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Yahoo
09-05-2025
- Business
- Yahoo
Jamestown mayor criticizes Legislature over property tax reform
May 8—JAMESTOWN — Mayor Dwaine Heinrich criticized the North Dakota Legislature for creating "chaos at the local level" over property tax reform while also touting the progress that has been made in Jamestown. Heinrich said the Legislature's passage of House Bill 1176 is "very positive action" and means millions of extra dollars for Jamestown residents. He said HB 1176 grants a $1,600 property tax buydown on every taxable primary residence in the state but also caps the amount local political subdivisions can raise levies at 3% yearly. "From a local political subdivision standpoint, the disappointing part of the property tax buydown discussion was the unnecessary false narrative surrounding the property tax issue and the blatant political pandering made part of the process," he said. "If political pandering were an Olympic event, some North Dakota legislators would be sporting shiny new gold medals, unless of course they were disqualified for the use of steroids or other performance enhancing drugs." Heinrich delivered the State of the City address on Thursday, May 8, at North Dakota Farmers Union. He criticized the passage of HB 1176 in its current form, expressed frustration with a housing development bill that failed and touted economic development in the Jamestown area in the past 47 years. Heinrich said the 3% cap on raising levies annually is not workable for the city of Jamestown. He said local political subdivisions will need to find other ways to raise money. Heinrich said the city of Jamestown receives about $5 million in property taxes for its general fund that is used by police, fire and municipal court. He said sometimes health insurance costs increase annually by 10%. "We have no control over the costs of police cars, fire equipment and other supplies that we must purchase," he said. "On these budgets, costs over which we have no control likely will exceed the 3% cap. This without any pay raises for employees or cost-of-living raises. A 3% cap for many political subdivisions across the state is simply going to create chaos for many of our cities who do not have access to large per-capita tax bases or other funds." Using approximate numbers, Heinrich said the city of Jamestown's per-capita value of taxable real property — which is fourth lowest in the state — is about $39,000 compared to the city of Wahpeton and $33,000 and the city of Bismarck at $66,000. He said Bismarck has the highest per capita value of taxable real property in the state while Wahpeton has the lowest. "It would follow that in Wahpeton the taxes or mill levies would have to be twice as high as in Bismarck to raise the same number of dollars per capita," he said. "Given that there is often an economy in scale, that puts even a greater burden on communities with lower population and lower property valuation per capita." Heinrich also said a recent article on property taxes shows North Dakota ranks 34th out of 50 states for property tax burden. When looking at the total tax burden per capita in the nation, North Dakota ranks 43rd, he said. Heinrich said the city of Jamestown received another setback in its attempt to develop residential lots with the Legislature killing Senate Bill 2225. "We are now back at the drawing board and we will continue until we are successful," he said. Senate Bill 2225 would have established the Housing for Opportunity, Mobility and Empowerment (HOME) grant program in the North Dakota Department of Commerce. The program would have provided grant dollars for one-third of the infrastructure costs for residential development projects. The local political subdivision and the developer of the residential lots would each provide one-third of the costs for residential development projects. Heinrich said the Jamestown/Stutsman Development Corp., the city of Jamestown and Stutsman County were proactive and approved potential funding to use the program. The JSDC Board of Directors had approved in March a forgivable loan of $1 million to the city of Jamestown that will be used as matching dollars for a grant program that helps create residential housing development. The funding was contingent on approval of Senate Bill 2225 in the state Legislature. Heinrich said one challenge for Jamestown is overcoming news by social media and negative comments about the city. He said some negative comments include Jamestown remaining the same for years and no new development going on. In his 47 years of living in Jamestown, he said the University of Jamestown has gone through a "remarkable" transformation, a new high school has been built, and the Jamestown Civic Center has become the host to state girls basketball tournaments. Heinrich said the I-94 Business Park in Jamestown and the Spiritwood Energy Park Association's industrial park at Spiritwood are also the result of positive forward-thinking individuals in the community. "All of these things did not happen by accident," he said. "They happened because of you." Moving forward, Heinrich said a large portion of aged infrastructure is getting replaced, including aged water lines and water mains. "Constantly failing water lines creates a huge expense to you, the city taxpayers, as it is very expensive to dig up and repair failed waterlines particularly during the winter months," he said. He said the city is fortunate to have expert grant writers who have helped Jamestown receive millions of collars for projects. He said the $9 million water main replacement project will be completed without using any locally generated tax dollars. Heinrich also said the Legislature revised the "Operation Prairie Dog" program. He said there isn't enough information on the changes to the program to fully understand the impacts to the city. "What I do understand is the Prairie Dog bucket was moved up in the oil funding stream to almost certainly guaranteed funds, but it looks to me that the guarantee will be about $3.5 million instead of the $5 million per biennium we have received the last couple of sessions," he said. Heinrich added that additional funding was added to the North Dakota Department of Transportation's budget that will go directly to cities and more grant funding might be available.
Yahoo
03-05-2025
- Business
- Yahoo
North Dakota Legislature adopts ‘historic' property tax bill on final day of session
Rep. Craig Headland, R-Montpelier, speaks on the House floor during debate on a property tax bill on May 2, 2025. (Michael Achterling/North Dakota Monitor) The North Dakota House and Senate compromised on a property tax package Friday amounting to a $1,600 primary residence credit, more than triple the amount homeowners receive now. But one House member said he plans to promote an initiated measure for the November 2026 ballot that would aim to cut taxes for other property types. House Bill 1176, sponsored by Rep. Mike Nathe, R-Bismarck, and backed by Gov. Kelly Armstrong, passed on the final day of the session with a unanimous vote in the Senate and 86-4 vote in the House. Lawmakers identified property tax reform as a top priority for the session after voters initiated a ballot measure last year that sought to eliminate property taxes based on assessed value. Although the measure failed, lawmakers said they heard from voters that they expect property tax cuts in the future. The bill uses earnings from the state Legacy Fund to pay for the program, with the idea that lawmakers could consider even greater property tax relief in the future as the fund grows. Armstrong's vision is that eventually most homeowners would be on a path to paying zero property taxes. 'This bill provides real relief and real reform for taxpayers,' Armstrong said in a statement Friday. 'It's responsible, affordable and durable. It creates Legacy Fund buy-in, and it's the single most impactful thing we could do for North Dakota citizens this session.' The legislation also seeks to slow the growth of property tax increases with a 3% cap on how much local governments can increase the taxes annually. The total amount of property tax relief in the package is estimated at $473 million for 2025-27, Tax Commissioner Brian Kroshus said. The bill also includes more money for a disabled veterans tax credit and a renters refund. 'This is truly a landmark bill when it comes to property taxes,' Nathe said after the conference committee agreed on a final version of the bill. 'Probably historic.' Donnell Preskey, government and public affairs specialist for the North Dakota Association of Counties, said counties were not in favor of the caps, but the bill includes an opt-out provision that would allow residents in a taxing district to vote to be exempted from the caps for four years. 'That's one of the elements we worked really hard to get in there,' Preskey said. She added there are still concerns about what local budgets will look like with 3% caps over the next two years. She said the association hopes to educate counties on the new property tax rules, how it will impact their budgets and some of the flexibility options available. The bill also caps how much school districts can raise property taxes. It contains a provision that if the cap on schools forces some districts to drop below the state-mandated local education contribution level, the Department of Public Instruction would administer gap funding to make the districts whole. An additional $30 million is set aside for that gap funding. Lawmakers removed a so-called 'skin-in-the-game' provision the Senate advanced that would have required homeowners to pay at least 25% of their property tax bill. The Legislature defeated two other property tax proposals that also would have benefited owners of agricultural land, commercial property and centrally assessed properties. Rep. Scott Louser, R-Minot, sponsored House Bill 1168, a competing property tax bill that would have had the state pay 100% of public school funding as a way to deliver property tax relief. Louser said he plans to advance that proposal through an initiated measure. He said he plans to gather signatures with the goal of getting it on the November ballot. 'I was taught to always fight for what I believe in and, members of the assembly, this may be something you believe in, too,' Louser said. Rep. Craig Headland, R-Montpelier, chairman of the House Finance and Taxation Committee, expressed frustration with the potential ballot measure. 'For a legislator to come on and talk about how he's going to lead a petition because he doesn't like the outcome of the property tax relief that the majority of the assembly decided was the way to go is a bit over the top,' Headland said. SUPPORT: YOU MAKE OUR WORK POSSIBLE SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
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
03-04-2025
- Business
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North Dakota Senate advances property tax credit but plan differs from House
Sen. Janne Myrdal, R-Edinburg, speaks on the Senate floor during debate on a property tax bill on April 3, 2025. (Michael Achterling/North Dakota Monitor) The North Dakota Senate unanimously passed a property tax bill Thursday, but adopted major amendments that could set up a conference committee showdown between the House and Senate. Amendments to House Bill 1176 reduce the maximum primary residence credit from the $1,450 approved by the House to $1,250. Gov. Kelly Armstrong, who backs the original bill, had proposed a credit of up to $1,550 for homeowners. The Senate also adopted what Senate Majority Leader David Hogue 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. Committee advances North Dakota property tax bill but reduces level of tax credit Another amendment includes language urging lawmakers in the 2027 session to consider reducing property taxes for other property types, such as agricultural and commercial. Sen. Janne Myrdal, R-Edinburg, said she worries about excluding agricultural property from the tax credit when about 40% of the Legislature represents rural areas. She added rural areas depend more on property taxes than urban areas and excluding agricultural land from the bill puts a greater burden on those taxpayers. The Senate version of the bill would provide an estimated $478 million in tax relief for citizens for 2025-27, Tax Commissioner Brian Kroshus said. Gov. Kelly Armstrong said he is still advocating for the House version of the bill, but he's shifting his focus to the conference committee. 'I think if the original version was on the floor of the Senate it would pass,' Armstrong said. 'I think there is plenty of room to get it back to where it was.' The bill will now be sent back to the House for approval of the amendments. If the House does not concur with the Senate's changes, a conference committee made up of three members from each chamber will be appointed to iron out the differences. Hogue, R-Minot, who advocated for the amendments, said it's possible the conference committee won't be able to agree on how to reconcile the bill. He added the Senate Finance and Taxation Committee still has two property tax bills, House Bill 1575 and House Bill 1168, under consideration. Both of those bills would reduce taxes for other property types, while House Bill 1176 only affects primary residences. Senate lawmakers weigh questions of fairness in North Dakota property tax debate 'There may be no compromise and so we'll go onto some other form of tax relief for North Dakotans,' Hogue said. 'The Senate consensus is that what we passed today reflects the will of the Senate.' Armstrong said the Senate may have property tax measures in reserve, but they still need to clear both chambers. Rep. Mike Nathe, R-Bismarck, primary sponsor of the bill, said the House supports the version of the bill with a $1,450 primary residence credit. 'This is the No. 1 issue coming into this session and people have spoken loud and clear, and that's what's so disappointing about these amendments being kept on and reducing the benefits,' Nathe said. 'I don't understand why they did what they did.' Sen. Mark Weber, R-Casselton, chair of the Senate Finance and Taxation Committee, said if the bill gets to a conference committee, there will be some haggling over the primary residence credit that could go on for multiple days. He added the two property tax bills in his committee could be used to provide technical corrections for House Bill 1176 depending on what happens during the conference committee. 'We've come a long ways and now we'll begin the third period,' Weber said. 'I think the governor obviously wanted the bill to come out as is so he could quickly sign it and get it out there, which is a noble thing. But there was a little difference in thinking on some of this and that's why we have the Senate and the House.' SUPPORT: YOU MAKE OUR WORK POSSIBLE SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
28-03-2025
- Business
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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
