North Dakota House Bill HB1626

North Dakota 2025-2026 Regular Session

Caption

AN ACT to amend and reenact subdivision d of subsection 1 of section 57-02-08.9, section 57-20-09, and subsection 1 of section 57-55-03 of the North Dakota Century Code, relating to application of the primary residence credit and discount for early payment of tax; and to provide an effective date.

Summary

HB 1626 changes the order in which North Dakota property tax relief is applied. Under current law, the five percent early-payment discount for real estate taxes and mobile home taxes is applied before the primary residence credit; this bill reverses that sequence so the primary residence credit is applied after other exemptions, credits, and discounts, and specifically after the early-payment discount. The bill amends the primary residence credit statute to clarify that the credit reduces the property tax owed only after other relief has already been applied. The bill also updates the early-payment discount provisions for real estate taxes and mobile home taxes to state expressly that the discount must be applied before the primary residence credit. For real estate taxes, the five percent discount remains available when taxes are paid in full by February 15, with a possible 30-day extension in emergencies declared by county commissioners. For mobile home taxes, the five percent discount remains available if paid in full by February 15 or within 30 days after purchase or moving into the state, with existing penalty and interest rules unchanged. The act applies to taxable years beginning after December 31, 2025.

Impact

HB 1626 amends sections 57-02-08.9, 57-20-09, and 57-55-03 of the North Dakota Century Code. Its practical effect is to change how county treasurers calculate and apply property tax relief by requiring the early-payment discount to be taken before the primary residence credit, which may alter the amount of credit a taxpayer ultimately receives. The bill affects owners of primary residences, taxpayers who pay real estate taxes early, and mobile home owners subject to the mobile home tax, while leaving the underlying discount rates and eligibility rules intact.

Sentiment

The bill appears to have been broadly supported and noncontroversial. It passed the House unanimously, 93-0, with one member absent, and passed the Senate with a strong majority, 40-6, with one member absent. The vote pattern suggests general agreement on the technical clarification and tax-administration change, with no recorded committee debate or public testimony in the provided materials.

Contention

No committee transcripts are provided, so there is no documented policy debate in the record here. The only apparent point of contention is the sequencing of tax benefits: the bill favors applying the early-payment discount before the primary residence credit, which could reduce the value of the credit for some taxpayers compared with the prior order. Any disagreement would likely center on whether that ordering is the most equitable way to deliver property tax relief and how it affects homeowners versus other taxpayers, but the available voting history shows limited opposition overall.