North Dakota House Bill HB1461

North Dakota 2023-2024 Regular Session

• Introduced: 1/18/23
• Refer: 1/18/23
• Report DNP: 2/14/23

Caption

The determination of school district state aid payments; and to provide an effective date.

Summary

House Bill 1461 is a legislative proposal introduced in North Dakota aiming to enact new limitations on property tax levies by taxing districts without voter approval. The bill seeks to amend existing statutes to restrict how much property tax a taxing district can levy in any given year. Specifically, it sets a cap at five percent increase from the previous taxable year's levy amount with certain exceptions regarding new property tax sources and lost exemptions. This measure is intended to provide accountability and transparency regarding local taxation, ensuring that any increase in property tax levies must come with the consent of the voters. The legislation delineates that taxing districts—political subdivisions authorized to levy taxes—cannot exceed the preceding year’s levy amount without a significant public mandate. The bill also articulates how levies can be adjusted under specific circumstances, including newly taxable properties or when previous exemptions are no longer applicable. By providing a clear framework for how much tax can be levied without direct electoral consent, the bill aims to provide predictability for both taxpayers and taxing authorities alike. Notable points of contention arise around the bill's implications for local governance. Proponents argue that these limitations preserve taxpayer rights and prevent local governments from imposing excessive tax burdens without public oversight. However, opponents express concerns that such constraints might hinder necessary funding for local projects and services, as taxing districts could find themselves restricted in their ability to raise funds to meet emerging community needs. Thus, the bill presents a potential conflict between fiscal responsibility and local autonomy. In conclusion, HB1461 represents a significant shift in property tax law within North Dakota. It emphasizes the necessity for voter involvement in tax increases, potentially altering how taxing authorities plan budgets and fund public services. As debates continue, stakeholders will likely assess both the intended benefits and the challenges posed by this legislative initiative.