North Dakota House Bill HB1176

North Dakota 2025-2026 Regular Session

• Introduced: 1/7/25
• Refer: 1/7/25
• Report Pass: 2/10/25
• Refer: 2/11/25
• Report Pass: 2/24/25
• Engrossed: 2/25/25
• Refer: 3/11/25
• Report Pass: 3/17/25
• Refer: 3/17/25
• Report Pass: 4/2/25
• Enrolled: 5/2/25
• Passed: 5/17/25

Caption

AN ACT to create and enact two new sections to chapter 54-27, a new section to chapter 57-02, and a new section to chapter 57-15 of the North Dakota Century Code, relating to a legacy earnings fund, a legacy property tax relief fund, a primary residence certification, and a limitation on property tax levies without voter approval; to amend and reenact section 6-09.4-10.1, subsection 1 of section 21-10-06, sections 40-40-06, 54-27-19.3, and 57-02-01, subdivision b of subsection 2 of section 57-02-08.1, section 57-02-08.8, section 57-02-08.9 as amended by section 1 of Senate Bill No. 2201, as approved by the sixty-ninth legislative assembly, sections 57-02-08.10, 57-02-27, 57-02-27.1, 57-02-53, 57-09-04, 57-11-03, 57-12-06, 57-15-02.2, 57-15-14.2, and 57-20-07.1 of the North Dakota Century Code, relating to funds invested by the state investment board, property tax definitions, the renters refund, the property tax credit for disabled veterans, the primary residence credit, property classifications, assessment and budget hearing notices to property owners, school district levies, and the property tax statement; to repeal sections 21-10-12 and 21-10-13 of the North Dakota Century Code, relating to legacy fund definitions and the legacy earnings fund; to provide for a legislative management study; to provide for a legislative management report; to provide an appropriation; to provide an exemption; to provide an effective date; to provide an expiration date; and to declare an emergency.

Impact

The bill proposes significant changes to state laws governing property taxation. It introduces limitations on property tax levies without voter approval, embarks on a legislative study regarding the implementation and effectiveness of the primary residence credit, and amends several sections of North Dakota's Century Code pertaining to property taxation definitions and school district levies. Importantly, it repeals previous sections concerning legacy fund definitions, thereby streamlining the legal framework around property tax relief.

Summary

House Bill 1176 aims to create and enact several provisions related to property tax relief for primary residences in North Dakota. Among its highlights, the bill establishes a primary residence credit, which provides eligible homeowners with up to $1,600 against their property taxes. The funding for this credit comes from the legacy earnings fund, thereby ensuring that homeowners receive tax relief without placing additional burdens on state revenue streams. The bill also defines the parameters for what constitutes a primary residence, including provisions for individuals temporarily confined to nursing facilities or hospitals.

Sentiment

General sentiment around HB 1176 appears to be positive, particularly from legislators advocating for property tax relief. The primary residence credit is viewed favorably as a move towards making housing more affordable and providing tangible support to situated residents. However, there are underlying concerns about the sustainability of relying on the legacy fund for ongoing financial commitments, as well as potential future challenges in expanding property tax relief to other property classifications such as agricultural or commercial properties.

Contention

Contention surrounding HB 1176 mainly revolves around funding sources and the adequacy of relief measures for varying property types. While the bill is poised to deliver immediate relief for primary residences, some stakeholders argue for broader tax reforms that include provisions for different classes of property. Additionally, the procedural requirement for voter approval on levy limitations has raised discussions about the efficacy of grassroots consent in financial governance, with some advocating for larger legislative discretion.