AGO 96-F-023.

• Court: North Dakota

North Dakota Attorney General Opinions 1996. AGO 96-F-023. STATE OF NORTH DAKOTA ATTORNEY GENERAL'S OPINION 96-F-23Date issued: December 27, 1996Requested by: Stuart A. Larson, Traill County State's Attorney- QUESTION PRESENTED - Whether a county may consider an application for payments in lieu of property taxes under North Dakota Century Code (N.D.C.C.) § 40-57.1-03 if the application is filed after the commencement of construction of the project. - ATTORNEY GENERAL'S OPINION - It is my opinion that a county may consider an application for payments in lieu of property taxes under N.D.C.C. § 40-57.1-03 if the application is filed after the commencement of construction of the project. - ANALYSIS - "In North Dakota, counties are creatures of the constitution and may speak and act only in the manner and on the matters prescribed by the Legislature in statutes enacted pursuant to constitutional authority." County of Stutsman v. State Historical Soc'y, 371 N.W.2d 321, 329 (N.D. 1985). N.D.C.C. ch. 40-57.1 grants a municipality discretionary authority to grant property tax exemptions or payments in lieu of taxes to new and expanding businesses with certain limitations. For the purposes of this chapter, "municipality" includes counties as well as all organized cities. N.D.C.C. § 40-57.1-02 (2). N.D.C.C. § 40-57.1-03 historically granted a municipality the authority to grant exemptions from ad valorem taxation with certain limitations. The 1994 Special Session of the Legislative Assembly amended this section to authorize, among other things, a municipality to grant payments in lieu of taxes. 1993 N.D. Sess. Laws, 1994 Special Supp., ch. 784, § 1. N.D.C.C. § 40-57.1-03 currently provides in part: After negotiation with a potential project operator, a municipality may grant a partial or complete exemption from ad valorem taxation on all buildings, structures, fixtures, and improvements used in or necessary to the operation of a project for a period not exceeding five years from the date of commencement of project operations. A municipality may also grant a partial or complete exemption from ad valorem taxation on buildings, structures, fixtures, and improvements used in or necessary to the operation of a project that produces or manufactures a product from agricultural commodities for all or part of the sixth year through...