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HB 1266

A BILL for an Act to amend and reenact section 57-02-08.8 of the North Dakota Century Code, relating to the property tax credit for disabled veterans; and to provide an effective date.

69th Legislative Assembly (2025-26) Introduced by Larry Klemin and 5 co-sponsors

Raises the property tax credit cap for disabled veterans from $8,100 to $9,000 of homestead valuation.

Second reading, failed to pass, yeas 0 nays 46
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Bill Summary · HB 1266

Summary — HB 1266 (North Dakota)

A bill to amend and reenact NDCC § 57‑02‑08.8 (property tax credit for disabled veterans)

Main purpose

HB 1266 updates the statute that provides a property tax credit for qualifying disabled veterans (and certain surviving spouses). The primary substantive change is increasing the taxable valuation amount to which the credit is applied.

Key provisions

  • Increases the homestead taxable valuation cap used to compute the credit from $8,100 to $9,000. The credit is applied to the first $9,000 of taxable valuation of the veteran’s homestead and is equal to the veteran’s service‑connected disability percentage (as certified by the Department of Veterans’ Affairs).
  • Continues eligibility criteria:
    • Disabled veterans with a service‑connected disability rating of 50% or greater; or veterans with an extra‑schedular rating (individual unemployability) raising the rating to 100%.
    • Veterans must have been discharged under honorable conditions or retired from the U.S. armed forces.
    • Surviving spouse may claim the credit if the veteran is deceased; surviving spouses receiving VA dependency and indemnity compensation (DIC) receive a full (100%) credit.
  • Limits and special cases:
    • If two disabled veterans are married and living together, combined credits cannot exceed 100% of the taxable valuation cap ($9,000).
    • If a disabled veteran co‑owns the homestead with a non‑immediate relative, the credit is prorated by the veteran’s ownership share.
    • The credit terminates at the end of the taxable year of the applicant’s death.
  • Application and administration:
    • First‑time claimants must file an affidavit with the county auditor and provide a VA certificate documenting the disability rating; records are open for public inspection.
    • County auditors must certify annual lists to the Tax Commissioner by March 1; the Tax Commissioner audits and certifies state payments to counties by June 1. Counties then distribute payments among local taxing districts.
    • County commissioners may cancel unpaid taxes attributable to the credit for qualifying years; supplemental certifications and payments are allowed to correct errors or late approvals.
  • Effective date: for taxable years beginning after December 31, 2024.

Who is affected

  • Directly: qualifying disabled veterans (50%+ service‑connected or 100% with IU) who own and occupy a homestead in North Dakota, and eligible surviving spouses.
  • Indirectly: county auditors, tax commissioner, county treasurers (administration and distribution of reimbursements), and local taxing districts (reimbursements from the state).

Fiscal and procedural notes

  • The bill increases the maximum valuation amount subject to the credit by $900 (from $8,100 to $9,000). That raises the potential maximum local tax reduction per qualifying homestead and therefore increases the state’s reimbursement obligation to counties (the statute requires the state to reimburse counties based on local mill rates).
  • Administrative timelines remain: county certification to the Tax Commissioner by March 1; state payment certification by June 1; distribution by county treasurers thereafter.

Legislative status

  • Introduced: November 13, 2024.
  • Status (per provided information): Second reading — failed to pass (yeas 0, nays 46).

If you want, I can produce a short fiscal‑impact estimate showing how much additional state reimbursement could occur under different average local mill‑rate scenarios.

Compiled from official sources — confirm details with the bill’s official record.

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