North Dakota House Bill HB1158

North Dakota 2023-2024 Regular Session

• Introduced: 1/3/23
• Refer: 1/3/23
• Report Pass: 2/20/23
• Engrossed: 3/3/23
• Refer: 3/3/23
• Report Pass: 3/22/23
• Refer: 3/23/23
• Report Pass: 3/29/23
• Enrolled: 4/27/23
• Passed: 4/28/23

Caption

The homestead tax credit and income tax rates for individuals, estates, and trusts; to provide for a legislative management study; to provide for a legislative management report; to provide an appropriation; to provide an effective date; and to provide an expiration date.

Impact

The proposed changes to the law intend to adjust how property taxes are assessed and potentially lessen the burden on vulnerable populations in North Dakota. The reforms are specified to amend existing statutes relating to homestead tax credits and initiate a program to monitor and evaluate tax relief effectiveness. In addition, the bill appropriates a total of $158,225,000 to support the implementation and administration of these property tax relief initiatives throughout the 2023-2025 biennium.

Summary

House Bill 1158 aims to enact a property tax credit specifically designed for individuals using their property as a primary residence in North Dakota. The bill establishes a primary residence credit of up to five hundred dollars against property taxes owed. This measure is targeted primarily at providing financial relief to senior citizens aged 65 or older and permanently disabled individuals. By incorporating varying income thresholds, the bill allows for reductions in taxable valuation based on income, with significant reductions available for low-income claimants.

Sentiment

The sentiment surrounding HB 1158 reflects broad support amongst lawmakers, as the bill achieved substantial voting margins in both house and senate votes, indicating a cooperative approach toward addressing tax relief. Proponents argue that the measures represented in this bill are significant steps toward supporting those who are often financially disadvantaged due to their age or disability. However, some critics express concern about the sustainability of funding such initiatives and question the equity of the benefits distributed across different income groups.

Contention

While the bill has garnered overall support, there are points of contention regarding the specifics of income thresholds and the amount of tax relief offered. Some lawmakers advocate for more significant immediate relief measures, while others worry about the long-term financial implications for state revenues. The bill's processes for verifying eligibility and distributing credits have been closely examined to address concerns surrounding administration efficiency and potential fraud.