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 at a rate exceeding three percent. Any sales, use, or gross receipts taxes that are already in effect at a rate above three percent before this date may continue until the expiration of the approved period for those rates but cannot be reimposed at a rate exceeding three percent thereafter.

The bill aims to provide a clear limitation on the taxation powers of home rule entities, ensuring that taxpayers are not subjected to increasing tax rates beyond the specified threshold. The effective date for these provisions will apply to taxable events occurring after June 30, 2025.