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HB 1534

Education; Education Reform Act of 2025; effective date.

2025 Regular Session Introduced by Dick Lowe

Cap annual parcel taxable valuation increases at 3% unless voters approve higher increases for up to four years, limiting sudden rises after sales or ownership changes.

Second Reading referred to Rules
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Bill Summary · HB 1534

Summary — HB 1534 (North Dakota)

Title: An Act to create and enact a new section to chapter 57‑02 of the North Dakota Century Code, relating to limitations on taxable valuation increases without voter approval; and to provide an effective date.

Main purpose / intent

The bill would limit year‑to‑year increases in the taxable valuation of individual parcels of property to a fixed percentage (3%) unless voters in the affected taxing district approve a larger increase. The stated intent is to constrain sudden assessment jumps (including those triggered by sales or ownership changes) and require direct voter approval before larger valuation increases can be applied.

Key provisions

  • Cap on valuation increases: A parcel’s taxable valuation may not increase by more than 3% from the prior taxable year, except for increases that result from improvements to the property that were not included in the prior year’s valuation.
  • Applies regardless of ownership change: The 3% limit applies even if the parcel is sold, transferred, or undergoes other ownership changes.
  • Voter override option: Taxable valuations that exceed the 3% limit may be imposed only if approved by a majority of the qualified electors of the taxing district voting on a ballot measure. The ballot must state the proposed maximum allowable percentage increase.
  • Duration of override: Elector approval may authorize exceeding the limitation for up to four taxable years at a time.
  • Preemption of local home‑rule: Cities or counties may not use home‑rule authority to supersede or modify the section.
  • Effective date: The act would be effective for taxable years beginning after December 31, 2024.

(Note: earlier draft language in the bill texts used the phrase “true and full valuation”; later engrossed versions use “taxable valuation.” The substantive concept—limiting annual increases and allowing voter overrides—remains consistent.)

Who would be affected

  • Property owners (all classes of taxable parcels) — limits on assessment increases, including following sales/transfers.
  • Local taxing districts (counties, cities, school districts, special districts) — potential constraints on assessed base growth and local revenue.
  • County assessors and other tax administration officials — implementation of the cap, tracking exceptions for improvements, and administering voter‑approved overrides.
  • Real estate market participants — purchasers and lenders could see different assessment expectations after sale.

Potential impacts and considerations

  • Fiscal: Could constrain assessed value growth and thereby limit property tax revenue increases for local taxing units unless voters approve overrides or tax rates are raised. The bill text does not include fiscal estimates; actual effects would vary by jurisdiction and local market conditions.
  • Administrative: Counties would need procedures (and likely software/process updates) to apply the cap, identify excluded improvements, and implement voter‑authorized increases.
  • Policy tradeoffs: Protects owners from sudden reassessment increases (including on sale) but may reduce automatic revenue adjustments to reflect market changes.

Legislative status / timeline

  • Introduced: December 6, 2024.
  • Effective date in bill: taxable years beginning after December 31, 2024.
  • Final disposition (per supplied status): Second reading — failed to pass (yeas 0, nays 46).

Sponsors / proponents

Primary sponsors and co‑sponsors included Representatives Dockter, Bosch, Hagert, Headland, Heinert, Weisz, Porter and a long list of co‑sponsors as reflected in the bill metadata.

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

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