North Dakota lawmakers announce plan to reduce property taxes 25% statewide

(Fargo, ND) -- Some North Dakota lawmakers have announced a plan aimed at reducing property taxes statewide by roughly 25 percent. 

The plan, which will be brought forth as a bill during the next legislative session, would have the state buy down mills from 60 mills to 30 mills. Lawmakers involved say the  plan would using the same mechanism as when the state recalculated the K-12 formula in 2013, leading to a decrease in property taxes. The estimated increase in education costs being assumed by the state for the 2023-25 biennium would be around $340 million. Bill co-sponsor Representative Mike Nathe says the Legacy Fund would be the main funding source. 

“The state is constitutionally obligated to provide an education for all ND students, the education portion of one's tax bill is the only part of property taxes that the state can have an influence on. The state would now be paying 85% of education funding vs the 70% that its currently doing,” said Nathe, republican from Bismarck. 

The proposal would freeze property valuations for 2 years. 

“This bill would help all property owners, residential and commercial, but especially the seniors and middle to lower income residents who may not pay income tax, but often do pay property taxes,” said bill co-sponsor republican Senator Don Schaible.