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SB 2298

A BILL for an Act to create and enact a new section to chapter 57-02 of the North Dakota Century Code, relating to a valuation reduction for property used as a primary residence; to amend and reenact subdivision b of subsection 4 of section 15.1-27-04.1, subsection 26 of section 57-02-08, sections 57-02-08.1, 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, removal of the homestead credit, homestead renter refund, and the primary residence credit; to repeal sections 57-02-08.2 and 57-02-08.8 of the North Dakota Century Code, relating to the homestead credit certification and disabled veterans' credit; to provide for retroactive application; to provide an effective date; and to provide an expiration date.

69th Legislative Assembly (2025-26) Introduced by Tim Mathern

ND SB 2298 replaces homestead credits with a new primary residence valuation reduction, rewrites school-aid funding rules, and changes renter refunds and related exemptions.

Second reading, failed to pass, yeas 8 nays 39
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Bill Summary · SB 2298

SB 2298 — Summary (North Dakota, 69th Legislative Assembly)

Status: Introduced March 11, 2025 — Second reading, failed to pass (yeas 8, nays 39)
Primary sponsor: Senator Jim Mathern

Note: the provided document also contains unrelated text from an Illinois bill (SB2298). The summary below addresses the North Dakota Senate Bill 2298 (introduced by Senator Mathern).

Purpose / Intent

SB 2298 would restructure several property tax relief and school-aid provisions in Chapters 15.1, 57, 57-23, and 57-55 of the North Dakota Century Code. The bill creates a new valuation reduction for property used as a primary residence, removes and replaces existing homestead credits, modifies the homestead renter refund and primary residence credit, revises how state school aid is calculated from local revenues, and repeals certain homestead-related provisions (including the disabled veterans’ credit). It also provides for retroactive application and contains an effective date and an expiration date.

Key provisions

  • Create a new section in Chapter 57‑02 establishing a valuation reduction (primary residence credit) for property used as a primary residence (text of the exact valuation reduction amount not included in the excerpt).
  • Remove the existing homestead credit program and reorganize related credits:
    • Repeal sections 57‑02‑08.2 (homestead credit certification) and 57‑02‑08.8 (disabled veterans’ credit).
    • Amend multiple code sections (57‑02‑08, 57‑02‑08.1, 57‑02‑08.3, 57‑02‑08.9, 57‑02‑08.10, 57‑02‑11.1, 57‑23‑06(1), 57‑55‑10) to implement the new primary residence credit framework and to modify homestead renter refund rules.
  • Change state school aid revenue determination (15.1‑27‑04.1):
    • Require subtracting an amount equal to 75% of specified revenue types (and payments in lieu of taxes) after specified adjustments.
    • Require adjustment of tuition revenues: exclude tuition for out‑of‑state students without cross‑border contracts and adjust for students from adjacent districts under certain conditions.
    • After tuition adjustments, reduce remaining revenues by the share of 2022 mills levied for sinking and interest relative to total 2022 mills.
  • Modify eligibility rules for certain exemptions: for example, subsection 26 of 57‑02‑08 is amended to tie a paraplegic/disabled-person homestead exemption to an income threshold of seventy thousand dollars (for the prior calendar year), update application and certification requirements, and make related definitional clarifications.
  • Retroactive application clause is included (specific retrospective date not shown in excerpt). The bill also specifies an effective date and an expiration date (not quoted in the excerpt).

Who is affected

  • Homeowners: changes to valuation reduction and repeal/replacement of the homestead credit may alter property tax liabilities and state reimbursement mechanisms.
  • Disabled veterans and paraplegic/disabled individuals: repeal of the disabled veterans’ credit and revisions to exemption rules could affect previously available credits or change eligibility.
  • Renters: changes to the homestead renter refund and related statutes could alter renter refund amounts or eligibility.
  • School districts and state education finance: the changed revenue subtraction rules for state aid will affect the calculation of state school aid and local revenue counting.
  • County auditors/assessors and administrative agencies: new certification, filing, and calculation procedures impose implementation tasks.

Procedural / timeline notes

  • Introduced March 11, 2025 by Senator Mathern.
  • Reported and heard in committee; placed on intent/local calendars per legislative actions list.
  • Failed to advance on second reading (vote 8–39). Because it failed, the bill did not become law in this session as of the listed action.
  • The bill text includes provisions for retroactivity and for an expiration date; specific dates and fiscal estimates are not included in the excerpt and would be important for full fiscal and policy analysis.

Observations / outstanding details

  • The excerpt includes specific school-aid calculation language (75% subtraction, 2022 mills adjustment) and a $70,000 income threshold for a particular exemption; other numeric details for the valuation reduction and the new credit mechanics are not shown and would be necessary to quantify fiscal impacts.
  • Fiscal impact on state budget, local taxation, and affected taxpayers is not provided in the excerpt and would depend on implementation details and the size of the valuation reduction.

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

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