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)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
11 provisions identified: 8 benefits, 1 costs, 2 mixed.
Homeowners get up to $1,600 off
Starting with 2025 taxes, eligible homeowners get a primary residence credit of up to $1,600 after other exemptions and credits. It cannot exceed tax owed or cover special assessments; only one credit applies per parcel, and trusts cannot claim multiple parcels. Applications for 2025 were due April 1, 2025; qualifying mobile-home claims for that year use the tax refund process. Mobile-home applications for 2026 taxes were due September 1, 2025. For 2026 onward, eligibility follows the primary-residence classification, and beginning June 1, 2026, county auditors apply credits to qualifying tax statements.
Disabled veterans get larger home tax credits
The taxable home value eligible for the disabled veteran credit rises from $8,100 to $9,000—not a $9,000 cash credit. Veterans must own and occupy the home, have an honorable discharge or military retirement, and meet the disability test. That test generally requires at least a 50% service-connected rating, or an extra-schedular rating including individual unemployability bringing the total to 100%. Qualifying surviving spouses must own and occupy the home; those receiving veterans’ dependency and indemnity compensation receive a 100% credit. When co-owners are not a spouse, parent, or child, the veteran’s credit uses their ownership share and disability percentage, within the cap.
Local property tax growth faces limits
The law generally limits a taxing district’s property tax collections to a levy base plus a 3% allowed increase. The base is the greater of its highest levy in the prior three years or its adjusted prior-year levy. The adjusted amount accounts for newly taxable property. Qualifying unused increases can carry forward for five tax years, used once each, oldest first. Exceptions include specified debt levies and new or increased taxing authority from state law or voter approval; individual bills are not capped at 3%.
Qualified renters get a higher refund
The maximum refund for qualified renters rises from $400 to $600. The refund equals the amount by which 20% of eligible annual rent exceeds 4% of annual income, up to $600. A positive refund below $5 is paid as $5. Eligible rent excludes federal rent subsidies and charges for utilities, services, furniture, furnishings, and personal-property appliances.
Schools get help covering levy gaps
From July 1, 2025, through June 30, 2027, eligible school districts can apply for state gap funding. Districts must proportionately reduce levies to meet the law’s limit, leaving their local education levy below 60 mills. Their prior-year levy must reach 60 mills unless levy limits or an unexpected valuation increase caused a lower levy. Funding covers the difference between the 60-mill value deducted in state aid calculations and the district’s actual local education levy. The superintendent can use school formula payment funds and must request an added appropriation if a shortfall is expected.
Legacy earnings fund roads and tax relief
The law creates legacy earnings and legacy property tax relief funds. Every July 1 in odd-numbered years, the state distributes 8% of the legacy fund’s five-year average balance. That average uses fiscal-year-end balances through the most recently completed even-numbered fiscal year. Debt service gets the lesser of $102.624 million or the amount appropriated for the two-year budget period. Of the remaining money, 30% goes to highways and 70% goes to property tax relief.
State funds homeowner credits and disclosures
The law provides up to $408.9 million from the legacy property tax relief fund for primary residence credit reimbursements. The funding covers July 1, 2025, through June 30, 2027. If costs are expected to exceed that amount, the Tax Commissioner can use unspent homestead or disabled veterans’ credit funds. The Commissioner must report that use and request an added appropriation for any remaining shortfall. During the same period, the Commissioner’s tax-relief campaigns must identify how much legacy earnings fund the advertised program.
New home classification and application rules
The law separates certified primary homes from other residential property; both have taxable value equal to 9% of assessed value. Mixed residential and nonresidential properties are divided by use. Owners must file a verified application by April 1 for primary-home status: real estate covers that year, mobile homes the next. Eligible occupants include owners, life-estate holders, and qualifying trustors or beneficiaries; each person can have only one primary home. County officials notify applicants within 15 days after receiving the Tax Commissioner’s decision. A home can keep its status during its owner’s care-facility stay if the previously occupied part is not rented.
School taxes get caps and added authority
Starting with 2025 taxes, a school district’s main local education levy can rise up to 12% over prior-year dollars. It cannot exceed the amount raised by 60 mills, down from the prior 70-mill ceiling. Districts also have authority to levy up to 10 mills for educational purposes. That authority does not count as new or increased authority under the general property tax limit. Money from these education levies must go to the general fund and cannot be transferred to another fund.
Homeowners see clearer property tax statements
Real estate tax statements must compare parcel tax amounts for the current year and two prior years. They show county, school district, city, or township taxes, including amounts from specified school levies. Statements separately show the primary residence credit and the share funded by the legacy fund. For 2025 and 2026, that identified legacy-funded share is 100% of the credit.
Voters and cities can exceed limits
Voters can approve property tax levies above the limit for four tax years. Most districts need majority approval at a statewide general election, starting with the next tax year. Townships use a majority vote at their annual meeting, starting that year; proposals must state percentage and dollar increases. For 2025, cities can also exclude an amount matching their prior-year collections under two specified city levies. That city exclusion cannot exceed the prior-year amount collected under those levies.
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
Senate vote • 5/2/2025
Second reading, passed as amended, yeas 46 nays 0
Yes: 46 • No: 0
House vote • 5/2/2025
Second reading, passed, yeas 86 nays 4, Emergency clause carried
Yes: 86 • No: 4
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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