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24-03-2025
- Business
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District 12, 29 lawmakers update constituents on bills
Mar. 24—JAMESTOWN — District 12 and 29 lawmakers answered several questions about bills that they are working on in the North Dakota Legislature, including property taxes, keeping explicit sexual material out away from areas accessible to minors in libraries, education bills, helping rural communities and a bill related to energy conversion and transmission facility, siting among other issues. District 12 and 29 lawmakers answered questions about the legislative session on Saturday, March 22, at a meet-and-greet event hosted by the Jamestown Area Chamber of Commerce at the Gladstone Inn & Suites. Rep. Don Vigesaa, R-Cooperstown, did not attend the event. Rep. Craig Headland, R-Montpelier, said the House Finance and Taxation Committee has seen almost 60 bills in regard to property tax. "I think the Senate has settled in pretty much on House Bill 1176, a bill that in some ways I and the House Tax Committee completely rewrote from its original design," said Headland, who chairs the House Finance and Taxation Committee. "The original design had the intent of taking every primary residence to zero. We took that out. We don't know that we believe in that." HB 1176 would expand the primary residence tax credit from $500 to $1,450 beginning in tax year 2025, Forum News Service reported. "I've also heard that there's a move to possibly take the $1,450 down to $1,250," Headland said. "I don't know that I agree that we need to do that either. What I do agree with that I've heard that they're thinking about is putting some type of percentage into the equations so no one's primary residence goes to zero today. If we want to take properties to zero in the future, and future legislators have the funding ability to do it, that's a decision they should make." HB 1176 would also expand eligibility for the Homestead Tax Credit program, which is available to homeowners over 65 years old, Forum News Service reported. The income thresholds for eligibility would be expanded from $40,000 to $50,000 to be eligible for the full credit and from $70,000 to $80,000 to be eligible for half the credit. It also expands the maximum available renter's refund from $400 to $600. The bill also proposes a 3% cap on property tax levy increases from taxing districts. "We put in some provisions to help the political subdivisions deal with the restrictions caps," Headland said. "Some of them stayed in the bill. One of them, the opt-out provision where we allowed a county to opt out or a city to opt out of the cap altogether, was stripped out of the bill in House Appropriations, which I didn't really think was appropriate because the policy committee, which I chair, had put it in." Sen. Terry Wanzek, R-Jamestown, said he would support some of the amendments to HB 1176. "I think it's not probably prudent to take one class of property down to zero," he said. "In some cases, that's the way it's designed right now would go to zero and there is an amendment that would say that's limited to 75%. You could end up getting a full $1,450 tax credit on your primary home. ... Targeting primary homes does make sense. "Most of us have a home and a primary home and are paying taxes on it, and it would single out, in my view, more of North Dakota citizens," he said. " ... Some property if we provide a huge property tax decrease, it's going to out-of-state people and it's leaving our state. That's of some concern." Rep. Bernie Satrom, R-Jamestown, said Senate Bill 2307 is about keeping explicit sexual material away from areas accessible to minors. "It's about safety of children,"he said. He said it's illegal to allow children to have explicit sexual material. "Some of you probably know that sexually explicit information is being used by groomers and sexual abusers, and it's not a positive thing for children to have sexually explicit information, have access to it, particularly at a young age," he said. SB 2307 would require public libraries and school districts to develop a policy and review process by Jan. 1 for library collections to ensure explicit sexual material is not in an area accessible to minors. The bill also requires safety policies and technology protection measures for digital or online database resources offered by a school district, state agency or public library to students in grades K-12. If a provider of digital or online library resources fails to comply with having safety policies and technology protection measures, the school district, state agency or public library shall withhold any further payments to the provider pending verification of compliance, the bill says. The bill also creates an obscenity review procedure where any person may request a local state's attorney's opinion to review if material in a library or school district has explicit sexual material. The state's attorney would need to issue an opinion on the alleged violation within 60 days to the interested person, provider of digital or online library database resources, school district, state agency or public library under review. If it is determined that a public library, state agency or school district is in violation, funding may be withheld if correction action to comply with the law isn't taken within 10 days. The state's attorney may prosecute for failure to comply with the law. Satrom said some librarians didn't comply with a previous bill that was passed during the legislative session in 2023. Rep. Mitch Ostlie, R-Jamestown, said any concerns with library materials should be handled locally. "If you have a concern with something in the library, you should go to the librarian," he said. "If you don't like the answer you get there, there is a library board. If you don't like the answer there, they're under control of either city council or county commission. So those are important steps in the process to deal with a lot of issues but sometimes we jump a few levels of governing bodies and go right to the Legislature and we're supposed to fix some of this stuff." He said local law enforcement and the state's attorney's office brings charges forward to individuals who are breaking the law. "We're overstepping a whole lot of levels there," Ostlie said. Wanzek said the Legislature is working on a couple of bills to address economic development in rural North Dakota. "It's to try to help those small rural communities that mean a lot to the rural people and some fashion," he said. Wanzek said he sponsored Senate Bill 2097 with Sen. Tim Mathern, D-Fargo, and Rep. Mike Brandenburg, R-Edgeley, to create a rural community endowment fund and a committee for the fund. The bill would appropriate $5 million to the rural community endowment fund from the general fund in the state treasury. "It started out wanting $50 million," Wanzek said, referring to the original bill that included $50 million for the community endowment fund. He said the endowment fund could provide consistent and sustainable funding for small rural communities in the future. "We're trying to get it passed and get it in there, and even if it isn't accessible right away," he said. "If our ancestors, 20, 30, 40, 50 years ago, if we'd have done that, we'd have that endowment fund now." Headland said the Legislature is taking it seriously to put funds aside for infrastructure. "What we're really talking about is what's holding back economic development in rural areas is lack of infrastructure," he said. "I think we're going to have historic levels of funding for county roads, township roads, transmission, electric transmission, natural gas transmission pipelines." Sen. Cole Conley, R-Jamestown, said economic development is one of the most important things legislators work on. "That is the fuel that drives the economy," he said. Ostlie said a bill in the North Dakota Legislature could provide up to $100,000 for improvements at the Stutsman County Fairgrounds. HB 1591 — sponsored by Ostlie, Satrom, Wanzek and Conley — would create a one-to-one matching grant program and appropriate $3 million to the agriculture commissioner to provide grants to county agriculture fair associations for the planning, design and construction of infrastructure projects from July 1, 2025, to June 30, 2027. No more than $100,000 could be awarded to a county agriculture fair association. "It's well needed across the state," Ostlie said. Satrom said agriculture development and diversification is a big deal. He said all local lawmakers sponsored a bill for value-added agriculture. Wanzek said bills in the Legislature are being pitted as public versus private schools. "I see this as empowering parents and empowering students to have a choice where in some situations they're limited in their ability to make that choice," he said. Headland agreed. "It's more of empowering parents to make the decisions that would they feel would be best for their children and the state being able to help with that," he said. "It doesn't take any money away from public (schools)." Wanzek said Senate Bill 2400 is an education savings account. Senate Bill 2400 would provide a $1,000 education savings account payment — it previously was $500 — to an eligible student if that student's household has an annual income less than or equal to 300% of the most recently revised poverty income guidelines. Headland said there is a misunderstanding of what House Bill 1258 does. "It doesn't take away local decision making unless that decision is deemed unreasonable," he said. House Bill 1258 would give the state Public Service Commission the authority to override rules set by local governments that conflict with a state approval for an electric transmission project, The Bismarck Tribune reported. The bill would apply to all power line siting cases, including the JETx project — a $440 million transmission line project that connects the Otter Tail Power Co. substation north of Jamestown along North Dakota Highway 20 to the Montana-Dakota Utilities Co. substation near Ellendale. The project was requested by the regional power grid operator Midcontinent Independent System Operators (MISO) and is promoted as a way to improve regional power grid reliability. MISO manages the power grid for a 15-state area and parts of the province of Manitoba. The Stutsman County Commission rejected a proposed zoning ordinance for gas and liquid transmission lines. The proposed zoning ordinance would have required a setback distance of 2,600 feet between any occupied dwelling and a new high voltage power line or large pipeline. The current standard is set at 500 feet by the North Dakota Public Service Commission. The proposed zoning ordinance change originated at the Stutsman County Planning and Zoning Commission, which unanimously approved in July changing the setback distance to 2,600 feet. The current Stutsman County zoning ordinance does not address setbacks for electrical transmission lines or pipelines. "You can't allow a small political subdivision to just zone something else because they don't want it," Headland said. He said all customers of Otter Tail and MDU pay for the cost of transmission line projects. "They need to be least tried to be kept as reasonably priced as we can," he said. "If you ended up with just nothing but a zigzag across the state, you're not going to have the ability to proceed forward with those projects." Headland said the last resort is eminent domain. Eminent domain means the government would have the power to take private property for public use even if the owner doesn't want to sell. The property owner would still be compensated. "In most cases, there are ways to work around it," Headland said. Headland said some landowners are unwilling to take a phone call from Otter Tail or MDU. "My suggestion to any property owner who has not yet talked to Otter Tail in this case with this particular line ... at least take their phone call, sit down with them," he said. "If you can't come to some kind of amenable agreement ... that's a decision you and the company will make. Let's just hope that we can find a route for this very, very critical piece of electric transmission infrastructure that we need."
Yahoo
17-03-2025
- Business
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Senate committee advances property tax package supported by Gov. Armstrong
Gov. Kelly Armstrong speaks in support of a property tax bill during a Senate committee hearing on March 17, 2025. (Michael Achterling/North Dakota Monitor) A property tax bill backed by Gov. Kelly Armstrong received a unanimous do pass recommendation Monday immediately following a Senate committee hearing. House Bill 1176, sponsored by Rep. Mike Nathe, R-Bismarck, would give North Dakota homeowners up to a $1,450 primary residence tax credit and cap the amount of property taxes that could be levied locally at a 3% annual increase. The bill would also raise income thresholds for seniors to the Homestead Tax Credit program by $10,000 and expand the state's renters credit for those that qualify from $400 to $600. Tax Commissioner Brian Kroshus estimates the bill would provide an estimated $503.3 million in tax relief to citizens for 2025-27. 'During my campaign, I visited with thousands of constituents from every corner of our state and I can confidently say that this is their top priority and it should still be ours,' Armstrong told the Senate Finance and Taxation Committee. Senate lawmakers weigh questions of fairness in North Dakota property tax debate Other property tax relief bills under consideration by the Senate would reduce property taxes for commercial, agriculture and centrally assessed properties in addition to residential property. Armstrong said focusing on primary residences would bring tax reductions to small business owners in the state indirectly. 'Every small business owner I know in North Dakota lives in North Dakota,' he said. Most of the testimony Monday was in support of the bill, but some including the North Dakota League of Cities and North Dakota Association of Counties advocated for amending the 3% cap for local political subdivisions. Both groups favor a cap tied to the rate of inflation, such as the consumer price index plus 2%. Brandy Madrigga, finance director for Cass County, told lawmakers that salaries and benefits for the county's 277 employees account for the majority of the county budget. She said the average annual raise and cost of living adjustment for county employees is about 5%. 'These increases are necessary to ensure the county can retain skilled personnel and maintain the quality of essential services,' Madrigga said. Nathe said the Legislature could revisit the caps during the 2027 legislative session. The bill also allows local governments to exceed the cap with approval from voters. It also allows local governments to bank unused increases for up to five years. Committee member Sen. Michelle Powers, R-Fargo, said she liked that House Bill 1176 only affects primary residences. The committee advanced the bill to the Senate Appropriations Committee, which could make amendments to the bill, including discussing the 3% caps. The two other property tax bills, House Bill 1575 and House Bill 1168, also would affect out-of-state property owners and those who own multiple properties in the state. The committee held hearings on those bills last week but has yet to make a recommendation. All three bills were passed by the House. SUPPORT: YOU MAKE OUR WORK POSSIBLE SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
12-03-2025
- Business
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Senate lawmakers weigh questions of fairness in North Dakota property tax debate
Rep. Robin Weisz, R-Hurdsfield, testifies in favor of a property tax reform bill to a Senate committee on March 11, 2025. (Michael Achterling/North Dakota Monitor) Members of a Senate committee debated meaningful versus equitable property tax reform during hearings for two bills that would drastically affect how property tax is collected in the state. House Bill 1575, one of three bills advanced by the House earlier this session, would reduce property tax rates for residential, agriculture and commercial properties. Sponsor Rep. Robin Weisz, R-Hurdsfield, proposed an amendment Tuesday that would add centrally assessed properties, such as railroads, to be equitable across all property types. 'House Bill 1575 is a property tax relief bill that is simple, clean and it covers all of the property tax classes,' Weisz told members of the Senate Finance and Taxation Committee. The bill under the amendment he proposed would reduce the residential property tax rate from 9% to 6.25% and the rates for agriculture, commercial and centrally assessed property would drop from 10% to 8.75%. The bill also would cap annual increases in a property's taxable value at 3%. Any local taxing district could opt out of the cap for six years with approval from voters during a primary or general election. Weisz said a competing property tax proposal that focuses on the primary residence tax credit disproportionately benefits the state's more urban areas. 'This makes it more equitable,' he said. 'The people that are supporting our local government with their property tax dollars should receive somewhat of an equitable relief.' The bill received support from several agriculture groups. Another proposal, House Bill 1176, sponsored by Rep. Mike Nathe, R-Bismarck, focuses on increasing a tax credit for homeowners but does not address agricultural or commercial land. Sen. Dale Patten, R-Watford City, asked during the hearing whether it was better to give meaningful tax relief or equitable tax relief. 'When we spread the dollars that we have available across so many different interests and so many different entities … in the interest of being fair, do we lose meaningful?' Patten said. Weisz acknowledged that under his bill some homeowners may receive a smaller property tax cut than the $500 primary residence tax credit lawmakers approved in 2023. He added the $500 primary residence tax credit was only authorized as one-time funding. Patten said he was worried that if relief is spread too thinly, when residents check their property tax statements, they may not find that relief adequate. The push for property tax reform comes after voters initiated a ballot measure last year that would have eliminated property taxes based on assessed value. Though the measure failed, many voters now expect legislators to reduce property taxes this session. Weisz's bill would also increase the Homestead Tax Credit available for property owners and increase the state's renters credit from $400 to $600, similar to House Bill 1176. House Bill 1575 as approved by the House would provide citizens with about $703.2 million in property tax relief for the 2025-27 budget cycle, according to Tax Commissioner Brian Kroshus. That does not reflect the amendments introduced Monday. The bill would be funded with a combination of the general fund and Legacy Fund earnings. The committee on Tuesday also discussed another property tax option, House Bill 1168, sponsored by Rep. Scott Louser, R-Minot. His proposal would use state funds to buy down a portion of property taxes that would have been levied by school districts, reducing property taxes for residential, commercial and agricultural land. The bill would also limit local political subdivisions to increasing property tax levies by no more than 3% each year, not including school districts. Unused increases could be carried over one year. 'I think this bill is complementary and it's not competing with other bills that the House passed to the Senate,' Louser said during the hearing. 'This does maintain local control and has a relief valve, if needed.' Taxing districts that want to exceed the limits imposed by the bill could put the measure to a primary or general election ballot for their voters to decide. In its current form, Louser's bill is the least expensive of the three property tax proposals at an estimated $121 million, according to a Legislative Council fiscal note. However, he strongly recommended the Senate committee amend his bill to buy down a larger portion of school district property taxes, as he had initially proposed before House lawmakers reduced it. North Dakota House sends 3 property tax reform bills to Senate 'Please listen to our constituents and provide substantial property tax relief and reform,' Louser said. Representatives of political subdivisions testified mostly in favor of the property tax bills but some advocated for more flexible caps, such as tying the limits to inflation rates. 'We feel like that is a better way to give us some flexibility to meet the needs of the citizens in real time,' said Matt Gardner, executive director for the North Dakota League of Cities. Gardner also suggested not requiring caps for cities with populations under 1,300. Another amendment Louser proposed to the committee would tie local taxing districts' caps to the consumer price index, plus 1% or 2%. No action was taken by the committee on either property tax reform bill. House Bill 1176, backed by Gov. Kelly Armstrong, will have its committee hearing next week, according to Sen. Mark Weber, R-Casselton, chair of the Senate Finance and Taxation Committee. House Bill 1176 would allow homeowners to claim up to a $1,450 annual primary residence credit. The bill also features a 3% cap on the amount local subdivisions could levy for property taxes. That bill would benefit North Dakota residents, while the other two bills would also benefit out-of-state property owners. SUPPORT: YOU MAKE OUR WORK POSSIBLE SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
