AGO 81-060.

• Case Date: June 15, 1981
• Court: North Dakota

North Dakota Attorney General Opinions 1981. AGO 81-060. OPINION 81-60Date Issued: June 15, 1981 (AGO 81-60) Requested by: Jerald L. Engelman, Mayville City Attorney- QUESTION PRESENTED - Whether a city council may adopt a resolution authorizing a low rent housing program and agree that the low rent housing is exempt from real and personal property taxes.- ATTORNEY GENERAL'S OPINION - It is my opinion that a city council may adopt a resolution authorizing a low rent housing program and agree in the resolution that the low rent housing shall be exempt from real and personal property taxes. - ANALYSIS - Section 23-11-02 of the North Dakota Century Code provides for the creation of housing authorities and states, in part:

23-11-02. CREATION OF HOUSING AUTHORITIES. . . . there is created a public body corporate and politic to be known as the "housing authority" of the city or county, as the case may be. . . .

The housing authority under this section becomes a public corporation for public purposes, and as such is subject to Article X, Section 5, of the North Dakota Constitution, which provides, in part:

. . .The property of the United States and of the state, county and municipal corporations and property used exclusively for schools, religious, cemetery, charitable or other public purposes shall be exempt from taxation. . . .

In May of 1977, the city of Mayville entered into a resolution authorizing the execution of a cooperation agreement between the city of Mayville and the housing authority of Traill County. Section 3(a) of the resolution agreement states, in part:

3. (a) Under the constitution and statutes of the State of North Dakota, all Projects are exempt from all real and personal property taxes and special assessments levied or imposed by any Taxing Body. . . . During such period, the Local Authority shall make annual payment (herein called "Payments in Lieu of Taxes") in lieu of such taxes and special assessments and in payment for the Public services and facilities furnished from time to time without other cost or charge for or with respect to such Project.

Section 23-11-29, N.D.C.C., allows for such tax exemptions and payments in lieu of taxes and states as follows:

23-11-29. TAX EXEMPTIONS AND PAYMENTS IN LIEU OF TAXES. The property of an authority including an authority created under Indian laws

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