AGO 80-136.

• Case Date: May 16, 1980
• Court: North Dakota

North Dakota Attorney General Opinions 1980. AGO 80-136. May 16, 1980 (OPINION) OPINION 80-136Ms. Cynthia A. RotheCass County States Attorney Cass County Courthouse P.O. Box 2806 Fargo, North Dakota 58108Dear Ms. Rothe: This is in response to your letter of April 7 in which you asked for an opinion regarding the property tax exemption provision in subsection 15 of section 57-02-08, N.D.C.C., for farm structures and improvements. The applicable part of the exemption stature, as you noted, are the first three sentences of subsection 15 of section 57-02-08, which read as follows:

57-02-08. PROPERTY EXEMPT FROM TAXATION. All property described in this section to the extent herein limited shall be exempt from taxation:

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5. All farm structures, and improvements located on agricultural lands. This subsection shall be construed to exempt farm buildings and improvements only, and shall not be construed to exempt from taxation industrial plants, or structures of any kind not used or intended for use as a part of a farm plant, or as a farm residence. Any structure or structures used in connection with a retail or wholesale business other than farming, even though situated on agricultural land, shall not be exempt under this subsection . . . .

The first set of facts and your three questions regarding those facts are quoted from your letter as follows:

This past assessment year in Cass County, a seed plant was placed on the assessment roll and an abatement has been filed asking that the property be exempt from taxation as farm structures in accordance with subsection 15 of section 57-02-08. There are several similar seed plant operations in Cass County. Grain is grown by the farmer and stored on that farm where it is cleaned, treated, and sold either in bulk or bagged as seed. Under those circumstances, would the following structures be taxable or exempt within subsection 15 of section 57-02 -0 8?

1. Storage facilities where the seed is kept before any cleaning, treating, or bagging has been done?

2. Structure or structures used in connection with the cleaning, treating, and bagging process?

3. Structure or structures used in storing the product after the seed has been conditioned by cleaning and treating.

We understand from the facts just quoted that the seed plants in question are "located on agricultural lands" within the meaning of the first sentence of subsection 15 of section 57-02-08 and we assume that the structures constituting each seed plant facility are used by the farmer only in connection with grain grown by that farmer. Under these circumstances it is our opinion that all of the storage facilities and structures for the grain, both before and after the cleaning, treating, and bagging process, as well as the structures used in connection with the cleaning, treating, and bagging process, are exempted from assessment and taxation by subsection 15 of section...