The state Senate’s Finance and Taxation Committee has given a “do-pass” on HB 1176, a bill that would provide property tax relief and reform.
The measure has already passed the House.
It increases the primary residence tax credit from $500 to $1450. And it caps local property tax increases at three percent, unless the local governments go to the voters for permission to raise them further.
During a hearing, Governor Kelly Armstrong told the Committee property tax was the biggest concern he heard from voters.
"I think we have a real opportunity here, to show the people of North Dakota that we were listening to them, that we're delivering on what they need, and that we're doing it in the most substantial , durable and responsible way possible," Armstrong said.
Representatives of local governments again raised concerns about the three percent caps. They suggested a formula that would be partially based on the consumer price index. But Cass County Finance Director Brandy Madrigga said caps will put local governments in a bind.
"It is prudent to stress that a tax cap, in any form, will significantly impact the county's ability to provide mandated services," Madrigga told the Committee. "It will impair our capacity to expand services to meet the growing population."
Madrigga said using CPI provides "a standardized measure of inflation."
"But as a measure, it doesn't quite reflect unique costs, local governments' base, such as personnel, infrastructure and public safety," Madrigga said,
The vote in committee was unanimous. It will still need to be vetted by the Senate Appropriations Committee.
