Governor Kelly Armstrong has rolled out his proposal to reform and reduce local property taxes.
In his “State of the State” speech to the Legislature, Armstrong called it responsible, achievable and durable, and would lead to eventually zero-ing out the property tax on primary residences.
Armstrong proposes increasing the Primary Residence Credit from $500 to $1000 per year, plus using $173 million of Legacy Fund earnings to provide additional relief to primary residences. That would bring $1550 in tax relief in each year of the 2025-2027 biennium, and $2000 or more in the 27-29 biennium.
It would also include a 3 percent cap on property tax increases per year.
"The sustainable part of our plan is — when the Legacy Fund earning stream grows to more than $2000 per year (in property tax buydowns), every additional dollar will be split evenly between more property tax relief, and decreasing the ongoing general fund expense of providing that relief," Armstrong said. "This will eventually lower the general fund's ongoing cost to zero, insuring we don't saddle future legislatures with having to fund this tax relief."
Armstrong said as the Legacy Fund grows, it will eventually cover the entire cost. And he asked lawmakers to quickly pass the plan.
"We can afford it," Armstrong said. "The people of North Dakota are demanding it. The plan is real relief, and it is real reform. It's responsible, it's achievable, and it's durable. It's the single-most impactful thing we can do for our citizens this Legislative session. Let's get it done."
Legislative leaders say they welcome the proposal.
"His plans for property tax relief and reform struck the right note," said House Majority Leader Zac Ista (D-Grand Forks). "I'm excited to dig into the details. And I think, like he said, hope springs eternal."
Ista said legislators should tackle this issue now, rather than save it for the end of the session.
"That, so all the other dominoes can fall in behind it," Ista said.
