North Dakota House approves parts of property tax bill after hours of debate; opt-out, township exemptions remain

The North Dakota House of Representatives approved key amendments to House Bill 11-76 on the subject of property tax caps and levy limits after extended debate, passing divisions A and C and rejecting division B.

Representative Hager, the bill carrier, told the chamber that division A creates levy-limit language for political subdivisions, allows limited banking of unused percentage increases for up to five years, and describes exceptions for new or increased property tax capacity tied to events such as state law changes or voter approval. Hager also explained that subsection language in the amendments would exempt townships from certain limits and allow political subdivisions to exceed levy limits following a voter referendum in a primary or general election by a 60% supermajority for two taxable years.

The debate focused on how tightly to limit local taxing authority. Representative Koppelman said the amendments in division A softened a cap and left multiple escape routes for local governments, arguing that the result would undermine “meaningful cap” efforts passed previously and that special-election opt-outs and extended exemptions risked defeating the cap’s intent.…