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.
HB 1232 would revise North Dakota’s statutory definition of “residential property” for property tax purposes. The bill clarifies that residential property includes property used as a dwelling, including certain future dwellings, and specifically includes a vacant platted lot within city limits if its intended use is residential. In determining that intended use, an assessor could rely on zoning classification or the use stated in plat documents.
The bill also narrows and clarifies exclusions from the residential property definition. It would exclude hotel and motel accommodations required to be licensed, structures providing living accommodations for four or more separate family units, and tracts of land with four or more mobile homes. The effective date is tied to taxable years beginning after December 31, 2024, so the changes would apply prospectively to future tax years.
HB 1232 would amend section 57-02-01 of the North Dakota Century Code, which defines residential property for tax assessment and classification purposes. The practical effect would be to guide assessors in classifying vacant residential lots and to distinguish smaller mobile home tracts and certain dwelling structures from nonresidential or multi-unit property categories. This could affect property tax treatment for homeowners, developers, mobile home park owners, assessors, and local taxing authorities.
There is limited recorded debate or vote history available for HB 1232, and no committee transcript is provided. Based on the bill’s text, it appears to be a technical clarification measure aimed at refining property classification rules rather than a major policy change. The bill ultimately failed, suggesting it did not secure sufficient support to advance.
The likely points of contention involve how broadly or narrowly property should be classified as residential for tax purposes, especially vacant platted lots, mobile home tracts, and mixed-use or multi-family structures. Assessors may have concerns about administrability and consistency, while property owners and developers may favor clearer rules that support residential classification. The absence of transcripts makes it difficult to identify specific arguments, but the classification of land and structures for taxation is the central issue.