Share this article!

North Dakota Gov. Kelly Armstrong signed a property tax relief bill into law this weekend that is designed to assist North Dakota homeowners while limiting growth in local spending.

House Bill 1176, which passed in North Dakota’s House 86-4 and the Senate 46-0 on Friday, more than triples the state’s existing primary residence property tax credit from $500 per year to $1,600 per year.

Under the bill, an earnings stream from the state’s $12 billion Legacy Fund will pay for the relief, estimated at $409 million in the 2025-2027 biennium. The earnings stream will grow as the Legacy Fund grows, allowing the size of the tax credit to increase in the coming years.

Lawmakers also adopted the governor’s proposed 3% cap on future increases in local property tax budgets on residential, commercial and agricultural properties, with the goal of encouraging localities, schools, and park districts to budget accordingly. If the entire 3% isn’t used, the remainder of it can be carried over for up to five years. Other sections of the bill expanded the current renter’s refund program and increased funding for the disabled veterans’ tax credit.

“It ended up being an unbelievably great and historic package that is going to have real, meaningful results for the citizens of North Dakota, particularly primary residential homeowners,” said Armstrong during a bill signing ceremony at the Capitol. “This was an absolute team effort – both chambers, Governor’s Office, both parties, everybody recognized that property tax relief was the No. 1 priority we had to accomplish this legislative session. And I think we came up with a really, really great package.”

Photo: The bill signing ceremony, courtesy of Gov. Armstrong’s office

Booking.com