AN ACT to provide an appropriation for defraying the expenses of the office of the tax commissioner and for payment of state reimbursement under the homestead tax credit, disabled veterans' tax credit, and primary residence credit; to amend and reenact section 57-01-04 of the North Dakota Century Code, relating to the salary of the state tax commissioner; to provide an exemption; and to provide for a transfer.
HB 1006 is the biennial appropriation bill for the North Dakota Tax Commissioner’s office for the 2025-27 biennium. It funds salaries and wages, operating expenses, a new-and-vacant FTE pool, and capital assets, and it also provides money to reimburse local governments and taxpayers for the homestead tax credit, disabled veterans’ tax credit, and primary residence credit. The bill reduces the primary residence credit appropriation to zero in this budget, while increasing funding for the disabled veterans’ tax credit and adjusting the homestead tax credit amount.
The bill also includes a one-time appropriation for property tax relief administration and authorizes a transfer from motor vehicle fuel tax revenue to the general fund to reimburse the state for the cost of collecting and administering motor vehicle and special fuels taxes. In addition, it amends the statutory salary for the state tax commissioner, raising the office’s compensation effective after the prior salary period specified in law. The bill gives the commissioner limited authority to transfer funds between the homestead tax credit and disabled veterans’ tax credit line items if needed to cover reimbursements, and requires notice to budget and legislative officials when such transfers occur.
HB 1006 directly affects state budgeting and tax administration by appropriating general fund and other funds to the Tax Commissioner’s office and by setting reimbursement levels for property tax credit programs. It amends North Dakota Century Code section 57-01-04 to update the tax commissioner’s salary, creates a one-time funding item for property tax relief administration, and authorizes a specific revenue transfer from motor vehicle fuel taxes to the general fund. The bill also provides an exemption from the usual line-item transfer restriction so the commissioner can move funds between two tax credit accounts when reimbursement needs require it.
The bill appears to have been broadly supported and noncontroversial in the Legislature. It passed the House 87-3 and the Senate 46-0, indicating strong bipartisan approval. The vote totals suggest general agreement with the need to fund tax administration and property tax credit reimbursements, as well as with the salary update and related budget adjustments.
The main substantive point of potential contention is the reallocation of property tax relief funding, especially the elimination of the primary residence credit appropriation in this bill while increasing support for the homestead and disabled veterans’ credits. Another possible issue is the salary increase for the tax commissioner and the use of a motor vehicle fuel tax revenue transfer to reimburse the general fund, though the overwhelmingly favorable votes suggest these provisions did not generate significant opposition. No committee transcript objections are provided, so any disagreement appears limited or absent in the available record.