North Dakota Senate Bill SB2177

North Dakota 2023-2024 Regular Session

• Introduced: 1/9/23
• Refer: 1/9/23
• Report DNP: 2/16/23

Caption

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.