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. "If we don't put a meaningful cap in, is here we go again," Koppelman said during floor remarks.

Representative Hedlund, identified in the chamber as the Finance and Tax Committee chair, defended the committee’s changes and the opt-out provisions. Hedlund said the 10-year opt-out period for votes held at a primary or general election was chosen to align with other voter-authority levies and argued the measure provides local control for areas facing declining taxable values. "The 10-year provision was put in because it aligned with other votes that they can currently take that are currently in statute," Hedlund said, adding that the committee intended the provision as a measured local-control option.

Several members raised concerns about special elections and turnout. Representative Wagner said the Legislature recently moved many local bond and levy issues to primary or general elections to avoid extremely low-turnout special elections and told colleagues he opposed returning to the special-election model for levy overrides. "Those elections are 7, 6, 8 percent voter turnout," Wagner said of special elections, arguing for higher-turnout election venues when taxpayers decide overrides.

On the questions before the chamber: Division A (levy-limit language and related amendments) passed on a verification vote. Division B (an income-tax bracket change contained in section 24 of the bill) failed. Division C (the remainder of the bill, including creation of a legacy property tax relief fund and other distribution and notice provisions) passed. Following the initial voice and verification votes on A and C, the House took a combined verification roll call; the final combined verification vote was 65 yeas and 26 nays, and the approved amendments (divisions A and C) were re-referred to the Appropriations Committee.

Lawmakers emphasized this is an early-stage floor action: the bill as amended will proceed to appropriations and then the Senate, where additional changes are possible. Representative Hager urged colleagues to support the Finance and Tax Committee and move the bill forward; Representative Koppelman and others urged stricter caps and fewer opt-outs.

The floor record shows repeated procedural points (House rules 3-19 and 3-29 were invoked for dividing the question and temporarily amending rules) and multiple requests for recorded verification votes during the divisions. The House did not adopt a final, completed bill on the floor at this session; instead, it passed and sent amended divisions to Appropriations for further work.

Votes at a glance: Division A — passed (verification vote, later included in combined verification); Division B — failed; Division C — passed (included in combined verification). Combined verification to refer approved amendments to Appropriations: passed 65–26.

Why it matters: House Bill 11-76 addresses statewide property tax structure and how local governments may raise or restrict levies. The amendments keep a percentage-based cap mechanism while adding carry-forward rules, an opt-out mechanism by voter approval tied to longer (10-year) authorizations, and carve-outs for townships and other situations. Those choices will shape local budgets and taxpayer liabilities if enacted in subsequent steps of the legislative process.

Next steps: The amended portions of House Bill 11-76 were referred to the Appropriations Committee for funding and budgetary review; the bill will continue through the legislative process, where the Senate and subsequent House votes could change its provisions further.