Property tax relief is on the table in North Dakota, but local leaders are raising concerns about how a proposed 3% cap on annual levy increases could impact fast-growing communities. While supporters see it as a step toward easing the tax burden, officials in Cass County and Fargo warn that it may not keep pace with rising costs, potentially leading to service cuts. With the bill still evolving, the challenge is finding a balance—offering relief to homeowners while ensuring communities can fund essential services.
Melissa Van Der Stad with Inforum has the story out of Fargo that is interchangeable with North Dakota’s larger cities — simply replace “Fargo” with Minot or Bismarck and the concerns and arguments will be largely the same. And it all comes down to this single idea: the legislature can absolutely place cap on local budgets. But how is it going to place a cap on local expenses?
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),
