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Bill > HB1176

ND HB1176

ND HB1176
Legacy fund definitions and the legacy earnings fund; to provide for a legislative management study; to provide for a legislative management report; to provide an appropriation; to provide an exemption; to provide an effective date; to provide an expiration date; and to declare an emergency.

summary

Introduced
01/07/2025
In Committee
04/02/2025
Crossed Over
02/25/2025
Passed
05/02/2025
Dead
Signed/Enacted/Adopted
05/17/2025

Introduced Session

Potential new amendment
69th Legislative Assembly

Bill Summary

AN ACT to create and enact two new sections to chapter 54-27, a new section to chapter 57-02, and a new section to chapter 57-15 of the North Dakota Century Code, relating to a legacy earnings fund, a legacy property tax relief fund, a primary residence certification, and a limitation on property tax levies without voter approval; to amend and reenact section 6-09.4-10.1, subsection 1 of section 21-10-06, sections 40-40-06, 54-27-19.3, and 57-02-01, subdivision b of subsection 2 of section 57-02-08.1, section 57-02-08.8, section 57-02-08.9 as amended by section 1 of Senate Bill No. 2201, as approved by the sixty-ninth legislative assembly, sections 57-02-08.10, 57-02-27, 57-02-27.1, 57-02-53, 57-09-04, 57-11-03, 57-12-06, 57-15-02.2, 57-15-14.2, and 57-20-07.1 of the North Dakota Century Code, relating to funds invested by the state investment board, property tax definitions, the renters refund, the property tax credit for disabled veterans, the primary residence credit, property classifications, assessment and budget hearing notices to property owners, school district levies, and the property tax statement; to repeal sections 21-10-12 and 21-10-13 of the North Dakota Century Code, relating to legacy fund definitions and the legacy earnings fund; to provide for a legislative management study; to provide for a legislative management report; to provide an appropriation; to provide an exemption; to provide an effective date; to provide an expiration date; and to declare an emergency.

AI Summary

This bill introduces comprehensive property tax and funding reforms in North Dakota, with several key provisions. The bill creates a new legacy earnings fund that will distribute 8% of the legacy fund's five-year average balance every two years, with allocations first going to debt service and then to highway funding and a new legacy property tax relief fund. The bill establishes a primary residence credit of up to $1,600 for homeowners, which will be applied directly to property tax statements and initially funded entirely by legacy fund earnings. It also introduces a property tax levy limitation for local taxing districts, restricting annual increases to 3% without voter approval. School district levy authorities are modified, with reductions in maximum mill levies for general fund contributions. The bill requires a legislative management committee to study property tax reform and relief during the 2025-26 interim, and mandates that the tax commissioner provide public awareness about the portion of tax relief funded by legacy fund earnings. Additionally, the bill creates a gap funding program for school districts that proportionally reduce their property tax levies. The primary residence credit will be implemented for the 2025 and 2026 tax years, with a goal of potentially expanding property tax relief to other property classifications in the future.

Committee Categories

Budget and Finance

Sponsors (12)

Last Action

Filed with Secretary Of State 05/05 (on 06/11/2025)

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