All Roll Calls
Yes: 260 • No: 14
North DakotaHB 11762025 Regular SessionHouseWALLET
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 section 6-09.4-10.1, subsection 1 of section 21-10-06, sections 40-40-06, 54-27-19.3, and 57-02-01, subdivision b of subsection 2 of section 57-02-08.1, section 57-02-08.8, section 57-02-08.9 as amended by section 1 of Senate Bill No. 2201, as approved by the sixty-ninth legislative assembly, sections 57-02-08.10, 57-02-27, 57-02-27.1, 57-02-53, 57-09-04, 57-11-03, 57-12-06, 57-15-02.2, 57-15-14.2, and 57-20-07.1 of the North Dakota Century Code, relating to funds invested by the state investment board, property tax definitions, the renters refund, the property tax credit for disabled veterans, the primary residence credit, property classifications, assessment and budget hearing notices to property owners, school district levies, and the property tax statement; to repeal sections 21-10-12 and 21-10-13 of the North Dakota Century Code, relating to legacy fund definitions and the legacy earnings fund; to provide for a legislative management study; to provide for a legislative management report; to provide an appropriation; to provide an exemption; to provide an effective date; to provide an expiration date; and to declare an emergency.
Sponsored By: Mike Nathe (Republican)
Became Law
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Bill Overview
Analyzed Economic Effects
9 provisions identified: 7 benefits, 0 costs, 2 mixed.
New $1,450 credit for your home
Beginning in 2025, certified primary homes get up to $1,450 off property tax per parcel. The credit cannot exceed your property tax and does not reduce special assessments. Your home must be certified as your primary residence; apply by February 1 each year, and the certification lasts the whole tax year. Apply for the 2025 credit by April 1, 2025 (mobile homes for 2026 by September 1, 2025). The state and counties follow set review and payment dates through May 31, 2026 to apply and reimburse these credits.
Property tax levies capped at 3%
Starting January 1, 2025, most taxing districts can raise their total dollar levy by only 3% a year. The cap uses the higher of the base-year levy or the adjusted prior-year levy, then adds 3%. Unused room can carry forward up to five years. Voter‑approved levies, bonded debt, and some state‑required or constitutional levies are excluded. Voters can override the cap under the election rules in the law.
2025–2027 funding for property tax relief
For July 1, 2025 through June 30, 2027, the state sets aside a large sum to reimburse the primary residence credit. The Office of Management and Budget transfers general fund money into the legacy property tax relief fund during this period. The law also appropriates $5.45 million for homestead credit reimbursements. These funds ensure counties are paid and homeowner tax relief flows during the biennium.
Legacy earnings support tax relief and roads
On July 1 of odd‑numbered years, the state distributes 7% of the five‑year average legacy fund balance. First, up to $102.624 million (or the debt‑service appropriation, if less) goes to the sinking fund. Then $225 million goes to the general fund for tax relief, $100 million to a highway fund, and the rest to the property tax relief fund. The law creates the property tax relief fund, a highway distribution fund with set splits to state, townships, transit, cities, and counties, and a sinking and interest fund. The State Investment Board may invest the legacy fund and legacy earnings fund. Older legacy‑fund statutes are repealed and replaced with this structure.
Renters refund cap raised to $600
The renters refund now tops out at $600. The state treats 20% of your annual rent as property tax and refunds the amount over 4% of your income. If the result is under $5, you still get $5.
Set percent of value now taxed
Taxable value is now a fixed share of assessed value by property type. Homes (primary and nonprimary) are taxed on 9% of assessed value. Agricultural, commercial, and centrally assessed property are taxed on 10%. Mixed‑use property is prorated. This can raise or lower individual bills depending on prior rules and your property class.
Updated income tax tables each year
North Dakota now uses rate schedules tied to your federal filing status. The tax commissioner updates the bracket thresholds each year for inflation using the federal method. Bracket rates, including a zero bracket and low rates like 1.95% and 2.50%, apply to residents, nonresidents, estates, and trusts as set in law. The commissioner may also offer a simpler filing method for some taxpayers.
Bigger homestead break for lower incomes
If household income is $50,000 or less, you can reduce taxable value by up to $11,250 (100%). If income is over $50,000 and up to $80,000, you can reduce taxable value by up to $5,625 (50%).
Clearer notices and tax bills for owners
By March 1, taxing districts give hearing details to assessors, and cities set budget hearings between September 7 and October 7. If your assessed value rises by $3,000 and 10% or more, you get a notice at least 15 days before the equalization meeting; boards also must notify you before any increase over 15% from last year. By August 31, the county mails an estimate showing your value, taxes, hearing dates for large districts, and your state tax savings. Your year‑end tax bill arrives by December 26 and shows three years of dollar levies, voter‑approved amounts, and your primary residence credit, including the share paid with legacy fund money. The tax commissioner supplies the annual percent counties use to show that legacy‑funded share (with a set percent for 2025–2026).
Sponsors & Cosponsors
Sponsor
Mike Nathe
Republican • House
Cosponsors
Jared C. Hagert
Republican • House
Craig Headland
Republican • House
Mike Lefor
Republican • House
Todd Porter
Republican • House
Gregory Stemen
Republican • House
Steve Swiontek
Republican • House
Don Vigesaa
Republican • House
Brad Bekkedahl
Republican • Senate
David Hogue
Republican • Senate
Dean Rummel
Republican • Senate
Mark F. Weber
Republican • Senate
Roll Call Votes
House vote • 5/2/2025
Second reading, passed, yeas 86 nays 4, Emergency clause carried
Yes: 86 • No: 4
Senate vote • 5/2/2025
Second reading, passed as amended, yeas 46 nays 0
Yes: 46 • No: 0
Senate vote • 4/3/2025
Second reading, passed as amended, yeas 47 nays 0
Yes: 47 • No: 0
House vote • 2/25/2025
Second reading, passed, yeas 81 nays 10, Emergency clause carried
Yes: 81 • No: 10
Actions Timeline
Filed with Secretary Of State 05/05
6/11/2025HouseSigned by Governor 05/03
5/17/2025HouseSent to Governor
5/2/2025HouseSigned by Speaker
5/2/2025HouseSigned by President
5/2/2025SenateEmergency clause carried
5/2/2025SenateSecond reading, passed as amended, yeas 46 nays 0
5/2/2025SenateConference committee report adopted
5/2/2025SenateReported back from conference committee, in place of, placed on calendar
5/2/2025SenateSecond reading, passed, yeas 86 nays 4, Emergency clause carried
5/2/2025HouseConference committee report adopted
5/2/2025HouseReported back from conference committee, in place of, placed on calendar
5/2/2025HouseConference committee appointed Weber Bekkedahl Erbele
4/17/2025SenateConference committee appointed Headland Nathe Bosch
4/15/2025HouseRefused to concur
4/15/2025HouseReturned to House (12)
4/4/2025HouseEmergency clause carried
4/3/2025SenateSecond reading, passed as amended, yeas 47 nays 0
4/3/2025SenateAmendment adopted, placed on calendar
4/3/2025SenateReported back amended, do pass, amendment placed on calendar 16 0 0
4/2/2025SenateCommittee Hearing 02:00
3/27/2025SenateRereferred to Appropriations
3/17/2025SenateReported back, do pass 6 0 0
3/17/2025SenateCommittee Hearing 09:00
3/17/2025SenateIntroduced, first reading, (emergency), referred Finance and Taxation Committee
3/11/2025Senate
Bill Text
Adopted by the House Finance and Taxation Committee
Enrollment
FIRST ENGROSSMENT
INTRODUCED
Prepared by the Legislative Council staff for House Appropriations Committee
Prepared by the Legislative Council staff for House Chamber
Prepared by the Legislative Council staff for Representative Headland
Prepared by the Legislative Council staff for Senate Appropriations Committee
SECOND ENGROSSMENT
SECOND ENGROSSMENT with Conference Committee Amendments
SECOND ENGROSSMENT with Senate Amendments
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