SB 2039 — Relating to the definition of agricultural property and the farm structure and improvements property tax exemption; and to provide an effective date.

25.0380.01004 Prepared by the Legislative Council Title.03000 staff for Representative Hagert March 24, 2025 Sixty-ninth Legislative Assembly of North Dakota PROPOSEDIn AMENDMENTSRegular TOSession Commencing Tuesday, January 7, 2025 SENATE BILL NO.

2039 Introduced(Legislative byManagement) Legislative Management (Taxation Committee) AAN BILLACT for an Act to amend and reenact subsection 1 of section 57-02-01 and subdivision a of subsection 15 of section 57-02-08 of the North Dakota Century Code, relating to the definition of agricultural property and the farm structure and improvements property tax exemption;

For purposes of this subsection, "raising agricultural crops" includes the storage of harvested crops until the crop is delivered to the first end-point user.

The existence of any of the conditions in subdivision a may not be used as a basis to exclude property used to raise agricultural crops from being classified as agricultural property.

PageThe No.time limitations contained in this section may not be construed to prevent property that was assessed as other than agricultural property from being assessed as agricultural property if the property otherwise qualifies under this subsection.

1 25.0380.01004 Sixty-ninth Legislative Assembly The time limitations contained in this section may not be construed to prevent property that was assessed as other than agricultural property from being assessed as agricultural property if the property otherwise qualifies under this subsection.

(2) The existence of any of the conditions in paragraph 2 of subdivision a may not be used as a basis to exclude unplatted land used to raise agricultural crops or land plattedS. and assessed as agricultural property prior to March 30, 1981, used to raise agricultural crops from being classified as agricultural property.

(3)B. Land that was assessed as agricultural property at the time the land was put to use for extraction of oil, natural gas, or subsurface minerals as defined in section 38-12-01 must continue to be assessed as agricultural property if the remainder of the surface owner's parcel of property on which the Page No.

2NO. 25.0380.01004 Sixty-ninth Legislative Assembly subsurface mineral activity is occurring continues to qualify for assessment as agricultural property under this subsection.

2039 - PAGE 2 platted and assessed as agricultural property prior to March 30, 1981, used to raise agricultural crops from being classified as agricultural property.

(3) Land that was assessed as agricultural property at the time the land was put to use for extraction of oil, natural gas, or subsurface minerals as defined in section 38-12- must continue to be assessed as agricultural property if the remainder of the surface owner's parcel of property on which the subsurface mineral activity is occurring continues to qualify for assessment as agricultural property under this subsection.

[2] Any structure or improvement located on platted land within the corporate limits of a city, anyexcept a structure owned by a farmer, used exclusively for storage of harvested crops produced by the farmer or a direct relative of the farmer until the crop is Pagedelivered No.to the first end-point user, and affixed to land platted and assessed as agricultural property prior to March 30, 1981;

3 25.0380.01004 Sixty-ninth Legislative Assembly delivered to the first end-point user, and affixed to land platted and assessed as agricultural property prior to March 30, 1981;

(b) For purposes of this paragraph, "business other than farming" includes processing to produce a value-added physical or chemical change in an agriculturalS. commodity beyond the ordinary handling of that commodity by a farmer prior to sale.

B.

NO.

2039 - PAGE 3 agricultural commodity beyond the ordinary handling of that commodity by a farmer prior to sale.

This Act is effective for taxable years beginning after December 31, 20242025.2025.

PageS. No.

4B. 25.0380.01004

NO.

2039 - PAGE 4 ____________________________ ____________________________ 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.

2039.

Senate Vote:

Yeas 38 Nays 9 Absent 0 House Vote:

Yeas 84 Nays 7 Absent 3 ____________________________ 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