Sixty-ninth Legislative Assembly of North Dakota
In Regular Session Commencing Tuesday, January 7, 2025
SENATE BILL NO. 2154
(Senators Cleary, Meyer, Thomas)
(Representatives Bahl, Monson, Nelson)
AN ACT to amend and reenact subsection 13 of section 1-01-49, subsection 4 of section 10-30.5-01,
and section 40-57.1-02 of the North Dakota Century Code, relating to the definition of primary
sector business.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Subsection 13 of section 1-01-49 of the North Dakota Century Code is
amended and reenacted as follows:
13."Primary sector business" means an individual, corporation, limited liability company,
partnership, or association certified by the department of commerce division of economic
development and finance which through the employment of knowledge or labor adds value to
a product, process, or service which results in the creation of new wealth. The term includes
tourism operations demonstrating the creation of new wealth by attracting out - of - state visitors.
For purposes of this subsection, "new wealth" means revenues generated by a business or
tourism operation in this state through the sale of products or services to:
a.Customers or visitors from outside of this state; or
b.Customers in this state if the products or services were previously unavailable or difficult
to obtain from a business in this state.
SECTION 2. AMENDMENT. Subsection 4 of section 10-30.5-01 of the North Dakota Century Code
is amended and reenacted as follows:
4."Primary sector business" has the meaning provided in section 1-01-49 and includes tourism
but does not include production agriculture.
SECTION 3. AMENDMENT. Section 40-57.1-02 of the North Dakota Century Code is amended and
reenacted as follows:
40-57.1-02. Definitions.
As used in this chapter, unless a different meaning clearly appears from the context:
1."Local development organization", as used in section 40-57.1-04.3, means a profit or nonprofit
corporation incorporated under the laws of this state or a limited liability company organized
under the laws of this state, formed for the purpose of furthering the economic development of
its community and environs, with authority to promote and assist the growth and development
of business concerns in the areas covered by its operations. The operations of the corporation
or limited liability company must be limited to a specified area in this state. The controlling
interest in the corporation or limited liability company must be held by at least twenty-five
persons residing or doing business in the community or its environs. These persons must
control not less than seventy-five percent of the voting control of the corporation or limited
liability company. NoA shareholder or member of the corporation or limited liability company
may not own in excess of twenty-five percent of the voting control in the corporation or limited
liability company if that shareholder or member has a direct pecuniary interest in any project or
business concern whichthat will occupy the property of the corporation or limited liability
company. The primary objective of the corporation or limited liability company must be to S. B. NO. 2154 - PAGE 2
benefit the community through increased employment, payroll, business volume, and
corresponding factors rather than monetary profits to its shareholders or members. Any
monetary profits or other benefits going to the shareholders or members must be merely
incidental to the primary objective of the corporation or limited liability company.
2."Municipality" means counties as well as municipalities of the types listed in subsection 4 of
section 40-01-01.
3."Primary sector business" has the meaning provided in section 1-01-49.
4."Project" means any revenue-producing enterprise, or any combination of two or more of
these enterprises. For the purpose of the income tax exemption, "project" means both
"primary sector business" and "tourism" as defined by this section and includes the
establishment of a new qualifying business or the expansion of a qualifying existing business.
5."Tourism" means all tourism-related businesses and activities, including recreation, historical
and cultural events, guide services, and unique lodging and food services which serve as
destination attractions. S. B. NO. 2154 - PAGE 3
____________________________ ____________________________
President of the Senate Speaker of the House
____________________________ ____________________________
Secretary of the Senate Chief Clerk of the House
This certifies that the within bill originated in the Senate of the Sixty-ninth Legislative Assembly of North
Dakota and is known on the records of that body as Senate Bill No. 2154.
Senate Vote:Yeas 47 Nays 0 Absent 0
House Vote: Yeas 91 Nays 1 Absent 2
____________________________
Secretary of the Senate
Received by the Governor at ________M. on _____________________________________, 2025.
Approved at ________M. on __________________________________________________, 2025.
____________________________
Governor
Filed in this office this ___________day of _______________________________________, 2025,
at ________ o’clock ________M.
____________________________
Secretary of State