AGO 80-130.

Case DateDecember 02, 1980
CourtNorth Dakota
North Dakota Attorney General Opinions 1980. AGO 80-130. December 2, 1980 (OPINION) OPINION 80-130Mr. Tom TuntlandMorton County State's Attorney Box 190 Mandan, ND 58554 Dear Mr. Tuntland: This is in reply to the request for an opinion you made in your letter of November 5, 1980, regarding the property tax status of certain property in the City of Mandan. Rather than paraphrase your letter, we quote from it as follows:
Housing Industry Training, Inc. (HIT) is an existing corporation organized under the provisions of the North Dakota Nonprofit Corporation Act, as a perpetual corporation. The articles of amendment to the Articles of Incorporation which are on file with the Secretary of State, set forth the purposes for which a corporation is organized as follows:
A. To provide housing, industry and training for all individuals, particularly those having handicaps, and to otherwise engage in any lawful act or activity for which nonprofit corporations may be organized under the North Dakota Business Corporation Act.
B. The purposes shall be charitable, religious, or educational within the meaning of section 501(c) (3) of the Internal Revenue Code.
C. No part of the net earnings of the corporation shall inure to the benefit of, or be distributable to, its members, trustees, officers, or other private persons except that the corporation shall be authorized and empowered to pay reasonable compensation for services rendered.
Under the provisions of chapter 40-57 of the North Dakota Century Code, the Municipal Industries Development Act of 1955, the City of Mandan, North Dakota authorized issuance of revenue bonds under the Municipal Industrial Development Act for the purpose of providing financing for the delivery of services to handicapped citizens in the City of Mandan to HIT, Inc. wherein HIT, Inc. became the project lessee of certain project property.
Pursuant to law bonds were issued, and the project, an old convent, was acquired. A proper lease was entered into between the City of Mandan and HIT, Inc. for repayment of the bonds.
Instead of operating an independent charitable or religious project in the convent, HIT, Inc. has leased the entire convent to Mandan Public School District No. 1, which is utilizing the convent for classrooms. No part of the convent is being utilized directly by HIT, Inc.
Pursuant to the provisions of sections 57-14-01 through 57-14-03 of the North Dakota Century Code, the Morton County Auditor, at the request of the Mandan City Assessor, gave notice to HIT, Inc., that their property, the convent, had been added to the County Auditor's assessment book.
Pursuant to the provisions of section 57-14-04 of the North Dakota Century Code, HIT, Inc.
...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT