Limitations on taxable valuation of residential property; and to provide an effective date.
Impact
The implications of HB1559 extend to how residential properties are assessed and taxed, effectively capping the valuation increases that can occur during reassessments. The bill is expected to impact local government revenues, as it limits the ability of municipalities to raise taxes based on property increases, forcing them to adjust their budgets accordingly. As a result, this could lead to financial challenges for cities that rely heavily on property taxes to fund essential services such as education, infrastructure, and emergency services.
Summary
House Bill 1559 aims to establish limitations on the taxable valuation increases of residential property in North Dakota. Specifically, the bill stipulates that the taxable valuation of residential properties cannot exceed their base year valuation, providing a measure of stability in property taxes for homeowners. This bill is conceived as a protective measure aimed at ensuring that property taxes do not rise exorbitantly, thereby supporting housing affordability for residents.
Contention
While supporters argue that HB1559 will help maintain affordable housing and protect homeowners from steep tax increases, opponents may view it as a limitation on local control and revenue generation. The provision that cities and counties cannot modify the application of this bill through home rule authority could be a point of contention among local officials who believe they should have the flexibility to make decisions that reflect the specific needs of their communities. Such discussions are crucial as lawmakers consider the balance between state mandates and local autonomy.
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 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.
Relating to the payment in installments of ad valorem taxes on certain property owned by a business entity and located in a disaster area and to the ad valorem taxation of a residence homestead rendered uninhabitable or unusable by a casualty or by wind or water damage.
Relating to ad valorem tax relief for an owner of certain property, including a residence homestead that is rendered uninhabitable or unusable by a casualty or by wind or water damage, and to a restriction on the authority to bring an action to remove a house that is partially located on a public beach as a result of a meteorological event.