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HB 1390

A BILL for an Act to amend and reenact subdivision b of subsection 4 of section 15.1-27-04.1, subsection 26 of section 57-02-08, sections 57-02-08.3, 57-02-08.9, 57-02-08.10, and 57-02-11.1, subsection 1 of section 57-23-06, and section 57-55-10 of the North Dakota Century Code, relating to the determination of state school aid, the primary residence credit, and removal of the homestead and disabled veterans' credit; to repeal sections 57-02-08.1, 57-02-08.2, and 57-02-08.8 of the North Dakota Century Code, relating to the homestead credit and disabled veterans' credit; to provide an effective date; and to declare an emergency.

69th Legislative Assembly (2025-26) Introduced by Claire Cory and 9 co-sponsors

HB 1390 would repeal homestead and disabled veterans’ credits, tighten and redefine the primary residence tax relief, and alter school aid calculations, affecting homeowners and di

Second reading, failed to pass, yeas 28 nays 60
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Bill Summary · HB 1390

Summary — North Dakota HB 1390 (69th Legislative Assembly)

Status: Second reading — failed to pass (yeas 28, nays 60)
Introduced: November 18, 2024
Subject: State school aid formula; primary residence (homestead) credit; removal of homestead and disabled veterans’ credits; effective date and emergency clause

Purpose / Intent

HB 1390 would have revised how state school aid is calculated and substantially changed property‑tax relief provisions by modifying the primary residence (homestead) credit rules and repealing existing homestead and disabled veterans’ credit statutes. The bill also included an emergency clause to make the changes effective immediately (or on a specified effective date).

Key provisions

  • State school aid (15.1‑27‑04.1)
    • Continues a deduction equal to 75% of specified local revenue types when computing state aid.
    • Requires specific revenue adjustments before that 75% deduction:
    • More narrowly defines and adjusts tuition revenue—excluding tuition for students not residing in North Dakota (unless covered by a cross‑border contract) and reducing tuition reported by admitting districts in certain interdistrict arrangements.
    • After tuition adjustments, reduces remaining revenue by the proportion of 2022 mills levied for sinking & interest relative to the district’s total 2022 mills. (Effect: alters the local revenue base used in state aid calculations.)
  • Primary residence / homestead rules (various sections, e.g., 57‑02‑08 and related)
    • Amends subsection 26 of §57‑02‑08 (language shown replaces references to prior statutory provisions with a $70,000 income threshold for certain exemptions related to paraplegic/disabled individuals or surviving spouses).
    • Amends and reenacts §§ 57‑02‑08.3, 57‑02‑08.9, 57‑02‑08.10, 57‑02‑11.1, §57‑23‑06(1), and §57‑55‑10 (these sections relate to primary residence credit administration, eligibility, and related tax procedures).
  • Repeals
    • Repeals §57‑02‑08.1, §57‑02‑08.2, and §57‑02‑08.8 (statutes that currently govern the homestead credit and disabled veterans’ credit).
  • Effective date and emergency
    • Bill text included an effective date provision and declared an emergency (intended to make statutory changes effective immediately upon enactment).

Who would be affected

  • Homeowners who currently receive the homestead credit or disabled veterans’ credit — potential loss or change of those property‑tax benefits.
  • Paraplegic and certain disabled individuals and surviving spouses — eligibility language changed (including explicit reference to a $70,000 income test in one provision).
  • School districts — changes in revenue adjustments used to calculate state school aid could shift aid distributions between districts.
  • County auditors/assessors and state tax/education administrators — would need to implement new eligibility and calculation rules, and respond to repeals.

Fiscal/administrative impact

  • The bill does not include an explicit fiscal note in the provided North Dakota text. However:
    • Repealing credits likely reduces state liabilities for administering or reimbursing credits (and increases property tax bills for some homeowners).
    • Changing the school aid base and tuition adjustments would reallocate state aid among districts; net statewide fiscal effects depend on district‑level data.
    • Administrative workload for county and state officials would rise while rules are updated.

Procedural / Timeline notes

  • Introduced November 18, 2024.
  • Advanced to second reading but failed to pass (vote recorded as 28 yeas, 60 nays). Because it did not pass, the bill did not become law; the emergency clause and effective date language therefore did not take effect.

Note: Multiple unrelated bills in other states also use the identifier “HB 1390.” This summary is limited to the North Dakota HB 1390 described above.

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

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