This bill proposes the creation of new sections in the North Dakota Century Code that impose restrictions on home rule sales, use, or gross receipts taxes for both counties and cities. Specifically, it states that after June 30, 2025, home rule counties and cities will not be allowed to impose new taxes or extend or increase existing taxes beyond a rate of three percent. Any taxes that are already in effect at a rate exceeding three percent before this date may continue until their approved expiration but cannot be reimposed at a rate exceeding three percent thereafter.

The bill aims to standardize the tax rate for home rule entities and ensure that any existing higher rates are phased out after their approval periods. The effective date for these changes is set for taxable events occurring after June 30, 2025.