Click here for a view of the schedule of hearings for the week of February 10th. New features on the NDACo website make it easy to find the schedule of NDACo bills. The schedule is updated daily – and is available to download and print. The website also includes a list of bills NDACo is tracking. Click here to check it out.

Property Tax Update

Perhaps the biggest news of the week is the House Finance & Tax Committee acting on one of the major property tax relief / reform bills. The committee passed an amended version of HB 1176 which is sponsored by Rep. Nathe and Governor Armstrong highlighted elements of the bill in his State of the State Address. HB 1176 will go to the House Appropriations committee either late this week or next, then it will be voted on the House floor. While caps still remain in this bill, NDACo was able to make suggestions that were included in the amendment that help improve the bill – including votes to exceed the cap good for 2 years and the option for counties and cities to over-ride the cap with voter approval good for 10 years. The approved amendments are not posted online yet but here is a summary of what is included in the bill:

• Primary Residence Credit: $1450 maximum
• Assessment Notice: Mailed in spring to all property owners, includes true & full value of each parcel for current & previous year and date, time & location of board of equalization meetings.
• Budget Hearing Notice: Mailed in August, includes date, time, & location of budget hearings of taxing entities. All other information included on past estimated tax notices is removed.
• Cap on Property Taxes Levied: The levy may not exceed the greater of the base year levy or the adjusted year levy increased by 3%. The “base year” levy is the highest amount levied in preceding three years. The “adjusted year” levy is the amount levied in dollars the preceding year plus new growth. Cap is on total property taxes levied.
  • Unused Cap Carryover: Can be used once within 5 years.
  • Allows for 3% Cap Exemptions:
    • Emergency Levy exempt from 3% cap
    • Allows taxing districts to exceed 3% cap with majority vote in general or primary or 60% majority at a special election.
    • County or City can be excluded from 3% cap for 10 years with majority vote at general or primary election.
    • Homestead Tax Credit: Amended to stay at level currently in state law – which was expanded in 2023.
    • Income Tax Relief: Increases the income for the bottom zero bracket.
  • The sections of the bill related to the primary residence credit have an emergency clause, meaning the increased amount of the PRC would take effect for 2025.

The House Finance & Tax Committee will be working on other Tax bills with appropriations Monday. They have no other hearings scheduled. The Senate Finance & Tax Committee will be doing the same in between hearings. Monday is the deadline to get bills with an appropriation attached out of committee.

SB2201: Allows primary residences owned by “qualifying trusts” to retroactively apply for the tax year 2024 credit. Amended bill allows applications no later than May 1, 2025. Amended bill passed House Finance & Tax Committee and was rereferred to Appropriations. This bill also includes an Emergency Clause.

Transportation Related:

HB 1382: Special Fuel Excise Taxes for County/Township Road Fund – creates a new fund for County, City, Township Road Fund ($0.03 gas tax) NDACE and NDACo provided testimony in support of bill.

HB 1453: Prohibits state and political subs from doing business with natural asset companies. NDACo opposed the bill as there was no clear definition of a natural asset and included unintended consequences of counties no longer being able to purchase wetland credits.  Requested to have clarification in the bill to exempt wetland credits and bill sponsor was open to making the change.

SB 2317: Revocation of Township Zoning Authority – township may reacquire zoning authority from county.  Committee approved amendment that townships adopt a comprehensive plan (zoning). No committee action was taken.

SB 2371 & HB 1518: Rotary Traffic Islands (Round Abouts) – both bills passed out of committees to remove the signaling requirement in a round about.

Law Enforcement Related

HB 1193: Law Enforcement Appreciation Grants – as introduced the bill was $8.5 million and sought to provide a $6,000 bonus for all peace officers and state correctional officers who have been with their agency for 4 or more years. The bill received a DNP recommendation but passed the floor. It will be heard in House Appropriations Monday. We expect the bill to be amended in Appropriations to mirror the Back the Blue Grant passed during the 2023 Session.

HB 1613: Restricted the use of drones & robots. The law enforcement community had heavy opposition to the bill. The committee amended it to remove the suggested language and to insert robots into the code relating to limitations of unmanned aircraft for surveillance.

HB 1310: This bill eliminates fees for defendants but in turn repeals the court improvement grants. NDACo testified on the importance of the court improvement grants and that a new funding source will need to be identified.

SB 2365: Addresses when 24/7 fees are waived by Judges. An amendment prohibits Judges from waiving these fees.

HB 1344: Clarifies that when NDDOCR is over capacity and utilizing county / regional jail facilities they will pay starting 7 days after sentencing/notification to NDDOCR. Passed the House Judiciary committee 12-0.

HB 1197 & HB 1213 were two jail related bills seeking state support for Jail Improvements. Both bills were amended and will more than likely be voted on in the House early this week. HB 1197 was changed into a study of current and projected correctional needs and costs. HB 1213 was amended to expand access to the infrastructure revolving loan fund and earmarking $50 million specifically for jail improvements, expansions or new construction.

Other Bills of Importance:

HB 1306: relates to open record requests and proposes to expand the number of hours for free from one hour to 40 hours, for one requester per year if they are a North Dakota resident. This bill met heavy opposition from county folks. Testimony was submitted and provided by NDACo along with commissioners, recorders, auditors, state’s attorneys and Sheriffs.

Septic systems permitting and regulation is the seen in three bills this session.

HB 1541 was initially voted out of the Energy and Natural Resources Committee with a Do Not Pass. The bill was re-considered and an amendment removing the fiscal note was adopted. Additional work on the bill and its amendment is in progress.  This bill is supported by local public health, DEQ and the State Plumbing Board.

Addressing public health units to adopt an onsite wastewater recycling treatment guide, SB 2308 received neutral testimony from local public health unit Committee members stating the Committee accomplished what it can and the guide is ready to move to the Department of Environmental Quality.

Standing in opposition of SB 2267, local public health units, environmental health practitioners and the State Plumbing Board reject the removal of local public health input for septic systems which poses significant risks to public health and environmental safety in North Dakota.