North Dakota Senate Bill SB2136

North Dakota 2023-2024 Regular Session

• Introduced: 1/3/23
• Refer: 1/3/23
• Report Pass: 2/7/23
• Refer: 2/7/23
• Report Pass: 2/13/23
• Engrossed: 2/16/23
• Refer: 2/17/23
• Report DNP: 4/26/23

Caption

The homestead tax credit; to provide an appropriation; and to provide an effective date.

Impact

The approval of SB 2136 would provide significant financial relief to eligible residents by reducing the taxable valuation of their homesteads, reflecting the legislative intent to support low-income seniors and individuals with disabilities. The appropriated funds amounting to $135 million are designated for state reimbursement under this homestead tax credit program for the upcoming biennium, signaling a commitment from the state to provide necessary fiscal support for this initiative. The structured exemptions would allow for a scalable tax relief approach based on the varying financial circumstances of applicants.

Summary

Senate Bill 2136 amends the North Dakota Century Code to expand the homestead tax credit for individuals aged sixty-five or older, or those who are permanently and totally disabled. The bill establishes specific income thresholds that determine the level of tax credit available, with provisions for full and partial exemptions based on income levels. This reform is aimed at providing a more equitable tax relief mechanism for vulnerable populations, especially seniors and disabled individuals, while also ensuring that these residents can remain in their homes without undue financial strain from property taxes.

Sentiment

The sentiment surrounding SB 2136 appears to be generally positive among its proponents, who view the bill as a necessary step toward enhancing support for older residents and those with disabilities. Advocates argue that it reflects a compassionate response to the financial challenges these populations face. However, there may be opposition regarding the appropriated budget and its potential impact on state finances, with critics questioning the sustainability of such tax relief programs in light of the state's overall fiscal health.

Contention

Notable points of contention include concerns about the bill's long-term fiscal implications and the adequacy of the appropriation against the backdrop of growing state budget pressures. While the intent to provide tax relief is widely supported, some lawmakers and stakeholders may raise issues about creating an even larger public spending commitment. Furthermore, the eligibility criteria, particularly the asset limitation of $500,000, could spark debate over fairness and accessibility for all affected residents.