25.0369.01000
Sixty-ninth
Legislative Assembly
of North Dakota
Introduced by
Senator Weber
A BILL for an Act to create and enact a new section to chapter 57-15 of the North Dakota
Century Code, relating to limitations on taxing district budgets without voter approval; and to
provide an effective date.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. A new section to chapter 57-15 of the North Dakota Century Code is created
and enacted as follows:
Limitation on taxing district budgets without voter approval.
1.Notwithstanding that a taxing district may have unused or excess levy authority under
any other provision of law, this section supersedes and limits that authority. This
section may not be interpreted as authority to increase any property tax levy authority
otherwise provided by law and must be applied to limit the growth of a taxing district's
budget . The governing body of a taxing district may not exceed the final budget of that
taxing district in the preceding taxable year by more than the consumer price index,
subject to the following:
a.When property and improvements to property which were not taxable in the
preceding taxable year are taxable in the current taxable year, the final budget of
the taxing district in the previous taxable year must be increased for purposes of
this section to reflect the taxes that would have been imposed against the
additional taxable valuation attributable to that property at the mill rate applied to
all property in the preceding taxable year.
b.When a property tax exemption existed in the preceding taxable year which has
been reduced or no longer exists for the current taxable year, the final budget of
the taxing district in the preceding taxable year must be increased for purposes of
this section to reflect the taxes that would have been imposed against the portion
Page No. 1 25.0369.01000
SENATE BILL NO. 2378
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24 Sixty-ninth
Legislative Assembly
of the taxable valuation of the property which is no longer exempt at the mill rate
applied to all property in the preceding taxable year.
c.When property that was taxable in the preceding taxable year is not taxable for
the current taxable year, the final budget of the taxing district in the preceding
taxable year must be reduced for purposes of this section by the amount of taxes
that were imposed against the taxable valuation of that property in the preceding
taxable year.
d.When a temporary mill levy increase, excluding an increase under this section,
authorized by the electors of the taxing district or mill levy imposition authority
under state law existed in the previous taxable year but is no longer applicable or
has been reduced, the final budget of the taxing district in the previous year for
purposes of this section must be adjusted to reflect the expired temporary mill
levy increase and the eliminated or reduced mill levy under state law before the
percentage increase allowable under this subsection is applied.
2.A taxing district budget exceeding the percentage increase limitation under
subsection 1 may be adopted by the taxing district upon approval of a ballot measure,
stating the proposed budget increase percentage compared to the percentage
limitation under subsection 1, by at least two - thirds of the qualified electors of the
taxing district voting on the question at a statewide primary or general election. A
budget exceeding the percentage increase limitation under subsection 1 may be
approved by electors for not more than one taxable year at a time.
3.For purposes of this section:
a."Consumer price index" means the percentage change in the consumer price
index for all urban consumers in the midwest region as determined by the United
States department of labor, bureau of labor statistics, for the most recent year
ending December thirty-first.
b."Taxing district" means any political subdivision empowered to levy taxes.
4.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 25.0369.01000
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