This bill amends various sections of the North Dakota Century Code to update the determination of state school aid, the primary residence credit, and the removal of the homestead and disabled veterans' credit. Key changes include the adjustment of revenue types considered in calculating state school aid, specifically incorporating revenue from payments in lieu of taxes. The bill also modifies the criteria for the homestead exemption for paraplegic individuals, raising the income threshold to seventy thousand dollars and clarifying definitions related to income and medical expenses. Additionally, it repeals sections related to the homestead credit and disabled veterans' credit, streamlining the process for property tax credits.

The bill introduces a new primary residence credit that allows taxpayers to receive a credit equal to a seventy percent reduction of property tax due on their primary residence, rather than a fixed amount. It clarifies ownership definitions and eligibility criteria, ensuring that property owned through a beneficial interest in a qualifying trust or an ownership interest in a corporation or passthrough entity can qualify for the credit. The bill specifies that individuals may not have more than one primary residence and allows those temporarily absent due to confinement in a care facility to remain eligible for the credit, provided the property is not rented out. The effective dates for these changes are set for taxable years beginning after December 31, 2024, with certain provisions taking effect on June 1, 2025.

Statutes affected:
INTRODUCED: 15.1-27-04.1, 57-02-08, 57-02-08.3, 57-02-08.9, 57-02-08.10, 57-02-11.1, 57-23-06, 57-55-10