North Dakota Senate Committee Approves Property Tax Reform Bill

North Dakota's property tax reform bill, HB 1176, has received unanimous approval from the Senate Finance and Taxation Committee, following its passage in the House. The bill proposes to increase the primary residence tax credit from $500 to $1,450 and impose a 3% cap on property tax levy increases, unless local governments seek voter approval for higher rates. While Governor Kelly Armstrong supports the bill as a significant response to constituent concerns about property taxes, local governments have expressed worries that the levy cap could hinder their ability to meet budgetary needs and maintain essential services. Some local officials advocate for tying the cap to a measure of inflation, such as the consumer price index. The bill also aims to expand eligibility for the homestead tax credit for seniors and increase the maximum renters’ refund. The measure will now proceed to the Senate Appropriations Committee for further consideration.