Committee hears dispute over taxing of off‑farm agricultural storage

Senate Bill 2,039, which would clarify when storage for agricultural products is treated as agricultural property for property‑tax purposes, drew a mix of farm, county and municipal testimony during a House Finance and Taxation Committee hearing.

The bill’s sponsor, Representative Ben Koppelman, introduced the measure as an attempt to make treatment of agricultural product storage—“grain, potatoes, sugar beets” and similar commodities—consistent across counties. “If the legislature intends to tax agricultural product storage, then we should do it everywhere. But if we intend not to tax agricultural product storage, then we shouldn't do it anywhere,” Koppelman said.

Supporters, including farmers’ groups and producers, told the committee that inconsistent local interpretation has led to disparate treatment. Senator Yana Meridahl (District 19), speaking in support, said staff who have worked the interim “dug into this a lot” and offered expert testimony online. Taryn Riley, an attorney who has represented farmers in related disputes, told the committee that the change is intended to clarify existing exemptions in the North Dakota Century Code and to limit unequal enforcement across counties. “This is asking…