57-02.2 Exemption of Improvements to Buildings
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<![CDATA[CHAPTER 57-02.2EXEMPTION OF IMPROVEMENTS TO BUILDINGS57-02.2-01.Declaration and finding of public purpose.The legislative assemblyhereby declares and finds that the present method of assessment and taxation of real property<br>discourages the investment of private capital in the rehabilitation and remodeling of commercial<br>and residential buildings and structures with the result that such properties have been allowed by<br>their owners to decay, become in need of repair, modernization, and replacement, and that such<br>conditions have resulted in a decreased tax base. The legislative assembly further finds that it is<br>in the public interest and for the welfare of the state of North Dakota, its political subdivisions, and<br>its citizens to encourage the investment of private capital in improvements to commercial and<br>residential buildings and structures, thereby encouraging the production of wealth, improving the<br>volume of employment, enhancing living conditions, and preserving and increasing the property<br>tax base. It is the intent of the legislative assembly that the exemptions from taxation provided<br>for in this chapter provide an alternative to the property tax exemptions provided for in chapters<br>40-57 and 40-57.1.57-02.2-02. Improvement defined. In this chapter, unless the context or subject matterotherwise requires, the term "improvement" means the renovation, remodeling, or alteration, but<br>not the replacement, of an existing building or structure for use for commercial or residential<br>purposes. An improvement for residential purposes is limited to a building or structure at least<br>twenty-five years old. An addition constructed to an existing building or structure to enlarge it is<br>an improvement for the purposes of this chapter.57-02.2-03.Tax exemption for improvements to commercial and residentialbuildings and structures - Property owner's certificate. Improvements to commercial and<br>residential buildings and structures as defined in this chapter may be exempt from assessment<br>and taxation for up to five years from the date of commencement of making the improvements, if<br>the exemption is approved by the governing body of the city, for property within city limits, or the<br>governing body of the county, for property outside city limits. The governing body of the city or<br>county may limit or impose conditions upon exemptions under this section, including limitations<br>on the time during which an exemption is allowed. A resolution adopted by the governing body of<br>the city or county under this section may be rescinded or amended at any time. The exemption<br>provided by this chapter shall apply only to that part of the valuation resulting from the<br>improvements which is over and above the assessed valuation, exclusive of the land, placed<br>upon the building or structure for the last assessment period immediately preceding the date of<br>commencement of the improvements.Any person, corporation, limited liability company,association, or organization owning real property and seeking an exemption under this chapter<br>shall file with the assessor a certificate setting out the facts upon which the claim for exemption is<br>based. The assessor shall determine whether the improvements qualify for the exemption based<br>on the resolution of the governing body of the city or county, and if the assessor determines that<br>the exemption should apply, upon approval of the governing body, the exemption is valid for the<br>prescribed period and shall not terminate upon the sale or exchange of the property but shall be<br>transferable to subsequent owners. If the certificate is not filed as herein provided, the assessor<br>shall regard the improvements as nonexempt and shall assess them as such.Page No. 1Document Outlinechapter 57-02.2 exemption of improvements to buildings]]>