Lawmakers Hear Broad Support, Concerns for House Bill 1168 Property‑tax Buydown and Levy Caps

Representative Scott Lauser, R‑Minot, told the Senate Finance and Taxation Committee on the afternoon of the committee’s hearing that House Bill 1168 would buy down state‑mandated education mills and add statutory caps on non‑school local levies, and he asked the committee to consider amendments that would increase the buydown and adjust the cap formula.

Lauser said the bill in its current engrossed form would buy down 10 mills statewide but that he was seeking an amendment to increase the buydown to 30 mills; he also described an amendment to cap the annual property‑tax‑derived portion of budgets for political subdivisions at 6 percent or by a consumer‑price index formula and to allow local voter approval to exceed the cap. "This is still the top issue that our voters are talking about—property tax relief and reform," Lauser told the committee.

Why it matters: the proposal would change how much property owners pay and how local governments can raise revenue. A mill buydown permanently removes mill levy authority at the local level and replaces the revenue stream with state funding; caps on non‑school levies would limit annual increases of taxes paid to cities, counties, special districts and others. Several witnesses cautioned that caps and buydowns must be balanced so school funding, county services and small jurisdictions are not harmed.

What was proposed and discussed

Lauser summarized the bill’s evolution since 2023 and said earlier drafts proposed a full 60‑mill buyout of…