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SB 2301

A BILL for an Act to amend and reenact subsection 1 of section 57-02-08.1 of the North Dakota Century Code, relating to the homestead tax credit; and to provide an effective date.

69th Legislative Assembly (2025-26) Introduced by Todd Beard and 2 co-sponsors

SB 2301 would base homestead tax credit eligibility on a percentage of the federal poverty guideline, expanding and raising max reductions for seniors or disabled homeowners.

Second reading, failed to pass, yeas 6 nays 41
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Bill Summary · SB 2301

Summary — SB 2301 (69th ND Legislative Assembly)

Status: Second reading — failed to pass (yeas 6, nays 41)
Introduced: March 11, 2025
Sponsors: Senators Wobbema, Beard, Clemens
Subject: Amendment to homestead tax credit (NDCC § 57‑02‑08.1)
Effective date (if enacted): taxable years beginning after December 31, 2024

Purpose

SB 2301 would revise North Dakota’s homestead tax credit for persons age 65 or older and persons permanently and totally disabled by changing how income eligibility is measured and by increasing the maximum taxable‑valuation reductions available.

Key provisions / changes

  • Eligibility class remains: persons 65+ or permanently and totally disabled in the tax year.
  • Income eligibility thresholds: replaces fixed dollar ceilings with percentages of the federal poverty guidelines (FPG), as published for the calendar year preceding the taxable year, capped at a household size of two.
    • Former fixed amounts ($40,000 and $70,000) would be replaced by:
    • 325% of FPG (for the 100% reduction tier)
    • 600% of FPG (for the 50% reduction tier)
  • Reduction amounts (taxable valuation):
    • If income ≤ 325% of FPG: 100% reduction up to a maximum of $13,500 of taxable valuation (increases prior cap of $9,000).
    • If income > 325% but ≤ 600% of FPG: 50% reduction up to a maximum of $6,750 of taxable valuation (increases prior cap of $4,500).
  • Household/ownership rules:
    • Spouses or dependents living together are entitled to only one exemption between them.
    • Non‑spouse co‑owners receive pro rata exemption equal to ownership interest.
  • Continuation of existing administrative rules:
    • Exemption continues if the beneficiary is confined in a nursing home/hospital/care facility provided the homestead is not rented.
    • Applicants must sign a verified statement of facts; income information is confidential and the assessor must attach the statement to the assessment sheet.
    • Exemption terminates at the end of the taxable year in which the applicant dies.
  • Effective date provision: applies to taxable years beginning after Dec 31, 2024.

Who would be affected

  • Directly: North Dakota homeowners who are age 65+ or permanently and totally disabled and who meet the new income (FPG‑based) thresholds.
  • Indirectly: local taxing units and counties/assessors, because larger or re‑scaled exemptions would reduce taxable valuations and thus potentially lower property tax collections for taxing districts.

Potential fiscal and administrative impacts

  • Increased maximum reductions and the shift to FPG‑based eligibility likely expand benefits for some households and could increase the number of qualifying claimants, reducing local property tax base and revenue for taxing jurisdictions.
  • County assessors would implement the new income‑measurement method (FPG percentages) and attach/maintain confidential income statements as required.
  • The bill sets a clear effective date tied to taxable years beginning after Dec 31, 2024 (i.e., tax year 2025 and thereafter).

Legislative outcome / timeline

  • Introduced March 11, 2025; referred to committee; second reading failed to pass (yeas 6, nays 41). Had it passed, it would have been effective for taxable years beginning after December 31, 2024.

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

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