Latest news with #1176
Yahoo
26-04-2025
- Business
- Yahoo
North Dakota Senate advances property tax relief backup plan
North Dakota lawmakers participate in a Senate floor session on April 25, 2025. (Michael Achterling/North Dakota Monitor) A property tax reform bill viewed as an alternative in case the primary measure fails passed the Senate unanimously Friday, putting pressure on a proposal supported by Gov. Kelly Armstrong to cross the finish line. House Bill 1168 was amended to mirror many of the provisions in House Bill 1176, the bill sponsored by Rep. Mike Nathe, R-Bismarck, that Armstrong supports. 'It's a very good bill and it's there if (House Bill) 1176 fails,' said Sen. Mark Weber, R-Casselton. 'Everything is ready to go here in (House Bill) 1168 and it contains significant relief along with our preferences from the Senate as to what needs to be included.' North Dakota Senate advances property tax credit but plan differs from House House Bill 1168 includes a primary residence credit of up to $1,650, an expansion of the homestead property tax credit, up to $600 for a renters rebate and an expansion of a disabled veterans property tax relief program. The bill also includes a 'skin-in-the-game' provision requiring primary residence owners to pay at least 25% of their property tax bill. Each primary residence would receive at least $500. Another provision urges lawmakers in the 2027 session to look at providing relief to other property types, such as commercial, centrally assessed, agricultural land and other residential property. In total, the bill is expected to provide more than $511 million in relief for the biennium, according to the most recent fiscal note provided by Tax Commissioner Brian Kroshus. The bill also includes similar 3% caps, which would limit local subdivision increases on property tax levies. Weber added, if the property valuation increases outpace the 3% cap, House Bill 1168 includes language to support school districts by making up the difference through the school funding formula to make their budgets whole. Sen. Judy Lee, R-West Fargo, told lawmakers the large price tag for the bill is worrying especially at a time when the federal government is debating to reduce its cost share of Medicaid expansion payments to the states. 'If they change the federal match for Medicaid and Medicaid expansion, we are in big trouble,' Lee said. 'It could be up to $330 million that the state will not get from the feds.' North Dakota governor unveils bold property tax plan in first State of the State address Sen. Brad Bekkendahl, R-Williston, chair of the Senate Appropriations Committee, said the Senate Appropriations Committee disagreed with Kroshus on the number of people that will use the new primary residence credit. He said March 31 was the deadline to apply for the primary residence credit and about 143,000 North Dakota homeowners applied, which is less than 165,000 that were deemed eligible. 'We felt that the numbers in the fiscal note were inflated to a point where we actually took $70 million off on our calculation from these numbers … based on the number of homes we think will be actually paid the credit,' Bekkedahl said. House Bill 1168 will be returned to the House for its consideration of the Senate changes to the bill. If they do not agree with the changes, the bill differences will be resolved in a conference committee. House Bill 1176, meanwhile, is in a conference committee, with the 'skin in the game' provision a major point of contention between the House and Senate. SUPPORT: YOU MAKE OUR WORK POSSIBLE SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
28-03-2025
- Business
- Yahoo
Committee advances North Dakota property tax bill but reduces level of tax credit
Senate Majority Leader Sen. David Hogue, R-Minot, speaks during a meeting of the Senate Appropriations Committee on March 27, 2025. (Michael Achterling/North Dakota Monitor) The North Dakota Senate Appropriations Committee advanced a property tax bill Thursday, but adopted amendments such as reducing the proposed tax credit for homeowners. Senate Majority Leader Sen. David Hogue, R-Minot, introduced amendments to House Bill 1176, a property tax proposal backed by Gov. Kelly Armstrong. Hogue proposed lowering the primary residence credit from the $1,450 approved by the House to $1,250. He also proposed changes he called a 'skin-in-the-game' amendment that would limit the credit to 75% of the property owner's total tax liability. Homeowners would get a minimum tax credit of $500, the same level approved by lawmakers in 2023. North Dakota governor unveils bold property tax plan in first State of the State address 'If we adopt (House Bill) 1176 as is, you are virtually wiping out the tax liability of all the primary residence owners in those small communities,' Hogue said. 'I don't think that's good policy.' The committee adopted the amendment with a 12-4 vote. Armstrong's proposal, which was incorporated into the bill sponsored by Rep. Mike Nathe, R-Bismarck, called for a primary residence tax credit of up to $1,550. Though not included in the bill, Armstrong's long-term vision is to eliminate property taxes for most homeowners within a decade, a proposal he highlighted during his first State of the State address. 'I don't think what got put on in Appropriations today is nearly good enough for the North Dakota citizens,' Armstrong told the North Dakota Monitor after the hearing. Armstrong said he hopes senators defeat the amendments on the floor and pass the bill as originally intended. Hogue said if property tax liability is eliminated for a large portion of homeowners, then they won't have an economic stake in voting for future property tax increases or bonding proposals. The committee also adopted an amendment from Hogue that adds language urging lawmakers in the 2027-29 session to consider property tax reductions for agriculture, commercial and centrally assessed properties. The language would not be binding. The property tax credits would be paid for through earnings from the Legacy Fund, which was created by voters and is fueled with oil and gas revenue. Hogue expressed concerns about Legacy Fund earnings being used to only benefit homeowners. 'It should be broader based,' Hogue said. Armstrong said he has concerns about using Legacy Fund earnings to benefit out-of-state interests that own farmland, businesses or other types of property. 'I don't think giving out-of-state landowners a tax break helps anybody buy farmland cheaper and I don't think it helps anybody rent land cheaper,' Armstrong said. The committee rejected amendments related to the 3% property tax levy cap for local subdivisions. The bill will now head to the Senate floor for a vote of the whole chamber. If passed, it will need to be reconciled in a conference committee between the House and Senate. SUPPORT: YOU MAKE OUR WORK POSSIBLE SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
