Senate Appropriations Votes to Reduce Property Tax Relief in HB 1176

The Senate Appropriations Committee held committee work on HB 1176 Thursday afternoon. HB 1176 is the property tax relief bill that includes a $1450 primary residence credit and caps local government from increasing the dollars they levy by 3%, it does allow political subs to exceed the cap with a majority vote.

Senate Majority Leader David Hogue and Senator Mark Weber brought five amendments forward for the committee to consider. Senator Tim Mathern also proposed an amendment. Two of the six were approved and are now included in HB 1176.

  1. Primary Residence Credit is limited to no more than 75% of a taxpayer’s tax bill. Maximum relief is reduced to $1,250 and the credit may not be less than $500 as long as $500 or more is owed. Motion to Approve – PASSED
  2. Legislative intent the 2027 Legislative Assembly should provide relief to additional property taxpayers. Motion to Approve – PASSED
  3. Strengthens cap to 2% in 2025 for counties and park districts with populations over 20,000 (8 counties) and cities over 10,000 for year. Motion to Approve – FAILED
  4. Eliminated ability for political subdivisions to vote to exceed the cap until 2028 primary or general election. Motion to Approve – FAILED
  5. Allows townships to levy up to 36 mills without a cap. Motion to Approve – FAILED
  6. Senator Mathern proposed an amendment to eliminate the caps in HB 1176. Motion to Approve – FAILED

Next Steps: HB 1176 now includes the amendments (1 & 2 listed above). The Senate is expected to vote on the amendments Monday and if those amendments are approved the bill in its entirety could be voted on Tuesday. Because the Senate changed the House bill, the House can decide to not accept the Senate’s changes and move the bill to a conference committee to work out the differences. In other words, this bill is far from being done.

The Senate also has several other property tax relief bills that include restrictions for local government that remain in the Senate Finance & Tax committee. It is unknown when they will be acting on those bills.

3 thoughts on “Senate Appropriations Votes to Reduce Property Tax Relief in HB 1176

  1. Griggs County Highway Dept. has not been collecting the 30 mills the voters approved by vote. Now we will be unable to increase the mills from the 20 mills the budget was set at to the 30 mills voted and approved by the voters, but now we can only increase 3%.

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  2. So, am I understanding the #1 amendment to this bill that they want to only cover 75% of the person’s tax bill up to the relief only being $1250 total? Which means the low income people, who were hoping this would take care of their total property tax then they could afford to pay their specials, are now going to have to come up with part of their tax bill too? This doesn’t seem right. Someone correct me if I’m wrong.

    [cid:image001.jpg@01DB9FBE.92217370]
    L. DIRK
    EQUALIZATION ASSESSOR

    Morton County Equalization Office
    210 2nd Ave NW, Mandan, ND 58554
    Phone: 701-667-3325
    Web: http://www.mortonnd.org
    Email: lori.dirk@mortonnd.org

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    • As indicated in the update, the bill is far from being done now that it has been opened up to amendments in the Senate. But yes, that is the intent of the proposed amendment that a taxpayer still needs to pay some portion of their tax bill – the credit shouldn’t zero it out. So as proposed at this time is that the most a primary resident could receive is $1,250 and the lowest, they will receive is $500 if they owe at least $500.

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