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North Dakota Senate Bill SB2039

North Dakota 2025-2026 Regular Session

North Dakota Senate Bill SB2039 Compare Versions

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1-Sixty-ninth Legislative Assembly of North Dakota
2-In Regular Session Commencing Tuesday, January 7, 2025
1+25.0380.03000
2+Sixty-ninth
3+Legislative Assembly
4+of North Dakota
5+Introduced by
6+Legislative Management
7+(Taxation Committee)
8+A BILL for an Act to amend and reenact subsection 1 of section 57-02-01 and subdivision a of
9+subsection 15 of section 57-02-08 of the North Dakota Century Code, relating to the definition of
10+agricultural property and the farm structure and improvements property tax exemption; and to
11+provide an effective date.
12+BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
13+SECTION 1. AMENDMENT. Subsection 1 of section 57-02-01 of the North Dakota Century
14+Code is amended and reenacted as follows:
15+1.a."Agricultural property" means platted or unplatted lands used for raising
16+agricultural crops or grazing farm animals, except as provided in this subsection.
17+For platted lands:
18+(1)Lands platted and assessed as agricultural property prior to March 30,
19+1981, shall continue to be assessed as agricultural property until put to a
20+use other than raising agricultural crops or grazing farm animals. Agricultural
21+property includes land on which a greenhouse or other building is located if
22+the land is used for a nursery or other purpose associated with the operation
23+of the greenhouse. The time limitations contained in this section may not be
24+construed to prevent property that was assessed as other than agricultural
25+property from being assessed as agricultural property if the property
26+otherwise qualifies under this subsection.
27+a.(2)Property platted on or after March 30, 1981, is not agricultural property
28+when any four of the following conditions exist:
29+(1)(a)The land is platted by the owner.
30+Page No. 1 25.0380.03000
331 SENATE BILL NO. 2039
4-(Legislative Management)
5-(Taxation Committee)
6-AN ACT to amend and reenact subsection 1 of section 57-02-01 and subdivision a of subsection 15 of
7-section 57-02-08 of the North Dakota Century Code, relating to the definition of agricultural
8-property and the farm structure and improvements property tax exemption; and to provide an
9-effective date.
10-BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
11-SECTION 1. AMENDMENT. Subsection 1 of section 57-02-01 of the North Dakota Century Code is
12-amended and reenacted as follows:
13-1.a."Agricultural property" means platted or unplatted lands used for raising agricultural crops
14-or grazing farm animals, except as provided in this subsection. For platted lands:
15-(1)Lands platted and assessed as agricultural property prior to March 30, 1981, shall
16-continue to be assessed as agricultural property until put to a use other than raising
17-agricultural crops or grazing farm animals. Agricultural property includes land on
18-which a greenhouse or other building is located if the land is used for a nursery or
19-other purpose associated with the operation of the greenhouse. The time limitations
20-contained in this section may not be construed to prevent property that was
21-assessed as other than agricultural property from being assessed as agricultural
22-property if the property otherwise qualifies under this subsection.
23-a.(2)Property platted on or after March 30, 1981, is not agricultural property when any
24-four of the following conditions exist:
25-(1)(a)The land is platted by the owner.
32+SENATE BILL NO. 2039
33+with House Amendments
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2657 (2)(b)Public improvements, including sewer, water, or streets, are in place.
27-(3)(c)Topsoil is removed or topography is disturbed to the extent that the property
28-cannot be used to raisegrow crops or graze farm animals.
58+(3)(c)Topsoil is removed or topography is disturbed to the extent that the
59+property cannot be used to raisegrow crops or graze farm animals.
2960 (4)(d)Property is zoned other than agricultural.
30-(5)(e)Property has assumed an urban atmosphere because of adjacent residential
31-or commercial development on three or more sides.
32-(6)(f)The parcel is less than ten acres [4.05 hectares] and not contiguous to
61+(5)(e)Property has assumed an urban atmosphere because of adjacent
62+residential or commercial development on three or more sides.
63+(6)(f)The parcel is less than ten acres [4.05 hectares] and not contiguous
64+to agricultural property.
65+(7)(g)The property sells for more than four times the county average true
66+and full agricultural value.
67+b.For purposes of this subsection:
68+(1)"Raising agricultural crops" includes the storage of harvested crops
69+produced by a farmer or a direct relative of the farmer until the crop is
70+delivered to the first end - point user.
71+(2)The existence of any of the conditions in paragraph 2 of subdivision a may
72+not be used as a basis to exclude unplatted land used to raise agricultural
73+crops or land platted and assessed as agricultural property prior to
74+March 30, 1981, used to raise agricultural crops from being classified as
3375 agricultural property.
34-(7)(g)The property sells for more than four times the county average true and full
35-agricultural value.
36-b.For purposes of this subsection:
37-(1)"Raising agricultural crops" includes the storage of harvested crops produced by a
38-farmer or a direct relative of the farmer until the crop is delivered to the first
39-end - point user.
40-(2)The existence of any of the conditions in paragraph 2 of subdivision a may not be
41-used as a basis to exclude unplatted land used to raise agricultural crops or land S. B. NO. 2039 - PAGE 2
42-platted and assessed as agricultural property prior to March 30, 1981, used to raise
43-agricultural crops from being classified as agricultural property.
44-(3)Land that was assessed as agricultural property at the time the land was put to use
45-for extraction of oil, natural gas, or subsurface minerals as defined in section 38-12-
46-01 must continue to be assessed as agricultural property if the remainder of the
47-surface owner's parcel of property on which the subsurface mineral activity is
48-occurring continues to qualify for assessment as agricultural property under this
49-subsection.
50-(4)Agricultural property includes land on which a greenhouse or other building is
51-located if the land is used for a nursery or other purpose associated with the
52-operation of the greenhouse.
53-(5)The time limitations contained in this subsection may not be construed to prevent
54-property that was assessed as other than agricultural property from being assessed
55-as agricultural property if the property otherwise qualifies under this subsection.
56-SECTION 2. AMENDMENT. Subdivision a of subsection 15 of section 57-02-08 of the North Dakota
57-Century Code is amended and reenacted as follows:
76+(3)Land that was assessed as agricultural property at the time the land was put
77+to use for extraction of oil, natural gas, or subsurface minerals as defined in
78+section 38-12-01 must continue to be assessed as agricultural property if
79+the remainder of the surface owner's parcel of property on which the
80+subsurface mineral activity is occurring continues to qualify for assessment
81+as agricultural property under this subsection.
82+(4)Agricultural property includes land on which a greenhouse or other building
83+is located if the land is used for a nursery or other purpose associated with
84+the operation of the greenhouse.
85+(5)The time limitations contained in this subsection may not be construed to
86+prevent property that was assessed as other than agricultural property from
87+Page No. 2 25.0380.03000
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119+being assessed as agricultural property if the property otherwise qualifies
120+under this subsection.
121+SECTION 2. AMENDMENT. Subdivision a of subsection 15 of section 57-02-08 of the North
122+Dakota Century Code is amended and reenacted as follows:
58123 a.All farm structures and improvements located on agricultural lands.
59-(1)This subsection must be construed to exempt farm buildings and improvements
60-only, and may not be construed to exempt from taxation industrial plants, or
61-structures of any kind not used or intended for use as a part of a farm plant, or as a
62-farm residence.
63-(2)"Farm buildings and improvements" includes a greenhouse or other building used
64-primarily for the growing of horticultural or nursery products from seed, cuttings, or
65-roots, if not used on more than an occasional basis for a showroom for the retail
66-sale of horticultural or nursery products. A greenhouse or building used primarily for
67-display and sale of grown horticultural or nursery products is not a farm building or
68-improvement.
124+(1)This subsection must be construed to exempt farm buildings and
125+improvements only, and may not be construed to exempt from taxation
126+industrial plants, or structures of any kind not used or intended for use as a
127+part of a farm plant, or as a farm residence.
128+(2)"Farm buildings and improvements" includes a greenhouse or other building
129+used primarily for the growing of horticultural or nursery products from seed,
130+cuttings, or roots, if not used on more than an occasional basis for a
131+showroom for the retail sale of horticultural or nursery products. A
132+greenhouse or building used primarily for display and sale of grown
133+horticultural or nursery products is not a farm building or improvement.
69134 (3)(a)The following structures and improvements are not exempt under this
70135 subsection:
71-[1]Any structure or improvement used primarily in connection with a retail or
72-wholesale business other than farming, any;
136+[1]Any structure or improvement used primarily in connection with a
137+retail or wholesale business other than farming, any;
73138 [2]Any structure or improvement located on platted land within the
74-corporate limits of a city, anyexcept a structure owned by a farmer, used
75-exclusively for storage of harvested crops produced by the farmer or a
76-direct relative of the farmer until the crop is delivered to the first
77-end - point user, and affixed to land platted and assessed as agricultural
78-property prior to March 30, 1981;
79-[3]Any structure or improvement used by a manufacturing facility as defined
80-in section 19-24.1-01, or any; and
81-[4]Any structure or improvement located on railroad operating property
82-subject to assessment under chapter 57-05 is not exempt under this
83-subsection.
84-(b)For purposes of this paragraph, "business other than farming" includes
85-processing to produce a value-added physical or chemical change in an S. B. NO. 2039 - PAGE 3
86-agricultural commodity beyond the ordinary handling of that commodity by a
87-farmer prior to sale.
88-(4)The following factors may not be considered in application of the exemption under
89-this subsection:
90-(a)Whether the farmer grows or purchases feed for animals raised on the farm.
139+corporate limits of a city, anyexcept a structure owned by a
140+farmer, used exclusively for storage of harvested crops produced
141+by the farmer or a direct relative of the farmer until the crop is
142+delivered to the first end - point user, and affixed to land platted
143+and assessed as agricultural property prior to March 30, 1981;
144+[3]Any structure or improvement used by a manufacturing facility as
145+defined in section 19-24.1-01, or any; and
146+[4]Any structure or improvement located on railroad operating
147+property subject to assessment under chapter 57-05 is not
148+exempt under this subsection.
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181+(b)For purposes of this paragraph, "business other than farming"
182+includes processing to produce a value-added physical or chemical
183+change in an agricultural commodity beyond the ordinary handling of
184+that commodity by a farmer prior to sale.
185+(4)The following factors may not be considered in application of the exemption
186+under this subsection:
187+(a)Whether the farmer grows or purchases feed for animals raised on the
188+farm.
91189 (b)Whether animals being raised on the farm are owned by the farmer.
92190 (c)Whether the farm's replacement animals are produced on the farm.
93-(d)Whether the farmer is engaged in contract feeding of animals on the farm.
191+(d)Whether the farmer is engaged in contract feeding of animals on the
192+farm.
94193 SECTION 3. EFFECTIVE DATE. This Act is effective for taxable years beginning after
95-December 31, 2025. S. B. NO. 2039 - PAGE 4
96-____________________________ ____________________________
97-President of the Senate Speaker of the House
98-____________________________ ____________________________
99-Secretary of the Senate Chief Clerk of the House
100-This certifies that the within bill originated in the Senate of the Sixty-ninth Legislative Assembly of North
101-Dakota and is known on the records of that body as Senate Bill No. 2039.
102-Senate Vote:Yeas 38 Nays 9 Absent 0
103-House Vote: Yeas 84 Nays 7 Absent 3
104-____________________________
105-Secretary of the Senate
106-Received by the Governor at ________M. on _____________________________________, 2025.
107-Approved at ________M. on __________________________________________________, 2025.
108-____________________________
109-Governor
110-Filed in this office this ___________day of _______________________________________, 2025,
111-at ________ o’clock ________M.
112-____________________________
113-Secretary of State
194+December 31, 2025.
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