North Dakota House Bill HB1586

North Dakota 2025-2026 Regular Session

• Introduced: 1/20/25
• Refer: 1/20/25
• Report DNP: 2/10/25

Caption

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.