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HB 1383

A BILL for an Act to amend and reenact section 57-02-10 of the North Dakota Century Code, relating to a property tax exemption for certain agricultural land upon which an easement has been granted to the United States; and to provide an effective date.

69th Legislative Assembly (2025-26) Introduced by Dick Anderson and 9 co-sponsors

Proposed ND bill would exempt from local property taxes lands under U.S. water/wildlife or highway easements until projects finish, shifting burden from counties; bill failed.

Second reading, failed to pass, yeas 12 nays 77
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Bill Summary · HB 1383

HB 1383 — Summary (North Dakota, 69th Legislative Assembly)

Status: Second reading — failed to pass (yeas 12, nays 77)
Introduced: November 18, 2024
Primary Sponsors: Representatives Grueneich, D. Anderson, Beltz, Brandenburg, Fisher, Holle, Satrom; Senators Conley, Erbele, Magrum (bill text also lists Ladyman / J. Boyd as authors in some versions)
Citation amended: North Dakota Century Code § 57-02-10
Effective date (if enacted): For taxable years beginning after December 31, 2024

Purpose and intent

The bill would have amended and reenacted NDCC § 57-02-10 to clarify and expand property-tax exemptions for certain lands subject to permanent easements granted to the United States (or its instrumentalities/agencies), and for highway easement lands. The stated aim is to ensure lands used for federal water/wildlife conservation projects, highway/road right-of-way, or agricultural wetland easements are removed from local tax rolls and declared exempt from taxation while those uses remain active.

Key provisions

  • Rewrites § 57-02-10 to direct county boards of commissioners to remove from tax rolls — and declare tax-exempt — the following classes of land:
    • Inundated land where the owner has granted a permanent easement to the United States (or its instrumentalities/agencies) for the purpose of constructing, maintaining, and operating water or wildlife conservation projects.
    • Land where the owner has granted (or will grant) an easement for a highway or road right-of-way to the United States, the state, or its political subdivisions.
    • Agricultural land where the owner has granted a permanent easement to the United States (or its instrumentalities/agencies) for protection, restoration, or enhancement of wetlands in North Dakota.
  • Retains / clarifies limitations on removal from tax rolls:
    • Lands under subdivisions (a) and (b) must remain exempt until the federal conservation project or highway is abandoned.
    • Land cannot be removed from tax rolls or declared exempt until construction of the water/wildlife conservation project or highway is complete.
  • Effective provision: would apply to taxable years beginning after December 31, 2024 (if enacted).

Who would be affected

  • Landowners who grant permanent easements to the United States (or its agencies) for water/wildlife conservation projects or wetland protection/enhancement — their parcels would become tax-exempt while the easement/project remains active.
  • Landowners granting highway/road right-of-way easements to federal, state, or local governments.
  • County governments and taxing jurisdictions — removal of affected parcels from local tax rolls could reduce the property tax base and shift tax burdens to other taxpayers or require budget adjustments.
  • Federal agencies and project sponsors — clarified tax status for project lands.

Fiscal and practical considerations

  • The bill does not include a fiscal note in the supplied text. In practice, exempting parcels previously on the tax rolls can reduce local property tax revenue; the magnitude depends on the number and assessed value of affected parcels.
  • The provision that land is not removed until construction is complete reduces the risk of premature exemptions during planning phases.
  • Counties are directed to act administratively (removing parcels from tax rolls) once the statutory conditions are met.

Legislative timeline / outcome

  • Introduced Nov 18, 2024. Amended and read in committee; text amended to clarify inclusions.
  • Reached second reading but failed to pass on that reading (yeas 12, nays 77) and therefore did not become law in this session.

If you want, I can:
- Extract the exact revised statutory text for § 57-02-10 as it would read if enacted;
- Draft an estimate of likely fiscal impacts for a typical North Dakota county based on assumed parcel counts; or
- Compare this proposal to existing state practice in North Dakota or other states regarding easement-related tax exemptions.

Compiled from official sources — confirm details with the bill’s official record.

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