A BILL for an Act to create and enact a new subsection to section 57-02-08 of the North Dakota Century Code, relating to a partial property tax exemption for residential property used for in-home care services for a qualifying individual; and to provide an effective date.
Summary
HB 1289 would have amended North Dakota property tax law by creating a new partial exemption for residential property used to provide in-home care for a qualifying individual. The bill would have exempted 50% of the taxable valuation of a home when the property owner uses that residence to care for a qualifying direct relative who is unable to care for themselves because of incapacity, advancing age, illness, or disability, and who lives in the home more than half of the taxable year.
To claim the exemption, the property owner would have been required to submit information to the local assessor on a form prescribed by the tax commissioner to prove eligibility. The bill defined “direct relative” broadly to include spouses, parents, grandparents, children, siblings, aunts, uncles, nieces, and nephews, including relationships by blood, adoption, or marriage. The exemption would have applied to taxable years beginning after December 31, 2024.
Impact
If enacted, HB 1289 would have amended section 57-02-08 of the North Dakota Century Code by adding a new property tax exemption tied to caregiving in the home. The measure would have reduced the taxable valuation of qualifying residential property by half, lowering property tax liability for eligible homeowners who provide long-term in-home care to an incapacitated or elderly relative. It would also have required administrative implementation by assessors and the tax commissioner for eligibility verification and claim processing.
Sentiment
The bill did not advance and failed on House second reading by a vote of 32 yeas to 61 nays on January 30, 2025. With no committee transcript available, the recorded vote is the main indicator of sentiment, and it suggests the proposal did not have majority support in the House. The broad defeat indicates skepticism about creating a new property tax preference, even though the bill was framed as support for family caregiving.
Contention
The likely point of contention was whether a property tax exemption is an appropriate way to support in-home caregiving and whether the benefit should be limited to a specific class of homeowners. Supporters would likely have emphasized relief for families caring for aging or disabled relatives, while opponents may have been concerned about reduced local tax base, fairness to other taxpayers, and the administrative burden of verifying eligibility. The bill’s requirement that the qualifying individual live in the home more than 50% of the taxable year and the need to prove incapacity or disability may also have raised concerns about complexity and enforcement.