North Dakota Governor's Property Tax Elimination Plan

In his first State of the State Address, North Dakota Governor Kelly Armstrong proposed a comprehensive plan to eliminate property taxes for most homeowners within a decade, using the state's Legacy Fund to increase property tax credits and enforce a 3% cap on local tax budget increases. The initiative aims to double the primary residence tax credit and allows local entities to carry over unused budget increases for up to five years. Armstrong emphasized that the plan would allocate approximately $483 million in the first biennium, resulting in combined tax relief of $1,550 per year, growing over time. Despite potential resistance from local governments regarding budget caps, Armstrong argues that the state's significant financial contribution to local property taxes justifies the proposed measures. This proposal follows public dissatisfaction with high property taxes and seeks to make homeownership more affordable while supporting education and mental health services. Armstrong called for immediate legislative action to prioritize this relief and reform plan.