§ 40-57.1-02 — Definitions

North Dakota § 40-57.1-02

• Jurisdiction: North Dakota
• Title 40: Municipal Government
• Ch. 40-57.1: Tax Exemptions for New and Expanding Businesses

Text

As used in this chapter, unless a different meaning clearly appears from the context:
1. "Local development organization", as used in section 40-57.1-04.3, means a profit or
nonprofit corporation incorporated under the laws of this state or a limited liability
company organized under the laws of this state, formed for the purpose of furthering
the economic development of its community and environs, with authority to promote
and assist the growth and development of business concerns in the areas covered by
its operations. The operations of the corporation or limited liability company must be
limited to a specified area in this state. The controlling interest in the corporation or
limited liability company must be held by at least twenty-five persons residing or doing
business in the community or its environs. These persons must control not less than
seventy-five percent of the voting control of the corporation or limited liability company.
A shareholder or member of the corporation or limited liability company may not own in
excess of twenty-five percent of the voting control in the corporation or limited liability
company if that shareholder or member has a direct pecuniary interest in any project
or business concern that will occupy the property of the corporation or limited liability
company. The primary objective of the corporation or limited liability company must be
to benefit the community through increased employment, payroll, business volume,
and corresponding factors rather than monetary profits to its shareholders or
members. Any monetary profits or other benefits going to the shareholders or
members must be merely incidental to the primary objective of the corporation or
limited liability company.
2. "Municipality" means counties as well as municipalities of the types listed in
subsection 4 of section 40-01-01.
3. "Primary sector business" has the meaning provided in section 1-01-49.
4. "Project" means any revenue-producing enterprise, or any combination of two or more
of these enterprises. For the purpose of the income tax exemption, "project" means
"primary sector business" as defined by this section and includes the establishment of
a new qualifying business or the expansion of a qualifying existing business.