Senate hearing examines property tax exemption for charitable equine event facilities

Senator Jeff Magrum, sponsor of Senate Bill 2312, asked the Senate Finance and Taxation Committee to recommend a due pass for a measure that would exempt property owned by charitable organizations and used “primarily for the purpose of equine events that are not conducted for profit.”

Magrum told the committee the exemption “will help keep costs down for long term viability of equine events,” saying it “will help our horse lovers continue to showcase their horses and hopefully keep young people interested.”

Supporters who testified said small rodeos and racetracks are often strapped for funds and that relief from property tax could preserve local events. Lee Bakos, a longtime rodeo participant, told the committee that many small rodeos “are always struggling for money” and cited examples of facilities that pay only a few hundred dollars a year in property tax but still struggle to operate. Pete Hanover of the North Dakota Farm Bureau said his organization supports measures that help rodeo and horse‑racing activities and their cultural role in rural communities. Bruce Johnson, executive director of the North Dakota Horse Racing Commission, said the bill “sounds logical” and “can do nothing but help” horse racing in the state.

Opponents said the bill adds another property‑tax exemption and shifts the burden to other taxpayers. Bill Wilkin, representing the North Dakota League of Cities, told the committee a charitable organization is not clearly defined in the bill’s current wording and said the League “has consistently opposed bills requesting exemptions from the property tax.” Wilkin said each added exemption increases the tax burden on remaining property taxpayers and urged a do‑not‑pass recommendation.

Committee members pressed the sponsor on fiscal details. Magrum said he had included an online example of a Strasburg rodeo ground that currently pays about $209 a year in property tax but acknowledged he had not obtained a statewide cost estimate and that the Tax Department had not provided a total fiscal impact. He also said some equine facilities are already part of fairgrounds and therefore already exempt. Magrum said he filed the bill late and would defend it in Appropriations if the committee advanced it.

The hearing record contains supporters and opponents but no committee vote on the bill during this session's hearing. The committee closed the public testimony after hearing in‑person proponents and one opponent.

Minutes show advocates emphasized cultural and agricultural benefits, while municipal interests highlighted budget pressure from expanding exemptions. The text of SB 2312 and submitted fiscal examples were included in the committee packet but did not contain a statewide revenue estimate.

Looking ahead, if the committee advances SB 2312 it would go to Appropriations for further fiscal review and potential scoring by the Tax Department.