North Dakota Adopts Legislation to limit the Term of TIF Districts to 25 Years

North Dakota Governor Jack Dalrymple signed Senate Bill 2050 into law on April 26, 2011, establishing a time limit for the term of both TIF districts and TIF district extensions. Prior to this amendment, no time limits were imposed on TIF Districts and they could remain in place until any bonds, notes or other obligations to be repaid with TIF revenue had been fully retired.  The amended TIF law limits the term of a TIF district to 25 years.  For TIF districts established prior to July 1, 2011, the term can be extended for an additional fifteen years, or as many years as necessary to retire all outstanding debt for projects in the district.  For TIF districts established after July 1, 2011, the term can only be extended for an additional five years.  For all TIF Districts, prior to the approval of an extension, a new base year must be established.  The base year must not be any earlier than 15 years prior to the year the extension is approved.

In addition to establishing a term for TIF Districts, SB2050 also amends North Dakota’s TIF law by preventing agricultural property from being included in a blighted area unless the property has been located within a municipality for at least ten years.

Comments are closed.