25.0538.04000
Sixty-ninth
Legislative Assembly
of North Dakota
Introduced by
Representatives Schauer, Bahl, Frelich, Jonas, Dockter, Grueneich, Ostlie, Vetter
Senators Bekkedahl, Cory, Paulson
A BILL for an Act to create and enact a new section to chapter 57-02 of the North Dakota
Century Code, relating to limitations on taxable valuation of residential property; and to provide
an effective date.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. A new section to chapter 57-02 of the North Dakota Century Code is created
and enacted as follows:
Limitation on taxable valuation increases of residential property.
1.Notwithstanding any other provision of law, for purposes of taxation, the taxable
valuation on a parcel of taxable property classified as residential property must be
limited as provided in this section.
a.The taxable valuation on a parcel of taxable property classified as residential
property may not exceed the amount of the base year valuation on that parcel of
taxable property, except as provided in subdivision b.
b.The assessor shall reassess the property to reflect the current true and full value
of the property:
(1)If the property or an improvement to the property was not taxable in the
preceding taxable year and is taxable in the current taxable year.
(2)Upon sale, transfer, or other change in ownership of the property. For
purposes of this paragraph, the assessor shall reassess the property to
reflect the current true and full value of the property as of the date of the
sale, transfer, or change in ownership.
(3)If an owner of the property makes or causes to be made an improvement to
the property. For purposes of this paragraph, the assessor shall reassess
the property to reflect the current true and full value of the property as of the
Page No. 1 25.0538.04000
HOUSE BILL NO. 1559
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24 Sixty-ninth
Legislative Assembly
date of construction completion, accounting for improvements made to the
property.
2.For purposes of this section :
a."Base year valuation" means the average of the taxable value of a parcel of
taxable property over the three most recent taxable years before the current
taxable year.
b."Improvement" means the addition of a new structure or a structural change
made to an existing structure located on a parcel of residential property after the
most recent assessment of the property which increases the true and full value of
the property. The term does not include:
(1)Ordinary maintenance of an existing structure or the grounds of the
property.
(2)A replacement structure for a structure rendered uninhabitable or unusable
by a casualty or by wind or water damage, unless:
(a)The square footage of the replacement structure exceeds that of the
replaced structure as that structure existed before the casualty or
damage occurred; or
(b)The exterior of the replacement structure is of higher quality
construction and composition than that of the replaced structure.
3.A city or county may not supersede or modify the application of the provisions of this
section under home rule authority.
SECTION 2. EFFECTIVE DATE. This Act is effective for taxable years beginning after
December 31, 2024.
Page No. 2 25.0538.04000
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23