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Lawmakers hear proposal (HB 1289) to exempt homes used for in‑home caregiving; counties urge redesign as credit
Summary
House Bill 1289 would allow a 50% property tax exemption for residential property when a direct relative provides in‑home care. Supporters framed it as an incentive to keep loved ones at home; county and municipal groups warned it would shift costs to other taxpayers and suggested redesign as a credit or expansion of the homestead program.
The House Finance and Taxation Committee heard testimony on House Bill 1289, a proposal to exempt 50% of taxable value for a residential property when a property owner’s qualifying relative provides in‑home care more than half the taxable year.
Representative Lisa Meyer (District 32), sponsor of HB 1289, told the committee the measure is “an incentive bill to encourage loved ones who need to be cared for at home,” and that the exemption would apply to direct relatives including spouses, parents, grandparents and siblings who live at the residence and provide care.
Supporters said the measure could reduce institutional costs and keep families together. A witness with long‑term care experience described cases where bringing relatives home improved outcomes and said the savings could be substantial for families; he estimated an example reduction of local property tax on a $4,000 tax bill to about $2,000.
The North Dakota Association of Counties, represented by Linda Swihovic, supported the concept but urged the committee to convert the proposal from an uncapped exemption to a refundable credit or other mechanism that would not shift costs onto other taxpayers; Swihovic noted she “did not see a fiscal note attached” and said the draft language reads as an exemption, which transfers the burden to remaining taxpayers.
Katie Paulson, McKenzie County recorder and tax director, noted some caregivers or recipients might already qualify for existing homestead provisions (for age or disability) but warned proof and administration would be challenging if the benefit were simply added onto homestead rules. She advised the committee that an eligibility and verification process would be needed for a caregiver credit.
The North Dakota League of Cities, through Bill Wilkin, opposed HB 1289 in its present form and said the bill was “potentially very costly” because it includes no monetary cap, leaves care requirements undefined, and could shift the entire tax burden to other taxpayers.
The hearing record shows interest in the policy goal but disagreement on form: supporters argued the exemption incentivizes home caregiving and reduces institutional costs; counties and cities asked for a revenue‑neutral design (credit or homestead expansion) and administrative clarifications before endorsing the bill.
