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Tax commissioner: homestead and veteran tax-credit expansions raised participation but funding is tight
Summary
Tax Commissioner Brian Krashes told legislators that the expanded homestead and disabled‑veteran credits and an increased Primary Residence Credit (PRC) have raised takeup; he warned PRC funding is tied to legacy‑fund earnings and the biennial appropriation is 'snug.'
Brian Krashes, North Dakota tax commissioner, briefed the Legislative Budget Section on recent changes to property‑tax relief programs and the operational steps the Tax Commission is taking to implement them.
Krashes summarized the Homestead Property Tax Credit, noting eligibility for the homestead program includes homeowners 65 or older or permanently and totally disabled with net household income at or below $70,000 (medical expenses can be deducted when calculating eligibility). He said expansions in recent sessions and demographic shifts have driven participation changes.
On veteran relief, Krashes said the Disabled Veteran Credit was increased in the last session: the taxable‑value reduction moved from $8,100 to $9,000. He said about 6,700 veterans currently receive benefits and the expansion will raise overall program payouts.
Krashes described the Primary Residence Credit (PRC) changes that took effect after the session, including raising the credit to $1,600 and adding a special application window for mobile/manufactured homes. He urged residents to note the statutory April 1 PRC application deadline and explained the department’s outreach and marketing efforts: direct mail, email and a new marketing allocation to promote awareness.
“The deadline is by April 1,” Krashes told the committee. He also described operational improvements: accelerating county reimbursements for credits (ahead of the statutory June 1 requirement) and simplifying the online application process to reduce call volume.
Budget outlook and risks: Krashes warned that PRC funding is tied to legacy‑fund earnings; appropriation assumptions are close to projections and he described the overall position as tight. He said the department is watching participation and legacy returns and may need to request supplemental funding later if projections change.
Why it matters: The credits reduce property‑tax burdens for seniors, veterans and primary‑residence owners across the state and affect county cash flows because the state reimburses local governments for approved credits.
Ending: Committee members asked whether a small grace period or short special‑application window might help confused applicants, especially mobile‑home owners. Krashes said the department could use limited administrative flexibility for good‑cause cases and suggested the committee add the topic to a future agenda for policy discussion if members wanted statutory changes.
