This bill amends several sections of the North Dakota Century Code to revise the framework for state school aid and property tax credits, particularly focusing on homesteads and disabled veterans. Key changes include the adjustment of revenue types for determining state school aid by subtracting seventy-five percent of certain revenues and payments in lieu of taxes. A new income threshold of seventy thousand dollars is introduced for individuals claiming exemptions related to homesteads, specifically for paraplegic individuals and their unremarried spouses. Additionally, the bill establishes a primary residence credit that offers a seventy percent reduction in property tax on a taxpayer's primary residence, replacing the previous fixed credit amount. The bill also repeals existing sections concerning the homestead credit and disabled veterans' credit to streamline property tax relief.

Further amendments clarify definitions related to income, medical expenses, and ownership for these credits, aiming to simplify the tax credit process while ensuring assistance is targeted to those meeting specific income and disability criteria. The bill also updates eligibility criteria for property tax credits related to primary residences, including the definition of a "qualifying trust" and stipulations regarding ownership. It allows property owned through trusts or corporate interests to qualify for the credit, and ensures that individuals temporarily absent from their primary residence due to care facility confinement can still qualify, provided the property is not rented out. The application timeline for the credit is modified, requiring submissions by April 1, 2025, for credits starting in the 2025 taxable year, and establishes that the credit remains valid for the entire year unless ownership changes. Most provisions will take effect for taxable years beginning after December 31, 2024, with some effective 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