North Dakota Senate Bill SB2309

North Dakota 2023-2024 Regular Session

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

Caption

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.

Impact

Additionally, SB2309 imposes limitations on the valuation of a primary residence, ensuring that the true and full valuation of such properties does not increase by more than 3% compared to the previous year, with allowances for improvements. This is intended to afford predictable and manageable property tax burdens for homeowners and to avoid sudden spikes in tax liabilities. If a taxing district seeks to exceed this limit, it must obtain majority approval from local voters through a ballot measure, thereby ensuring community involvement in significant tax decisions.

Summary

SB2309 establishes the Primary Residence Property Tax Relief Fund and introduces a property tax credit aimed at providing financial support to homeowners for their primary residences in North Dakota. This bill sets forth provisions that allow an individual to receive a credit of up to $5,625 on the taxable valuation of their primary residence, thereby reducing their property tax burden. This credit is available regardless of family headship, allowing various claimants, including estates and corporations under certain conditions, to benefit similarly.

Contention

However, the bill has garnered mixed feelings among stakeholders. Proponents argue it promotes homeownership and protects residents from steep tax increases, while critics highlight concerns over potential revenue loss for local governments, which may find themselves constrained in funding essential services as property tax revenues are capped. The mechanisms for tax credits and relief embedded in SB2309 have also been debated, particularly the allocation of funds and the implications for public services that rely on stable tax revenue.