21.0739.03000 Sixty-seventh Legislative Assembly HOUSE BILL NO. 1419 of North Dakota Introduced by Representatives Dockter, Bosch, Heinert, Klemin, Meier, Nathe Senators Dever, Poolman 1 A BILL for an Act to create and enact a new subsection to section 40-05-01 and a new section 2 to chapter 40-22 of the North Dakota Century Code, relating to the authority of a county or city 3 to levy an infrastructure fee in lieu of special assessments; and to amend and reenact sections 4 11-09.1-05, 11-11-55.1, 40-05.1-06, 40-12-02, and 40-23-21 of the North Dakota Century Code, 5 relating to the authority of cities and counties to levy an infrastructure fee in lieu of special 6 assessments and special assessment fund balances. 7 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA: 8 SECTION 1. AMENDMENT. Section 11-09.1-05 of the North Dakota Century Code is 9 amended and reenacted as follows: 10 11-09.1-05. Powers. 11 After the filing with the secretary of state of a charter approved in reasonable conformity 12 with this chapter, the county and its citizens may, if included in the charter and implemented 13 through ordinances: 14 1. Acquire, hold, operate, and dispose of property within or without the county limits, and, 15 subject to chapter 32-15, exercise the right of eminent domain for those purposes. 16 2. Control its finances and fiscal affairs; appropriate money for its purposes, and make 17 payments of its debts and expenses; contract debts, borrow money, issue bonds, 18 warrants, and other evidences of indebtedness; establish charges for any county or 19 other services to the extent authorized by state law; and establish debt limitations. 20 3. To levyLevy and collect property taxes and special assessments for benefits 21 conferred, for its public and proprietary functions, activities, operations, undertakings, 22 and improvements, and establish mill levy limitations. Notwithstanding any authority 23 granted under this chapter, all property must be assessed in a uniform manner as 24 prescribed by the state board of equalization and the state supervisor of assessments Page No. 1 21.0739.03000 Sixty-seventh Legislative Assembly 1 and all taxable property must be taxed by the county at the same rate unless 2 otherwise provided by law. A charter or ordinance or act of a governing body of a 3 home rule county may not supersede any state law that determines what property or 4 acts are subject to, or exempt from, ad valorem taxes. A charter or ordinance or act of 5 the governing body of a home rule county may not supersede section 11-11-55.1 6 relating to the sixty percent petition requirement for improvements and of section 7 40-22-18 relating to the barring proceeding for improvement projects. 8 4. To levyLevy and collect an infrastructure fee in lieu of general special assessments on 9 all residential and commercial property for payment of infrastructure maintenance 10 costs through a utility bill issued by the county. If a home rule county levies an 11 infrastructure fee, the home rule county also may levy and collect green field special 12 assessments. As used in this subsection: 13 a. "General special assessments" means special assessments levied for the 14 purpose of maintaining existing roads and infrastructure and special 15 assessments levied for the construction or repair of arterial roads and 16 infrastructure that provide a benefit to the entire community. 17 b. "Green field special assessments" means special assessments levied for 18 infrastructure costs associated with the development of agricultural or 19 undeveloped property. 20 5. Levy and collect sales and use taxes, farm machinery gross receipts taxes, alcoholic 21 beverage gross receipts taxes, a county lodging tax, and a county restaurant tax. 22 Sales and use taxes and gross receipts taxes levied under this chapter: 23 a. Must conform in all respects with regard to the taxable or exempt status of items 24 under chapters 57-39.2, 57-39.5, 57-39.6, and 57-40.2 and may not be imposed 25 at multiple rates with the exception of sales of manufactured homes or mobile 26 homes. 27 b. May not be newly imposed or changed except to be effective on the first day of a 28 calendar quarterly period after a minimum of ninety days' notice to the tax 29 commissioner or, for purchases from printed catalogs, on the first day of a 30 calendar quarter after a minimum of one hundred twenty days' notice to the 31 seller. Page No. 2 21.0739.03000 Sixty-seventh Legislative Assembly 1 c. May not be limited to apply to less than the full value of the transaction or item as 2 determined for state sales and use tax, except for farm machinery gross receipts 3 tax purposes. 4 d. Must be subject to collection by the tax commissioner under an agreement under 5 section 57-01-02.1, with the exception of a county lodging or county restaurant 6 tax, and must be administered by the tax commissioner in accordance with the 7 relevant provisions of chapter 57-39.2, including reporting and paying 8 requirements, correction of errors, payment of refunds, and application of penalty 9 and interest. 10 After December 31, 2005, any portion of a charter or any portion of an ordinance or 11 act of a governing body of a home rule county passed pursuant to a charter which 12 does not conform to the requirements of this subsection is invalid to the extent that it 13 does not conform. The invalidity of a portion of a charter or ordinance or act of a 14 governing body of a home rule county because it does not conform to this subsection 15 does not affect the validity of any other portion of the charter or ordinance or act of a 16 governing body of a home rule county or the eligibility for a refund under section 17 57-01-02.1. Any taxes imposed under this chapter on farm machinery, farm irrigation 18 equipment, and farm machinery repair parts used exclusively for agricultural purposes, 19 or on alcoholic beverages, which were in effect on December 31, 2005, become gross 20 receipts taxes after December 31, 2005. Ordinances enacted after August 1, 2017, 21 may not allow for the collection and levy of any tax not otherwise specified under this 22 section. 23 5.6. Provide for county elected and appointed officers and employees, their selection, 24 powers, duties, qualifications, and compensation, and the terms of county appointed 25 officers and employees. However, after adoption of a home rule charter, a county 26 elected office may not be eliminated or combined with another office except upon 27 approval of a majority of the electors of the county voting upon the question at a 28 primary or general election or pursuant to the county officer combination, separation, 29 or redesignation procedures of chapter 11-10.2. A home rule charter may not diminish 30 the term of office for which a current county officer was elected, redesignate that 31 elected office during that term as appointed, or reduce the salary of the office for that Page No. 3 21.0739.03000 Sixty-seventh Legislative Assembly 1 term. This subsection does not authorize a county to redesignate the elected offices of 2 sheriff and state's attorney as appointed, except as provided in section 11-10-02.3. 3 6.7. Provide for all matters pertaining to county elections, except as to qualifications of 4 electors. 5 7.8. Provide for the adoption, amendment, repeal, initiative, referral, enforcement, and civil 6 and criminal penalties for violation of ordinances, resolutions, and regulations to carry 7 out its governmental and proprietary powers and to provide for public health, safety, 8 morals, and welfare. However, this subsection does not confer any authority to 9 regulate any industry or activity which is regulated by state law or by rules adopted by 10 a state agency. 11 8.9. Lay out or vacate public grounds, and provide through its governing body for the 12 construction, use, operation, designation, and regulation of a county road system. 13 9.10. Provide for zoning, planning, and subdivision of public or private property within the 14 county limits but outside the zoning authority of any city or organized township. 15 10.11. Exercise in the conduct of its affairs all powers usually exercised by a corporation. 16 11.12. Contract with and receive grants from any other governmental entity or agency, with 17 respect to any local, state, or federal program, project, or works. 18 The people of all counties coming within this chapter have the full right of 19 self-government in all matters within the powers enumerated in this chapter. The statutes of this 20 state, so far as applicable, continue to apply to counties, except as superseded by the charters 21 of the counties or by ordinances passed pursuant to the charters. 22 SECTION 2. AMENDMENT. Section 11-11-55.1 of the North Dakota Century Code is 23 amended and reenacted as follows: 24 11-11-55.1. Petition or resolution for improvements - Levy of special assessments - 25 Levy of infrastructure fee. 26 1. The board of county commissioners of any county, by resolution or upon receipt of a 27 petition of sixty percent of the landowners in a defined area, outside of the limits of any 28 incorporated city, may install the petitioned improvements as benefit the defined area, 29 provide for the financing of the improvements, and levy special assessments for the 30 payment of all or part of the improvements within the defined area. Page No. 4 21.0739.03000 Sixty-seventh Legislative Assembly 1 2. The board of county commissioners, by resolution or upon petition of sixty percent of 2 the qualified electors who voted in the last general election in a defined area, may levy 3 and collect an infrastructure fee in lieu of general special assessments on all 4 residential and commercial county utility bills for payment of infrastructure 5 maintenance costs. If a home rule county levies an infrastructure fee, the home rule 6 county also may levy and collect green field special assessments. 7 3. In providing for the improvements, the county shall have the authority granted to 8 municipalities in chapters 40-22, 40-23, 40-23.1, 40-24, 40-25, 40-26, 40-27, and 9 40-28, and the county shall comply with the provisions of those chapters in making the 10 improvements. Whenever action is required of city officials in those chapters, the 11 comparable county officials shall take the action. 12 4. As used in this section: 13 a. "General special assessments" means special assessments levied for the 14 purpose of maintaining existing roads and infrastructure and special 15 assessments levied for the construction or repair of arterial roads and 16 infrastructure that provide a benefit to the entire community. 17 b. "Green field special assessments" means special assessments levied for 18 infrastructure costs associated with the development of agricultural or 19 undeveloped property. 20 SECTION 3. A new subsection to section 40-05-01 of the North Dakota Century Code is 21 created and enacted as follows: 22 Levy and collect an infrastructure fee in lieu of general special assessments on all 23 residential and commercial property for payment of infrastructure maintenance costs 24 through a utility bill issued by a municipality. If a municipality levies an infrastructure 25 fee, the municipality also may levy and collect green field special assessments. 26 As used in this section: 27 a. "General special assessments" means special assessments levied for the 28 purpose of maintaining existing roads and infrastructure and special 29 assessments levied for the construction or repair of arterial roads and 30 infrastructure that provide a benefit to the entire community. Page No. 5 21.0739.03000 Sixty-seventh Legislative Assembly 1 b. "Green field special assessments" means special assessments levied for 2 infrastructure costs associated with the development of agricultural or 3 undeveloped property. 4 SECTION 4. AMENDMENT. Section 40-05.1-06 of the North Dakota Century Code is 5 amended and reenacted as follows: 6 40-05.1-06. Powers. 7 From and after the filing with the secretary of state of a charter framed and approved in 8 reasonable conformity with the provisions of this chapter, such city, and the citizens thereof, 9 shall, if included in the charter and implemented through ordinances, have the following powers 10 set out in this chapter: 11 1. To acquire, hold, operate, and dispose of property within or without the corporate 12 limits, and, subject to chapter 32-15, exercise the right of eminent domain for such 13 purposes. 14 2. To control its finances and fiscal affairs; to appropriate money for its purposes, and 15 make payment of its debts and expenses; to contract debts, borrow money, issue 16 bonds, warrants, and other evidences of indebtedness; to establish charges for any 17 city or other services; and to establish debt limitations. 18 3. To levy and collect property taxes and special assessments for benefits conferred, for 19 its public and proprietary functions, activities, operations, undertakings, and 20 improvements, and establish mill levy limitations. Notwithstanding any authority 21 granted under this chapter, all property must be assessed in a uniform manner as 22 prescribed by the state board of equalization and the state supervisor of assessments 23 and all taxable property must be taxed by the city at the same rate unless otherwise 24 provided by law. 25 4. To levy and collect an infrastructure fee in lieu of general special assessments on all 26 residential and commercial property for payment of infrastructure maintenance costs 27 through a utility bill issued by a municipality. If a home rule city levies an infrastructure 28 fee, the home rule city also may levy and collect green field special assessments. As 29 used in this subsection: 30 a. "General special assessments" means special assessments levied for the 31 purpose of maintaining existing roads and infrastructure and special Page No. 6 21.0739.03000 Sixty-seventh Legislative Assembly 1 assessments levied for the construction or repair of arterial roads and 2 infrastructure that provide a benefit to the entire community. 3 b. "Green field special assessments" means special assessments levied for 4 infrastructure costs associated with the development of agricultural or 5 undeveloped property. 6 5. To levy and collect excises, fees, charges, franchise and license taxes, sales and use 7 taxes, farm machinery gross receipts taxes, alcoholic beverage gross receipts taxes, a 8 city lodging tax, and a city restaurant tax. For purposes of this section, any taxes 9 imposed under this section on farm machinery, farm irrigation equipment, and farm 10 machinery repair parts used exclusively for agricultural purposes, or on alcoholic 11 beverages, which were in effect on December 31, 2005, become gross receipts taxes 12 after December 31, 2005. After December 31, 2005, any portion of a charter or any 13 portion of an ordinance passed pursuant to a charter which does not conform to the 14 requirements of this section is invalid to the extent it does not conform. The invalidity 15 of a portion of a charter or ordinance because it does not conform with this subsection 16 does not affect the validity of any other portion of the charter or ordinance of the 17 eligibility for a refund under section 57-01-02.1. Ordinances enacted after August 1, 18 2017, may not allow for the collection and levy of any tax not otherwise specified 19 under this section. Sales and use taxes and gross receipts taxes levied under this 20 section: 21 a. Must conform in all respects with regard to the taxable or exempt status of items 22 under chapters 57-39.2, 57-39.5, 57-39.6, and 57-40.2 and may not be imposed 23 at multiple rates with the exception of sales of manufactured homes or mobile 24 homes.