North Dakota Senate Bill SB2329

North Dakota 2023-2024 Regular Session

• Introduced: 1/16/23
• Refer: 1/16/23
• Report Pass: 2/8/23
• Refer: 2/10/23
• Report Pass: 2/21/23
• Engrossed: 2/22/23
• Refer: 2/22/23
• Report DNP: 3/15/23

Caption

Allocations to townships from the township highway aid fund and an allocation of motor vehicle excise tax collections to the township highway aid fund and the county highway aid fund; and to provide an effective date.

Impact

If enacted, SB2329 would modify how township highway aid funds are distributed, ensuring that allocations are proportional to the specific road and bridge investment needs of each county. This is based on a twenty-year estimate provided by the Upper Great Plains Transportation Institute. Notably, the bill requires organized townships to levy a minimum tax rate of eighteen mills, or face reductions in their allocated funds until compliance is achieved. This requirement could affect financial planning for numerous townships, compelling them to reconsider their budgeting and taxation strategies to retain necessary funding.

Summary

Senate Bill 2329 aims to create a new section in the North Dakota Century Code concerning the allocation of funds to county and township highway aid. The bill proposes amendments to existing laws regarding the distribution of motor vehicle excise tax collections, specifying how funds should be allocated to townships based on the total length of roads maintained within each jurisdiction. This bill is particularly significant for counties and townships that rely heavily on state funding for their road infrastructures, as it seeks to ensure a more targeted distribution of financial resources that correspond to each area's road and bridge needs.

Sentiment

The reception of SB2329 appears to vary across the legislative assembly, though details regarding sentiments expressed during discussions were not prominently featured in the available documents. Proponents likely view the bill as a necessary measure to ensure more equitable and need-based funding for transportation infrastructure. Conversely, there may be concerns, particularly from smaller or financially constrained townships, regarding the pressures of the mill levy requirement and the overall impact on their local road management strategies.

Contention

A notable point of contention surrounding SB2329 revolves around the imposition of a minimum tax levy for townships to qualify for state funding. This could disproportionately impact smaller townships that struggle with tax base expansion or revenue generation, potentially exacerbating existing inequalities in road infrastructure quality across the state. Additionally, the criteria established for fund allocation based on road length may invite debates on fairness, as some counties may benefit more from these revised formulas than others.