§ 57-02-26 — Certain property taxable to lessee or equitable owner - Exception

1. Property held under a lease for a term of years, or under a contract for the purchase
thereof, belonging to the United States or to the state or a political subdivision thereof,
except such lands upon which the state makes payments in lieu of property taxes, or
to any religious, scientific, or benevolent society or institution, whether incorporated or
unincorporated, or to any railroad corporation whose property is not taxed in the same
manner as other property, must be considered, for all purposes of taxation, as the
property of the person so holding the same.
2. Property held under an easement or a lease for a term of years and any improvements
upon that property which are used for any purpose relating to discovery, exploration,
processing, or transportation of oil or gas must be considered the property of the
lessee or easement holder. For the purposes of this subsection, "improvements" does
not include property subject to the provisions of chapter 57-06 or property subject to
the in lieu of ad valorem tax provisions of chapter 57-51.

3. Property owned by the state and held under a lease and any structure, fixture, or
improvement located on that property is not taxable to the leaseholder if the structure,
fixture, or improvement is used primarily for athletic and educational purposes at any
state institution of higher education.