A BILL for an Act to amend and reenact subsection 12 of section 57-02-01 of the North Dakota Century Code, relating to the definition of residential property; and to provide an effective date.
Summary
HB 1232 would revise North Dakota’s statutory definition of “residential property” for property tax purposes. The bill expands the definition to include a vacant platted lot within city limits if the lot is intended for residential use, with assessors allowed to determine that intent from zoning classifications or from the plat documents. It also clarifies the existing treatment of mobile home tracts by specifying that land with three or fewer mobile homes is residential property, while land with four or more mobile homes is not.
The bill also tightens and reorganizes exclusions from the residential property definition by clarifying that hotel and motel accommodations licensed under chapter 23-09, and structures providing living accommodations for four or more separate family units, are not residential property. The effective date would apply to taxable years beginning after December 31, 2024, meaning the changes would affect future property tax assessments rather than current tax years.
Impact
HB 1232 would affect North Dakota property tax classification rules by changing which parcels qualify as residential property under section 57-02-01 of the Century Code. That classification can influence how property is assessed and taxed, particularly for vacant city lots intended for housing, mobile home parks, and multi-family or lodging properties. The bill would give assessors explicit authority to use zoning and plat documents to determine whether a vacant lot is residential in nature, potentially broadening residential classification for some undeveloped parcels while preserving exclusions for hotels, motels, and larger multi-unit structures.
Sentiment
The bill appears to have had strong support in the House, passing second reading 87-5, but it was overwhelmingly rejected in the Senate, where it failed 0-45 on second reading. With no committee transcripts available, the voting pattern suggests the proposal was acceptable to many House members but did not gain any Senate support. Overall sentiment was mixed across chambers, with clear initial approval followed by decisive opposition later in the process.
Contention
The likely points of contention were the tax and assessment consequences of expanding the residential property definition to include vacant platted lots within city limits and the use of zoning or plat intent to classify land. Supporters likely viewed the bill as a clarification that aligns tax treatment with intended residential development, while opponents may have been concerned about reduced tax revenue, assessor discretion, or uneven treatment of undeveloped land. The Senate’s unanimous rejection indicates substantial disagreement with the bill’s approach, even though the House had largely endorsed it.
A BILL for an Act to amend and reenact subsection 12 of section 57-02-01 of the North Dakota Century Code, relating to the definition of residential property; and to provide an effective date.
A BILL for an Act to amend and reenact subsection 12 of section 57-02-01 of the North Dakota Century Code, relating to the definition of residential property; and to provide an effective date.
AN ACT to amend and reenact subsection 1 of section 57-02-01 and subdivision a of subsection 15 of section 57-02-08 of the North Dakota Century Code, relating to the definition of agricultural property and the farm structure and improvements property tax exemption; and to provide an effective date.
AN ACT to amend and reenact subsections 8 and 9 of section 57-02-27.2 of the North Dakota Century Code, relating to assessment of agricultural property; and to provide an effective date.
AN ACT to amend and reenact subsection 13 of section 1-01-49, subsection 4 of section 10-30.5-01, and section 40-57.1-02 of the North Dakota Century Code, relating to the definition of primary sector business.