WeVote
Log In

Bill

Bill

SB 2378

A BILL for an Act to create and enact a new section to chapter 57-15 of the North Dakota Century Code, relating to limitations on taxing district budgets without voter approval; and to provide an effective date.

69th Legislative Assembly (2025-26) Introduced by Mark Weber

ND SB 2378 caps taxing district budget growth to CPI-U Midwest; exceeding the cap requires a two-thirds voter approval, affecting all tax-levying districts.

Second reading, failed to pass, yeas 16 nays 31
0
WeVote Research Nonpartisan
Bill Summary · SB 2378

Summary — SB 2378 (North Dakota)

A bill to add a new section to chapter 57‑15 of the North Dakota Century Code to limit taxing‑district budget growth without voter approval. Effective for taxable years beginning after December 31, 2024. Status: Second reading — failed to pass (yeas 16, nays 31).

Purpose and intent

SB 2378 would limit year‑to‑year growth of a taxing district’s final budget so that local taxing authorities (cities, counties, school districts, special districts, etc.) could not increase their budgets by more than the annual change in the Consumer Price Index (CPI) without first obtaining voter approval. The bill is intended to restrain tax‑funded budget growth and require direct voter consent to exceed an inflation‑linked cap.

Key provisions

  • Budget growth cap: A taxing district’s final budget for the current taxable year may not exceed the final budget from the preceding taxable year by more than the percentage change in the Consumer Price Index for All Urban Consumers — Midwest region (CPI‑U Midwest) for the most recent year ending December 31.
  • Adjustments to the base budget: Prior‑year final budget must be adjusted for:
    • Newly taxable property and improvements (added at preceding‑year mill rate);
    • Reductions or eliminations of property tax exemptions (added for the portion now taxable);
    • Property that becomes nontaxable (subtract the taxes previously imposed on that property);
    • Expired or reduced temporary mill levies (remove expired temporary increases before applying the CPI cap).
  • Supersedes other levy‑authority uses: The section “supersedes and limits” any unused/excess levy authority and must be applied to limit budget growth; it is not an authorization to increase property tax levy authority otherwise provided by law.
  • Voter override: A taxing district may adopt a budget exceeding the cap only if at least two‑thirds of the qualified electors voting on a ballot measure approve the proposed percentage increase compared to the statutory limitation. The measure must be considered at a statewide primary or general election and may authorize an over‑cap budget for no more than one taxable year at a time.
  • Definitions: “Consumer price index” defined as CPI‑U Midwest (year‑over‑year percent change). “Taxing district” = any political subdivision empowered to levy taxes.
  • Home‑rule restriction: Cities and counties may not use home‑rule authority to supersede or modify these provisions.

Who is affected

All North Dakota taxing districts (municipalities, counties, schools, special districts, etc.) that levy property taxes. The rule constrains local budget increases, reduces reliance on unused levy authority, and makes voter approval the mechanism to exceed the CPI cap.

Procedural / timeline notes

  • Introduced (ND text): March 12, 2025. Effective date provision applies to taxable years beginning after December 31, 2024.
  • Legislative status (as provided): Second reading — failed to pass (yeas 16, nays 31).
  • Companion: HB 4783 (listed as related).
  • Note: The materials provided include unrelated text from an Illinois bill with the same bill number; the summary above covers the North Dakota SB 2378 taxing‑limit text.

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

Sign in to ask a question.