AN ACT to create and enact two new sections to chapter 54-27, a new section to chapter 57-02, and a new section to chapter 57-15 of the North Dakota Century Code, relating to a legacy earnings fund, a legacy property tax relief fund, a primary residence certification, and a limitation on property tax levies without voter approval; to amend and reenact section 6-09.4-10.1, subsection 1 of section 21-10-06, sections 40-40-06, 54-27-19.3, and 57-02-01, subdivision b of subsection 2 of section 57-02-08.1, section 57-02-08.8, section 57-02-08.9 as amended by section 1 of Senate Bill No. 2201, as approved by the sixty-ninth legislative assembly, sections 57-02-08.10, 57-02-27, 57-02-27.1, 57-02-53, 57-09-04, 57-11-03, 57-12-06, 57-15-02.2, 57-15-14.2, and 57-20-07.1 of the North Dakota Century Code, relating to funds invested by the state investment board, property tax definitions, the renters refund, the property tax credit for disabled veterans, the primary residence credit, property classifications, assessment and budget hearing notices to property owners, school district levies, and the property tax statement; to repeal sections 21-10-12 and 21-10-13 of the North Dakota Century Code, relating to legacy fund definitions and the legacy earnings fund; to provide for a legislative management study; to provide for a legislative management report; to provide an appropriation; to provide an exemption; to provide an effective date; to provide an expiration date; and to declare an emergency.

69th Legislative Assembly (2025-26) Introduced by Brad Bekkedahl and 11 co-sponsors

North Dakota restructures property tax relief through new funds, restricts school levy increases without voter approval, and modifies tax credits for veterans and renters.

Filed with Secretary Of State 05/05

Legislative bill overview

HB 1176 is a comprehensive property tax reform measure that creates new funding mechanisms (legacy earnings fund and property tax relief fund), redefines property tax classifications, modifies veteran and renter tax credits, and imposes new restrictions on school district levy increases without voter approval. The bill restructures how North Dakota funds property tax relief and establishes stricter procedural requirements for local tax increases.

Why is this important

Property taxes directly affect homeowners, renters, and local government budgets across North Dakota. This bill fundamentally alters the state's approach to property tax relief funding and constrains local governments' ability to increase levies without explicit voter consent—creating winners and losers among property owners, school districts, and municipalities. The changes carry significant implications for school funding, local services, and tax burden distribution across different property types.

Potential points of contention

School funding impact: The levy cap without voter approval may constrain school districts' ability to respond to rising costs, potentially affecting education quality or forcing communities to approve tax increases more frequently

Property tax relief adequacy: Shifting relief to a legacy earnings fund model (tied to investment returns) creates unpredictable annual relief amounts compared to dedicated appropriations, potentially leaving some taxpayers with less relief than under previous structures

Implementation complexity: The bill extensively amends existing code sections across multiple chapters, creating administrative burden for assessors, counties, and schools to implement new classifications, notices, and procedures