Montana’s property tax system is under scrutiny, and for good reason. A recent investigation revealed that thousands of million-dollar homes — including Gov. Greg Gianforte’s — benefit from agricultural tax breaks, paying far less than comparable residential properties. This loophole allows high-end real estate on large parcels to qualify for reduced land taxes, shifting the burden onto other taxpayers.
That article, published from the Montana Free Press in January, raises a different question about property taxes — is the real issue less about local spending and more about who pays and who gets off easy?
In North Dakota, the legislature has taken a different approach. A bill likely to become law trades a cap on local budgets for a large infusion of state money aimed at easing the burden on homeowners. Since the legislative session began in January, this outcome has been the primary focus, leaving many other important tax reform questions untouched.
It all leads to a larger question: When it comes to property taxes, are we addressing the symptoms, or have we even begun to tackle the root of the problem?
HB 1176
A BILL for an Act to create and enact two new sections to chapter 54-27, a new section to chapter 57-02, and a new section to chapter 57-15 of the North Dakota Century Code, relating to a legacy earnings fund, a legacy property tax relief fund, a primary residence certification, and a limitation on property tax levies without voter approval; to amend and reenact subsection 1 of section 21-10-06, section 57-02-01, subdivision c of subsection 1 of section 57-02-08.1, subdivision b of subsection 2 of section 57-02-08.1, and sections 57-02-08.9, 57-02-08.10, 57-02-27, 57-02-27.1, 57-02-53, 57-09-04, 57-11-03, 57-12-06, and 57-20-07.1 of the North Dakota Century Code, relating to funds invested by the state investment board, property tax definitions, the homestead tax credit and renters refund, the primary residence credit, property classifications, notices to property owners, and the property tax statement; to repeal sections 21-10-12, 21-10-13, and 57-15-02.2 of the North Dakota Century Code, relating to legacy fund definitions, the legacy earnings fund, and estimated property tax and budget hearing notices; to provide an appropriation; to provide a transfer; to provide an effective date; to provide an expiration date; and to declare an emergency.
House Sponsors: Nathe (R, District 30), Hagert (R, District 20), Headland (R, District 29), Lefor (R, District 37), Porter (R, District 34), Stemen (R, District 27), Swiontek (R, District 10), Vigesaa (R, District 29),
Senate Sponsors: Bekkedahl (R, District 1), Hogue (R, District 38), Rummel (R, District 37), Weber (R, District 22),
