Senate Property Tax Bill | Video

Jessica Roose | 3/6/2013

Today marks the start of crossover and lawmakers were back at the capitol after having a short break and one of the first things on the agenda was to once again look at what can be done to bring some property tax relief to North Dakotans. Members of the House Finance and Taxation committee heard testimony on a bill that would lower the amount on which a homeowner would be taxed, based on the value of their home.

Last week both chambers passed different property tax relief bills. As crossover starts, lawmakers will now look at what the other side put together. Senate Bill 2036 would offer a $25,000 tax credit off the true and full value of a home.

"Or 50 percent of the value. So if your residence is worth less than $50,000 you would not receive the full 25. You would just get half of what there is," said John Walstad with the ND Legislative Council.

If passed, this credit could be used along side the existing Homestead and Disabled Veteran tax credits.

"Those reductions are applied to reduce the taxable value of your residence first. Any remaining value is then reduced by the amount provided here," Walstad said.

The bill only applies to residential properties. Which is a point of concern for opponents.

"We believe that any discussions on property tax relief need to include all three classes of property. Commercial, residential and agriculture," said Jon Godfried with the Greater ND Chamber of Commerce.

Others say they are concerned about the payout schedule. The state and other political subdivisions work on a normal calendar year while the school districts run from July to June. The bill states that reimbursements will be given at the end of June.

"If they don`t get the money until July they`re going to have a cash flow issue in March, April, May, making a payroll and other things," said Bev Nielson with the ND Council of Educational Leaders.

The bill also includes a section to require a study during the interim session to look at the feasibility of eliminating property taxes in the state.

When the bill passed in the Senate it had unanimous support. The House Finance and Taxation committee has not made a decision on it yet.

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