North DakotaSB 20392025 Regular SessionSenateWALLET

AN ACT to amend and reenact subsection 1 of section 57-02-01 and subdivision a of subsection 15 of section 57-02-08 of the North Dakota Century Code, relating to the definition of agricultural property and the farm structure and improvements property tax exemption; and to provide an effective date.

Sponsored By: Legislative Management

Signed by Governor

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Property tax protections for qualifying farms

Starting with tax years beginning after December 31, 2025, North Dakota exempts certain farmer-owned crop-storage buildings inside city limits. Buildings must be attached to land platted and assessed as agricultural before March 30, 1981. They must store only crops grown by the farmer or a direct relative, until delivery to the first end-point user. That storage also counts as raising crops for agricultural land classification. Land assessed as agricultural when oil, gas, or subsurface mineral extraction starts keeps that status if the remaining parcel qualifies. The listed development-related conditions alone cannot disqualify otherwise qualifying unplatted farmland. Land platted and assessed as agricultural before March 30, 1981, keeps that status until put to nonfarm use.

Farm processing buildings lose tax protection

Starting with tax years beginning after December 31, 2025, North Dakota excludes certain processing buildings from its farm property tax exemption. This applies to buildings or improvements used mainly for processing that physically or chemically changes a farm product, adding value. The processing must go beyond a farmer’s ordinary handling before sale. Affected farmers and businesses lose the farm exemption for those buildings.

Sponsors & Cosponsors

Sponsor

  • Legislative Management

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 155 • No: 30

Senate vote • 4/2/2025

Second reading, passed, yeas 38 nays 9

Yes: 38 • No: 9

House vote • 3/28/2025

Second reading, passed as amended, yeas 84 nays 7

Yes: 84 • No: 7

Senate vote • 1/23/2025

Second reading, passed, yeas 33 nays 14

Yes: 33 • No: 14

Actions Timeline

  1. Filed with Secretary Of State 04/08

    4/9/2025House
  2. Signed by Governor 04/07

    4/8/2025Senate
  3. Sent to Governor

    4/4/2025Senate
  4. Signed by President

    4/4/2025Senate
  5. Signed by Speaker

    4/4/2025House
  6. Second reading, passed, yeas 38 nays 9

    4/2/2025Senate
  7. Concurred

    4/2/2025Senate
  8. Returned to Senate (12)

    3/31/2025Senate
  9. Second reading, passed as amended, yeas 84 nays 7

    3/28/2025House
  10. Amendment adopted, placed on calendar

    3/26/2025House
  11. Reported back amended, do pass, amendment placed on calendar 11 2 1

    3/25/2025House
  12. Committee Hearing 09:00

    3/10/2025House
  13. Introduced, first reading, referred Finance and Taxation Committee

    2/13/2025House
  14. Received from Senate

    1/24/2025House
  15. Second reading, passed, yeas 33 nays 14

    1/23/2025Senate
  16. Reported back, do pass, place on calendar 4 2 0

    1/22/2025Senate
  17. Committee Hearing 09:00

    1/13/2025Senate
  18. Introduced, first reading, referred Finance and Taxation Committee

    1/7/2025Senate

Bill Text

  • Enrollment

  • INTRODUCED

  • Prepared by the Legislative Council staff for Representative Hagert

  • SENATE BILL NO. 2039 with House Amendments

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