Senators making progress on property tax relief bill, but more to be settled

BISMARCK, N.D. (KFYR) - Gov. Kelly Armstrong, R-N.D., wants to see a bill providing property tax relief and reform signed soon. The Senate Appropriations Committee voted to recommend one of the three options and bring it to a floor vote.

House Bill 1176 is sponsored by both majority leaders and appropriations chairs, and is supported by Armstrong. Several changes were made to the bill Thursday by Sen. David Hogue, R-Minot, that differ from the governor’s recommendations.

As written, the bill would cap the maximum primary residence tax credit at $1,250 instead of the original $1,450. It also states that the credit caps homeowners to 75% of their liability, going against Armstrong’s proposal of some not having any property tax bills.

Hogue also says he hopes to see the relief expanded in 2027 toward agriculture and commercial landowners.

None of the changes impact the caps on local government tax increases, which remain at 3% per year.

Armstrong says he doesn’t support the changes.

“Significantly watering down property tax relief for North Dakota homeowners while promising that future Legacy Fund earnings will go to out-of-state landowners is bad policy,” said Armstrong.

Senate Appropriations Chairman Sen. Brad Bekkedahl, R-Williston, says the changes will be voted on the floor, possibly next week, with the full bill to follow. If the changes remain, the House would most likely call a conference committee to hash out the differences.

House Bill 1575, which would provide relief for agriculture and commercial landowners, has not been voted on in the Senate Finance and Taxation Committee. The same goes for House Bill 1168, which covers paying down school levies.

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