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Renaissance Zone Information
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UPDATED SEPTEMBER 13, 2006
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RENAISSANCE ZONE APPLICATION
CITY OF JAMESTOWN
JAMESTOWN CITY HALL
102 3RD AVENUE SOUTHEAST
JAMESTOWN, NORTH DAKOTA
701-252-5900
FEBRUARY, 2006
To: Renaissance Zone Applicants:
Enclosed find the following information as an introduction to the Jamestown
Renaissance Zone Program to assist you in completing your application:
• Renaissance Zone Information for Applicants
• Instructions and Application form for Certificate of Good Standing from the
N.D. State Tax Department
• Application for Property Tax and/or State Income Tax incentives
The North Dakota Renaissance Zone Program information from the North Dakota
Department of Commerce Division of Community Services is available on their
website (www.state.nd.us/dcs) as a reference if you care to look at it.
The Renaissance Zone Act Tax Incentives Guideline from the North Dakota Office
of State Tax Commissioner is available on their website (www.state.nd.taxdpt)
There are three different tax incentives available, with either full or
partial benefits;
• Property Tax Incentives
• North Dakota State Income Tax Credits
• Income Exemptions
Each is described within the ‘Information for Applicants’ booklet. Incentives
are based on the true and full value of buildings (the value used in
determining property taxes); however no incentives are available for the
purchase of the land. Incentives are available to both landlords (investors)
and tenants (business owners). The Renaissance Zone Program is a fifteen (15)
years program, extending to the year 2014.
A qualified improvement is one in which the cost of the capital improvement
equals or exceeds 50% of the current true value of the zone project property
(building) before improvements are made, with a minimum capital investment of
$10,000 required. The proposed capital improvements must substantially improve
the life expectancy of the property.
We would like to assure you that the Renaissance Zone application and approval
process is very user friendly and not a time consuming or drawn out process.
Assistance is available with any questions you might have.
The first thing is to determine just what you expect your project to
accomplish. We suggest you proceed as follows:
• Review the entire program.
• Decide what you intend to do.
• Seek assistance from members of the Renaissance Zone Authority or the City
Administrator in those areas you wish guidance.
• Complete the application for a Certificate of Good Standing found in the
enclosed packet and mail it to the North Dakota office of State Tax
Commissioner.
• Finalize your improvement and financial plans and submit the completed
application to the Renaissance Zone Authority for approval before starting
the project
The Renaissance Zone Authority is made up of individuals from various
professional fields that should be able to assist you in answering questions
on specifics on your project to get you started. Of course, your attorney and
accountant should be consulted regarding your specific situation, particularly
on income tax incentives.
Once your application has been received, the Renaissance Zone Authority will
review the project and make recommendation to the Legal and Finance Committee
of the City Council who will make a recommendation for approval or disapproval
to the City Council. After the City Council has approved the project, final
approval will come from the North Dakota Department of Commerce Division of
Community Services in Bismarck to insure that it falls within the scope of the
State Legislation.
Information relative to Historical Tax Credits may be obtained by contacting
Barb Lang at 252-4570.
We hope the enclosed information will assist you in completing your project
and if we can be of any more assistance, please contact any member of the
Renaissance Zone Authority or City Administrator.
Jeff Fuchs
City Administrator
City of Jamestown
701-252-5900
RENAISSANCE
ZONE
INFORMATION
FOR
APPLICANTS
CITY OF JAMESTOWN
RENAISSANCE ZONE
INDEX
PAGE
Definitions 1
Renaissance Zone Legislation 2
Incentives: Tax Exemptions and Credits 2
Property Tax Exemptions 2
North Dakota State Income Tax Credits 2
Income Exemptions 2
North Dakota State Tax Credits for Historic Places 3
Jamestown Renaissance Zone Authority 3
Attracting new Business 4
Local Development Regulations 4
Individual Project Review and Selection 4
Project Review Guidelines 4
Criteria for Project Approval 5
Examples of Tax Exemptions and Credits Available 8
Reference Information 10
Map of Zone Boundaries 11
Attachments:
Application for Property Tax Incentives and/or State Income Tax
Exemptions for Renaissance Zone Projects
Application for Requesting a Certificate of Good Standing
from the N.D. State Tax Department
DEFINITIONS
Boundary - means the boundary established by vote of the city governing body
and approved by the DCS.
Historic Property - Property that is: (1) listed on the National Historic
Register of Historic Places; (2) a contributing structure within a National
Register Historic District or a certified state or local historic district; or
(3) eligible for listing in the National Historic Register of Historic Places.
Investment - For the purpose of North Dakota Century Code § 40-63-04(2),
investment means the holding of residential or commercial property that is not
used in the taxpayer’s trade or business.
Lease - means the lease of space in a building in a designated renaissance
zone by a new business moving into the zone or by an existing zone business
expanding in the zone, and the continuation of a lease of an existing zone
tenant in a building rehabilitated as an approved zone project. For existing
zone tenants expanding in the zone, the term does not include existing leased
space.
Local Zone Authority - means the city or the entity designated by the city to
promote, develop, and manage the zone and may include any nonprofit
incorporated entity such as an economic development corporation, community
development corporation, main street organization, or chamber of commerce.
Primary Residence - An individual taxpayer’s primary place of residence is the
person’s true, fixed, and permanent home, and is the place to which, whenever
absent, the taxpayer intends to return.
Rehabilitation - as used in sections 40-63-04 and 40-63-05, means the repair
or remodeling of a building at a cost that is equal to or exceeds 50 percent
of the current true and full value for commercial buildings and 20 percent for
single-family homes. The primary purpose of rehabilitation is to repair or
remodel existing homes or commercial structures to bring them up-to-date with
current building codes and standards and/or to repair or remodel dilapidated
conditions. However, a city may also approve a remodeling project for a
residential or commercial building that is intended specifically to increase
the current true and full value of the property by an amount defined by the
city, and may approve remodeling of a commercial building, to include building
additions for business expansion.
Single-Family Residential Property - For the purpose of the Renaissance Zone
Act, the purchase by an individual taxpayer of single-family residential
property for the individual’s primary place of residence will include a single-
family detached home, single unit in a duplex, townhouse, and condominium.
Taxpayer - means an individual, corporation, financial institution, or trust
subject to the taxes imposed by chapter 57-35.3 or 57-38 and includes a
partnership, subchapter S corporation, limited partnership, limited liability
company, or any other pass-through entity.
Zone - means a Renaissance Zone proposed by a city and designated by the DCS.
Zone Project - means the purchase, lease, rehabilitation, or historical
preservation or renovation of a building or space in a building approved for
zone incentives by a majority vote of the city governing body or zone
authority.
1
RENAISSANCE ZONE LEG1SLATION
The Renaissance Zone Legislation was designed as an innovative approach to
promote reinvestment in and development of residential and commercial
properties that have lost their original uses over the years. Projects in the
Zone will create new uses for those properties with the help of a variety of
incentives such as property tax exemptions, historic/preservation tax credits
and North Dakota State income tax credits.
To make the Renaissance Zone a viable area of redevelopment, the plan
describes both the designated blocks and the strategy for redevelopment.
Each community designates a Renaissance Zone Authority to promote, develop and
manage the Zone. The Zone Authority must review each project and recommend
that the City Council approve the project and tax incentives, in order to be
eligible for the incentives offered in the legislation. The maximum duration
of the zone is 15 years. The Act is effective as of January 1, 1999, but does
not apply to investment activities prior to an individual community’s plan
being approved by the state.
INCENTIVES: TAX EXEMPTIONS AND CREDITS
The Renaissance Zone legislation allows the local Zone Authority to recommend:
• Up to a five (5) year Property Tax Exemption
• Up to a five (5) year North Dakota State Income Tax Exemption.
• Up to a fifty (50) percent Historic/Preservation Tax Credit.
PROPERTY TAX EXEMPTIONS
• Property tax incentives are administered by City Assessment officials and
the City Council.
• The property tax exemption transfers with the transfer of the property to a
qualified user.
NORTH DAKOTA STATE INCOME TAX CREDITS
• Individual State Income Tax Credits up to $10,000 per year for five years
for purchasing a single-family residence as the primary place of residence.
• State Income Tax Credits up to fifty percent (50%) of the amount invested to
preserve or renovate historic property, with a five-year carry forward of
the excess credit.
• State Income Tax Credits up to fifty percent (50%) of the amount invested in
a Renaissance Fund Corporation, with a five-year carry forward of excess
credit.
INCOME EXEMPTIONS
• Five-year Business Income Exemption for purchasing or leasing real property
for use in a business, or for improving real property used in an existing
business.
• Five-year Investment Income Exemption for purchasing residential or
commercial property solely for investment purposes.
• Five-year exemption period is deemed to mean a period of sixty consecutive
months.
• A qualified improvement is one in which the cost of the improvement equals
or exceeds fifty percent (50%) of the current true and full value of the
zone project property before improvements are made.
• The exemption is allowed with respect to the taxpayer’s North Dakota
Business Income that is attributable to the zone project property.
2
NORTH DAXOTA STATE TAX CREDITS FOR HISTORIC PROPERTY
An Income Tax Credit is allowed for income tax purposes to an individual, an
estate or trust, a corporation or a financial institution.
Historic property means property that the North Dakota Historic Society
certifies as being (1) listed on the National Historic Register of Historic
Places (2) a contributing structure within a National Register Historic
District (also state and local) and (3) eligible for listing on the National
Historic Register of Historic Places.
• The Credit equals 50% of the amount invested during the tax year; credit in
excess of the tax liability may be carried forward and used in the five (5)
years following the tax year in which the investment is made.
JAMESTOWN RENAISSANCE ZONE AUTHORITY
PRIMARY RESPONSIBILITIIS:
The Jamestown Renaissance Zone is established with three primary objectives:
Economic Development in a revitalized ‘central city’
Promotion of the Renaissance Zone objectives
Administration of the Renaissance Zone program and incentives.
The Zone Authority shall be responsible for the review of all Zone project
applications. If there is a need for any changes to local zoning and/or
regulations, the Authority will assist with the referrals to the City Planning
Commission.
A quorum of five (5) members of the Zone Authority shall be present to vote
for recommended approval or rejection of a project application.
The Zone Authority may recommend approval, rejection or continue to negotiate
an application for Renaissance Zone designation.
All recommendations of the Zone Authority go to the City Council for final
approval.
Upon approval by the City Council, the City Auditor will forward the
application to the Division of Community Services in Bismarck for final
reviews and approval.
The Authority shall meet as called to review applications.
Jamestown Renaissance Zone Authority Membership:
Dwaine Heinrich, Jamestown City Council
Clarice Liechty, Jamestown City Council
Erik Sand, Jamestown School Board
Kelly Krein, Business Owner, Lloyds Motors
Kirk Hem, Business Owner, Edward Jones Investments
Letitia Johnson, Real Estate Agent, Rueben Liechty Realtors
Harvey Huber, Stutsman County State Bank
3
ATTRACTING NEW BUSINESSES
It shall be the policy that all persons or organizations involved in the
Jamestown Renaissance Zone assure that no business will be actively recruited
to relocate their business from any other North Dakota community to the City
of Jamestown The exception would be a business that is considering ‘an
expansion of their business to Jamestown’ for economic reasons.
LOCAL DEVELOPMENT REGULATIONS
The Jamestown City Planning Commission has created zoning laws that have been
approved by the City Council. The zoning process is a means to ease any real
or perceived regulatory barriers to the future development of the City. It
allows a broad range of uses, permitting varied means of development through
out the City. The intent is to allow the developer the flexibility that is
needed to work with historic properties and allow mixed use projects within
designated areas.
The City believes that no exigent regulatory burden exists; however, if a
developer is faced with what he/she feels is an unnecessary regulatory burden,
he/she may make a request to the City Planning Commission that the regulation
changed. Each request will be seriously considered and evaluated on its own
merit as an enhancement, but also in light of its overall impact on the
health, safety and welfare of the community.
All projects must be designated as a ‘zone project’ by the city and state
prior to the transfer of property or any other authorized act to be considered
for any tax incentives.
INDIVIDUAL PROJECT REVIEW AND SELECTION
Any project requiring a change in ‘zoning’ must be submitted to, and approved
by, the City of Jamestown Planning Commission prior to final approval by the
Zone Authority.
Any project requesting Historical/Preservation tax credits must be submitted
to, and approved by, the Jamestown Historical Society prior to final approval
of the Authority.
Each potential Renaissance Zone project, must meet the minimum criteria as
defined herein. Each project will be evaluated by the Zone Authority and rated
according to a number of factors. (‘Project Review Guidelines’ are outlined in
the following section.) The purpose of the review process is to determine
whether an activity will qualify as an approved Renaissance Zone project, and
if it does, to determine the nature and extent of the incentive package that
should be offered.
The City of Jamestown feels confident that the ‘project review guidelines’ and
the ‘criteria for project approval’) as established in this plan, together
with the general administration procedures, will provide for the preservation,
renovation, redevelopment and enhancement of the Zone area and meet the State
of North Dakota’s objectives in providing for the creation of Renaissance
Zones within the State.
PROJECT REVIEW GUIDELINES
Each proposed Renaissance Zone project will be evaluated by the Zone Authority
and rated according to a number of factors. The Zone Authority will have the
discretion of recommending to the City Council that incentives be awarded up
to a certain level, within the defined guidelines, or submit the project with
no recommendations.
4
Zone projects involving tax incentives for single family dwellings will
require an affidavit by the applicant that they intend the housing unit to be
their primary residence. This includes single family homes; detached or
attached homes, twin homes, town houses and condominiums.
The following guidelines are factors that are to be used to evaluate the
varied range of projects that are likely to come before the Zone Authority.
Note, compliance with each of the guidelines, as defined below, is not
necessary for project approval, the guidelines are simply factors to be used
to evaluate the varied range of projects that are expected to be presented.
1. High Priority Land Use. Redevelopment or reinvestment to a higher priority land use
* Primary sector business
* Active commercial, specialty retail and/or entertainment
* Mixed use development (with a combination of housing, commercial
and/or retail either above or adjacent to the other)
* Large upscale residential units
* (Note-- Creation of adult entertainment or single room apartments are
not consistent with the goals outlined in the Renaissance Zone Plan.)
2. Targeted Areas. Redevelopment or reinvestment in a targeted area.
* Parcels that have been vacant or underutilized for an extended period
of time
* Properties specifically targeted for demolition or clearance
* When title for property presently owned by the railroad is transferred
to a private party, it will become eligible for application as a Zone
project
3. Public Space. Redevelopment or reinvestment to create civic space or to
strengthen pedestrian corridors.
* Incorporation of ‘civic or public’ space within a development proposal
will receive additional consideration
* Attention must be given to ‘street-scape” amenities.
4. Investment. Amount of actual capital investment proposed for the project.
* Consideration can be given for the level of capital investment in a
project (i.e. additional consideration can be given for higher levels
of investment)
5. Relocation. Movement of commercial businesses to and within the Zone
* Commercial tenants that are re-locating within the Zone are not
eligible for tax incentives without special approval from the Zone
Authority and City Council
* Tenants relocating from another North Dakota community to the Jamestown
Renaissance Zone are not eligible for tax incentives without special
approval from the Zone Authority and City Council
5
CRITERIA FOR PROJECT APPROVAL
The intent of the criteria is to encourage and reward significant levels of
investment in Renaissance Zone properties. The City of Jamestown seeks to
encourage significant investment within the Renaissance Zone to improve
deteriorating properties and to curtail the vacating of buildings with the
eventual decline in property taxes. The Renaissance Zone is planned to meet
the future needs of the community. Use of property must be consistent with the
Visions and Goals for the Renaissance Zone as previously outlined in this
document.
Each project is rated based on its own merits. The City Council may waive any,
but not all requirements, if they deem a project should be entitled to
benefits for the good of the community. In the Jamestown Renaissance Zone, a
transfer of property does not automatically qualify the transaction as an
approved Zone project.
A Renaissance Zone project must be able to address some or all of the
following listed criteria, regardless of whether or not the project involves a
new purchase (by an individual or a group of investors) or an existing
ownership arrangement.
All Proposed Projects
Building permits must be applied for in accordance with City of Jamestown
building codes. All building construction and renovation activities must
comply with the State Building Code and State Energy Code, and any local
amendments, and the Americans with Disabilities Act Guidelines. Final
inspection by the City of Jamestown Building Inspector of work completed will
suffice to show compliance with the ADAAG.
Exterior rehabilitation must be sufficient to eliminate any and all
deteriorated conditions that are visible on the exterior of the building.
Square footage to calculate any required investment level will be based on the
square footage of the entire building, excluding basements. A differentiation
will be used on projects with mixed commercial and residential usages. All
dollar values will be in Year 2000 dollars, adjusted for inflation utilizing
the Consumer Price Index.
Current Residential Property
• Ownership of the property is transferred after the state authorizes the
local zone
• Property must be zoned residential
• Property owner makes ‘capital improvements’ equal to the greatest of
** Fifty percent (50%) of the true and full value of the property prior
to making the improvements (or)
** $10,000 capital improvement investment
• The capital improvements, as proposed, must substantially improve the
life expectancy of the property
• The addition of garages may be included if it is determined that all
other necessary improvements have been made to the existing principle
structure
New Residential Construction
Property must be of conforming use
6
Current Commercial Property
• Property ownership must by transferred after the State has authorized
the local zone to be eligible for both real estate and income tax
exemptions. If the existing owner remodels without transfer of
ownership, N.D.C.C.57-02.2 allows the City the granting of a remodeling
exemption for that portion of the project.
• Property owner makes ‘capital improvements’ equal to the greatest of
** Fifty percent (50%) of the true and full value of the property prior
to making the improvements (or)
** $10,000 investment in ‘capital improvements’
• The capital improvements, as proposed, must substantially improve the
life expectancy of the property
New Commercial Construction or Additions
Minimal investment of $20 a square foot for capital improvements
Vacant Properties
• At the present time all vacant lots within the Renaissance Zone, with
the exception of city owned parking lots adjacent to the railroad
tracks, could be considered for Renaissance Zone incentives.
• Vacant lots that have never been developed, or built on, are not
eligible for Zone incentives according to State requirements
• Properties with a history of long term vacancies may be given special
consideration by waiving some of the above mentioned requirements
Commercial Leases
• Tenant must be leasing space in a building that has been approved as a
Renaissance Zone project for either current or new commercial property
• If the Zone Authority has determined a building has been restored or
rehabilitated prior the establishment of the Renaissance Zone, and
meets all required criteria, the building owner may request additional
incentives to bring the building to full capacity
Percentage of Exemption
• State Publication (N.D.C.C.ch 40-63) provides information on North
Dakota Renaissance Zone incentives
• Property that is targeted for demolition in the Renaissance Zone may
be eligible for up to 100% exemption from property taxes if the
existing property is demolished and replaced by a new structure. Note:
Property taxes on the land are not exempt.
• Non-conforming properties that make structural changes to provide for
a change in use to bring the property into compliance with city plans
and ordinances, may be eligible for up to 100% property tax exemption
7
• Property meeting the criteria for the Renaissance Zone may be eligible
for up to 100% property tax exemption on the existing building and
improvements
• A business operating in an approved Renaissance Zone project, may be
eligible for a business tax exemption for income generated in that
project
• Tenants leasing space in an approved Renaissance Zone project may be
eligible for a business tax exemption of up to 100% for income
generated in that project
EXAMPLES OF TAX EXEMPTIONS AND CREDITS AVAILABLE
1. Income Tax Exemptions and Credits
a. An individual taxpayer who purchases or rehabilitates single-family
residential property for the individual’s primary place of residence as a
zone project is exempt from up to ten thousand dollars of personal income
tax liability as determined under section 57-38-29 or 57-38-30.3 for five
taxable years beginning with the date of occupancy or completion of
rehabilitation. (See Part 2 of Tax Guide)
b. Any taxpayer that purchases, leases, or rehabilitates residential or
commercial property for any business or investment purpose as a zone
project is exempt from any tax on income derived from the business or
investment locations within the zone for five taxable years, beginning with
the date of purchase, lease, or completion of rehabilitation. (See Part 3
of Tax Guide)
c. If the cost of a new business purchase or expansion of an existing
business, approved as a zone project, exceeds seventy-five thousand
dollars, and the business is located in a city with a population of not
more than two thousand five hundred, an individual taxpayer may, in lieu of
the exemption provided in subsection b above, elect to take an income tax
exemption of up to two thousand dollars of personal income tax liability as
determined under section 57-38-29 or 57-38-30.3. The election must be made
on the taxpayer’s zone project application. The election is irrevocable and
binding for the duration of the exemptions provided in subsection b and c.
If no election is made on the zone project application, the taxpayer is
only eligible for the exemption provided in subsection b. (See Part 4 of
Tax Guide)
d. The exemptions provided by this section do not eliminate any duty to file a
return or to report income as required under chapter 57-35.3 or 57-38.
NOTE: Insurance companies subject to North Dakota’s gross premium tax under
N.D.C.C. ch. 26.1-03 are not eligible for any tax incentives under the Act.
NOTE: The ownership or lease of, or investment in a parcel of property may
qualify for an exemption only once, but during the five taxable years of
eligibility, the exemption may transfer with the transfer of the property
to a qualified user on a prorated basis. If such a transfer occurs, the
zone authority must notify the DCS and provide the applicable taxpayer
information identified in Section XI of this Program Statement.
2. Property Tax Exemptions (See Part 1 of tax guide)
a. A municipality may grant a partial or complete exemption from ad valorem
taxation on single-family residential property, exclusive of the land on
which it is situated, if the property was purchased or rehabilitated by an
individual for the individual’s primary place of residence as a zone
project. An exemption granted under this subsection may not extend beyond
five taxable years following the date of acquisition or rehabilitation.
8
b. A municipality may grant a partial or complete exemption from ad valorem
taxation on buildings, structures, fixtures, and improvements purchased or
rehabilitated as a zone project for any business or investment purpose. An
exemption under this subsection may not extend beyond five taxable years
following the date of purchase or rehabilitation.
NOTE: A parcel of property may be exempted from property taxes only once,
but during the five taxable years of eligibility for that exemption, the
property tax exemption may transfer with the property to a qualifying user.
If such a transfer occurs, the zone authority must notify the DCS and
provide the applicable taxpayer information identified in Section XI of
this Program Statement.
3. Historic Preservation and Renovation Tax Credit (See Part 5 of Tax Guide)
A credit of twenty-five percent of an investment is allowed for the
preservation and renovation of eligible historic property that is part of a
zone project up to a maximum of $250,000. This credit is against state tax
liability as determined under sections 57-35.3-03, 57-38-29, 57-38-30, and 57-
38-30.3 of the North Dakota Century Code. The credit may be claimed in the
year in which the preservation or renovation is completed. Any excess credit
may be carried forward for a period of up to five years from the date of the
investment.
9
THE FOLLOWING
ARE AVAILABLE TO APPLICANTS
FOR THEIR REVIEW AND GUIDANCE
PUBLICATIONS
(N.D.C.C. ch. 40-63)
North Dakota Renaissance Zone Program
North Dakota Division of Community Services
Website (www.state.nd..us\dcs)
North Dakota Renaissance Zone
Tax Incentive Guideline
North Dakota Office of State Tax Commissioner
Website (www.state.nd.taxdpt)
RENAISSANCE ZONE FORMS
Request for Renaissance Zone Certificate of Good Standing – State Taxes Only
City of Jamestown Application for Property and/or State Income Tax Incentives
These publications may be revised - either visit the website or
contact Jamestown City Hall for most current publication date
(Publications and Forms are available at the Jamestown City Hall)
10
CITY OF JAMESTOWN
APPLICATION FOR PROPERTY TAX INCENTIVES AND/OR STATE INCOME TAX
EXEMPTIONS FOR RENAISSANCE ZONE PROJECTS
(THIS APPLICATION IS A PUBLIC RECORD)
IDENTIFICATION OF PROJECT OPERATOR:
1. Name of project operator
___________________________________________________________________________
2. Address of project
___________________________________________________________________________
City _______________________________ County _______________________________
3. Mailing address of project operator _______________________________________
City, State, Zip Code _____________________________________________________
4. Type of ownership of project:
Partnership ________ Cooperative________
Corporation________ Individual proprietorship________
Subchapter S corporation________ Limited liability company________
5. Federal ID No. or Social Security No. _____________________________________
6. North Dakota Sales and Use Tax Permit No. _________________________________
7. If a corporation, specify the state & date of incorporation:
___________________________________________________________________________
8. Name and title of individual to contact ___________________________________
Mailing address ___________________________________________________________
City, State, Zip Code _____________________________________________________
Telephone No. _____________________________________________________________
9. Indicate terms for Property Tax Exemption and be specific:
________ Number of years
________ Percent of exemption
9a. Indicate terms for State Income Tax Exemption and be specific:
________ Number of years
________ Percent of exemption
10. Which of the following would best describe the project for which this
application is being made?
_____ New business project
_____ Expansion of an existing business project
11. Legal description of project real property ________________________________
___________________________________________________________________________
12. Will the project property be owned or leased by the project operator?
Owned________ Leased________
If the answer to 12 is leased, will the benefit of any incentive granted
accrue to the project operator?
Yes________ No________
If the property will be leased, attach a copy of the lease or other agreement
establishing the project operator’s benefits.
13. Will the project be located in a new structure or an existing facility?
New construction________ Existing facility________
If existing facility, when was it constructed? _______________________________
If existing facility, what improvements are to be made and expected cost?
Roofing _________ Electrical_________ Heating/Cooling _________
Plumbing ________ Doors/Windows ________ Exterior Improvements ________
Interior Improvements_________ Elevator __________ Other __________
If new construction, complete the following
a. Estimated date of commencement of construction of the project covered
by this application
________________________________________________________________________
b. Description of project to be constructed including size, type and
quality of construction
________________________________________________________________________
________________________________________________________________________
c. Projected number of construction employees during the project
construction ________
14. Approximate date of commencement of operations for this project
____________________
15. 16. Estimate taxable valuation of the
Estimated market value of the property eligible for exemption by
property used for this project: multiplying the market values
a. Land …………………….......$_________ a. Land (not eligible) …………... XXXXXX
b. Existing buildings and
structures for which an b. Eligible existing buildings
exemption is claimed …. $_________ and structures ………………........$_________
c. Newly constructed buildings c. Newly constructed buildings and
and structures when structures when completed ...$_________
completed …………………. $_________
d. Total Taxable valuation of property
d. Total ……………………. $_________ eligible for exemption ………...$_________
e. Machinery & Equipment$_________ e. Enter the consolidated mill rate
for the appropriate taxing
district …………………………....... $________
f. Annual amount of the tax
exemption (Line d multiplied
by line e) …………………………….......$_________
Description of Project Business:
• Note: “project” means a newly established business or the expansion portion
of an existing business. Do not include any established part of an existing
business.
17. Type of business to be engaged in:
Ag processing ____ Manufacturing ____ Retailing ____
Wholesaling ____ Warehousing ____ Services ____
18. Describe in detail the activities to be engaged in by the project
operator, including a description of any products to be manufactured,
produced, assembled or stored (attach additional sheets if necessary).
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
19. Indicate the type of machinery and equipment that will be installed:
______________________________________________________________________________
20. Projected annual revenue, expense, and net income of the project for each
year for the first five years.
Year __________ __________ __________ ___________ __________
Annual revenue __________ __________ __________ ___________ __________
Annual expense __________ __________ __________ ___________ __________
Net income __________ __________ __________ ___________ __________
21. Projected annual average number of persons to be employed by the project
for the first five years and the estimated annual payroll.
Year _______ _______ _______ _______ _______
No. of Employees (1) _______ _______ _______ _______ _______
(2) _______ _______ _______ _______ _______
(1) - Full Time (2) – Part Time
Project operator’s Application for State Income Tax Exemption:
22. Number of Years for which an Income Tax Exemption is requested
____________________________
23. Indicate the percentage of income from the project for which the exemption
is requested.
The maximum percentage allowable is 100% of the income attributable to the
project. ____%
Previous Business-Activity
24. Is the project operator succeeding someone else in this or a similar
business activity?
Yes _____ No _____
25. Has the project operator conducted this business at this or any other
location either in or outside of the state?
Yes _____ No ____
26. Has the project operator or any officers of the project received any prior
property tax incentives?
Yes _____ No _____
If the answer to 24, 25, or 26 is yes, give details including locations,
dates, and name of former business (attach additional sheets if necessary).
_______________________________________________________________________________
_______________________________________________________________________________
TAX LIABILITY DISCLOSURE STATEMENT
26. Does the project operator own real property in North Dakota which has
delinquent property tax levied against it?
Yes _____ No _____
27. Does the project operator own a greater than 50% interest in a business
that has delinquent property tax levied against any of its North Dakota
real property?
Yes _____ No _____
If the answer to 26 or 27 is Yes, list and explain:
_____________________________________________________________________________
_____________________________________________________________________________
28. Does the project operator have any delinquent State Income Tax payments in
arrears or delinquent?
Yes _____ No _____
29. Does the project operator own a greater than 50% interest in a business
that has State Income Tax payments in arrears or delinquent?
Yes _____ No _____
If the answer to 28 or 29 is Yes, list and explain:
_____________________________________________________________________________
_____________________________________________________________________________
I, _____________________________, do hereby certify that the answers to the
above questions and all o the information contained in this application,
including attachments hereto, are true and correct to the best of my knowledge
and belief and that no relevant fact pertaining to the ownership or operation
of the project has been omitted.
________________________________________ ____________________ __________
Applicant’s Signature Title Date
CERTIFICATION OF GOVERNING BODY
(To be completed by the Auditor of the City)
The municipality shall, after granting any property tax incentives, certify
the findings to the State Tax Commissioner and Director of Tax Equalization by
submitting a copy of the project operator’s application with the attachments.
The governing body, on the _____ day of _____________ , 20 ____ granted the
following the following property tax exemption:
_____ Number of Years
_____ Percent of Exemption
and further recommends that the State of North Dakota grant the following
State Income Tax exemption:
_____ Number of Years
_____ Percent of Exemption
_____________________
City Auditor
****************************
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