N.D.C.C. § 57-06-17.4 — Pipeline authority exemption

Property, not including land, is exempt from taxation during construction and for the first ten
full taxable years following initial operation if it consists of a pipeline owned by the authority and
constructed after 2006, and necessary associated equipment for the transportation or storage of
energy-related commodities if constructed under chapter 54 -17.7. Pipeline facilities property
described in subsection 6 of section 54 -17.7-02 is subject to payments in lieu of property taxes
during the time it is exempt from taxation. For the purpose of these payments, pipeline facilities
property described in subsection 6 of section 54 -17.7-02, whether or not it crosses multiple
geographic taxing districts, must be valued annually by the state board of equalization and
certified in the manner that other pipeline valuations are certified. The county auditor shall
calculate taxes on the pipeline facilities property described in subsection 6 of section 54-17.7-02
in the same manner that taxes are calculated on other pipeline property. Not later than
December twenty -sixth of each year, each county auditor shall submit a statement of the
amount of taxes that would have been assessed against pipeline facilities property exempted
under this section to the state treasurer for payment. The state treasurer shall make the
required payment to each county not later than March first of the following year, and the county
auditor shall distribute the payments to the political subdivisions in which the exempt pipeline
facilities property is located.
57-06-17.5. Natural gas pipeline infrastructure to underserved communities -
Exemption.
All property, excluding the land on which it is situated, which is part of a natural gas
transmission or distribution pipeline system constructed in this state is exempt from taxation for
a period of fifteen years following the taxable year in which the pipeline becomes operational.
The exemption under this section applies if:
1. Construction of the pipeline commences after January 1, 2023.
2. The pipeline provides service to a city or township located within the state in which the
majority of households or businesses did not have access to natural gas service as of
January 1, 2023.
Page No. 6
3. The pipeline is located within this state.