The Senate Finance and Taxation Committee of the North Dakota State Legislature convened on March 11, 2025, to discuss significant amendments to property tax legislation. The meeting focused on House Bill 1575, which aims to provide tax relief across various property classes.

The first major topic addressed was the inclusion of centrally assessed properties in the tax reduction plan. Previously, the proposed legislation offered a 15% tax reduction for agricultural and commercial properties, while centrally assessed properties were excluded. This raised concerns about equitable treatment among different property types. The amendment introduced during the meeting adjusted the reduction for all three categories—agricultural, commercial, and centrally assessed—to a uniform 12.5%. This change is expected to reduce the fiscal impact by approximately $8 million, bringing centrally assessed properties to 7.1% of the total tax liability.

The committee also discussed the overall structure of House Bill 1575, which proposes a 30% reduction for all residential properties, not limited to primary residences. This broad approach simplifies the process for counties, as there will be no application required for property owners. The tax department will handle the calculations and reimbursements for the difference between the current tax rates and the new reductions.

In terms of specific calculations, the bill modifies the taxable value for residential properties by lowering the percentage from 9% to 6.25% of the true and full value. For commercial and centrally assessed properties, the taxable value will decrease from 10% to 8.75%. The state will cover the difference in tax revenue resulting from these reductions.

Overall, the meeting highlighted a commitment to equitable tax relief across property classes while simplifying the administrative process for local governments. The committee's discussions set the stage for further legislative action on the proposed tax relief measures.