Property Tax Relief bills continue to be worked on… The week started off with a hearing on HB 1176 the property tax relief bill that provides $1450 in relief through the primary residence credit and restricts local government spending by limiting levies to a 3% growth rate. Several testified expressing concerns with the 3% cap but after two and a half hours of testimony, the committee acted right away on the bill without discussion on the items brought forward. The Senate Finance & Tax committee gave the bill a Do Pass recommendation and referred the bill to Appropriations. The Appropriations hearing is scheduled for Monday, March 24th at 2:00. NDACo has heard there may be amendments proposed that in our opinion will make it even more restrictive for local government. This bill could move fast depending on what the Appropriations Committee decides to do. Be on the lookout for a call to action. We expect this bill could be voted on in the full Senate this week. Here is the latest information on what the 3% cap means in additional revenue for each county. Feel free to connect with your Senator about the cap and the concerns in restricting local budgets.

Because the finance and tax committee did not make changes to address some technical issues discussed with HB 1176, we hope to work with the committee to bring forward amendments and tack them onto one of the other tax relief policy bills that have been heard but not acted on. One of those bills is HB 1168, which uses the school funding formula to buy-down mills to provide relief. The bill also includes a 3% cap. Rep. Louser brought forward amendments for the committee to consider in expanding the amount of relief. Related to the limitations, his suggestions also change the vote threshold to exceed the cap from 60% to a majority vote. The committee didn’t take action on his new proposals. With only one hearing on the Senate Finance and Tax committees schedule this week, we expect them to spend the rest of the week working on the bills. For a refresher, here is a look at the tax relief / reform bills that are still active.

Amendments were brought forward during the hearing on HB 1572 to study changes to the tax statement versus have them be implemented. The committee did not act on the amendments or the bill.

The Senate Appropriations committee took testimony on HB 1213 which sought to provide a $200 million low-interest loan to counties for jail improvement projects. The committee amended the bill to $20 million and removed language that would have dedicated dollars for correctional facilities, they then gave the bill a Do Not Pass recommendation. We expect HB 1213 to be voted on the Senate floor Tuesday. We ask you to contact your Senator and encourage a Do Pass. At least if it survives it may go to conference committee or provide $20 million in additional funding into the infrastructure revolving loan fund.

HB 1193 seeks to provide $3.5 million in local law enforcement grants for retention and recruitment bonuses for local law enforcement officers and corrections officers. This is similar to a bill that passed last session that was termed “Back the Blue” grants and was greatly appreciated by law enforcement. The funds were distributed to 1,260 officers in Sheriffs Offices and Jails. According to a recent study, 93% of the funds were used for retention bonuses. The committee did not take action on the bill.

Other bills that saw action:

• SB 2039: Exempts ag storage from paying property taxes – received a Do Not Pass committee recommendation.
• HB 1371: Study insurance plan for retired peace officers not eligible for Medicare – received Do Pass recommendation. (Scheduled to be voted on Senate Floor Monday)
• HB 1602: Allows political subdivisions to opt out of the NDPERS defined contribution plan to move into independent plan – received Do Pass recommendation. (Scheduled to be voted on in the Senate Monday)
• HB 1419: Allows 911 dispatchers & EMS to be in Public Safety NDPERS plan if county offers – received Do Pass recommendation.
• SB 2183: Increases fee for speeding in construction zones to a minimum of $150 when workers are present – PASSED House, goes to Senate for consideration of amended version.
• HB 1344: Clarifies NDDOCR to pay counties when over-capacity and housing state sentenced inmates in county facilities – FINAL PASSAGE

Bills of importance to watch this week:

• HB 1176: Property Tax Relief / Reform – Scheduled Monday in Senate Appropriations at 2 p.m.
• HB 1382: Increases Gas Tax 3 cents to be dedicated to road funding – Monday at 9 a.m.
• HB 2128: Attorney General’s Truth in Sentencing bill – Monday at 9 a.m.

View Schedule of County-Related Bills for Week of 3/24-3/28