This bill amends several sections of the North Dakota Century Code to revise state school aid, property tax credits, and the criteria for homestead and disabled veterans' credits. Key changes include adjustments to revenue calculations for state school aid by subtracting seventy-five percent of various revenue types and incorporating payments in lieu of taxes. A new income threshold of seventy thousand dollars is introduced for individuals claiming property tax exemptions, particularly benefiting paraplegic individuals and their unremarried spouses. The bill also repeals existing sections related to the homestead credit and disabled veterans' credit, replacing them with a new primary residence credit that offers a seventy percent reduction in property tax on a taxpayer's primary residence after other exemptions or credits.

Additionally, the bill updates the eligibility criteria and application process for property tax credits concerning primary residences. It defines a "qualifying trust" and stipulates that individuals may not have more than one primary residence. The legislation allows property owned through trusts or corporate interests to qualify for the credit, provided the individual meets the necessary criteria. It also clarifies that individuals temporarily absent from their primary residence due to care facility confinement can still qualify for the credit, as long as the property is not rented out. The application timeline is modified, requiring submissions by April 1, 2025, for credits starting in the 2025 taxable year, and establishes that the credit will remain valid for the entire year unless ownership changes. Most sections of the bill will take effect for taxable years beginning after December 31, 2024, with specific provisions 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