Bill > SB2378

This bill establishes new limitations on how much North Dakota taxing districts (such as local governments, school districts, and other political subdivisions) can increase their annual budgets without voter approval. Specifically, the bill restricts budget increases to the percentage change in the Consumer Price Index (CPI) for the Midwest region, with several important exceptions and adjustments. Taxing districts can exceed this limit only if approved by at least two-thirds of voters in a ballot measure, and such approval is valid for only one taxable year. The bill allows for budget adjustments based on changes in property tax valuation, such as when previously exempt properties become taxable or taxable properties become exempt. The legislation also explicitly prevents cities and counties from using home rule authority to circumvent these restrictions. Key definitions are provided, including defining CPI as the percentage change in the Consumer Price Index for urban consumers in the Midwest region, as determined by the U.S. Department of Labor. The bill will take effect for taxable years beginning after December 31, 2024, meaning it will first apply to budgets developed in 2025.

Budget and Finance

https://ndlegis.gov/assembly/69-2025/regular/bill-overview/bo2378.html