Property Tax Exemption Of Farm Buildings & Other Improvements

Guideline

Property Tax

Exemption of Farm Buildings

and Other Improvements

North Dakota Century Code § 57-02-08(15)

December 2003

Rick Clayburgh

Tax Commissioner

General Provisions

1. Farm buildings and improvements located on agricultural lands are exempt from taxation provided

they are used as part of a farm plant.

The land must be used for raising agricultural crops or grazing farm animals and used as part of a

farm plant. A farm plant is the entire farm enterprise operated as an economic unit. If the unit

contains less than 10 acres of land, the taxing authority, in determining whether the unit is a farm,

must consider such things as the present use, the adaptability to use, and how similar type properties

in the immediate area are classified for tax purposes.

2. A residence or other building located on agricultural land is exempt if used both in a farming and in a

nonfarming activity, provided the primary or dominant use of it is in farming.

3. Buildings and other improvements located on agricultural land in unplatted areas within the boundaries

of an incorporated city are exempt, provided the buildings are used for agricultural purposes and are

part of a farm plant.

4. A residence or other building located on platted land within the boundaries of an incorporated city or

upon railroad operating property is not exempt as a farm building. An outlot (a lot included within the

boundaries of an original or subdivision plat) is platted land.

5. Any building located on a farm and occupied or used by someone not engaged in farming is not

exempt. (See number 7)

6. A vacant farm residence or building located on agricultural land is exempt, provided it was exempt as

part of a farm plant or as a farm residence when it was last used. A vacant farm residence or

building which was taxable because of a non-qualifying use should remain taxable until its active use

has changed.

7. Buildings located on agricultural land used by a farmer to provide housing for that farmer’s workers

are exempt, provided they are used as part of a farm plant. (See number 5)

8. Buildings and other improvements primarily used to feed chickens, turkeys or other poultry, cattle, pigs

or other livestock are exempt if the enterprise is located on agricultural land.

“Livestock” includes “nontraditional livestock”, that is, any wildlife held in a cage, fence, enclosure, or

other manmade means of confinement that limits its movement within definite boundaries, or an

animal that is physically altered to limit movement and facilitate capture. [N.D.C.C. § 36-01-00.1].

24876

G-9

North Dakota Office of State Tax Commissioner

600 E Boulevard Ave, Dept 127

701.328.3127

taxinfo@state.nd.us

Bismarck ND 58505-0599

Property Tax Exemption Of Farm Buildings & Other Improvements - 2003