Latest news with #HouseBill1575
Yahoo
03-04-2025
- Business
- Yahoo
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
17-03-2025
- Business
- Yahoo
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
- Yahoo
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
