In a somewhat rare move, House members Tuesday requested to debate amendments on HB 1176. HB 1176 is the property tax relief and reform bill sponsored by Rep. Nathe to provide a $1450 primary residence credit and caps local government limits property taxes at 3% growth. More detail about what is included in the bill was provided in a previous legislative blog post.
Rep. Ben Koppelman of West Fargo wanted to debate amendments included in two specific sections of the bill. He criticized the flexibility provided to political subs in relation to the cap on property tax revenues. The amendments he singled out for debate allow political subdivisions to vote to exceed the cap for two years as well as the ability for counties and cities to ask for voter approval to override the cap, good for 10 years. After plenty of debate, House members voted to keep the flexibility to exceed and opt out of the cap in HB 1176.
The other amendment debated was a section added to include income tax relief, increasing the income threshold for the bottom, zero bracket. The House did vote to remove that section of the bill.
HB 1176 will now go to House Appropriations before returning to the House Floor for another vote on the bill in its entirety. We encourage you to let your Representatives know the reasons why any reform measures need to allow for some level of local control.
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.
The House Finance & Tax Committee heard several additional property tax relief and reform bills that varied in methods of tackling this complex issue. Here is a list of many of the bills heard:
HB 1289 – Partial property tax exemption for providing in-home care – FAILED
HB 1474 – Evaluates property taxes based on square footage
HB 1586 – Increases primary residence credit to $5000, eliminates foreclosures on delinquent taxes
HB 1559 – Shifts the definition of taxable valuation from a direct percentage of the current year’s true and full to a rolling average of three years
HB 1560 – Tax exemption for those who live in home longer than 30 years.
HB 1534 – 3% cap on assessed values for taxing purposes, allows for vote to override
HB 1575 – Reduces tax rate for residential, ag & commercial for North Dakota residents only
HB 1572 – Eliminates taxing authority for garrison diversion & NDSU extension, includes financial reporting & changes to tax statements
HB 1552 – Home rule sales tax capped at 3%. FAILED
SB 2298 – Homestead tax credit for all primary owners on first $200,000 of true & value
SB 2301 – Change income threshold for homestead tax credit to be connected to percentage of poverty level
HB 1353 – Property Taxes capped at CPI not to exceed 3%.
The committee is hanging onto the property tax related bills to work on together. It is unsure what approach they may take – if they will keep the bills whole or mesh together concepts from multiple bills or if they will separate relief and reform issues and deal with them separately. The committee has work time scheduled at 2:00 Monday-Wednesday. We expect them to tackle these bills, or at least some of them this coming week.
One of the first property tax related bills to cross-over will be heard this week is SB 2201 – which relates to the primary residence credit and homes owned in trusts. The bill would allow for those to now be eligible for the PRC. The bill also includes a retroactive clause. That hearing is Monday morning. The bill carries an emergency clause, so it can go into effect as soon as the Governor would sign it.
Other bills of importance that were heard or acted on:
HB 1141 – Prohibits state or political subs from using public funds to endorse organizations, candidates or ballot measures
HB 1344 – Clarifies NDDOCR pays counties for housing state sentenced inmates when NDDOCR is over capacity
HB 1341 – Assaulting a hospital worker is a Class C Felony – DP recommendation
HB 1419 – Includes 911 dispatchers & ems into NDPERS public safety plan
SB 2277 – Hwy 200 would be known and signed as ND Fallen Peace Officers Highway – Do Pass recommendation
HCR 3006 – Resolution urging improvement of USPS
HB 1384 – Required auditors to be elected – FAILED
HB 1171 – Provide scholarships to family of law enforcement – FAILED
HB 1407 – Increase weight limits on roads – FAILED
HB 1361 – Mandatory Min sentence for human trafficking – PASSED
HB 1312 – Election of Parks & School Board moved to General – FAILED
SB 2178 – Multiple ballots in Primary Election – FAILED
The House will be holding floor sessions at least two nights this week, maybe three. This is in response to the record number of bills that have now been introduced. For the first time in 15 years, the number of bills has surpassed the 1,000 mark. NDACo typically tracks about 60% of the bills filed.
Law enforcement & corrections will be watching HB 1193 which is expected to be voted on the House floor Monday or Tuesday. This bill would provide an appreciation grant to officers. It came out of committee with a Do Not Pass recommendation.
What to watch this week – Feb 3rd-7th
SB 2365 – Requires state to reimburse 24/7 fees if Judge waives
HB 1613 – Restricts law enforcement use of drones & robots
SB 2397 – Extends prairie dog funds to smaller oil counties
HB 1382 – Increases gas tax 3 cents for road infrastructure – cities, counties, townships
HB 1307 – Home rule can’t supersede state law
HB 1588 & 1350 – related to possession of firearms
HB 1587 – Election related – would require hand count post-election audit
A couple more property tax related bills were heard last week, but many more will be heard this week in House Finance & Tax. We encourage you to listen in on the committee hearings.
There were several commissioners, auditors and sheriffs at the Capitol Thursday testifying on numerous bills impacting elections and law enforcement\jails.
HB 1193 is $8.4 m for a $6,000 appreciation bonus to state and local peace officers and correctional officers. This proposal is similar to the “Back the Blue” grants approved last session but dedicates the bonus to those who have been in the department/agency for 4 or more years.
HB 1197 & HB 1213 have been introduced to provide state financial support to counties making jail improvements, expansions or new builds. There are currently five counties looking at jail expansions or new construction. HB 1197 creates a jail improvement fund with $50 million. HB 1213 would provide a low interest loan to counties for jail improvements.
Several election bills were also heard:
HB 1287 would establish voter registration. County auditors joined the Secretary of State’s Office in opposition.
SB 2178 required separate ballots for each party for the primary election. This bill was voted on and failed in the Senate Friday.
HB 1384 sought to require county auditors to be elected. The committee gave the bill a Do Not Pass recommendation.
HB 1380 would give counties the option to put commission meeting minutes on the county website instead of printing in the paper. This is one of the greatest publication costs to counties. The committee gave the bill a Do Not Pass recommendation.
HB 1407 proposes to increase the weight limit allowed on roads. NDACo opposed this bill citing the great needs for roads currently and the costs associated with having roads and bridges re-evaluated for a higher weight limit. The committee gave the bill a Do Not Pass Recommendation.
HB1413 creating a safe food donation program received a DNP from the Ag Committee this afternoon at Rep Bahl’s request. After further information, he determined the bill wasn’t needed as there are already systems in place and this bill isn’t needed.
The Senate passed SB 2039 that gives property tax exemption to agriculture storage facilities. It has been the position of NDACo to oppose expanding property tax exemptions as they only shift the property taxes to other property taxpayers. The bill now goes to the House.
Don’t forget to register for the upcoming Local Government Capitol Connection Feb. 18-19th at the Bismarck Event Center. NDACo is partnering with other associations representing cities, townships, schools and parks to bring all local political sub leaders together for legislative updates. Click here for more information.
How the Legislature will proceed with property tax relief and reform is the topic of conversation with nearly every lawmaker. During this first full week of hearings, two concepts were presented to the House Finance & Tax Committee.
HB 1176 is the property tax relief/reform bill that Governor Armstrong is backing, sponsored by Rep. Mike Nathe. The bill was heard Tuesday. The basis of this plan is to increase the Primary Resident Credit from $500 to $1550 using General Fund and Legacy Earnings. The bill includes a 3% cap above base year dollars levied, allows for carry-over of unused cap dollars for up to five years. Political Subdivisions can exceed the cap with a vote, but it is only good for 1 year. The plan also makes changes to the homestead tax credit – increasing the income thresholds and increases the renters refund – to allow for more individuals to be eligible. NDACo & ND League of Cities supported the relief the bill provides to citizens but voiced concerns regarding the 3% cap. NDACo Executive Director Aaron Birst described how the 3% cap will have different effects on counties depending on size, tax base and lack of other available funding sources.
HB1168 “buys out” 60 mills of General Fund levy authority for schools, caps political subdivision levies at 3% above base year dollars levied, requires a super majority vote to exceed cap and the vote is good for 5 years. This bill was heard Wednesday and is sponsored by Rep. Scott Louser.
The committee didn’t take action on either bill. NDACo is willing to work with lawmakers on all viable solutions for a tax relief and reform package. We encourage county officials to communicate with your legislators on this issue and provide them information on how a cap (3%) would impact services and hamper the ability to address emergency situations, growth, or other issues that arise.
Governor Armstrong Budget
Governor Kelly Armstrong presented his budget to the joint House and Senate Appropriations Committees. There are several county-related areas to highlight.
$483.4 million for property tax relief
$464 million in bonding for construction projects to include: new State Hospital, Airport projects,
$16 million to staff and operate a new expansion of the Grand Forks County Correctional Center as an immediate, temporary solution to prison overcrowding.
$40 million to plan for Missouri River Correctional Facility improvement/expansion and $36.5 million to finish the Heart River Correctional Facility for women.
$19 million for behavioral health programs
Reduced the ND DOT budget proposed increase by $109 million and adding a new Legacy Fund earnings stream for the Legacy Earnings Highway Distribution Fund.
Transportation Related
SB 2142: Was heard Friday, it creates a new fund that would receive 25% of motor vehicle excise tax to be allocated to townships in non-oil producing counties. Currently, 50% of motor vehicle excise tax is deposited to the general fund and 50% goes to the Flexible Transportation Fund. The amended language would eliminate the deposit to the General Fund and deposit 25% to the new Township Road and Bridge Sustainability fund and 75% to the Flexible Transportation Fund. NDACo supported the concept of the MV Excise Tax being dedicated to roads but also asked for consideration that counties could also be factored in. 25% of the MV Excise tax is estimated to be $86 million.
HB 1065: The distribution of funds for townships in non-oil producing counties will be calculated by certified road miles rather than a flat fee. The bill passed the House 90-3.
HB 1051: Added Tribal governments to allow requests for funds from the Special Road Fund. Passed House 91-0
HB 1052: NDDOT bill for regulation of tourist oriented directional signs to include rural highways not within the ROW of interstate highway systems. The bill failed in the House 1-92
HB 1053: The NDDOT amended the definition of the state highway system may not exceed 7,700 miles (removed the percentage of road miles calculation). Passed the House 93-0
Other bills of interestwith action this past week:
SB 2039: Property Tax Exemption for Ag Storage Facilities – NDACo opposed
HB 1134: Criminalizes the dissemination of personal information – NDACo requested amendment for Law Enforcement related information.
SB 2145: Immunity for 911, 211, 988 operators
HB 1060: Extends presumption clause to State Correctional Officers – NDACo requested bill be amended to include all correctional officers (local & regional jails).
SB 2098: Changes criteria for issuing Blue & Silver alerts
HCR 3003: Require 60% voter approval for constitutional measures
HB 1096: Committee amended 911 service fee from 5% to 2.5% – Passed House 89-0
Bills we are watching this week (1/20-24) worth noting (refer to schedule for links to bills)
SB 2096: Funding for acute psychiatric treatment
SB 2201: Primary Residence credit for homes in trusts
SB 2166: Creates Property Tax Portal
HB 1266: Disabled Veterans Credit
SB 2128: Attorney General’s Truth in Sentencing Bill
HB 1335: Homestead Tax Credit increases
HB 1390: Property Tax Relief bill
HB 1383: Property Tax exemption for inundated ag land
HB 1337: Grants to Counties for mental health treatment in jails
HB 1193: Back the Blue Grants
SB 2183: Increases speeding fine in construction areas
HB 1287: Establishes voter registration
SB 2175: Post-Election audits
SB 2178: Creates multiple ballot styles for primary
NDACo has added a couple new features to the blog to help you stay involved in the Legislative Session. You can view the list of bills NDACo is tracking and see the hearing schedule of those county identified bills. Both these lists automatically update, so you can check them often. There is a link by the hearing schedule that will allow you to download or print the schedule. It may be a good idea to bookmark the hearing schedule link as this will change daily.
NDACo Legislative Blog: On the top menu bar on this site, click on the NDACo Legislative Hearing Schedule & Bill Tracking – which takes you to the NDACo website page. These items are also linked on the side menu of the Blog. It may also be a good idea to bookmark the hearing schedule as it will be updated daily.
Now onto the report….
It was an extremely busy week with the reading of bills and visiting with lawmakers about potential bills. There are about 396 bills that are out there but we expect that to grow greatly throughout the week so we will be working to get eyes on all the bills to determine if they relate to counties and how.
There were a couple hearings of interest this week. HB 1065 would change how prairie dog funds for townships are distributed – from an equal amount to based on miles. HB 1096 reduces the communication service fee to 1% allowing a greater % to be retained for the 9-1-1 system. SB 2093 expands the income tax deduction for retired Law Enforcement to surviving spouses.
This week… Two major property tax relief / reform proposals will have hearings. HB 1176 is Tuesday at 9 am in House Tax. This is the proposal Governor Armstrong pitched during his State of the State Address that includes a $1550 primary residence credit starting in 2025. It also expands the homestead tax credit. It includes levy limits of 3% and allows for a carry-over of unused % for up to 5 years. It does allow for a vote to go above the 3% cap – but only for one year. The other property tax bill is HB 1168 and proposes to send the relief through school funding formula. That bill also includes a 3% cap. That will be heard Wednesday at 9 am in House Finance & Tax. These hearings like all of the legislative hearings are live streamed and recorded. You can find them on the Legislative Council’s website www.legis.nd.gov
The other major event this week will be Gov. Armstrong providing his Budget to a joint House and Senate Appropriations hearing Tuesday at 9:30.
The Legislative Session kicked off today with Governor Kelly Armstrong delivering his first State of the State Address. The 34th Governor told lawmakers real property tax relief and reform must be the number one priority on the Legislature’s agenda. He called for delivering the most significant plan possible that can be both aggressive and durable.
Governor Armstrong provided some insight into what a plan should include:
Increase the existing Primary Residency Credit from $500 to $1,000 per year at a cost of about $310 million for the 2025-27 biennium.
Provide an additional $550 per primary residence credit by using a dedicated stream of the Legacy Fund earnings at a cost of $173 million next biennium.
The total combined primary residence relief would be up to $1550 per year in 2025-27.
Expansion of Homestead Tax Credit
Armstrong didn’t get into the details but did indicate the plan would include reform by capping future increases in local budgets at 3% and allowing for a carry-over of unused cap.
“We can afford it. The people of North Dakota are demanding it.” Armstrong said. “It creates Legacy Fund buy-in. And it is the single most impactful thing we can do for the citizens of North Dakota this session.”
“Today Governor Armstrong announced a bold vision for all North Dakotans. Building a state that is the best in the country to live, work and raise a family is a vision shared by county officials across the state. We look forward to working with the governor and the legislature to find the best way to fund essential services that are delivered by local governments,” stated NDACo Executive Director Aaron Birst.
While unofficial, we are hearing reports of there being 65 property tax bills being drafted. Governor Armstrong’s proposal is one of many that will be discussed.
Committee hearings are being held on a number of pre-filed bills Wednesday-Friday. While we don’t have a county-related specific schedule of these hearings you can see the full schedule here:
The Legislative Session kicks off Tuesday with several speeches to set the stage. Tribal-State Relationship at 10; State of Judiciary at 11; followed by Governor Kelly Armstrong’s State of the State Address at 1. You can watch all speeches live on the ND Legislative website. Make sure to bookmark http://www.ndlegis.gov that is where you can watch all bill hearings and floor sessions along with find information on how to contact your legislator and bill and schedule information. We encourage you to be involved!
NDACo will use this blog site to post weekly reports and upcoming hearing schedules for county-related bills. Make sure you are subscribed to receive updates when the blog is updated.
Below is a look at the leadership and committees for the 69th Legislative Session. Let the important work begin!
The General Election proved to be successful for North Dakota Counties with the defeat of Measure 4. 63% of voters were opposed to the measure to eliminate property taxes. A county-by-county analysis shows that the No vote was in the majority in all 53 counties, in some counties the No vote was as high as 75%.
“It was apparent during the campaign that North Dakotans are frustrated with property taxes but the defeat of Measure 4 signals that North Dakotans realize that proposal was not the answer,” said NDACo Executive Director Aaron Birst. “The failure of Measure 4 also indicates that ultimately citizens trust their local government to make budget decisions rather than the Legislature.”
NDACo joined the Keep It Local Coalition after NDACo members passed a resolution to oppose efforts to eliminate property taxes. Several other county member associations also joined in the efforts to inform voters about the importance of property taxes in funding local services.
“Many county members spent their own time to meet and inform North Dakota citizens about their concerns on Measure 4. Those efforts paid off. Thank you to all the county officials who used their voice to inform voters,” said Birst.
Property tax relief will be a top priority for the Legislature to address in the 2025 Session. It is certain legislators will bring forward various concepts for providing further relief to citizens, but we also recognize that limitations on the level of increase will also be part of the conversation. In a news conference the day after the Election, Governor-Elect Kelly Armstrong said property tax relief will be his number one priority and finding a level that is sustainable long-term is critical.
Voters also rejected Measure 5, to legalize marijuana, but more narrowly. The measure was defeated with a vote of 53% No to 47% Yes. This is the third attempt to get voters to legalize marijuana. Previous measures were on the ballot in 2022 and 2018.
North Dakotans approved reducing how much Legacy Fund principal lawmakers can spend from 15% to 5%. Voters defeated the measure that required constitutional measures to be approved in two elections and to be one subject only.
County Measurers & Races
County Measures were more mixed. Divide and Walsh counties had measures to increase taxes for roads and bridges which passed with more than 60% support. Three counties had proposals to increase taxes for historical society and one with an increase for extension; those measures failed. Two counties proposed a sales tax increase to offset property taxes. A 1% sales tax increase in Morton County was approved to be dedicated to public safety. However, a .5% sales tax for infrastructure in Sargent County was defeated. McHenry County residents approved increasing the 911 fee to $1.50. Measures to allow counties to appoint officials failed in Nelson and Mercer. Voters in Williams and Mountrail approved abolishing Weather Modification Authority.
There were many county races as well. 115 Commissioners were on the ballot with only 48 incumbents running unopposed. There were 39 newly elected commissioners.
Legislative Races
Republicans have retained supermajorities in both the North Dakota’s House and Senate. In the House, Republicans won 46 of the 51 available seats. 25 seats were up in the Senate, with Republicans winning 22 of the races.
Voters Show Up
A record number of North Dakotan’s cast their ballots before Election Day with 51% voting early or voting absentee. 62.5% of eligible voters cast 371,510 ballots. Election results are unofficial until county canvassing boards meet on November 18th and are certified by the State canvassing board on November 20th.
The North Dakota Association of Counties conducted research on the top 3 property taxpayers in each county. The findings are very informative. Here’s a summary:
Of the 3 highest paying taxpayers in each county: Out-of-State companies pay 82% of the taxes.
77% of the 3 highest paying taxpayers are out-of-state companies.
The 3 highest paying taxpayers in each county pay $90 million in taxes.
The highest 3 taxpayers pay as much as 35.5% of all taxes billed (Oliver) to less than 2% (Cass).
These points highlight who the real winners are if property taxes are eliminated. The measure goes far beyond providing property tax relief to North Dakota homeowners. In fact, only 36% of property taxes come from residential properties. Homeowners pay $513 million a year in property taxes or 36% of the total. Commercial and Centrally Assessed combined pay $459 million a year or 33% of the total. The other third of property taxes are paid by Agricultural, Special Assessments and Special Taxes. Bottom line, if the measure passes, big businesses – which a majority are out-of-state – will realize a tax break at the expense of North Dakota residents.
Statewide, counties collect 23% of the total $1.4 billion in property taxes every year. Nearly half of those funds are dedicated to roads and bridges and law enforcement. In addition, counties on average cut property taxes 1.2% in 2022.
New analysis also shows that from 2022 to 2023, 22 counties reduced their mill rate and eight of those counties also decreased the dollar amount levied. This is great news and illustrates how counties are being responsible with their budgeting and addressing the needs of their communities.
Counties recognize the frustration many residents have with property taxes; however, they are necessary. Property taxes are controlled and spent where they are raised and fund vital services that benefit property owners. The Tax Foundation’s 2024 annual analysis of tax structures in the U.S. ranked North Dakota 7th best in property taxes. If the measure would pass, North Dakota would be the first state without property taxes. The estimated cost of this plan is $3.15 billion a biennium. That is half of the state’s general fund budget. This means lawmakers will more than likely cut other state programs, many that benefit local communities like state support for local roads, schools and senior programs.
Measure 4 requires the state to fund local governments based on property taxes collected in 2024…forever. There is no plan for growth or inflation. No county can build and maintain roads at 2024 levels or operate the Sheriff’s Department five years from now at today’s cost. Same goes for any of the political subdivisions providing local services.
There are many discussions occurring on how to further relief and reform. NDACo is willing to work together with legislators to find solutions that strike the right balance of allowing local control and funding local services, while addressing effective limits.
North Dakota Counties Legislative Blog 