North Dakota Senate Bill SB2301

North Dakota 2025-2026 Regular Session

• Introduced: 1/20/25
• Refer: 1/20/25
• Report DNP: 2/10/25

Caption

A BILL for an Act to amend and reenact subsection 1 of section 57-02-08.1 of the North Dakota Century Code, relating to the homestead tax credit; and to provide an effective date.

Summary

SB 2301 would expand North Dakota’s homestead tax credit for qualifying homeowners who are age 65 or older or permanently and totally disabled. The bill raises the income eligibility thresholds by replacing fixed dollar limits with percentages of the federal poverty guidelines, and it increases the maximum taxable valuation reduction available under the credit. Under the revised schedule, eligible taxpayers with lower incomes could receive a full reduction up to a higher cap, while those with somewhat higher incomes could receive a partial reduction up to a higher cap than current law allows. The bill also clarifies how the credit applies to spouses, dependents, and co-owners, preserves the existing rule that the credit does not reduce special assessments, and keeps the confidentiality protections for income information submitted with the application. It would apply beginning with taxable years after December 31, 2024, meaning the changes would affect future property tax bills rather than current-year taxes.

Impact

SB 2301 would amend North Dakota Century Code section 57-02-08.1, which governs the homestead tax credit, by broadening eligibility and increasing the amount of property tax relief available to qualifying seniors and disabled homeowners. It would shift the income test to a federal-poverty-guideline-based standard and raise the valuation caps used to calculate the exemption, thereby reducing taxable value for more households and increasing the fiscal cost of the credit to local taxing jurisdictions. The bill would also continue to require a verified application and maintain confidentiality for income records submitted to assessors.

Sentiment

The bill appears to have been framed as a property-tax relief measure for seniors and disabled residents, but it did not advance. On second reading in the Senate, it failed by a wide margin, 6 yeas to 41 nays, indicating limited support among senators despite the targeted tax-relief purpose. No committee transcripts were provided, so the available record shows the outcome more clearly than the debate.

Contention

The main point of contention is likely the cost and scope of expanding the homestead tax credit, since the bill would increase the number of eligible taxpayers and the size of the exemption. Supporters would be expected to favor the bill as relief for fixed-income seniors and disabled homeowners, while opponents likely objected to the reduced property-tax base and the resulting impact on local government revenues. The vote suggests the fiscal impact and the breadth of the expansion were the central issues.