(Note To Readers, Legislators, and Media: This article is meant to be a strictly factual article without judgement and opinion. As the alternative bills on property tax reform are introduced, I will provide similar summaries, then offer a compare/contrast of the bills. I am taking this approach because the biggest challenge the legislature will face is the arguments over which plan is better, rather than the details. This would cause the legislature to bog down. It is my intention to help legislators and the public determine what these proposals actually do and what provisions of each proposal make the most sense and offer the most bang for the buck to the taxpayers, within the context of the framework for property tax reform I have previously outlined. Last week, the explanation of Governor Armstrong’s plan was published and can be found here, and the explanation of Representative Scott Louser’s plan can be found here.)
Yesterday, Representative Ben Koppelman (R-West Fargo) added his approach to property tax relief and reform to the mix by introducing two bills.
HB 1390 utilizes the existing Homestead Tax Credit model to create a new primary residence credit formula equal to a 70% reduction in consolidated tax due on the taxpayer’s primary residence for qualified persons. aims to provide a 70% reduction in property taxes for primary residences.
The approach is very simple. The price tag is roughly $532 million every biennium on top of the cost to continue the existing $500 primary residence tax credit.
Keeping People In Their Homes
HB 1343 aims to protect homeowners from property tax-related foreclosures by prioritizing tax liens after child support. The bill clarifies that homes cannot be seized for unpaid taxes and special assessments and requires homeowners to declare their property as a homestead. Concerns were raised about the bill's potential to discourage tax payments and its impact on local services. Opposition highlighted that foreclosures on primary residences are rare, and removing this mechanism could increase non-payment. Data on foreclosures was requested to better understand the issue, with a focus on cases involving occupied properties.
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