This bill proposes the creation of a new section in chapter 57-02 of the North Dakota Century Code that establishes limitations on the taxable valuation increases of residential property. The bill stipulates that the taxable valuation of residential property cannot exceed the base year valuation, which is defined as the average taxable value over the three most recent taxable years. However, reassessments can occur under specific circumstances, such as when property is sold, transferred, or improved, allowing the taxable valuation to reflect the current true and full value of the property.

Additionally, the bill clarifies the definitions of "base year valuation" and "improvement," outlining what constitutes an improvement and what does not, such as ordinary maintenance or replacement structures under certain conditions. Importantly, the bill asserts that local governments cannot alter the application of these provisions through home rule authority. The effective date for this legislation is set for taxable years beginning after December 31, 2024.