§ 57-15-17 — Disposition of building fund tax

North Dakota § 57-15-17

• Jurisdiction: North Dakota
• Title 57: Taxation
• Ch. 57-15: Tax Levies and Limitations

Text

or upon payment and cancellation or defeasance of the bonds, the levy may be
discontinued at the discretion of the governing body of the school district, or upon
petition of twenty percent of the qualified electors who voted in the last school election,
the question of discontinuance of the levy must be submitted to the qualified electors
of the school district at any regular or special election and, upon a favorable vote of
sixty percent of the qualified electors voting, the levy must be discontinued. Any school
district, executing a contract or lease with the state board of public school education or
issuing general obligation bonds, which contract or lease or bond issue requires the
maintenance of the levy provided in this section, shall immediately file a certified copy
of the contract, lease, or bond issue with the county auditor or auditors of the county or

counties in which the school district is located. The county auditor or auditors shall
register the contract, lease, or bond issue in the bond register in substantially the
manner provided in section 21-03-23. Upon the filing of the contract, lease, or bond
issue with the county auditor or auditors, the school district may not discontinue the
levy and the levy must automatically be included in the tax levy of the school district
from year to year by the county auditor or auditors until a sufficient sum of money has
been collected to pay to the state treasurer for the retirement of all obligations of the
school district with the state board of public school education or to pay to the custodian
of the bond sinking fund all amounts due or to become due on the bonds.
2. The school board of any school district, in levying taxes for a school building fund as
provided for in subsection 1, shall specify on the ballot the number of mills to be levied
and may in its discretion submit a specific plan for which such fund shall be used. The
plan shall designate the general area intended to be served by use of such fund. The
area intended to be served shall be described in the plan but need not be described in
the building fund ballot. After approval of the levy and the plan no change shall be
made in the purpose of expenditure of the building fund except that upon a favorable
vote of sixty percent of the qualified electors residing in any specific area intended to
be served, material changes may be made in such plan as it affects such area to the
extent such changes do not conflict with contractual obligations incurred. The
provisions of this section and of subsection 1 of section 57-15-17 in regard to the
purpose for which the building fund may be expended shall not apply to expenditures
for major repairs.
57-15-17. Disposition of building fund tax.
1. a. All revenue accruing from appropriations or tax levies for a school district building
fund, together with any amount as may be realized for building purposes from all
other sources, must be placed in a separate fund known as a building fund and
must:
(1) Be deposited, held, or invested in the same manner as the sinking funds of
such school district; or
(2) Be used for the purchase of shares or securities of federal or
state-chartered savings and loan associations, within the limits of federal
insurance.
b. Moneys in the building fund may only be used for:
(1) The construction of school district buildings and facilities;
(2) The renovation, repair, or expansion of school district buildings and facilities;
(3) The improvement of school district buildings, facilities, and real property;
(4) The leasing of buildings and facilities;
(5) The payment of rentals upon contracts with the state board of public school
education;
(6) The payment of rentals upon contracts with municipalities for career and
technical education facilities financed pursuant to chapter 40-57; and
(7) The payment of principal, premiums, and interest on bonds issued in
accordance with subsection 7 of section 21-03-07.
c. The custodian of the funds may pay out the funds only upon order of the school
board, signed by the president and the business manager of the school district.
The order must recite upon its face the purpose for which payment is made.
2. Any moneys remaining in a building fund after the completion of payments for any
school building project that has cost seventy-five percent or more of the amount in the
building fund at the time of letting the contracts, must be returned to the general fund
of the school district, upon the order of the school board.
3. The board of a school district may pay into the general fund of the school district any
moneys that have remained in the building fund for ten years or more. The board may
include this amount as part of its cash on hand in making up its budget for the ensuing
year. In determining what amounts have remained in the fund for ten years or more, all

payments that have been made from the building fund for building purposes must be
considered as having been paid from the funds first acquired.
4. a. If collections from the taxes levied for the current budget and other income are
insufficient to meet the requirements for general operating expenses, the board of
a school district may transfer unobligated funds from the building fund into the
general fund of the school district, provided the school district has issued
certificates of indebtedness equal to fifty percent of the outstanding uncollected
general fund property tax.
b. A board may not transfer funds from the building fund into the general fund for
more than two years.