A BILL for an Act to create and enact a new section to chapter 57-28, relating to the priority of liens; to amend and reenact sections 47-18-01, 47-18-04, 47-18-18, and 57-28-03 of the North Dakota Century Code, relating to the homestead exemption, declaration of a homestead, and the contents of a tax lien.
HB 1343 would revise North Dakota’s homestead exemption laws and property tax lien procedures. The bill keeps the homestead exemption at up to $150,000 in value over and above liens or encumbrances, but clarifies that the exemption does not protect against property taxes or special assessments levied on the homestead. It also defines “contiguous” for homestead acreage purposes, allowing tracts separated only by a road or right-of-way to still qualify as part of the same homestead.
The bill would also change how a homestead is declared and noticed. It adds language allowing a debtor’s homestead claim after discharge in bankruptcy to serve as a declaration of homestead, and provides that recording a certified copy of the discharge with a legal description gives notice that the property is exempt from judgments. In addition, foreclosure notices for tax liens would have to include homestead-exemption information and instructions for claiming homestead status.
A major substantive change is the creation of a lien-priority rule in chapter 57-28. Under the bill, liens for unpaid property taxes or special assessments would have priority over judgments, mortgages, and most other claims against the property, with a limited exception for liens under section 35-34-02.1. Property-tax liens would also have priority over special-assessment liens. This would strengthen the state and local government position in collecting delinquent property taxes and assessments.
The bill’s overall sentiment appears to have been limited or uncertain, since there were no recorded committee transcripts or votes provided, and the measure ultimately failed on February 11, 2025. Based on the text alone, the bill seems aimed at clarifying homestead protections while also reinforcing tax-collection rights. The main point of potential contention is the balance between protecting homeowners’ equity and ensuring that tax liens and special assessments can be enforced ahead of private creditors, mortgage holders, and judgment creditors.
HB 1343 would amend North Dakota homestead and tax-lien statutes by tightening the rules governing homestead exemptions, declarations of homestead, and notice requirements for tax lien foreclosures. It would also create a new statutory lien-priority rule giving unpaid property taxes and special assessments priority over most other liens and claims, thereby affecting homeowners, lenders, judgment creditors, and local taxing authorities.
No committee discussion or vote record is provided, so there is no documented debate to gauge support or opposition. The bill’s text suggests a policy mix that could appeal to those seeking clearer homestead protections and stronger tax-collection tools, but its failure indicates it did not advance through the legislative process.
The likely contention centers on lien priority and homeowner protections. Supporters would likely favor clearer homestead procedures and stronger priority for delinquent property taxes and special assessments, while opponents could object that the bill elevates government tax claims above mortgages and other private liens, potentially reducing creditor protections and homeowner equity. The bankruptcy-related homestead declaration language and the expanded notice requirements may also have raised questions about administration and legal effect.