An optional residential property tax freeze for seniors; and to provide an effective date.
Impact
This legislation aims to provide financial relief to senior homeowners by capping their property tax liabilities, which can be particularly burdensome for this demographic on fixed incomes. The bill is designed with provisions to assist surviving spouses and allows for continued eligibility under certain circumstances, such as temporary confinement in care facilities. By offering this tax freeze, it seeks to enhance housing stability for seniors and encourages them to remain in their homes longer.
Summary
Senate Bill 2177 proposes an optional residential property tax freeze for individuals aged 65 or older residing in North Dakota. The bill allows eligible senior citizens to file an irrevocable claim to freeze the property taxes levied on their primary residences, which would apply until they no longer own or occupy the residence, or until significant improvements are made to the property. The definition of improvements is strictly outlined to prevent ordinary maintenance from affecting eligibility, making it clear what constitutes an increase in property value.
Contention
Conversely, the bill has sparked discussions around its potential impact on local government revenue. Critics may argue that freezing property taxes could diminish funding for essential services funded by these taxes. Legislators and stakeholders might be concerned about how this could affect the overall tax base and local budgets, particularly in areas where senior populations are growing. As property taxes are a major source of local funding, any measure that reduces this income needs careful consideration of its longer-term ramifications on community services and infrastructure.
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.
Provide property assessment freeze and reduction of property assessment for certain seniors, and to revise qualifications for a property tax exemption.
The homestead credit certification and disabled veterans' credit; to provide for retroactive application; to provide an effective date; and to provide an expiration date.
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.