Tax Commissioner office adjusts property tax timelines to support county budgets

The North Dakota Senate Finance and Taxation Committee met on April 16, 2025, to discuss preliminary budget information and proposed changes to property tax payment timelines. The meeting highlighted the need for timely distribution of funds to counties and political subdivisions to ensure they can meet their budgetary requirements.

A key point of discussion was the current law that requires most property taxes to be paid by February. With an increasing number of residents qualifying for primary residence credits, there is concern that these residents may not meet the February deadline. To address this, the committee proposed moving the deadline for the tax commissioner to certify the primary residence credit from June 1 to March 15. This change aims to ensure that counties receive necessary funds in a timely manner, allowing them to distribute payments to various taxing districts within 14 days.

The committee emphasized the importance of having these preliminary budgets available before April 1, which is crucial for political subdivisions to finalize their budgets ahead of public hearings scheduled for September. The intent of the proposed amendment is to prevent any financial shortfalls for these subdivisions during the budget process.

While there was some indication that further discussions may be needed between the tax commissioner's office and county associations to reach a consensus, the overall goal remains clear: to streamline the property tax process and ensure that local governments are adequately funded in a timely manner. The committee will continue to work on these proposals to facilitate effective budget planning for the upcoming fiscal year.