This bill proposes the establishment of a legacy earnings fund and a legacy property tax relief fund within the North Dakota Century Code. It mandates that seven percent of the five-year average value of the legacy fund balance be allocated to the legacy earnings fund. The newly created legacy property tax relief fund will receive funds from the legacy earnings fund and other legislative appropriations. The bill also amends existing laws related to property tax credits and exemptions, adjusting income thresholds and maximum reductions for homestead valuations. Additionally, it introduces provisions for state-reimbursed taxable valuation reductions for various property types and caps taxable valuation increases at three percent unless property improvements occur. Certain sections related to legacy fund definitions and the legacy earnings fund are repealed to streamline the legal framework.

Moreover, the bill allows taxing districts to exceed their maximum mill levy authority for up to six taxable years, contingent upon majority approval from qualified electors in a statewide election. It requires that ballots specify the proposed number of mills, the purpose of the excess levy, and its duration. The bill also ensures that mill levy limitations remain in effect regardless of property ownership changes and includes provisions for valuation reductions for qualifying taxpayers. It allocates significant funds for property tax relief, including $85,001,793 from the general fund to the legacy property tax relief fund and $483,400,000 for state reimbursement of property valuation reductions over the biennium from July 1, 2025, to June 30, 2027. The effective date for several sections is set for taxable years beginning after December 31, 2024.

Statutes affected:
INTRODUCED: 57-02-01, 57-02-08.10, 57-02-27, 57-02-27.1, 57-02-08.9
Prepared by the Legislative Council staff for House Finance and Taxation Committee: 6-09.4-10.1, 21-10-06, 54-27-19.3, 57-02-08.1, 57-02-08.10, 57-02-08.9
FIRST ENGROSSMENT: 6-09.4-10.1, 21-10-06, 54-27-19.3, 57-02-08.1, 57-02-08.10, 57-02-08.9
Prepared by the Legislative Council staff for Representative Weisz: 6-09.4-10.1, 21-10-06, 54-27-19.3, 57-02-08.1, 57-02-08.10, 57-02-08.9
SECOND ENGROSSMENT: 6-09.4-10.1, 21-10-06, 54-27-19.3, 57-02-08.1, 57-02-08.10, 57-02-08.9