New or Expanding Business- Property Tax Exemption

Projects must be a new or expanding primary sector business. Primary sector is a business that adds value to product, process, or service that produces new wealth in North Dakota. Primary sector certification must be gained from the North Dakota Department of Commerce Division of Economic Development and Finance. A project is not eligible for an exemption if any of the following apply:

• A tax exemption was received under tax increment financing
• The exemption fosters unfair competition or endangers existing business
• Land does not qualify for an exemption
• A city or county with a population of less than 40,000 may grant an exemption for a retail project (non-primary sector) if the voters have approved the granting of exemptions and criteria for retail sector projects.

Standard exemption is 5 years; local governments may negotiate payments in lieu of property tax for up to 20 years from the date project operation begins. 

Application for Property Tax Exemption for New or Expanding Businesses - North Dakota Department of Commerce Division of Economic Development and Finance

• Primary Sector Certification – North Dakota Department of Commerce Division of Economic Development and Finance
• One of the following Clearance Forms may be needed:
  • State Clearance Record Form
  • Property Tax Clearance Record Form
• Apply to the city or county the project is located in. The application for exemption must be made and approved before construction of a new structure begins. If an existing structure will be occupied, application must be made and approved before the structure is occupied. Payments in lieu of taxes may be approved after construction or occupancy of a structure.
• Project must publish 2 notices in the official newspaper of the city or county at least 1 week apart if it is determined there are local competitors. The last notice must be published at least 15 days, but not more than 30 days, before the application is considered.
• A public hearing on the application must be held, after which the governing body acts on the application.

Once application is approved exemption will automatically be applied.

N.D.C.C. Ch. 40-57.1