subdivision c of subsection 1 of section 57-28-20, and sections 57-28-26,
	23	+	57-55-01.2, 57-55-04, 57-55-04.1, 57-55-05, and 61-24-09 of the North Dakota Century Code,
	24	+	relating to imposition of a square footage tax on residential property, application of certain
	25	+	property tax incentives to the square footage tax, duties of state and local equalization boards,
	26	+	determination of taxing district budgets and tax levies, the determination of school state aid
	27	+	payments, and imposition of a square footage tax on mobile homes; to repeal subsection 35 of
	28	+	section 57-02-08 of the North Dakota Century Code, relating to a property tax exemption for
	29	+	new single-family, condominium, and townhouse residential property; to provide a penalty; and
	30	+	to provide an effective date.
11	31		BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
12		-	SECTION 1. LEGISLATIVE MANAGEMENT STUDY - PROPERTY TAX REFORM FOR
13		-	RESIDENTIAL PROPERTY.
14		-	1.During the 2025-26 interim, the legislative management shall consider studying
15		-	property tax reform for residential property, including the feasibility of imposing
16		-	limitations on taxable valuation increases and of replacing the current property tax
17		-	structure for residential property with a price per square foot taxation method. The
18		-	study must include:
19		-	a.A review of the current property tax system for residential property, including
20		-	procedures for property assessment, the function of the equalization and
21		-	abatement process, and the process for determining taxing district budgets.
22		-	b.Consideration of methods to limit the growth of residential property values,
23		-	including potential advantages and disadvantages for property owners and taxing
24		-	districts.
25		-	c.Consideration of implementation and administration of a new taxation method
26		-	based on a price per square foot, the potential impact of the new taxation method
27		-	on taxpayers and taxing districts, potential unintended consequences related to a
28		-	transition from the current ad valorem taxation system to a new taxation method,
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30		-	ENGROSSED HOUSE BILL NO. 1474
31		-	FIRST ENGROSSMENT
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53		-	and potential approaches to mitigate unintended consequences related to the
54		-	transition to a new taxation method.
55		-	2.The legislative management shall report its findings and recommendations, together
56		-	with any legislation required to implement the recommendations, to the seventieth
57		-	legislative assembly.
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	33	+	HOUSE BILL NO. 1474
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	59	+	SECTION 1. AMENDMENT. Section 11-23-05 of the North Dakota Century Code is
	60	+	amended and reenacted as follows:
	61	+	11-23-05. Computing amount of levy.
	62	+	1.The amount which the board of county commissioners shall levy as the county
	63	+	ad valorem tax shall be computed by adding together the amounts of the annual
	64	+	appropriation and of that part of any special appropriation which is to be raised by
	65	+	taxation and deducting therefrom so much of the probable receipts from all sources,
	66	+	including square footage tax levied under section 18 of this Act, except loans, and so
	67	+	much of the unappropriated balance in the county treasury at the close of the auditor's
	68	+	books for the previous year as the board deems advisable.
	69	+	2.The board, on or before the October meeting required by section 11-11-05, shall
	70	+	determine the amount of ad valorem taxes that shall be levied for county purposes and
	71	+	the square footage tax rate for purposes of the tax under section 18 of this Act and
	72	+	shall levy all such taxes in specific amounts.
	73	+	SECTION 2. AMENDMENT. Section 11-28.3-03 of the North Dakota Century Code is
	74	+	amended and reenacted as follows:
	75	+	11-28.3-03. Notice of election.
	76	+	In addition to the usual requirements of notices of election, the notice for an election at
	77	+	which the question provided for in this chapter will be voted upon must include a statement
	78	+	describing the boundaries of the proposed rural ambulance service district, expressed,
	79	+	wherever possible, in terms of the government survey, a statement setting forth a maximum
	80	+	allowed mill levy and square footage tax rate for the proposed district, which levy may not
	81	+	exceed the limitation in section 11-28.3-09. The notice of election also must state the voting
	82	+	areas in which the question provided by this chapter will be on the ballot.
	83	+	SECTION 3. AMENDMENT. Section 11-28.3-04 of the North Dakota Century Code is
	84	+	amended and reenacted as follows:
	85	+	11-28.3-04. Form of ballot - Vote required to approve.
	86	+	1.The ballot on the question of forming a rural ambulance service district must be in
	87	+	substantially the following form:
	88	+	Shall (name of taxing district or districts) levy a tax for the purpose of forming a
	89	+	rural ambulance district of not to exceed _______ mills for the purpose of forming
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	123	+	a rural ambulance districtcommercial, agricultural, and centrally assessed
	124	+	property, $_______ per residential land square foot, and $_______ per
	125	+	residential structure square foot?
	126	+	Yes ☐
	127	+	No ☐
	128	+	2.The square footage tax rates must be determined in accordance with the requirements
	129	+	of section 18 of this Act.
	130	+	3.If a majority of all the votes cast on the question of levying a tax and forming a rural
	131	+	ambulance service district are in favor of such athe tax levy, then the formation of the
	132	+	district is approved.
	133	+	SECTION 4. AMENDMENT. Section 11-28.3-09 of the North Dakota Century Code is
	134	+	amended and reenacted as follows:
	135	+	11-28.3-09. Emergency medical service policy - Levy - Financial report.
	136	+	1.The board of directors shall establish a general emergency medical service policy for
	137	+	the district and annually shall estimate the probable expense for carrying out that
	138	+	policy. The estimate must be certified by the president and secretary to the proper
	139	+	county auditor or county auditors, on or before August tenth of each year. In the year
	140	+	for which the levy is sought, a board of directors of a rural ambulance service district
	141	+	seeking approval of a property tax levy under this chapter shall file with the county
	142	+	auditor of the counties within the rural ambulance service district, at a time and in a
	143	+	format prescribed by the county auditors, a financial report for the preceding calendar
	144	+	year showing the ending balances of each fund held by the rural ambulance service
	145	+	district during that year. The board or boards of county commissioners may levy a tax
	146	+	not to exceed the mill rate and square footage rates approved by the electors of the
	147	+	district under section 11-28.3-04. If the board wishes to levy a tax in excess of that
	148	+	approved by the electors, the board, upon its own motion, may place the question of
	149	+	increasing the maximum allowable mill levy and square footage rates for the electors
	150	+	to approve at a regular or special election. The amount of ad valorem tax levied under
	151	+	this section may not exceed a mill rate of fifteen mills upon the taxable property within
	152	+	the district for the maintenance of the rural ambulance service district for the fiscal
	153	+	year as provided by law.
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	187	+	2.The tax levied for a rural ambulance service district must be:
	188	+	a.Collected as other taxes are collected in the county.
	189	+	b.Deposited by the secretary-treasurer in a bank or credit union account.
	190	+	c.Paid out upon warrants drawn upon the district account by authority of the board
	191	+	of directors of the district, bearing the signature of the secretary-treasurer and the
	192	+	countersignature of the president.
	193	+	3.The amount of the tax levy, including ad valorem taxes and square footage taxes
	194	+	authorized under section 18 of this Act, may not exceed the amount of funds required
	195	+	to defray the expenses of the district for a period of one year as embraced in the
	196	+	annual estimate of expense, including the amount of principal and interest upon the
	197	+	indebtedness of the district for the ensuing year. The district may include in its
	198	+	operating budget no more than ten percent of its annual operating budget as a
	199	+	depreciation expense to be set aside in a dedicated emergency medical services
	200	+	sinking fund deposited with the treasurer for the replacement of equipment and
	201	+	ambulances. The ten percent emergency medical services sinking fund may be in
	202	+	addition to the actual annual operating budget, but the total of the annual operating
	203	+	budget and the annual ten percent emergency medical services sinking fund shall not
	204	+	exceed the amount of revenue that would be generated by application of the
	205	+	maximum mill levy and square footage rates approved by the electors.
	206	+	4.If an ambulance operations area identified by the department of health and human
	207	+	services under section 23-27-01 is situated, in whole or in part, within the boundaries
	208	+	of a rural ambulance service district formed under this chapter, and the district does
	209	+	not provide emergency medical services to the territory in the ambulance operations
	210	+	area, whether directly or through a contract under section 11-28.3-12, the property
	211	+	situated in the ambulance operations area which does not receive emergency medical
	212	+	services from the district is exempt from the district's tax levy under this section.
	213	+	Changes to the ambulance operations area will not impact the district under this
	214	+	section until the subsequent tax year. The excluded territory remains responsible and
	215	+	must discharge its proportionate share of outstanding obligations pursuant to the
	216	+	procedure under section 11-28.3-17.
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	249	+	SECTION 5. AMENDMENT. Subsection 2 of section 11-28.3-17 of the North Dakota
	250	+	Century Code is amended and reenacted as follows:
	251	+	2.Mill leviesLevies imposed under section 11-28.3-09 remain in effect until the
	252	+	proportionate share of outstanding obligations are paid.
	253	+	SECTION 6. AMENDMENT. Subsection 4 of section 15.1-27-04.1 of the North Dakota
	254	+	Century Code, as effective after June 30, 2025, is amended and reenacted as follows:
	255	+	4.After determining the product in accordance with subsection 3, the superintendent of
	256	+	public instruction shall:
	257	+	a.Subtract an amount equal to sixty mills multiplied by the taxable valuation of all
	258	+	property classifications in the school district in taxable year 2025; and
	259	+	b.Subtract an amount equal to seventy-five percent of all revenue types listed in
	260	+	subdivisions c and d of subsection 1. Before determining the deduction for
	261	+	seventy-five percent of all revenue types, the superintendent of public instruction
	262	+	shall adjust revenues as follows:
	263	+	(1)Tuition revenue shall be adjusted as follows:
	264	+	(a)In addition to deducting tuition revenue received specifically for the
	265	+	operation of an educational program provided at a residential
	266	+	treatment facility, tuition revenue received for the provision of an adult
	267	+	farm management program, tuition received for the education of
	268	+	high-cost and special education students, and tuition received under
	269	+	an agreement to educate students from a school district on an
	270	+	air force base with funding received through federal impact aid as
	271	+	directed each school year in paragraph 3 of subdivision c of
	272	+	subsection 1, the superintendent of public instruction also shall reduce
	273	+	the total tuition reported by the school district by the amount of tuition
	274	+	revenue received for the education of students not residing in the
	275	+	state and for which the state has not entered a cross-border education
	276	+	contract; and
	277	+	(b)The superintendent of public instruction also shall reduce the total
	278	+	tuition reported by admitting school districts meeting the requirements
	279	+	of subdivision e of subsection 2 of section 15.1-29-12 by the amount
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	313	+	of tuition revenue received for the education of students residing in an
	314	+	adjacent school district.
	315	+	(2)After adjusting tuition revenue as provided in paragraph 1, the
	316	+	superintendent shall reduce all remaining revenues from all revenue types
	317	+	by the percentage of mills levied in 2022 by the school district for sinking
	318	+	and interest relative to the total mills levied in 2022 by the school district for
	319	+	all purposes.
	320	+	SECTION 7. AMENDMENT. Section 18-10-07 of the North Dakota Century Code is
	321	+	amended and reenacted as follows:
	322	+	18-10-07. Fire protection policy to be determined - Financial report - Tax levy limit -
	323	+	Vote-approved ad valorem levy authority.
	324	+	1.The board of directors shall determine a general fire protection policy for the district
	325	+	and shall annually estimate the probable expense for carrying out the contemplated
	326	+	program. The annual estimate of probable expense may include an amount
	327	+	determined by the board of directors to be necessary to be carried over to a future
	328	+	year for purchase of firefighting equipment, ambulances, or other emergency vehicles.
	329	+	The estimate must be certified by the president and secretary to the proper county
	330	+	auditor or county auditors, on or before June thirtieth of each year, who shall levy a
	331	+	tax, including ad valorem tax and square footage tax as authorized under section 18 of
	332	+	this Act, upon the taxable property within the district for the maintenance of the fire
	333	+	protection district for the fiscal year as provided by law.
	334	+	2.In the year for which the levy is sought, a board of directors of a rural fire protection
	335	+	district seeking approval of a property tax levy under this chapter must file with the
	336	+	county auditor of the counties within the rural fire district, at a time and in a format
	337	+	prescribed by the county auditors, a financial report for the preceding calendar year
	338	+	showing the ending balances of each fund held by the rural fire protection district
	339	+	during that year.
	340	+	3.The ad valorem tax may not exceed a tax rate of five mills per dollar of the taxable
	341	+	valuation of property in the district except upon resolution adopted by the board of
	342	+	directors and approval by a majority of the qualified electors voting on the question at
	343	+	an annual or special meeting of electors called by the board of directors, the
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	377	+	ad valorem levy may be made in an amount not exceeding thirteen mills. If an election
	378	+	to approve or reauthorize an excess ad valorem tax levy will be held at an annual or
	379	+	special meeting of electors of the district called by the board of directors, notice of the
	380	+	meeting and the proposed excess ad valorem levy election must be provided by at
	381	+	least one publication in the official newspaper of each county in which the district is
	382	+	located at least seven days, but not more than fourteen days, before the date of the
	383	+	public meeting. The published notice must include the amount of the proposed
	384	+	ad valorem tax rate increase in mills and the duration for which elector approval of the
	385	+	increase is sought and must include the location where, and hours during which,
	386	+	ballots may be cast.
	387	+	4.Votes to approve or disapprove the ad valorem levy increase must be cast on the date
	388	+	of the meeting. The polling place must remain open for at least six hours on the date
	389	+	of the meeting. The secretary-treasurer of the district shall prepare and distribute to
	390	+	qualified electors at the polling place paper ballots to conduct the election on the
	391	+	question of increased ad valorem levy authority. Three election judges to receive and
	392	+	count the ballots, who are qualified electors of the district but not members of the
	393	+	board, must be selected at least seven days before the meeting by approval of a
	394	+	majority of the members of the board. A marked ballot must be delivered to one of the
	395	+	judges, folded to conceal its contents, the judge shall deposit it in the ballot box, and
	396	+	another judge shall enter the name of the elector who cast the ballot in the pollbook.
	397	+	When the election is closed, the judges shall count the ballots and announce the
	398	+	result. Results of the election must be certified by the secretary-treasurer of the district
	399	+	and each of the election judges to the tax commissioner and to the county auditor of
	400	+	each county in which the district is located within ten days after the election. The
	401	+	certificate must include a statement of the question as it appeared on the ballot,
	402	+	together with the total number of votes cast in favor, and the number of votes cast
	403	+	against, authorizing the excess ad valorem levy.
	404	+	5.After July 31, 2015, approval or reauthorization by electors of increased ad valorem
	405	+	levy authority under this section may not be effective for more than ten taxable years
	406	+	or the period of time necessary for repayment of indebtedness incurred which was
	407	+	intended to be repaid from the increased ad valorem levy, whichever expires later.
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	441	+	Additional ad valorem levy authority authorized by the board of directors after petition
	442	+	of electors before August 1, 2015, remains in effect under the provisions of law at the
	443	+	time the levy was authorized for the time period authorized by the electors but not
	444	+	exceeding ten taxable years or the period of time necessary for repayment of
	445	+	indebtedness incurred which was intended to be repaid from the increased levy,
	446	+	whichever expires later.
	447	+	6.The ad valorem tax and square footage tax levied under section 18 of this Act must
	448	+	be:
	449	+	1.a.Collected as other taxes are collected in the county.
	450	+	2.b.Turned over to the secretary-treasurer of the rural fire protection district, who
	451	+	shall have a surety bond in the amount of at least five thousand dollars.
	452	+	3.c.Placed to the credit of the rural fire protection district so authorizing the same by
	453	+	its secretary-treasurer in a state or national bank, except amounts to be carried
	454	+	over to a future year for purchase of firefighting equipment, ambulances, or other
	455	+	emergency vehicles may be invested to earn the maximum return available.
	456	+	4.d.Paid out upon warrants drawn upon the fund by authority of the board of directors
	457	+	of the district, bearing the signature of the secretary-treasurer and the
	458	+	countersignature of the president of the rural fire protection district.
	459	+	7.The amount of tax levy, including ad valorem taxes and square footage taxes, may not
	460	+	exceed the amount of funds required to defray the expenses of the district for a period
	461	+	of one year as embraced in the annual estimate of expense, including the amount of
	462	+	principal and interest upon the indebtedness of the district for the ensuing year and
	463	+	including any amount determined by the board of directors to be necessary to be
	464	+	carried over to a future year for purchase of firefighting equipment, ambulances, or
	465	+	other emergency vehicles.
	466	+	SECTION 8. AMENDMENT. Section 18-10-12.1 of the North Dakota Century Code is
	467	+	amended and reenacted as follows:
	468	+	18-10-12.1. Withdrawal from rural fire protection district.
	469	+	Any person having an ownership interest in property subject to a millan ad valorem or
	470	+	square footage tax levy as provided for in section 18-10-07 and wishing to withdraw such
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	503	+	property from the rural fire protection district may do so as provided in this section, subject to
	504	+	the following restrictions:
	505	+	1.The territory to be withdrawn from the district must border on the outer boundary of the
	506	+	district.
	507	+	2.The territory to be withdrawn from the district remains subject to and chargeable for
	508	+	the payment and discharge of the proportion of obligations outstanding at the time of
	509	+	filing the petition for the withdrawal of the territory that the taxable valuation of property
	510	+	in the territory to be withdrawn bears to the taxable valuation of all property within the
	511	+	district prior to withdrawal.
	512	+	3.Mill leviesLevies imposed under section 18-10-07 remain in effect until the
	513	+	proportionate share of outstanding obligations are paid.
	514	+	4.The proceedings for withdrawal must be initiated by the filing of a petition with the
	515	+	appropriate county auditor or auditors signed by the fee title holders of sixty percent of
	516	+	the surface acreage in the territory sought to be withdrawn and contain a description of
	517	+	the boundaries of the territory sought to be withdrawn and a map or plat illustrating
	518	+	such area.
	519	+	5.The county auditor shall verify from the tax schedules and determine whether the
	520	+	petition complies with the requirements of subsection 4.
	521	+	6.The county auditor shall determine and certify the respective percentage proportions
	522	+	of the taxable valuation of the territory petitioned to be withdrawn to the taxable
	523	+	valuation of all property in the district prior to withdrawal to the board of directors of the
	524	+	district concerned.
	525	+	7.Within twenty days after receipt of the petition, verification, and computation of
	526	+	respective percentage proportions, the board of directors of the district concerned
	527	+	shall attach to the petition a statement of outstanding obligations of the district and
	528	+	shall forward the petition to the appropriate board or boards of county commissioners.
	529	+	8.The board or boards of county commissioners shall, at a regular meeting, compute the
	530	+	indebtedness proportionately assignable to the territory sought to be withdrawn, and
	531	+	shall, by written order, describe the boundaries of the territory withdrawn and the
	532	+	indebtedness of the district assigned to the territory and subject to continued levy
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	565	+	under section 18-10-07. The order and computation must be filed in the office of the
	566	+	county auditor or auditors.
	567	+	9.The annual estimate required under section 18-10-07 must reflect the annual expense
	568	+	of retiring principal and interest upon the proportionate share of district indebtedness
	569	+	assigned to withdrawn territory.
	570	+	SECTION 9. AMENDMENT. Section 40-40-06 of the North Dakota Century Code is
	571	+	amended and reenacted as follows:
	572	+	40-40-06. Notice of preliminary budget statement - Contents - How given.
	573	+	1.On or before August tenth of each year, after the governing body has prepared the
	574	+	preliminary budget statement, the auditor of the municipality shall:
	575	+	a.Provide the county auditor with a copy of the preliminary budget statement.
	576	+	b.Set a public budget hearing date no earlier than September seventh and no later
	577	+	than October seventh for the purpose of adopting the final budget and square
	578	+	footage tax rates for purposes of the tax authorized under section 18 of this Act
	579	+	and making the annual ad valorem and square footage tax levy.
	580	+	c.Provide notice of the public budget and proposed square footage tax rate hearing
	581	+	date to the county auditor.
	582	+	2.For municipalities anticipating levying a square footage tax or less than one hundred
	583	+	thousand dollars in ad valorem tax levies in the current year, the notice must:
	584	+	a.Contain a statement of the proposed square footage tax rate and the total
	585	+	proposed expenditures for each fund in the preliminary budget, but need not
	586	+	contain any detailed statement of the proposed expenditures;
	587	+	b.Be published at least once, not less than six days prior to the budget hearing, in a
	588	+	newspaper published in the municipality, if there is one, and if no newspaper is
	589	+	published in the municipality, the notice must be published not less than six days
	590	+	prior to the meeting in the official city newspaper as provided by section
	591	+	40-01-09; and
	592	+	c.Provide that any taxpayer may appear and discuss with the governing body the
	593	+	proposed square footage tax rates or any item of proposed expenditures, or may
	594	+	object to any item or, amount, or rate.
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	627	+	SECTION 10. AMENDMENT. Section 40-40-10 of the North Dakota Century Code is
	628	+	amended and reenacted as follows:
	629	+	40-40-10. Certified copies of levy and final budget sent to county auditor.
	630	+	Immediately after the completion of the final budget, square footage tax rates for purposes
	631	+	of the tax under section 18 of this Act, and the adoption of the annual ad valorem and square
	632	+	footage tax levy by the governing body of a municipality in accordance with the provisions of
	633	+	this chapter, and in no case later than October tenth, the auditor of the municipality shall send to
	634	+	the county auditor a certified copy of the levy and square footage tax rates for purposes of the
	635	+	tax under section 18 of this Act as adopted and a certified copy of the final budget.
	636	+	SECTION 11. AMENDMENT. Section 40-58-20 of the North Dakota Century Code is
	637	+	amended and reenacted as follows:
	638	+	40-58-20. Tax increment financing.
	639	+	1.At any time after the governing body of a municipality has approved a development or
	640	+	renewal plan for any development or renewal area and has filed that plan with the
	641	+	department of commerce division of community services, it may request the county
	642	+	auditor and treasurer to compute, certify, and remit tax increments resulting from the
	643	+	development or renewal of the area in accordance with the plan and any modifications
	644	+	thereof, and the county auditor and treasurer shall do so in accordance with this
	645	+	section.
	646	+	a.For a tax increment district established before July 1, 2011, the base year for tax
	647	+	increments computed for a development or renewal area under this section or
	648	+	section 40-58-20.1 may not be used for more than twenty-five taxable years
	649	+	without the governing body of the municipality establishing a new base year
	650	+	using taxable values, established as of February first of the following year, or
	651	+	square footage taxes levied in the following taxable year, which are not more
	652	+	than fifteen years old. Regardless of length of the initial district, the new base
	653	+	year may be used to compute tax increments for up to an additional fifteen years
	654	+	after which time the tax increment district must be closed, except that the original
	655	+	base year for tax increments pledged for an indebtedness incurred before July 1,
	656	+	2011, may continue until the indebtedness is paid.
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	689	+	b.For a tax increment district established after July 1, 2011, the base year for tax
	690	+	increments computed for a development or renewal area under this section or
	691	+	section 40-58-20.1 may not be used for more than twenty-five taxable years
	692	+	without the governing body of the municipality establishing a new base year
	693	+	using taxable values, established as of February first of the following year, or
	694	+	square footage taxes levied in the following taxable year, which are not more
	695	+	than fifteen years old. The new base year may be used to compute tax
	696	+	increments for up to an additional five years after which time the tax increment
	697	+	district must be closed.
	698	+	2.Notwithstanding any other provision in this section, for a tax increment district
	699	+	established before January 1, 2026, the tax increment or tax losses must be
	700	+	calculated as the difference between the square footage tax and ad valorem tax levied
	701	+	in dollars against the lots and parcels of real estate in the district in the current taxable
	702	+	year and the amount of ad valorem property tax levied in dollars against the original
	703	+	taxable value of the lots and parcels of real estate in the district in taxable year 2025.
	704	+	For purposes of this subsection, "original taxable value" means the taxable value of
	705	+	the lots and parcels of real estate in the year the tax increment district was
	706	+	established.
	707	+	3.For a tax increment district established on or after January 1, 2026:
	708	+	a.The auditor shall compute and certify the original taxable value ofsquare footage
	709	+	tax or ad valorem tax levied in dollars against each lot and parcel of real estate in
	710	+	the area, as last assessed and equalizedlevied before the date of the request,
	711	+	including the taxable value oftax levied against any lot or parcel previously
	712	+	acquired by the municipality or its urban renewal agency, as last assessed and
	713	+	equalizedtaxed before it was acquired. However, any real property acquired by
	714	+	the city or the city's urban renewal agency prior to July 1, 1973, or more than five
	715	+	years prior to the approval of a development or renewal plan for any development
	716	+	or renewal area, whichever is later, is deemed to have an original taxable value
	717	+	of a zero tax levy and the county auditor shall so certify.
	718	+	3.b.In each subsequent year, the auditor shall compute and certify the net amount by
	719	+	which the original taxable value of square footage tax and ad valorem tax levied
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	753	+	in dollars against all lots and parcels of real estate in the area, as then assessed
	754	+	and equalizedlevied, including real estate then held by the municipality or urban
	755	+	renewal agency valuedtaxed at zero, has increased or decreased in comparison
	756	+	with the original taxable value of all suchsquare footage tax and ad valorem tax
	757	+	levied in dollars against the real estate. The net amount of the increase or
	758	+	decrease is referred to in this section as the incremental valuetax increment or
	759	+	the lost valuetax losses for that year, as the case may berespectively.
	760	+	4.In any year when there is an incremental value, the auditor shall exclude it from the
	761	+	taxable value upon which the auditor computes the mill rates of taxes levied in that
	762	+	year by the state, the county, the municipality, the school district, and every other
	763	+	political subdivision having power to tax the development or renewal area, until the
	764	+	cost of development or renewal of the area has been reimbursed in accordance with
	765	+	this section. However, the auditor shall extend the aggregate mill rate of those taxes
	766	+	against the incremental value as well as the original taxable value, and the amount of
	767	+	taxes received from that extension against the incremental value is referred to in this
	768	+	section as the tax increment for that year.
	769	+	5.In any year when there is a lost value, the auditor shall compute and certify the
	770	+	amounts of taxes which would have resulted from the extension against the lost value
	771	+	of the mill rate of taxes levied that year by the state and each political subdivision
	772	+	having power to tax the development or renewal area. The amounts so computed are
	773	+	referred to in this section as the tax losses for that year.
	774	+	6.The county auditor shall segregate all tax increments from the development or renewal
	775	+	area in a special fund, crediting to the fund an amount equal to the tax increment, in
	776	+	each year when there is an incremental value, that proportion of each collection of
	777	+	taxes on real estate within the area which the incremental value bears to the total
	778	+	taxable value in that yeara tax increment.
	779	+	7.5.Upon receipt of any tax increments in the fund, the county treasurer, at the times when
	780	+	the county treasurer distributes collected taxes to the state and to each political
	781	+	subdivision for which a tax loss has previously been recorded, shall also remit to each
	782	+	of them from the tax increment fund an amount proportionate to the amount of that tax
	783	+	loss, until all those tax losses have been reimbursed. Thereafter, at the time of each
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	817	+	distribution, the county treasurer shall remit the entire balance then on hand in the
	818	+	fund to the municipality, until the cost of development or renewal of the area has been
	819	+	reimbursed to the municipality as provided in this section.
	820	+	8.6.The cost of development or renewal subject to reimbursement from the tax increment
	821	+	fund for each development or renewal area must include all expenditures incident to
	822	+	carrying out the development or renewal plan for the area and any modifications
	823	+	thereof, not otherwise reimbursed in one of the ways referred to below, including all
	824	+	expenses of the clearance, development, redevelopment, rehabilitation, and
	825	+	conservation of the area, and all interest and redemption premiums paid on bonds,
	826	+	notes, or other obligations issued by the municipality or urban renewal agency to
	827	+	provide funds for payment of those expenses, subject to section 40-58-20.1 for the
	828	+	purpose of determining eligible cost of development of industrial or commercial
	829	+	property. From the total cost to be reimbursed there must be deducted, except as
	830	+	provided below, all amounts received from the federal government or others, and all
	831	+	special assessments, revenues, and other receipts except property taxes, which are
	832	+	actually collected and applied to the payment of the cost or the bonds, notes, or other
	833	+	obligations, at the times when those payments are due. However, if the proceeds of
	834	+	tax increments or of bonds, notes, or other obligations are loaned to finance part or all
	835	+	of the cost of a project comprising the restoration, reconstruction, and improvement of
	836	+	a privately owned state historical site situated within the development or renewal area
	837	+	or any buildings or structures thereon, as contemplated in section 55-10-08, or of a
	838	+	property listed in the national register of historic places, as contemplated in section
	839	+	55-10-11, in consideration of the grant to the city of a historic easement with respect
	840	+	thereto, repayments of the loan may not be deducted from the cost of development or
	841	+	renewal subject to reimbursement.
	842	+	9.7.The tax increments from any development or renewal area may be appropriated by
	843	+	the governing body of the municipality for the payment of any general obligation
	844	+	bonds, special improvement warrants, or refunding improvement bonds issued by the
	845	+	municipality to provide funds for payment of the cost of development or renewal,
	846	+	together with interest and redemption premiums thereon, other than that portion, if
	847	+	any, of such principal, interest, and redemption premiums which can be paid when due
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	881	+	from collections of special assessments, revenues, or other funds, excluding property
	882	+	taxes, which are pledged for the payment thereof. When special improvement
	883	+	warrants or refunding improvement bonds are issued to pay the cost of public
	884	+	improvements of special benefit to properties within the development or renewal area,
	885	+	the governing body may cause those special benefits to be computed, together with
	886	+	the cost properly assessable against those properties, and may appropriate the tax
	887	+	increments from the area to the payment of that cost, in lieu of levying special
	888	+	assessments upon the property. In this event, the amount so appropriated, divided into
	889	+	the same number of installments as the special assessments and with interest at the
	890	+	same rate on the declining balance thereof, is deemed a part of the special
	891	+	assessments appropriated for payment of the cost, within the meaning of section
	892	+	40-26-08.
	893	+	10.8.When the cost of development or renewal of any development or renewal area has
	894	+	been fully paid and all bonds, notes, or other obligations issued by the municipality to
	895	+	pay that cost have been retired, or funds sufficient for the retirement thereof have
	896	+	been received by the municipality, the governing body shall cause this to be reported
	897	+	to the county auditor, who shall thereafter compute the mill rates oflevy all taxes upon
	898	+	the total taxable value, for property subject to ad valorem tax, or the total square
	899	+	footage, for property subject to the tax under section 18 of this Act, of the development
	900	+	or renewal area. Any balance then on hand in the tax increment fund must be
	901	+	distributed by the county treasurer to the state and all political subdivisions having
	902	+	power to tax property, including by ad valorem and square footage tax, in the area, in
	903	+	amounts proportionate to the amounts of the tax losses previously reimbursed to
	904	+	them.
	905	+	11.9.As an alternative to the sale of bonds to be amortized with tax increments as provided
	906	+	in this section, the governing body of a municipality may, in its discretion, grant a total
	907	+	or partial tax exemption for the project in order to provide assistance to a project
	908	+	developer in a development or renewal area, pursuant to agreement with the
	909	+	municipality. However, if a developer of a development or renewal project receives a
	910	+	tax exemption for that project pursuant to this subsection, that project developer may
	911	+	not receive a tax exemption for that project under section 40-57.1-03, 40-57.1-04,
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	945	+	40-57.1-04.1, or 40-57.1-04.3. The amount of annual tax exemption under this
	946	+	subsection is limited to the tax increment as defined in this section as it applies to the
	947	+	development or renewal project and may extend for a period not to exceed fifteen
	948	+	years. In determining the total amount of the tax exemption to be authorized, the
	949	+	municipality shall give due consideration to the same elements as are involved in the
	950	+	sale of bonds to be amortized by tax increments. The amount to be reimbursed, by tax
	951	+	exemption, to the project developer must be all or a portion of eligible public costs
	952	+	which have been paid by the project developer, plus interest on those costs at a rate
	953	+	not to exceed ten percent per annum. The amount of tax exemption must be an
	954	+	amount sufficient to reimburse the project operator for those eligible costs, amortized
	955	+	pursuant to the agreement between the project developer and the municipality. If an
	956	+	exemption has been granted under this subdivision before taxable year 2026 for
	957	+	property that is subject to the square footage tax under section 18 of this Act in taxable
	958	+	year 2026 or later, the governing body of a municipality shall convert the exemption as
	959	+	necessary to allow the same tax benefit to be realized by the property owner under the
	960	+	square footage taxation system under section 18 of this Act as would have been
	961	+	realized under the ad valorem taxation system before taxable year 2026.
	962	+	12.10.The governing body of a municipality with an active tax increment financing district
	963	+	may at any time identify funds on hand that are in excess of the costs it determines
	964	+	necessary to complete the activities included in the last approved urban renewal plan
	965	+	for that district. The governing body shall cause the identified surplus to be transferred
	966	+	to the county treasurer to be distributed to the state and all political subdivisions
	967	+	having power to tax property in the area, in amounts proportionate to the most recent
	968	+	five-year average of the ad valorem property tax or square footage tax levy within the
	969	+	district.
	970	+	SECTION 12. AMENDMENT. Subsection 2 of section 40-58-20.2 of the North Dakota
	971	+	Century Code is amended and reenacted as follows:
	972	+	2.Before granting a property tax incentive, including an ad valorem tax or square footage
	973	+	tax incentive, on any parcel of property that is anticipated to receive a property tax
	974	+	incentive for more than five years, the governing body of the municipality must comply
	975	+	with the requirements in section 40-05-24.
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	1009	+	SECTION 13. AMENDMENT. Section 57-02-11 of the North Dakota Century Code is
	1010	+	amended and reenacted as follows:
	1011	+	57-02-11. Listing of property - Assessment thereof - Determination of square footage .
	1012	+	Certified assessment officials must list and assess property as follows:
	1013	+	1.All real property subject to taxation must be listed and assessed every year with
	1014	+	reference to its value, on February first of that year.
	1015	+	2.An individual property record must be kept by the appropriate assessment official for
	1016	+	each parcel of taxable property. The record may be in electronic or paper form and
	1017	+	must include identifying information as prescribed by the state supervisor of
	1018	+	assessments. Assessors shall prepare the records and provide copies of all property
	1019	+	records prepared by the assessor to the county director of tax equalization. The
	1020	+	county director of tax equalization shall maintain those records for ten years from the
	1021	+	date the records were received from the assessors. A city with an assessor who holds
	1022	+	a current certification as a class I assessor under section 57-02-01.1, and which has
	1023	+	been determined by the state supervisor of assessments to have enough sales for an
	1024	+	adequate sales ratio study, may elect to maintain the records required under this
	1025	+	subsection on behalf of the county. A city that makes this election must include these
	1026	+	records in a city database of taxable property to be maintained in the office of city
	1027	+	assessor for ten years from the assessment date.
	1028	+	3.Whenever after the first day of February and before the first day of April in any year, it
	1029	+	is made to appear to the assessor by the oath of the owner that any building,
	1030	+	structure, or other improvement, or tangible personal property, which is listed for
	1031	+	taxation for the current year has been destroyed or damaged by fire, flood, tornado, or
	1032	+	other natural disaster, the assessor shall investigate the matter and deduct from the
	1033	+	valuation of the property of the owner of such destroyed property an amount which in
	1034	+	the assessor's judgment fairly represents such deduction as should be made.
	1035	+	4.By December 31, 2025, the assessor shall determine the land square footage and
	1036	+	structure square footage of each parcel of residential property in the assessor's
	1037	+	assessment district and record the land square footage and structure square footage
	1038	+	in the individual property record for each parcel. For purposes of this subsection:
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	1071	+	a."Land square foot" or "land square footage" means the square footage
	1072	+	measurement of the land area of a parcel of property, excluding the square
	1073	+	footage of any structure or building situated on the land.
	1074	+	b."Structure square foot" or "structure square footage" means the square footage
	1075	+	measurement of structures and buildings situated on a parcel of property above
	1076	+	ground level, exclusive of the land on which the structures or buildings are
	1077	+	situated. The term excludes any areas of a building or structure considered below
	1078	+	grade.
	1079	+	SECTION 14. AMENDMENT. Section 57-02-11 of the North Dakota Century Code is
	1080	+	amended and reenacted as follows:
	1081	+	57-02-11. Listing of property - Assessment thereof - Determination of square footage.
	1082	+	Certified assessment officials must list and assess property as follows:
	1083	+	1.On February first of each year:
	1084	+	a.All real property subject to ad valorem taxation must be listed and assessed
	1085	+	every year with reference to its value, on February first of for that year.
	1086	+	b.The land square footage and structure square footage of real property subject to
	1087	+	the square footage tax under section 18 of this Act must be listed for that year.
	1088	+	2.An individual property record must be kept by the appropriate assessment official for
	1089	+	each parcel of taxable property. The record may be in electronic or paper form and
	1090	+	must include identifying information as prescribed by the state supervisor of
	1091	+	assessments. Assessors shall prepare the records and provide copies of all property
	1092	+	records prepared by the assessor to the county director of tax equalization. The
	1093	+	county director of tax equalization shall maintain those records for ten years from the
	1094	+	date the records were received from the assessors. A city with an assessor who holds
	1095	+	a current certification as a class I assessor under section 57-02-01.1, and which has
	1096	+	been determined by the state supervisor of assessments to have enough sales for an
	1097	+	adequate sales ratio study, may elect to maintain the records required under this
	1098	+	subsection on behalf of the county. A city that makes this election must include these
	1099	+	records in a city database of taxable property to be maintained in the office of city
	1100	+	assessor for ten years from the assessment date.
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	1133	+	3.Whenever after the first day of February and before the first day of April in any year, it
	1134	+	is made to appear to the assessor by the oath of the owner that any building,
	1135	+	structure, or other improvement, or tangible personal property, which is listed for
	1136	+	taxation for the current year has been destroyed or damaged by fire, flood, tornado, or
	1137	+	other natural disaster, the assessor shall investigate the matter and deduct from the
	1138	+	valuation or square footage of the property of the owner of such destroyed property an
	1139	+	amount which in the assessor's judgment fairly represents such deduction as should
	1140	+	be made.
	1141	+	4.By December 31, 2025, the assessor shall determine the land square footage and
	1142	+	structure square footage of each parcel of residential property in the assessor's
	1143	+	assessment district and record the land square footage and structure square footage
	1144	+	in the individual property record for each parcel. For purposes of this subsection:
	1145	+	a."Land square foot" or "land square footage" means the square footage
	1146	+	measurement of the land area of a parcel of property, excluding the square
	1147	+	footage of any structure or building situated on the land.
	1148	+	b."Structure square foot" or "structure square footage" means the square footage
	1149	+	measurement of structures and buildings situated on a parcel of property above
	1150	+	ground level, exclusive of the land on which the structures or buildings are
	1151	+	situated. The term excludes any areas of a building or structure considered below
	1152	+	grade.
	1153	+	SECTION 15. AMENDMENT. Section 57-02-51 of the North Dakota Century Code is
	1154	+	amended and reenacted as follows:
	1155	+	57-02-51. Notice of township and city equalization meetings to be published - Date of
	1156	+	equalization meeting.
	1157	+	1.Each year the county auditor shall publish in the official county newspaper for two
	1158	+	successive weeks, a notice that proceedings for the equalization of assessments will
	1159	+	be held by the several local equalization boards.
	1160	+	2.The first publication of the notice may not be more than forty-five days before the date
	1161	+	of the equalization proceedings and the second publication may not be less than
	1162	+	fourteen days before the equalization proceedings.
	1163	+	3.The notice must contain a statement that the:
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	1197	+	a.The proceedings will be held at the regular meeting place of the governing board
	1198	+	or other place designated by that board of the township or city, as the case may
	1199	+	be. The notice must also contain a statement that each; and
	1200	+	b.Each taxpayer has the right to appear before the appropriate board of review or
	1201	+	equalization and petition for correction of the taxpayer's assessment of property
	1202	+	valuation or square footage determination under section 18 of this Act .
	1203	+	4.The equalization proceedings in a city must be held within the first fifteen days of April
	1204	+	and the equalization proceedings in an organized township must be held in the month
	1205	+	of April.
	1206	+	SECTION 16. AMENDMENT. Section 57-02-52 of the North Dakota Century Code is
	1207	+	amended and reenacted as follows:
	1208	+	57-02-52. Notice of county equalization meetings to be published - Date of
	1209	+	equalization meeting.
	1210	+	1.Each year the county auditor shall publish in the official county newspaper for two
	1211	+	successive weeks, a notice that proceedings for the equalization of assessments for
	1212	+	all real property in the county will be held by the county board of equalization.
	1213	+	2.The first publication of the notice may not be earlier than May first and the second
	1214	+	publication may not be later than May twentieth, however, the second notice must be
	1215	+	published more than ten days prior to the date of the meeting.
	1216	+	3.The notice must contain the:
	1217	+	a.The date, time, and location of the meeting. The notice must also contain a; and
	1218	+	b.A statement that each taxpayer has the right to appear before the appropriate
	1219	+	board of review or equalization and petition for correction of the taxpayer's
	1220	+	assessment of property valuation or square footage determination under
	1221	+	section 18 of this Act .
	1222	+	4.The county equalization proceedings must be held no later than June tenth.
	1223	+	SECTION 17. A new section to chapter 57-02 of the North Dakota Century Code is created
	1224	+	and enacted as follows:
	1225	+	Valuation of property subject to square footage tax - Exemption.
	1226	+	Notwithstanding any other provision of law:
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	1259	+	1.Except as provided in subsection 2, property subject to the square footage tax under
	1260	+	section 18 of this Act is exempt from the valuation requirements under this chapter.
	1261	+	2.For purposes of calculating the debt limits under sections 15 and 16 of article X of the
	1262	+	Constitution of North Dakota:
	1263	+	a.The true and full value of a property subject to the square footage tax under
	1264	+	section 18 of this Act must be calculated as the sum of:
	1265	+	(1)The land square footage of the property multiplied by the average price per
	1266	+	square foot of similarly situated land in the county based on real estate
	1267	+	sales; and
	1268	+	(2)The structure square footage of the property multiplied by the average price
	1269	+	per square foot of a similarly situated structure in the county based on real
	1270	+	estate sales.
	1271	+	b.The assessed value of a property subject to the square footage tax under
	1272	+	section 18 of this Act is fifty percent of the amount calculated in subdivision a.
	1273	+	SECTION 18. A new chapter to title 57 of the North Dakota Century Code is created and
	1274	+	enacted as follows:
	1275	+	Definitions.
	1276	+	For purposes of this chapter:
	1277	+	1."Land square foot" or "land square footage" means the square footage measurement
	1278	+	of the land area of a parcel of property, excluding the square footage of any structure
	1279	+	or building situated on the land.
	1280	+	2."Structure square foot" or "structure square footage" means the square footage
	1281	+	measurement of structures and buildings situated on a parcel of property above
	1282	+	ground level, exclusive of the land on which the structures or buildings are situated.
	1283	+	The term excludes any areas of a building or structure considered below grade.
	1284	+	Residential square footage tax - Imposition.
	1285	+	Property classified as residential property, which is not otherwise subject to a payment in
	1286	+	lieu of tax , is subject to a tax at a rate equal to a price per land square foot and a price per
	1287	+	structure square foot as approved by each taxing district as provided in this chapter.
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	1319	+	Taxes in lieu of ad valorem property taxes.
	1320	+	Taxes imposed under this chapter are in lieu of all ad valorem property taxes levied by the
	1321	+	state or any of its political subdivisions upon property subject to the tax under this chapter.
	1322	+	Exemptions.
	1323	+	1.Property subject to tax under this chapter which meets the criteria of the exemptions
	1324	+	listed in section 57 - 02 - 08, except subsection 27 of section 57 - 02 - 08 , are exempt from
	1325	+	the tax under this chapter to the extent provided in section 57 - 02 - 08.
	1326	+	2.Notwithstanding any other provision of law:
	1327	+	a.If an exemption or payment in lieu of tax was calculated based on the valuation of
	1328	+	residential property and the applicable mill rate before taxable year 2026, and a
	1329	+	conversion method is not provided under law, the county auditor shall convert the
	1330	+	exemption or payment in lieu of tax as necessary to allow the same tax benefit to
	1331	+	be realized by the property owner under this chapter as would have been
	1332	+	realized by the property owner under the ad valorem taxation system before
	1333	+	taxable year 2026.
	1334	+	b.If a specific exemption or payment in lieu of tax was granted by a taxing district
	1335	+	for a parcel of residential property for a specified number of taxable years under
	1336	+	the ad valorem taxation system before taxable year 2026, the county auditor shall
	1337	+	apply the exemption or payment in lieu of tax to the tax levied under this chapter
	1338	+	for the remaining taxable years. If a conversion method is not provided under law,
	1339	+	the county auditor shall convert the exemption or payment in lieu of tax as
	1340	+	necessary to allow the same tax benefit to be realized by the property owner
	1341	+	under this chapter as would have been realized under the ad valorem taxation
	1342	+	system before taxable year 2026.
	1343	+	Tax exemption certificate for real property to be filed - Exceptions.
	1344	+	1.A person owning residential property located within a taxing district which claims that
	1345	+	the real property is exempt from taxation under this chapter shall file with the assessor
	1346	+	and with the county auditor a certificate setting out the facts on which the claim for
	1347	+	exemption is based, including the names of owners, the date the property was
	1348	+	acquired, the legal description, the use to which the property was put during the twelve
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	1381	+	months preceding the assessment date, and any other information which the assessor
	1382	+	may request.
	1383	+	2.Unless otherwise provided by law, the certificate shall be filed with the assessor and
	1384	+	the county auditor each year before February first.
	1385	+	3.If the certificate is not filed as provided in this section, the assessor shall regard the
	1386	+	property as nonexempt property.
	1387	+	4.The provisions of this section do not apply in any case when the real property is
	1388	+	owned by the United States or the state of North Dakota or any of its departments,
	1389	+	institutions, agencies, or political subdivisions.
	1390	+	Solar, wind, or geothermal energy device credit.
	1391	+	1.An owner is entitled to a credit of five percent of the taxes levied under this chapter
	1392	+	against the structure square footage of a new or existing building in which a solar or
	1393	+	wind energy device or geothermal energy device is installed. The credit may be
	1394	+	applied for up to five taxable years following the installation of the system.
	1395	+	2.To qualify for the credit under subsection 1, an applicant shall sign and file with the
	1396	+	county assessor , by April first of each year, an application containing a verified
	1397	+	statement of facts establishing the applicant's eligibility as of the date of the claim on a
	1398	+	form and in the manner prescribed by the tax commissioner.
	1399	+	3.For the purposes of this subsection:
	1400	+	a."Geothermal energy device" has the meaning provided in section 57 - 38 - 01.8.
	1401	+	b."Solar or wind energy device" has the meaning provided in section 57 - 38 - 01.8.
	1402	+	New single-family, condominium, and townhouse residential property credit.
	1403	+	1.An owner is entitled to a credit equal to thirty percent of the taxes levied under this
	1404	+	chapter against the structure square footage of a new single-family, condominium, and
	1405	+	townhouse residential property if the following conditions are met:
	1406	+	a.The governing body of the city, for property within city limits, or the governing
	1407	+	body of the county, for property outside city limits, has approved the credit under
	1408	+	this section by resolution. A resolution adopted under this subdivision may be
	1409	+	rescinded or amended at any time. The governing body of the city or county may
	1410	+	limit or impose conditions upon a credit under this section, including limitations on
	1411	+	the time during which a credit is allowed.
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	1445	+	b.Special assessments and taxes on the property upon which the residence is
	1446	+	situated are not delinquent.
	1447	+	2.The credit may be applied for up to two taxable years after the taxable year in which
	1448	+	construction is completed and the residence is owned and occupied for the first time.
	1449	+	Land and structure square footage - Determination - Certification.
	1450	+	1.On or before February first of each year, certified assessment officials shall determine
	1451	+	the land square footage and structure square footage of residential property subject to
	1452	+	the tax under this chapter. The assessment official shall record the information in the
	1453	+	individual property record for each parcel of property subject to the tax under this
	1454	+	chapter.
	1455	+	2.For purposes of determining structure square footage of a townhouse, the structure
	1456	+	square footage of the townhouse property must be increased by the square footage
	1457	+	added by the right to use any common areas in connection with the townhouse
	1458	+	development. The common areas of the development may not be separately taxed.
	1459	+	The square footage of a common area of the townhouse development must be
	1460	+	apportioned in an equal amount to each townhouse in the development unless a
	1461	+	declaration setting out a different apportionment is recorded in the office of the county
	1462	+	recorder. The total structure square footage of the townhouse property, including the
	1463	+	square footage added as provided in this subsection, must have the benefit of any
	1464	+	credit, exemption, or other special classification if the townhouse otherwise qualifies.
	1465	+	3.The assessor shall certify the land square footage and structure square footage of
	1466	+	each parcel of real property subject to the tax under this chapter to the:
	1467	+	a.Governing board of each taxing district in which the parcel is situated;
	1468	+	b.County director of tax equalization; and
	1469	+	c.County auditor.
	1470	+	4.The assessor shall deliver written notice of the certified land square footage and
	1471	+	structure square footage to the property owner of each parcel of real property subject
	1472	+	to the tax under this chapter at least fifteen days before the meeting of the local board
	1473	+	of equalization.
	1474	+	a.The tax commissioner shall prescribe suitable forms for written notices under this
	1475	+	subsection. The written notice must include the date prescribed by law for the
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	1509	+	meeting of the local board of equalization of the assessment district in which the
	1510	+	property is located and the meeting date of the county board of equalization.
	1511	+	b.Delivery of written notice under this subdivision must be by personal delivery to
	1512	+	the property owner, mail addressed to the property owner at the property owner's
	1513	+	last-known address, or electronic mail to the property owner directed with
	1514	+	verification of receipt to an electronic mail address at which the property owner
	1515	+	has consented to receive notice.
	1516	+	5.The determination of taxable land square footage and structure square footage may
	1517	+	be appealed through the equalization or abatement process.
	1518	+	Square footage determination of real property exempt from taxation.
	1519	+	1.At the time of making the determination of land square footage and structure square
	1520	+	footage, the assessor shall enter in a separate list each description of property exempt
	1521	+	from taxation under this chapter and shall determine the land square footage and
	1522	+	structure square footage of the property in the same manner as other property subject
	1523	+	to taxation under this chapter, designating in each case to whom the property belongs
	1524	+	and for what purpose used.
	1525	+	2.This section does not apply to property of the United States, this state, or a political
	1526	+	subdivision of this state or farm buildings or farm residences exempt from property
	1527	+	taxes by law.
	1528	+	Square footage tax rate - Determination - Limitation - Hearing.
	1529	+	1.A taxing district shall:
	1530	+	a.Propose square footage tax rates in an amount per structure square foot and an
	1531	+	amount per land square foot, calculated as follows:
	1532	+	(1)Subject to the requirements and limitations in subsections 4 and 5, for
	1533	+	taxable year 2026:
	1534	+	(a)The proposed price per structure square foot of residential property is
	1535	+	equal to the ad valorem property tax levied in dollars in taxable year
	1536	+	2025 attributable to residential structures situated in the taxing district
	1537	+	divided by the total residential structure square footage in the taxing
	1538	+	district.
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	1571	+	(b)The proposed price per land square foot of residential property is
	1572	+	equal to the ad valorem property tax levied in dollars in taxable year
	1573	+	2025 attributable to residential land situated in the taxing district
	1574	+	divided by the total residential land square footage in the taxing
	1575	+	district.
	1576	+	(2)Subject to the requirements and limitations in subsections 4 and 5, for
	1577	+	taxable years after 2026:
	1578	+	(a)The proposed price per structure square foot of residential property is
	1579	+	equal to the price per structure square foot imposed in the preceding
	1580	+	taxable year multiplied by the percentage increase or decrease of the
	1581	+	taxing district's proposed budget for the current taxable year
	1582	+	compared to the preceding taxable year.
	1583	+	(b)The proposed price per land square foot of residential property is
	1584	+	equal to the price per land square foot imposed in the preceding
	1585	+	taxable year multiplied by the percentage increase or decrease of the
	1586	+	taxing district's proposed budget for the current taxable year
	1587	+	compared to the preceding taxable year.
	1588	+	b.Notify the county auditor of the proposed square footage tax rates under
	1589	+	subdivision a according to the procedures in section 57 - 15 - 02.2 on or before
	1590	+	August tenth of each year.
	1591	+	c.Notify members of the taxing district of the proposed square footage tax rates
	1592	+	under subdivision a according to the procedures in section 57 - 15 - 02.2 on or
	1593	+	before August thirty-first of each year.
	1594	+	2.The taxing district shall consider the proposed square footage tax rates under
	1595	+	subsection 1 during the taxing district's budget and proposed square footage tax rate
	1596	+	hearing required under section 57 - 15 - 02.2.
	1597	+	3.Subject to the requirements and limitations in subsections 4 and 5, after the taxing
	1598	+	district's budget and proposed square footage tax rate hearing required under section
	1599	+	57 - 15 - 02.2, the taxing district shall approve the following square footage tax rates by a
	1600	+	resolution approved by the governing body of the taxing district:
	1601	+	a.Price per structure square foot of residential property.
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	1635	+	b.Price per land square foot of residential property.
	1636	+	4.For purposes of the square footage tax rates under this chapter, a taxing district shall
	1637	+	impose a square footage tax rate at a rate which will generate sufficient revenue,
	1638	+	together with the ad valorem tax assessed against commercial, agricultural, and
	1639	+	centrally assessed property, to pay outstanding bonded indebtedness secured with ad
	1640	+	valorem property tax in taxable years before 2026.
	1641	+	5.The governing board of a taxing district, in levying taxes, including ad valorem taxes
	1642	+	and square footage taxes under this chapter, is limited by the amount necessary to
	1643	+	meet the appropriations included in the taxing district's budget for the ensuing fiscal
	1644	+	year, and to provide a reserve fund as limited by law, together with a tax sufficient in
	1645	+	amount to pay the interest on the bonded debt of the taxing district and to provide a
	1646	+	sinking fund to pay the principal at maturity.
	1647	+	Certification of square footage tax rates.
	1648	+	The square footage tax rates approved by the governing board of a taxing district to be
	1649	+	applied to a parcel subject to the tax under this chapter must be certified by the officer acting as
	1650	+	business manager or clerk of the governing body of the taxing district to the county auditor of
	1651	+	the county in which the parcel is situated immediately following the action of the governing body,
	1652	+	or within ten days thereafter.
	1653	+	Duty of county auditor upon certification of square footage tax rate.
	1654	+	The county auditor of each county, upon receipt of the square footage tax rates certified to
	1655	+	the county auditor by the proper authorities of a taxing district, shall acknowledge receipt of the
	1656	+	certification to the official so certifying them immediately upon receiving the certification.
	1657	+	Square footage tax levy - Calculation.
	1658	+	The county auditor shall compute the amount of square footage tax to be levied against a
	1659	+	parcel of residential property as the sum of:
	1660	+	1.The combined land square footage tax rates for each taxing district in which the parcel
	1661	+	is situated multiplied by the land square footage of the parcel; and
	1662	+	2.The combined structure square footage rates for each taxing district in which the
	1663	+	parcel is situated multiplied by the structure square footage of the parcel.
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	1695	+	Enforcement - Administration - Collection - Penalties - Delinquency.
	1696	+	Provisions of law relating to enforcement, administration, collection, penalties, and
	1697	+	delinquency proceedings for ad valorem taxes apply to taxes levied under this chapter.
	1698	+	Abatement procedure.
	1699	+	The procedures for abatement under chapter 57 - 23 apply to the tax levied under this
	1700	+	chapter.
	1701	+	SECTION 19. AMENDMENT. Section 57-09-04 of the North Dakota Century Code is
	1702	+	amended and reenacted as follows:
	1703	+	57-09-04. Duties of board - Limitation on increase - Notice - Review of square footage
	1704	+	determination.
	1705	+	1.The township board of equalization shall ascertain whether all taxable property subject
	1706	+	to ad valorem taxation in its township has been properly placed upon the assessment
	1707	+	list and duly valued by the assessor. In case any real property has been omitted by
	1708	+	inadvertence or otherwise, the board shall place the same upon the list with the true
	1709	+	value thereof. The board shall proceed to correct the assessment so that each tract or
	1710	+	lot of real property is entered on the assessment list at the true value thereof. The
	1711	+	board may not increase the valuation returned by the assessor to an amount that
	1712	+	results in a cumulative increase of more than fifteen percent from the amount of the
	1713	+	previous year's assessment without giving the owner or the owner's agent reasonable
	1714	+	notice and opportunity to be heard regarding the intention of the board to increase it.
	1715	+	All complaints and grievances of residents of the township must be heard and decided
	1716	+	by the board and it may make corrections as appear to be just. Complaints by
	1717	+	nonresidents with reference to the assessment of any real property and complaints by
	1718	+	others with reference to any assessment made after the meeting of the township
	1719	+	board of equalization must be heard and determined by the county board of
	1720	+	equalization. The board must comply with any requirement for notice of an
	1721	+	assessment increase under section 57-02-53.
	1722	+	2.The township board of equalization shall hear complaints and grievances of residents
	1723	+	of the township regarding the determination of land square footage and structure
	1724	+	square footage for purpose of taxation under section 18 of this Act. The board shall
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	1757	+	resolve the complaints and grievances and may make corrections to the square
	1758	+	footage determinations as appear to be just.
	1759	+	SECTION 20. A new section to chapter 57-09 of the North Dakota Century Code is created
	1760	+	and enacted as follows:
	1761	+	Equalization of valuation of property subject to square footage tax - Exemption.
	1762	+	Notwithstanding any other provision of law, property subject to the square footage tax under
	1763	+	section 18 of this Act is exempt from the equalization requirements under this chapter pertaining
	1764	+	to the valuation of the property.
	1765	+	SECTION 21. AMENDMENT. Section 57-11-03 of the North Dakota Century Code is
	1766	+	amended and reenacted as follows:
	1767	+	57-11-03. Duties of board - Limitation on increase - Notice - Review of square footage
	1768	+	determination.
	1769	+	1.At its meeting, the board of equalization shall proceed to equalize and correct the
	1770	+	assessment roll. It may change the valuation and assessment of any real property
	1771	+	subject to ad valorem taxation upon the roll by increasing or diminishing the true and
	1772	+	full valuation thereof as is reasonable and just to render taxation uniform, except that
	1773	+	the board may not increase the valuation of any property returned by the assessor to
	1774	+	an amount that results in a cumulative increase of more than fifteen percent from the
	1775	+	amount of the previous year's assessment without first giving the owner or the owner's
	1776	+	agent reasonable notice and opportunity to be heard regarding the intention of the
	1777	+	board to increase it. All complaints and grievances of residents of the city must be
	1778	+	heard and decided by the board and it may make corrections as appear to be just.
	1779	+	Complaints by nonresidents with reference to the assessment of any real property and
	1780	+	complaints by others with reference to any assessment made after the meeting of the
	1781	+	city board of equalization must be heard and determined by the county board of
	1782	+	equalization. The board shall comply with any requirement for notice of an assessment
	1783	+	increase under section 57-02-53.
	1784	+	2.The board of equalization shall hear complaints and grievances of residents of the city
	1785	+	regarding the determination of land square footage and structure square footage for
	1786	+	purpose of taxation under section 18 of this Act. The board shall resolve the
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	1819	+	complaints and grievances and may make corrections to the square footage
	1820	+	determinations as appear to be just.
	1821	+	SECTION 22. A new section to chapter 57-11 of the North Dakota Century Code is created
	1822	+	and enacted as follows:
	1823	+	Equalization of valuation of property subject to square footage tax - Exemption.
	1824	+	Notwithstanding any other provision of law, property subject to the square footage tax under
	1825	+	section 18 of this Act is exempt from the equalization requirements under this chapter pertaining
	1826	+	to the valuation of the property.
	1827	+	SECTION 23. A new section to chapter 57-12 of the North Dakota Century Code is created
	1828	+	and enacted as follows:
	1829	+	Review and correction of taxable square footage determination.
	1830	+	1.The county board of equalization shall hear complaints and grievances of residents of
	1831	+	the county regarding the determination of land square footage and structure square
	1832	+	footage for purpose of taxation under section 18 of this Act. The board shall resolve
	1833	+	the complaints and grievances and may make corrections to the square footage
	1834	+	determinations as appear to be just.
	1835	+	2.The owner of a parcel of real estate for which the square footage for purposes of
	1836	+	taxation under section 18 of this Act has been calculated may appeal the square
	1837	+	footage determination to the state board of equalization as provided in section 25 of
	1838	+	this Act; provided that the owner has first appealed the assessment to the local
	1839	+	equalization board of the taxing district in which the property is situated and to the
	1840	+	county board of equalization of the county in which the property is situated.
	1841	+	SECTION 24. A new section to chapter 57-12 of the North Dakota Century Code is created
	1842	+	and enacted as follows:
	1843	+	Equalization of valuation of property subject to square footage tax - Exemption.
	1844	+	Notwithstanding any other provision of law, property subject to the square footage tax under
	1845	+	section 18 of this Act is exempt from the equalization requirements under this chapter pertaining
	1846	+	to the valuation of the property.
	1847	+	SECTION 25. A new section to chapter 57-13 of the North Dakota Century Code is created
	1848	+	and enacted as follows:
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	1881	+	Review of appeals regarding taxable square footage determination.
	1882	+	1.If a property owner has properly appealed the property's square footage
	1883	+	determination, the board may hear and resolve the appeal and may make corrections
	1884	+	to the square footage determination as appear to be just.
	1885	+	2.In the case of an appeal, the owner of the property must establish to the satisfaction of
	1886	+	the board that the owner of the property had first appealed the square footage
	1887	+	determination to the local equalization board of the taxing district in which the property
	1888	+	is situated and to the county board of equalization of the county in which the property
	1889	+	is situated.
	1890	+	SECTION 26. A new section to chapter 57-13 of the North Dakota Century Code is created
	1891	+	and enacted as follows:
	1892	+	Equalization of valuation of property subject to square footage tax - Exemption.
	1893	+	Notwithstanding any other provision of law, property subject to the square footage tax under
	1894	+	section 18 of this Act is exempt from the equalization requirements under this chapter pertaining
	1895	+	to the valuation of the property.
	1896	+	SECTION 27. AMENDMENT. Section 57-15-02 of the North Dakota Century Code is
	1897	+	amended and reenacted as follows:
	1898	+	57-15-02. Determination of rate.
	1899	+	The tax rate of all taxes, except taxes the rate of which is fixed by law and the square
	1900	+	footage tax under section 18 of this Act , must be calculated and fixed by the county auditor
	1901	+	within the limitations prescribed by statute. If any municipality levies a greater amount than the
	1902	+	prescribed maximum legal rate of levy will produce, the county auditor shall extend only such
	1903	+	amount of tax as the prescribed maximum legal rate of levy will produce. The rate must be
	1904	+	based and computed on the taxable valuation of taxable property in the municipality or district
	1905	+	levying the tax. The rate of all taxes must be calculated by the county auditor in mills, tenths,
	1906	+	and hundredths of mills.
	1907	+	SECTION 28. AMENDMENT. Section 57-15-02.2 of the North Dakota Century Code is
	1908	+	amended and reenacted as follows:
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	1939	+	57-15-02.2. Estimated property tax, square footage tax, and budget and proposed
	1940	+	square footage tax rate hearing notice.
	1941	+	1.On or before August tenth of each year the governing body of a taxing district shall
	1942	+	provide to the county auditor in each county in which the taxing district has taxable
	1943	+	property a preliminary budget statement, proposed square footage tax rates for
	1944	+	property subject to the tax under section 18 of this Act, and the date, time, and
	1945	+	location of the taxing district's public hearing on its property tax levy and square
	1946	+	footage tax rates, which may be no earlier than September seventh. A taxing district
	1947	+	that fails to provide the information required under this subsection on or before August
	1948	+	tenth may not impose a property tax levy or square footage tax in a greater amount of
	1949	+	dollars than was imposed by the taxing district in the prior year.
	1950	+	2.By August thirty-first of each year the county treasurer shall provide a written notice to
	1951	+	the owner of each parcel of taxable property subject to ad valorem taxation with a total
	1952	+	estimated property tax of at least one hundred dollars and the owner of each parcel of
	1953	+	taxable property subject to the square footage tax under section 18 of this Act . The
	1954	+	text of the notice must contain the following information:
	1955	+	a.For property subject to ad valorem taxation:
	1956	+	(1)The date, time, and location of the public budget hearing for each of the
	1957	+	taxing districts in which the property owner's parcel is located, which
	1958	+	anticipate levying in excess of one hundred thousand dollars in the current
	1959	+	year, and the location at which the taxing district's budget is available for
	1960	+	review;.
	1961	+	b.(2)The true and full value of the property based on the best information
	1962	+	available;.
	1963	+	c.(3)A column showing the actual property tax levy in dollars against the parcel
	1964	+	by the taxing district that levied taxes against the parcel in the immediately
	1965	+	preceding taxable year and a column showing the estimated property tax
	1966	+	levy in dollars against the parcel by the taxing district levying tax in the
	1967	+	taxable year for which the notice applies based on the preliminary budget
	1968	+	statements of all taxing jurisdictions;.
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	2001	+	d.(4)A column indicating the difference between the taxing district's total levy
	2002	+	from the previous year and the taxing district's estimated levy with the word
	2003	+	"INCREASE" printed in boldface type if the proposed tax levy is larger in
	2004	+	dollars than the levy in dollars in the previous year;.
	2005	+	e.(5)Information identifying the estimated property tax savings that will be
	2006	+	provided pursuant to section 57-20-07.1 based on the best information
	2007	+	available;.
	2008	+	b.For property subject to the square footage tax under section 18 of this Act:
	2009	+	(1)The date, time, and location of the public budget and square footage tax
	2010	+	rate hearing for each of the taxing districts in which the property owner's
	2011	+	parcel is located and the location at which the taxing district's budget is
	2012	+	available for review.
	2013	+	(2)The preliminary land square footage and structure square footage tax rates
	2014	+	for residential property under section 18 of this Act.
	2015	+	(3)The total land square footage and structure square footage for each parcel
	2016	+	of land.
	2017	+	(4)Beginning in taxable year 2027:
	2018	+	(a)A column showing the actual land square footage and structure
	2019	+	square footage tax rates to be applied against the square footage of
	2020	+	the parcel by the taxing district that levied taxes against the parcel in
	2021	+	the immediately preceding taxable year and a column showing the
	2022	+	proposed land square footage and structure square footage tax rates
	2023	+	to be applied against the square footage of the parcel by the taxing
	2024	+	district levying tax in the taxable year for which the notice applies.
	2025	+	(b)A column indicating the difference between the taxing district's actual
	2026	+	land square footage and structure square footage tax rates in the
	2027	+	previous year and the taxing district's proposed land square footage
	2028	+	and structure square footage tax rates with the word "INCREASE"
	2029	+	printed in boldface type if the proposed square footage rate is larger
	2030	+	than the actual square footage rate in the previous year.
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	2063	+	f.c.A statement that there will be an opportunity for citizens to present oral or written
	2064	+	comments regarding each taxing district's property tax levy; and proposed square
	2065	+	footage tax rates.
	2066	+	g.d.The actual amount of the special assessment installment payable against the
	2067	+	parcel in the immediately preceding taxable year.
	2068	+	3.Delivery of written notice under this section must be by personal delivery to the
	2069	+	property owner, mail addressed to the property owner at the property owner's
	2070	+	last-known address, or electronic mail to the property owner directed with verification
	2071	+	of receipt to an electronic mail address at which the property owner has consented to
	2072	+	receive notice. If a parcel of taxable property is owned by more than one owner, notice
	2073	+	must be sent to only one owner of the property. Failure of an owner to receive a notice
	2074	+	under this section will not relieve the owner of ad valorem property tax or square
	2075	+	footage tax liability or modify the qualifying date under section 57-20-09 for which an
	2076	+	owner may receive a discount for early payment of tax.
	2077	+	4.The tax commissioner shall prescribe suitable forms for written notices under this
	2078	+	section.
	2079	+	5.The direct cost of providing taxpayer notices under this section may be allocated in a
	2080	+	manner proportionate to the number of notices mailed on behalf of each taxing district
	2081	+	that intends to levy in excess of one hundred thousand dollars in property taxes in the
	2082	+	current yearunder this section.
	2083	+	SECTION 29. A new section to chapter 57-15 of the North Dakota Century Code is created
	2084	+	and enacted as follows:
	2085	+	Application of mill levy limitation and levy authority provisions.
	2086	+	Provisions of this chapter which provide mill levy limitations or mill levy authority calculated
	2087	+	as a specific number of mills of taxable valuation of property in a taxing district are applicable to
	2088	+	ad valorem tax levies and do not apply to the square footage tax levied by the governing board
	2089	+	of a taxing district pursuant to section 18 of this Act.
	2090	+	SECTION 30. AMENDMENT. Section 57-15-05 of the North Dakota Century Code is
	2091	+	amended and reenacted as follows:
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	2123	+	57-15-05. County tax levy.
	2124	+	1.The board of county commissioners, in levying county taxes, including square footage
	2125	+	taxes levied by the board of county commissioners under section 18 of this Act and
	2126	+	ad valorem taxes, is limited to the amount necessary to meet the appropriations
	2127	+	included in the county budget for the ensuing fiscal year, and to provide a reserve fund
	2128	+	as limited in this chapter, together with a tax sufficient in amount to pay the interest on
	2129	+	the bonded debt of the county and to provide a sinking fund to pay the principal at
	2130	+	maturity.
	2131	+	2.The county budget shall show the complete expenditure program of the county for the
	2132	+	ensuing fiscal year and the sources of revenue from which it is to be financed.
	2133	+	SECTION 31. AMENDMENT. Section 57-15-07 of the North Dakota Century Code is
	2134	+	amended and reenacted as follows:
	2135	+	57-15-07. City tax levies.
	2136	+	The governing body, in levying city taxes, including square footage taxes levied by the
	2137	+	governing body under section 18 of this Act and ad valorem taxes, is limited by the amount
	2138	+	necessary to meet the appropriations included in the city budget for the ensuing fiscal year and
	2139	+	to provide a reserve fund as limited in this chapter, together with a tax sufficient in amount to
	2140	+	pay the interest on the bonded debt of the municipality, and to provide a sinking fund to pay the
	2141	+	principal at maturity.
	2142	+	SECTION 32. AMENDMENT. Section 57-15-11 of the North Dakota Century Code is
	2143	+	amended and reenacted as follows:
	2144	+	57-15-11. Park district tax levies.
	2145	+	The board of park commissioners, in levying park district taxes, including square footage
	2146	+	taxes levied by the governing body under section 18 of this Act and ad valorem taxes, is limited
	2147	+	by the amount necessary to meet the appropriations included in the park district budget for the
	2148	+	ensuing fiscal year, and to provide a reserve fund as limited in this chapter, together with a tax
	2149	+	sufficient in amount to pay the interest on the bonded debt of the municipality and to provide a
	2150	+	sinking fund to pay the principal at maturity.
	2151	+	SECTION 33. AMENDMENT. Section 57-15-13 of the North Dakota Century Code is
	2152	+	amended and reenacted as follows:
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	2185	+	57-15-13. School district tax levies.
	2186	+	1.School district taxes must be levied by the governing body of each school district on or
	2187	+	before the tenth day of August of each year.
	2188	+	2.The governing body of the school district may increase or decrease its tax levy and
	2189	+	budget for the current fiscal year on or before the tenth day of October of each year
	2190	+	but the certification must be filed with the county auditor within the time limitations
	2191	+	under section 57-15-31.1.
	2192	+	3.Taxes for school district purposes must be based upon an itemized budget statement
	2193	+	which must show the complete expenditure program of the district for the current fiscal
	2194	+	year and the sources of the revenue from which it is to be financed.
	2195	+	4.The school board of each public school district, in levying taxes, including square
	2196	+	footage taxes levied by the school board under section 18 of this Act and ad valorem
	2197	+	taxes, is limited by the amount necessary to be raised for the purpose of meeting the
	2198	+	appropriations included in the school budget of the current fiscal year, and the sum
	2199	+	necessary to be provided as an interim fund, together with a tax sufficient in amount to
	2200	+	pay the interest on the bonded debt of the district and to provide a sinking fund to pay
	2201	+	and discharge the principal thereof at maturity.
	2202	+	SECTION 34. AMENDMENT. Section 57-15-31 of the North Dakota Century Code is
	2203	+	amended and reenacted as follows:
	2204	+	57-15-31. Determination of ad valorem property tax levy.
	2205	+	1.The amount of ad valorem property taxes to be levied by any county, city, township,
	2206	+	school district, park district, or other municipality authorized to levy taxes must be
	2207	+	computed by deducting from the amount of estimated expenditures for the current
	2208	+	fiscal year as finally determined, plus the required reserve fund determined upon by
	2209	+	the governing board from the past experience of the taxing district, the total of the
	2210	+	following items:
	2211	+	a.The available surplus consisting of the free and unencumbered cash balance;
	2212	+	b.Estimated revenues from sources other than direct ad valorem property taxes,
	2213	+	including the amount of square footage taxes levied under section 18 of this Act ;
	2214	+	c.The total estimated collections from tax levies for previous years;
	2215	+	d.Expenditures that must be made from bond sources;
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	2249	+	e.The amount of distributions received from an economic growth increment pool
	2250	+	under section 57-15-61; and
	2251	+	f.The estimated amount to be received from payments in lieu of taxes on a project
	2252	+	under section 40-57.1-03.
	2253	+	2.Allowance may be made for a permanent delinquency or loss in tax collection not to
	2254	+	exceed five percent of the amount of the levy.
	2255	+	SECTION 35. AMENDMENT. Section 57-15-31.1 of the North Dakota Century Code is
	2256	+	amended and reenacted as follows:
	2257	+	57-15-31.1. Deadline date for amending budgets and certifying taxes.
	2258	+	1.No taxing district may certify any taxes, including ad valorem tax and square footage
	2259	+	tax levied under section 18 of this Act, or amend its current budget and no county
	2260	+	auditor may accept a certification of taxes, including ad valorem tax and square
	2261	+	footage tax levied under section 18 of this Act, or amended budget after the tenth day
	2262	+	of October of each year if such certification or amendment results in a change in the
	2263	+	amount of tax levied.
	2264	+	2.The current budget, except for property taxes and square footage tax under section 18
	2265	+	of this Act, may be amended during the year for any revenues and appropriations not
	2266	+	anticipated at the time the budget was prepared.
	2267	+	SECTION 36. AMENDMENT. Section 57-20-01 of the North Dakota Century Code is
	2268	+	amended and reenacted as follows:
	2269	+	57-20-01. Real and personal property taxes - When due and delinquent - Penalties.
	2270	+	1.All real andproperty taxes, including ad valorem taxes and square footage taxes levied
	2271	+	under section 18 of this Act, all personal property taxes, and yearly installments of
	2272	+	special assessment taxes become due on the first day of January following the year
	2273	+	for which the taxes were levied.
	2274	+	2.The first installment of real estate taxes, including ad valorem taxes and square
	2275	+	footage taxes levied under section 18 of this Act, all personal property taxes, and
	2276	+	yearly installments of special taxes become delinquent after the first day of March
	2277	+	following and, if not paid on or before said date, are subject to a penalty of three
	2278	+	percent, and on May first following an additional penalty of three percent, and on July
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	2311	+	first following an additional three percent, and an additional penalty of three percent on
	2312	+	October fifteenth following.
	2313	+	3.From and after January first of the year following the year in which the taxes become
	2314	+	due and payable, simple interest at the rate of twelve percent per annum upon the
	2315	+	principal of the unpaid taxes on personal property must be charged until the taxes and
	2316	+	penalties are paid, with the interest charges to be prorated to the nearest full month for
	2317	+	a fractional year of delinquency.
	2318	+	4.The second installment of real estate taxes, including ad valorem taxes and square
	2319	+	footage taxes levied under section 18 of this Act, becomes delinquent after October
	2320	+	fifteenth, and, if not paid on or before that date becomes subject to a penalty of six
	2321	+	percent.
	2322	+	SECTION 37. AMENDMENT. Section 57-20-01.1 of the North Dakota Century Code is
	2323	+	amended and reenacted as follows:
	2324	+	57-20-01.1. Extension of due date for property taxes when county treasurer's office is
	2325	+	closed.
	2326	+	When the due date for full or installment payment of any property taxes, including
	2327	+	ad valorem taxes and square footage taxes levied under section 18 of this Act, or special
	2328	+	assessments falls on a day on which the county treasurer's office is not open for business, the
	2329	+	payment may be made on the first day following on which the office is open without penalty or
	2330	+	loss of discount.
	2331	+	SECTION 38. AMENDMENT. Section 57-20-02 of the North Dakota Century Code is
	2332	+	amended and reenacted as follows:
	2333	+	57-20-02. Tax list made out by county auditor.
	2334	+	1.As soon as practicable after the taxes, including ad valorem taxes and square footage
	2335	+	taxes levied under section 18 o f this Act, are levied, and after the levies of the several
	2336	+	taxing districts within the county have been certified, the county auditor shall make out
	2337	+	the tax lists according to the prescribed form to correspond with the assessment
	2338	+	districts of the county.
	2339	+	2.The ad valorem tax percentage rate necessary to raise the required amount of the
	2340	+	various taxes must be calculated on the taxable valuation of property after equalization
	2341	+	by the state board of equalization, but no ad valorem tax rate may be used which
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	2375	+	results in any fraction of less than one-half of one-tenth of a mill, and in extending any
	2376	+	tax, it, whenever it amounts to the fractional part of a cent, must be made one cent.
	2377	+	SECTION 39. AMENDMENT. Section 57-20-03 of the North Dakota Century Code is
	2378	+	amended and reenacted as follows:
	2379	+	57-20-03. Form of tax list.
	2380	+	1.The tax list must be made out to correspond with the assessment books with respect
	2381	+	to ownership and description of property, with columns for the valuation, square
	2382	+	footage, and for the various items of tax included in the total amount of all taxes set
	2383	+	down opposite such description of property.
	2384	+	2.The amounts of special taxes must be entered in appropriate columns, but the general
	2385	+	taxes and square footage taxes, if appropriate, may be shown by entering the rate of
	2386	+	each tax at the head of the proper column without extending the same, in which case
	2387	+	a schedule of the rates of such taxes must be made on the first page of each tax list.
	2388	+	3.The tax lists also must show, in a separate column, the years for which a tax lien has
	2389	+	been foreclosed upon any piece or parcel, if the same has not been redeemed or
	2390	+	deeded for such taxes.
	2391	+	SECTION 40. AMENDMENT. Section 57-20-04 of the North Dakota Century Code is
	2392	+	amended and reenacted as follows:
	2393	+	57-20-04. Abstract of tax list to be sent to tax commissioner - Reports.
	2394	+	1.The county auditor, on or before December thirty-first following the levy of the taxes,
	2395	+	shall prepare and transmit to the tax commissioner a complete abstract of the tax list
	2396	+	of the auditor's county.
	2397	+	2.In addition to the tax list required in subsection 1, the county auditor, on or before
	2398	+	December thirty-first following the levy of the taxes, shall prepare and transmit to the
	2399	+	tax commissioner a report providing, for property subject to ad valorem taxation, each
	2400	+	taxing district's property valuation and property tax levy, for property subject to a
	2401	+	square footage tax under section 18 of this Act, each taxing district's square footage,
	2402	+	square footage tax rates, and square footage tax levy, and any other information the
	2403	+	tax commissioner deems necessary to prepare the report required in subsection 3. For
	2404	+	taxing districts with property in more than one county, information must be collected
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	2437	+	and transmitted by the county auditor of the county in which the main office of that
	2438	+	taxing district is located.
	2439	+	3.The tax commissioner shall compile information received from the county auditors in
	2440	+	subsection 2 and prepare a statewide report of ad valorem property tax and square
	2441	+	footage tax increase. The report must include the annual increase in ad valorem
	2442	+	property taxes and square footage taxes levied by each taxing district of the state after
	2443	+	adjusting for property that was not taxable in the preceding year and property that is
	2444	+	no longer taxable which was taxable in the preceding year. The report must be
	2445	+	provided to the legislative management by April first of each year.
	2446	+	4.The tax commissioner shall prescribe the form and manner of providing the reports
	2447	+	and certifications required under this section.
	2448	+	5.On or before December 31, 2017, the county auditor shall provide a report to the tax
	2449	+	commissioner providing the information identified in subsection 2 for the 2015 and
	2450	+	2016 tax years.
	2451	+	SECTION 41. AMENDMENT. Section 57-20-07.1 of the North Dakota Century Code is
	2452	+	amended and reenacted as follows:
	2453	+	57-20-07.1. County treasurer to mail real estate tax statement - Contents of statement.
	2454	+	1.On or before December twenty-sixth of each year, the county treasurer shall mail aan
	2455	+	ad valorem or square footage real estate tax statement to the owner of each parcel of
	2456	+	real property at the owner's last-known address. The form of the ad valorem or square
	2457	+	footage real estate tax statement to be used in every county must be prescribed and
	2458	+	approved for use by the tax commissioner. The statement must be provided in a
	2459	+	manner that allows the taxpayer to retain a printed record of the obligation for payment
	2460	+	of ad valorem or square footage taxes and special assessments as provided in the
	2461	+	statement. If a parcel of real property is owned by more than one individual, the county
	2462	+	treasurer shall send only one statement to one of the owners of that property.
	2463	+	Additional copies of the tax statement will be sent to the other owners upon their
	2464	+	request and the furnishing of their names and addresses to the county treasurer. The
	2465	+	tax statement must:
	2466	+	a.For property subject to ad valorem tax:
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	2499	+	(1)Include a dollar valuation of the true and full value as defined by law of the
	2500	+	property and the total mill levy applicable.
	2501	+	b.(2)Include, or be accompanied by a separate sheet, with three columns
	2502	+	showing, for the taxable year to which the tax statement applies and the two
	2503	+	immediately preceding taxable years, the property tax levy in dollars against
	2504	+	the parcel by the county and school district and any city or township that
	2505	+	levied taxes against the parcel.
	2506	+	c.(3)Provide information identifying the property tax savings provided by the
	2507	+	state of North Dakota. The tax statement must include a line item that is
	2508	+	entitled "legislative tax relief" and identifies the dollar amount of property tax
	2509	+	savings realized by the taxpayer under chapter 50-34 for taxable years
	2510	+	before 2019, chapter 50-35 for taxable years after 2018, and chapter
	2511	+	15.1-27.
	2512	+	(1)(a)For purposes of this subdivision, legislative tax relief under chapter
	2513	+	15.1-27 is determined by multiplying the taxable value for the taxable
	2514	+	year for each parcel shown on the tax statement by the number of
	2515	+	mills of mill levy reduction grant under chapter 57-64 for the 2012
	2516	+	taxable year plus the number of mills determined by subtracting from
	2517	+	the 2012 taxable year mill rate of the school district in which the parcel
	2518	+	is located the lesser of:
	2519	+	(a)[1]Fifty mills; or
	2520	+	(b)[2]The 2012 taxable year mill rate of the school district minus sixty
	2521	+	mills.
	2522	+	(2)(b)Legislative tax relief under chapter 50-35 is determined by multiplying
	2523	+	the taxable value for the taxable year for each parcel shown on the
	2524	+	tax statement by the number of mills of relief determined by dividing
	2525	+	the amount calculated in subsection 1 of section 50-35-03 for a
	2526	+	human service zone by the taxable value of taxable property in the
	2527	+	zone for the taxable year.
	2528	+	b.For property subject to the square footage tax under section 18 of this Act:
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	2561	+	(1)Include the total land square footage and structure square footage for the
	2562	+	parcel of land and the the land square footage and structure square footage
	2563	+	tax rates applicable to the parcel of land.
	2564	+	(2)For taxable year 2027, include, or be accompanied by a separate sheet,
	2565	+	with two columns showing, for the taxable year to which the tax statement
	2566	+	applies and the immediately preceding taxable year, the square footage tax
	2567	+	levy in dollars against the parcel by the county and school district and any
	2568	+	city or township that levied taxes against the parcel.
	2569	+	(3)For taxable years after 2027, include, or be accompanied by a separate
	2570	+	sheet, with three columns showing, for the taxable year to which the tax
	2571	+	statement applies and the two immediately preceding taxable years, the
	2572	+	square footage tax levy in dollars against the parcel by the county and
	2573	+	school district and any city or township that levied taxes against the parcel.
	2574	+	2.Failure of an owner to receive a statement will not relieve that owner of liability, nor
	2575	+	extend the discount privilege past the February fifteenth deadline.
	2576	+	SECTION 42. AMENDMENT. Section 57-20-09 of the North Dakota Century Code is
	2577	+	amended and reenacted as follows:
	2578	+	57-20-09. Discount for early payment of tax.
	2579	+	1.Except as provided in section 57-20-21.1, the county treasurer shall allow a five
	2580	+	percent discount to all taxpayers who shall pay all of the ad valorem or square footage
	2581	+	real estate taxes levied on any tract or parcel of real property in any one year in full on
	2582	+	or before February fifteenth prior to the date of delinquency. Such
	2583	+	2.The discount applies to all general real estate taxes, including ad valorem taxes and
	2584	+	square footage taxes levied under section 18 of this Act, levied for state, county, city,
	2585	+	township, school district, fire district, park district, and any other taxing districts but
	2586	+	does not apply to personal property taxes or special assessment installments.
	2587	+	3.Whenever the board of county commissioners, by resolution, determines that an
	2588	+	emergency exists in the county by virtue of weather or other catastrophe, it may
	2589	+	extend the discount period for an additional thirty days.
	2590	+	SECTION 43. AMENDMENT. Section 57-20-10 of the North Dakota Century Code is
	2591	+	amended and reenacted as follows:
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	2625	+	57-20-10. Installment payments of real estate tax.
	2626	+	RealAd valorem and square footage real estate taxes, either current or delinquent, may be
	2627	+	paid in installments of not less than ten percent of the amount of the tax, plus penalty and
	2628	+	interest if any, but each such installment in no event may be less than ten dollars. Credit must
	2629	+	be given on the tax records for the installment payments so made, and penalty and interest
	2630	+	must be computed only upon the balance of the tax remaining unpaid.
	2631	+	SECTION 44. AMENDMENT. Section 57-20-21.1 of the North Dakota Century Code is
	2632	+	amended and reenacted as follows:
	2633	+	57-20-21.1. Priority for delinquent taxes.
	2634	+	1.When payment is made for any real or personal property taxes, including ad valorem
	2635	+	taxes and square footage taxes levied under section 18 of this Act, or special
	2636	+	assessments, payments must be applied first to the oldest unpaid delinquent taxes or
	2637	+	special assessments due, if any, shown to exist upon the property for which the tax
	2638	+	payments are made, including any penalty and interest.
	2639	+	2.The discounts applicable to payment of taxes set out in section 57-20-09 do not apply
	2640	+	to payment of taxes made on property upon which tax payments are delinquent.
	2641	+	SECTION 45. AMENDMENT. Subdivision a of subsection 1 of section 57-23-04 of the North
	2642	+	Dakota Century Code is amended and reenacted as follows:
	2643	+	a.When an error has been made in any identifying entry or description of the
	2644	+	property, in entering the valuation or square footage thereof, or in the extension
	2645	+	of the tax, to the injury of the complainant.
	2646	+	SECTION 46. AMENDMENT. Section 57-23-06 of the North Dakota Century Code is
	2647	+	amended and reenacted as follows:
	2648	+	57-23-06. Hearing on application.
	2649	+	1.Within ten days after receiving an application for abatement, the city auditor or the
	2650	+	township clerk shall give the applicant a notice of a hearing to be held before the
	2651	+	governing body of the city or township, or such other committee as it may designate, in
	2652	+	which the assessed property is located. Said hearing must be set for no more than
	2653	+	sixty days after the date of the notice of hearing, and in any event, must be held
	2654	+	before the recommendations provided for in subsection 2 are made. The applicant
	2655	+	may waive, in writing, the hearing before such governing body or designated
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	2689	+	committee at any time before the hearing. Any recommendations provided for in
	2690	+	subsection 2 must be transmitted to the county auditor no more than thirty days after
	2691	+	the date set for the hearing. The provisions of this subsection do not apply to
	2692	+	applications for abatement pursuant to section 57-02-08.2.
	2693	+	2.At the next regular meeting of the board of county commissioners following the filing of
	2694	+	an application for abatement or, if forthcoming, at the next regular meeting of the
	2695	+	board of county commissioners following transmittal of the recommendations of the
	2696	+	governing body of the municipality, the applicant may appear, in person or by a
	2697	+	representative or attorney, and may present such evidence as may bear on the
	2698	+	application. The applicant shall furnish any additional information or evidence
	2699	+	requested by the board of county commissioners. The recommendations of the
	2700	+	governing body of the municipality in which such assessed property is located must be
	2701	+	endorsed upon or attached to every application for an abatement or refund, and the
	2702	+	board of county commissioners shall give consideration to such recommendations.
	2703	+	The board of county commissioners, by a majority vote, either shall approve or reject
	2704	+	the application, in whole or in part. If rejected, in whole or in part, a written explanation
	2705	+	of the rationale for the decision, signed by the chairman of the board, must be
	2706	+	attached to the application, and a copy thereof must be mailed by the county auditor to
	2707	+	the applicant at the post-office address specified in the application.
	2708	+	3.At a hearing before the board of county commissioners on an application for
	2709	+	abatement, the applicant or the applicant's representative or attorney is limited to the
	2710	+	relief claimed in the application for abatement submitted to the board of county
	2711	+	commissioners. The applicant or applicant's representative or attorney may not submit
	2712	+	evidence during a hearing on an application for abatement suggesting a lower
	2713	+	valuation, a lower square footage determination, a lower square footage tax rate, a
	2714	+	lower tax levy, or a different taxable status than was requested in the application for
	2715	+	abatement submitted to the board of county commissioners.
	2716	+	SECTION 47. AMENDMENT. Subsection 2 of section 57-28-03 of the North Dakota
	2717	+	Century Code is amended and reenacted as follows:
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	2749	+	2.The amount of delinquent ad valorem property taxes, square footage taxes levied
	2750	+	under section 18 of this Act, and special assessments, with penalties, interest, and
	2751	+	foreclosure costs, for the tax year foreclosed.
	2752	+	SECTION 48. AMENDMENT. Subdivision c of subsection 1 of section 57-28-20 of the North
	2753	+	Dakota Century Code is amended and reenacted as follows:
	2754	+	c.Sold for less than the total amount of the taxes due, the treasurer shall write tax
	2755	+	receipts beginning with the earliest year and for as many subsequent years as
	2756	+	the proceeds realized from the sale will satisfy, and the remainder of any unpaid
	2757	+	general taxes, including ad valorem taxes and square footage taxes levied under
	2758	+	section 18 of this Act, or special assessments must be canceled by the board of
	2759	+	county commissioners.
	2760	+	SECTION 49. AMENDMENT. Section 57-28-26 of the North Dakota Century Code is
	2761	+	amended and reenacted as follows:
	2762	+	57-28-26. Disposition of rental revenue.
	2763	+	1.All the net revenue from leases of property under this chapter and all federal payments
	2764	+	for property acquired by the county by tax deed must be paid into the county treasury.
	2765	+	2.On or before January tenth in each year, the county treasurer shall apportion these
	2766	+	amounts received in the previous calendar year to the county, city, school district,
	2767	+	township, or other taxing districts in which the property is located in the proportion that
	2768	+	the previous year's general fund and square footage tax levy in the taxing district
	2769	+	bears to the total of general fund and square footage tax levies of all taxing districts in
	2770	+	which the property is located.
	2771	+	SECTION 50. AMENDMENT. Section 57-55-01.2 of the North Dakota Century Code is
	2772	+	amended and reenacted as follows:
	2773	+	57-55-01.2. Statements of full consideration and square footage to be filed with
	2774	+	application for title to mobile homes - Sales ratio study - Penalty.
	2775	+	1.Any person who has purchased a mobile home and is applying for a title under section
	2776	+	39-18-03 shall present, with the application, a certified statement of the full
	2777	+	consideration paid for the mobile home and the square footage of the mobile home.
	2778	+	2.The director of the department of transportation may not issue a certificate of title to
	2779	+	the mobile home until the certified statement is received. The director of the
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	2813	+	department of transportation shall accumulate and at least monthly forward to the
	2814	+	state board of equalization a report containing the information filed in the director's
	2815	+	office pursuant to this section.
	2816	+	3.The state board of equalization shall prescribe the necessary forms for the statements
	2817	+	and reports to be used in carrying out the purposes of this section, and the forms must
	2818	+	contain a space for the explanation of special circumstances which may have
	2819	+	contributed to the amount of the consideration or square footage. The state board of
	2820	+	equalization shall furnish this information to the state tax commissioner who shall
	2821	+	conduct a sales ratio study to determine the proper assessment values of mobile
	2822	+	homes under this chapter.
	2823	+	4.Any person who, in the statement provided for in this section, willfully falsifies the
	2824	+	consideration paid for or square footage of the transferred mobile home is guilty of a
	2825	+	class B misdemeanor.
	2826	+	SECTION 51. AMENDMENT. Section 57-55-04 of the North Dakota Century Code is
	2827	+	amended and reenacted as follows:
	2828	+	57-55-04. Taxes - How determined - Disbursement.
	2829	+	1.The director of tax equalization shall determine the tax for each mobile home by
	2830	+	placing an evaluation ondetermining the square footage of the mobile home based
	2831	+	upon its assessed value and by adjusting the valuation of the mobile home by the
	2832	+	percentage provided in section 57-02-27 to determine its taxable valuation under
	2833	+	standards and guides determined by the state tax commissioner and applying that
	2834	+	evaluationthe square footage to the preceding year's total mill levies
	2835	+	applyingresidential structure square footage tax rates determined under section 18 of
	2836	+	this Act which apply to property within the taxing district in which the mobile home is
	2837	+	located. The director of tax equalization may refer to the statement required under
	2838	+	section 57 - 55 - 01.2 to determine the square footage of the mobile home.
	2839	+	2.The county treasurer shall provide a tax statement for each mobile home subject to
	2840	+	taxation under this chapter, including.
	2841	+	a.For taxable year 2028, the tax statement must include two columns showing, for
	2842	+	the taxable year to which the tax statement applies and the immediately
	2843	+	preceding taxable year, the square footage tax levy in dollars against the mobile
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	2877	+	home by the county and school district and any city or township that levied taxes
	2878	+	against the mobile home.
	2879	+	b.For taxable years after 2028, the tax statement must include three columns
	2880	+	showing, for the taxable year to which the tax statement applies and the two
	2881	+	immediately preceding taxable years, the propertysquare footage tax levy in
	2882	+	dollars against the mobile home by the county and school district and any city or
	2883	+	township that levied taxes against the mobile home.
	2884	+	3.If a mobile home is acquired or moved into this state during the calendar year and a
	2885	+	tax permit has not been previously issued for such mobile home in this state for such
	2886	+	year, the tax is determined by computing the remaining number of months of the
	2887	+	current year to the nearest full month and multiplying that number by one-twelfth of the
	2888	+	amount which would be due for the full year.
	2889	+	4.The taxes collected under this chapter must be disbursed in the same year they are
	2890	+	collected and in the same manner as real estatesquare footage taxes for the
	2891	+	preceding year are disbursed.
	2892	+	SECTION 52. AMENDMENT. Section 57-55-04.1 of the North Dakota Century Code is
	2893	+	amended and reenacted as follows:
	2894	+	57-55-04.1. Procedure for abatement, refund, or compromise of tax.
	2895	+	1.Any person having any estate, right, title, or interest in or lien upon any mobile home
	2896	+	which has been assessed for taxation purposes pursuant to this chapter may apply for
	2897	+	abatement, refund, or compromise, as the case may be, pursuant to chapter 57-23.
	2898	+	2.The application must be made in writing on the form prescribed by the tax
	2899	+	commissioner and must be filed in triplicate with the county auditor of the county
	2900	+	where the mobile home was assessed.
	2901	+	3.The county auditor shall promptly serve the county director of tax equalization with one
	2902	+	copy of the application.
	2903	+	4.The abatement or compromise must be granted by the county commissioners if the
	2904	+	facts upon which the application is based establish that the assessment contains error,
	2905	+	or that the value placed uponsquare footage determination of the mobile home by the
	2906	+	county director of tax equalization was excessive, or that the mobile home is exempt
	2907	+	from taxation pursuant to section 57-55-10.
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	2941	+	5.The decision of the county commissioners may be appealed in the manner provided
	2942	+	by law.
	2943	+	SECTION 53. AMENDMENT. Section 57-55-05 of the North Dakota Century Code is
	2944	+	amended and reenacted as follows:
	2945	+	57-55-05. Taxes in lieu of other property taxes.
	2946	+	The taxes provided for in this chapter are in lieu of all property taxes, including ad valorem
	2947	+	taxes and square footage taxes levied under section 18 of this Act, upon such mobile homes for
	2948	+	the calendar year for which the tax permit is valid. However, such taxes may in no way be
	2949	+	construed as exempting any mobile home owner from the requirements of registering such
	2950	+	mobile home with the director of the department of transportation or securing license plates
	2951	+	entitling such mobile home to be hauled upon the state's highways pursuant to section
	2952	+	39-18-03.
	2953	+	SECTION 54. AMENDMENT. Section 61-24-09 of the North Dakota Century Code is
	2954	+	amended and reenacted as follows:
	2955	+	61-24-09. District budget - Determination of amount to be levied - Adoption of levy -
	2956	+	Limitation.
	2957	+	1.In July of each year, the board of directors shall estimate and itemize all the expenses
	2958	+	and obligations of the district, including expenses of directors, expenses of operating
	2959	+	the office, debt service and retirement, and obligations and liabilities to the United
	2960	+	States for which provision must be made.
	2961	+	2.The board of directors may include in such budget funds deemed necessary to create
	2962	+	reserve funds to meet future payments under district contracts.
	2963	+	3.Upon the completion and adoption of such budget, the board of directors shall make a
	2964	+	tax levy, including ad valorem taxes and square footage taxes under section 18 of this
	2965	+	Act, in an amount sufficient to meet such budget. Such
	2966	+	4.The levy shall be in the form of a resolution, adopted by a majority vote of the
	2967	+	members of the board of directors of the district. Such
	2968	+	5.The resolution shallmust include an ad valorem levy in mills, but not exceeding one
	2969	+	mill, and a square footage tax levy sufficient to meet all the expenses, obligations, and
	2970	+	liabilities of the district as provided in the budget.
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	3003	+	SECTION 55. REPEAL. Subsection 35 of section 57-02-08 of the North Dakota Century
	3004	+	Code is repealed.
	3005	+	SECTION 56. EFFECTIVE DATE. Sections 1 through 5, 7 through 12, 14 through 49, and
	3006	+	54 and 55 of this Act are effective for taxable years beginning after December 31, 2025.
	3007	+	Section 6 of this Act is effective July 1, 2026. Sections 51, 52, and 53 of this Act are effective for
	3008	+	taxable years beginning after December 31, 2026.
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