A primary residence valuation freeze for purposes of calculating property tax; and to provide an effective date.
Impact
The proposed legislation would specifically benefit homeowners by protecting them from potential increases in property taxes due to rising market values. By allowing a freeze on property valuations, SB2361 provides financial planning certainty, thus supporting not only the current homeowners but also promoting retention in local communities. However, it could also have broader implications for local government budgets, which rely on property tax revenues to fund essential services such as education, infrastructure, and public safety.
Summary
Senate Bill 2361 aims to implement a primary residence valuation freeze for property tax calculations in North Dakota. Under this bill, individuals can file an irrevocable claim that freezes the property valuation assessed in the subsequent taxable year for their primary residence. This freeze remains in effect until the individual no longer owns or occupies the residence or refines their mortgage. The bill seeks to provide stability and predictability for homeowners regarding their property taxes, particularly in an economic climate where property values may fluctuate significantly.
Contention
While the intent of SB2361 appears to be positive for homeowners, it may raise concerns among local governments regarding the stability of their funding. Critics may argue that a valuation freeze could lead to funding shortages for public services, sparking debate about whether the financial relief for homeowners comes at the expense of essential community resources. Additionally, the bill requires that the tax commissioner design and provide necessary forms, which may lead to administrative challenges or delays in implementation.
Voting_history
The bill faced a challenging path, as indicated by its voting history, where it garnered only 2 votes in favor against 45 against during its Senate second reading. This disapproval may reflect competing opinions on the adequacy of property tax protections versus the financial needs of local governments. As such, the bill’s future may depend heavily on further discussions regarding potential amendments or alternative solutions to balance the needs of property owners and local government funding.
The primary residence credit, setoff of income tax refunds for payment of delinquent real property and special assessment taxes, and eliminating foreclosure of tax liens for primary residential property; to provide an effective date; to provide an expiration date; and to declare an emergency.
Legacy fund definitions, the legacy earnings fund, and the primary residence credit; to provide an appropriation; to provide for a transfer; to provide an effective date; and to provide an expiration date.
Determination of state school aid, information displayed on property tax statements, transfer of legacy fund earnings, and deposit of oil and gas tax revenues; and to provide an effective date.
The primary residence credit; to provide for application; to provide a retroactive effective date; to provide an expiration date; and to declare an emergency.