Hearing held on bill to remove taxable-value cap for disabled-veteran homestead credit; commissioners and veterans groups support expansion

Representative Brandy Pyle introduced House Bill 1266 to the House Finance and Taxation Committee seeking to remove the taxable-value cap on the homestead property tax credit for veterans with a service-connected disability rating of 50% or more, and to adjust ownership calculations for co-owned properties with parents or children.

Pyle and Veterans Affairs Commissioner Lonnie Wongen said the measure recognizes service-related sacrifices and would retain and attract veterans to North Dakota. "This benefit was started in 2007 and has been modified several times," Pyle said, and the bill would ensure rising home valuations do not erode the benefit.

Tax Commissioner Brian Krotchis and committee members discussed implementation mechanics. Krotchis explained current statute sets a prescriptive maximum reduction in taxable value (an $8,100 ceiling multiplied by ownership share) that can lead to disparities among co-owners. He said applying the percentage ownership to the home's taxable value rather than the credit ceiling could address that concern. The department's fiscal note estimated removing the cap would substantially increase program cost; committee members noted the bill would roughly double current program costs based on the fiscal estimate.

Association of Counties representative Aaron Burst said the homestead exemption is an efficient way to deliver property tax relief and the counties can administer it. Committee members asked whether removing the "unremarried" surviving-spouse restriction (part of the bill) aligns with changes in other statutes; supporters said similar removals have occurred in other benefit provisions.

The hearing closed with no committee vote; staff and sponsors will continue to refine statutory wording and analyze fiscal impacts.