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Tax commissioner: primary residence credit widened usage; nearly 30% of households had no residual tax in 2025
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Summary
North Dakota’s tax commissioner told the advisory committee the primary residence credit applications rose from ~135,000 (2024) to 145,264 (2025) after the credit increased to $1,600; he estimated about 29.8% of eligible households had no residual property tax obligation after the 2025 credit.
Tax Commissioner Brian Krauschus briefed the Tax Reform Relief Advisory Committee on administration and impacts of the primary residence credit (PRC), created in House Bill 1158 (2023).
Krauschus said the PRC application count rose to 145,264 for the 2025 property-tax year after the Legislature increased the credit to $1,600 (it was $500 for the 2024 year). He told members that disbursements tied to the $500 level for the 2024 cycle were about $66 million to counties and that the tax department expects to complete 2025 disbursements by mid-March.
The commissioner reported that in 2024 roughly 1 in 10 eligible households (about 16,000 households) had no residual property-tax obligation after the PRC; with the larger $1,600 credit he estimated about 29.8% of households had no remaining tax obligation after credits in 2025. He cautioned that as a fixed-dollar credit, the PRC’s coverage percentage could fall over a biennium with inflation and rising housing values unless statute is adjusted.
Krauschus confirmed the PRC application window will open January 1 and remain open through April 1, and said the department added a special application period in July–August for manufactured homes this year to synchronize future application cycles.
Committee members asked whether the department could automate recertification (for example, by a checkbox on the income-tax return) and whether county records could simplify ongoing eligibility reviews. The commissioner said automation is possible but raises compliance and retrieval questions (title changes, trusts, move-outs) and that additional coordination with counties and title companies would be required; he suggested a proactive recertification notice could be feasible but would increase administrative logistics for the department and counties.
Members also asked about whether homestead and disabled-veterans credits could be funded from legacy-fund earnings (instead of the general fund) and the commissioner said funding source changes would not affect program mechanics but would matter for budget requests.
