North Dakota HB 1439: AN ACT to amend and reenact subsection 9 of section 57-02-08 of the North Dakota Century Code, relating to a property tax exemption for property of churches; to provide for application; and to provide a retroactive effective date.

Bill Text

Sixty-eighth Legislative Assembly of North Dakota
In Regular Session Commencing Tuesday, January 3, 2023
HOUSE BILL NO. 1439
(Representatives Bellew, Fisher, Karls, Koppelman, Toman)
(Senators Clemens, Kannianen)
AN ACT to amend and reenact subsection 9 of section 57-02-08 of the North Dakota Century Code,
relating to a property tax exemption for property of churches; to provide for application; and to
provide a retroactive effective date.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Subsection 9 of section 57-02-08 of the North Dakota Century Code is
amended and reenacted as follows:
9. a. The land and any buildings on a parcel on which a church building is located, and which
is owned by a religious corporation or organization and used predominantly for the
religious purposes of the organization, must be deemed to be property used exclusively
for religious purposes, and exempt from taxation. The land and any buildings on a parcel
contiguous to the parcel on which a church building is located, which is owned by a
religious corporation or organization, is exempt from taxation if any building located on
the parcel is used predominantly for religious purposes.
b. If the parsonage and residence of the bishop, priest, rector, minister, or other clergy is
located on property owned by the religious corporation or organization, which is not
adjacent to the church, that residence, with usual outbuildings and land on which it is
located, up to two acres [.81 hectare], must be deemed to be property used exclusively
for religious purposes and is exempt from taxation.
c. Up to twenty acres [8.09 hectares] of undeveloped land owned by a religious corporation
or organization for the purpose of a future church building or buildings or parsonage and
residence as provided in subdivision b is exempt from taxation. This exemption expires
ten years after the taxable year in which the property was acquired by the religious
corporation or organization if construction improvements to accommodate a church
building or parsonage and residence have not commenced. For purposes of this
subdivision, "undeveloped land" includes land undergoing construction or containing
improvements to accommodate a future church building or parsonage and residence as
provided in subdivision b before the building or parsonage and residence is completed
and suitable for use.
d. The exemption for a building used for the religious purposes of the owner continues to be
in effect if the building in whole, or in part, is rented to another otherwise tax-exempt
corporation or organization, provided no profit is realized from the rent.
SECTION 2. RETROACTIVE EFFECTIVE DATE - APPLICATION. This Act is retroactively effective
and applies for taxable years beginning after December 31, 2020. The limitation on time for filing an
abatement claim under section 57-23-04 does not apply to refunds of taxes paid or cancellation of taxes
levied for taxable year 2021 or 2022 on property exempt from taxation under this Act. The board of
county commissioners shall direct refund of taxes paid or cancellation of taxes levied on property
exempt from taxation under this Act.

H. B. NO. 1439 - PAGE 2
____________________________ ____________________________
Speaker of the House President of the Senate
____________________________ ____________________________
Chief Clerk of the House Secretary of the Senate
This certifies that the within bill originated in the House of Representatives of the Sixty-eighth
Legislative Assembly of North Dakota and is known on the records of that body as House Bill No. 1439.
House Vote: Yeas 91 Nays 3 Absent 0
Senate Vote: Yeas 45 Nays 2 Absent 0
____________________________
Chief Clerk of the House
Received by the Governor at ________M. on _____________________________________, 2023.
Approved at ________M. on __________________________________________________, 2023.
____________________________
Governor
Filed in this office this ___________day of _______________________________________, 2023,
at ________ o’clock ________M.
____________________________
Secretary of State