A primary residence long-term homeowner property valuation reduction; and to provide an effective date.
Impact
The implementation of HB 1560 is poised to impact the way property taxes are assessed and collected in North Dakota. By providing a property valuation reduction specifically for long-term homeowners, the bill seeks to retain residents in their homes and prevent displacement due to rising property taxes. This measure could potentially influence state revenue from property taxes, as counties will have to adjust their tax collection and distribution strategies to accommodate the reductions mandated by the bill. The state will also reimburse counties for the loss in taxable revenue stemming from the reductions granted to eligible homeowners.
Summary
House Bill 1560 introduces a significant property tax relief measure for long-term homeowners in North Dakota. The bill stipulates that homeowners who have owned their primary residence for 30 years or more will be eligible for a 100% reduction of taxable valuation on their property, up to an $18,000 limit. This reduction aims to ease the financial burden on long-standing residents who may face increasing property taxes relative to their income or fixed retirement payments. Furthermore, co-owners of a property who are not spouses can qualify for reductions based on their ownership percentages, promoting fair treatment among all homeowners.
Contention
While the bill promotes equity for long-term homeowners, it may also spark debates over its fiscal implications. Critics might question how the state will balance reductions in property tax revenue with budgetary requirements for essential services, such as education and public safety. Additionally, there are concerns that the bill could inadvertently create inequities, favoring those who have owned homes for longer while potentially neglecting newer homeowners or renters. Stakeholders may also debate the administrative burden this program might impose on local tax officials and the state tax commissioner as they process applications and verify eligibility.
Administrative details
To access this property valuation reduction, homeowners must apply through the tax commissioner’s office, demonstrating eligibility by a specified application deadline. The first round of applications for tax year 2025 is set to be filed by August 1, 2025, providing local authorities with a clear timeframe for implementation. The administrative process includes provisions for reviewing applications and ensuring that eligibility requirements are met, which may help to mitigate concerns about fraud but could also lead to delays in benefits for qualifying homeowners.
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.
The homestead tax credit and income tax rates for individuals, estates, and trusts; to provide for a legislative management study; to provide for a legislative management report; to provide an appropriation; to provide an effective date; and to provide an expiration date.
A property tax credit for qualified parents of school-aged children who attend a nonpublic school or home education program; and to provide an effective date.
The primary residence credit; to provide for application; to provide a retroactive effective date; to provide an expiration date; and to declare an emergency.
Required filings for foreign persons investing in agricultural lands; to provide for a legislative management report; to provide a penalty; to provide a contingent effective date; and to provide an expiration date.
"Uniform Partition of Heirs Property Act"; provides alternative process for handling partition actions filed in court concerning real property with multiple owners, at least one of whom had acquired title from relative.
"Uniform Partition of Heirs Property Act"; provides alternative process for handling partition actions filed in court concerning real property with multiple owners, at least one of whom had acquired title from relative.
Legacy fund definitions, the legacy earnings fund, and the primary residence credit; to provide an appropriation; to provide for a transfer; to provide an effective date; and to provide an expiration date.