The primary residence credit, setoff of income tax refunds for payment of delinquent real property and special assessment taxes, and eliminating foreclosure of tax liens for primary residential property; to provide an effective date; to provide an expiration date; and to declare an emergency.
Impact
The bill's effects are intended to alleviate financial pressure on homeowners by modifying the methods of tax collection and foreclosure. By rendering foreclosures on primary residences due only to special assessments, the bill enables a more lenient approach to delinquent taxes, which could significantly aid those who may face financial difficulties as their primary residence would otherwise be at risk of losing value or ownership due to tax defaults. This legislation positions primary residences with additional protections while maintaining the state's ability to collect taxes effectively.
Summary
House Bill 1586 introduces several amendments to the North Dakota Century Code concerning the treatment of tax liens, specifically eliminating foreclosure for tax liens on primary residences. The bill establishes a new framework that enables homeowners to be less vulnerable to property tax delinquencies, suggesting a protective measure for those struggling with real property taxes. Key provisions include a credit of $500 against property taxes due on primary residences, which must exceed the outstanding property tax obligations, and a stipulation that delinquent property taxes and special assessments will constitute a personal charge against the owner beyond the property itself.
Contention
Notable points of contention surrounding House Bill 1586 reflect concerns raised by stakeholders about the balance between taxpayer protection and government revenue collection. Proponents argue that enhancing protections for primary residences can stabilize neighborhoods by preventing forced sales due to tax delinquency, arguing it is a moral obligation to help residents maintain their homes. Conversely, opponents may express concerns that such measures could lead to decreased tax revenue and complicate the enforcement of taxation laws, suggesting that exemptions may encourage homeowners to prioritize other financial commitments over their property taxes.
Special assessment imposition for mobile home park and single family residential property and the definition of residential property for purposes of property tax assessment.
The salary of the state tax commissioner, property assessment increase notices, and use tax exemptions; to provide an exemption; to provide for a transfer; to provide an effective date; and to provide an expiration 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.
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.
An Act Concerning Foreclosure Mediation And Assistance Programs, The Highly Compensated Employee Exemption For Mortgage Loan Originators, General-use Prepaid Cards And Neighborhood Protection.