Governor Armstrong unveils North Dakota's property tax relief bill House Bill 1176

In a significant step towards addressing property tax concerns in North Dakota, Governor Kelly Armstrong presented House Bill 1176 during a Senate Finance and Taxation meeting on March 17, 2025. This proposed legislation aims to provide substantial property tax relief and reform, a priority echoed by many residents across the state.

Governor Armstrong emphasized that the bill represents a collaborative effort, developed through extensive discussions with legislators since June. He described it as the most aggressive and responsible plan to reduce property taxes, responding directly to the demands of constituents who have expressed a strong desire for relief. The bill proposes a property tax credit of $14.50 per year for each primary residence, funded by a combination of general fund resources and earnings from the state’s legacy fund.

A key feature of House Bill 1176 is its cap on local property tax budget increases, set at 3% per year. This cap is designed to encourage prudent budgeting among local governments while allowing them to bank any unused percentage for up to five years. Additionally, the bill expands eligibility for the homestead tax credit program, aiming to provide immediate benefits to homeowners.

The governor noted that this legislation could potentially lead to a future where primary residents pay zero property taxes within the next decade, enhancing North Dakota's appeal for workforce recruitment and family living. He highlighted the importance of collaboration in crafting the bill, acknowledging that while there were differing opinions among legislators, the process has fostered a spirit of cooperation.

As the bill moves forward, it represents a critical opportunity for North Dakota to address long-standing property tax issues, with the potential for real and lasting impact on the lives of its residents. The Senate committee is expected to consider a recommendation for the bill to advance to the Senate floor, marking a pivotal moment in the state's legislative session.