A BILL for an Act to create and enact a new section to chapter 57-15 of the North Dakota Century Code, relating to limitations on property tax levies by taxing districts without voter approval; and to provide an effective date.
HB 1353 would place a statewide cap on how much property taxes levied in dollars by a taxing district could increase from one year to the next without voter approval. In general, a district’s levy could not rise by more than the consumer price index, capped at 3 percent, with adjustments required for changes in taxable property, changes in exemptions, and the expiration or reduction of temporary levies. If a district increases less than the allowed amount in one year, it could carry forward the unused increase for up to three succeeding taxable years, subject to limits in the bill.
The bill also specifies several categories of levies that are exempt from the cap, including new or increased levy authority not available in the prior year, bonded indebtedness, the state medical center levy, the Garrison Diversion Conservancy District levy, certain special assessments and improvement-related taxes, and other levies authorized under specified statutes. Any levy above the cap would require approval by at least 60 percent of voting electors at a statewide primary or general election, and only for one taxable year at a time. Cities and counties would be prohibited from using home rule authority to override or modify the cap.
HB 1353 would add a new section to chapter 57-15 of the North Dakota Century Code and would broadly constrain the annual growth of property tax levies by taxing districts unless voters approve a higher increase. It would apply to all political subdivisions empowered to levy taxes, override other unused levy authority to the extent inconsistent with the bill, and take effect for taxable years beginning after December 31, 2024. The measure would affect local governments, special districts, and other taxing entities by limiting levy growth and creating a voter-approval mechanism for exceptions.
The available record shows no committee transcript or vote details, but the bill’s introduction by a group of Republican legislators suggests support from lawmakers favoring property tax restraint and taxpayer protections. The bill ultimately failed on February 11, 2025, indicating it did not secure enough legislative support to advance. Overall, the measure appears to have been framed as a property-tax limitation proposal rather than a revenue-expansion measure, which typically draws support from tax-limitation advocates and resistance from local government interests.
The main point of contention is likely the bill’s broad restriction on local taxing authority, especially the requirement that levy increases above inflation be approved by 60 percent of voters and the prohibition on cities and counties using home rule to bypass the cap. Local governments and special districts would likely object that the measure reduces flexibility to respond to rising costs, changing service demands, or temporary revenue needs. Another likely issue is the bill’s treatment of existing levy authority: it supersedes other provisions and limits growth even where a district may otherwise have unused authority, while still carving out multiple exemptions for certain debt service and statutorily authorized levies.