The big headline of the week is the Senate’s action on HB 1176, one of the major property tax relief bills. The Senate on Thursday approved an amended version of HB 1176 that reduced the amount of property tax relief for primary residences from $1,450 to $1,250. The Senate’s objective for lowering the relief is to pay for it using Legacy Fund earnings and no General Fund dollars. Amendments also included a provision that limits the credit to cover no more than 75% of the taxpayer’s liability but provides a baseline credit of $500. The bill expands those eligible for the homestead credit and increases the renter’s credit. On the reform side of the bill, restrictions in HB 1176 stayed the same. Local governments are capped at a 3% growth on the dollars they can levy. However, the bill allows local governments to carry over unused caps, exempts emergency levies and allows voters to approve exceeding the cap for up to four years. The Senate approved HB 1176 47-0.

Because of the difference in the Senate and House versions of HB 1176, it is highly anticipated the House will Not Concur with the Senate’s changes. If that happens, a conference committee of three members from both the House and Senate will meet to work on a compromise version. NDACo has identified some technical corrections that need to be made to the bill that will prioritize to be addressed in conference committee. We expect the conference committee to be appointed and more than likely meet this week.

In the meantime, the Senate Finance & Tax committee is still sitting on three of the property tax relief/reform bills (HB 1168, HB 1575 & HB 1534). The committee is scheduled for committee work Monday-Wednesday.

The House on Thursday spent nearly two hours debating SB 2128 the Attorney General’s Truth in Sentencing bill, which was drastically amended and then defeated with a vote of 41-52. The bill required violent offenders, drug traffickers and sex offenders to serve at least 50% of their sentence.

Other bills that saw action this week:

• HB 1572 – Included study language on tax statements – Senate Defeated
• HB 1588 – Related to where can carry firearms, as introduced the bill would have allowed firearms in public buildings but was amended to restrict the possession as it is currently in code. Senate Passed.
• HB 1340 – Increases the amount of window tint allowed in front vehicle driver & passenger windows. Supporters showed up in sunglasses for the bill signing. Signed by Governor Armstrong.

The schedule for bills scheduled for hearings and conference committees can be viewed/downloaded here. Reminder that the schedule updates so it will change as conference committees or appropriations hearings are scheduled.