HOUSE REPUBLICANS SUPPORT COMPREHENSIVE TAX RELIEF

Includes Property Tax Relief, Elimination of Marriage Penalty, Homestead Credits

Bismarck, N.D. – The House Finance and Taxation Committee has approved a comprehensive tax relief package that includes property tax reductions, elimination of the marriage penalty tax and increased homestead tax credits. HB 1051 received a 8 to 5 do pass recommendation out of the Finance and Taxation committee and will now go to the Appropriations committee before receiving a vote in front of the full House of Representatives.

“The hard work, entrepreneurship and ingenuity of the citizens of North Dakota have put us in a position to give something back to the people,” said Rep. Wes Belter (R – Leonard) chairman of the Finance and Taxation Committee. “This bill is the culmination of ideas brought forth by members of the House and Senate as well as Governor Hoeven.”

The bill provides for a 10 percent reduction in for residential property tax payers and 5 percent for agricultural and commercial property. The bill also ensures that taxpayers have more control over property tax rates by requiring a vote if the local taxing authority wishes to raise spending by more than 3.5 percent. The bill allows exemptions to this provision for growth or annexation as well as emergencies such as a natural disaster.

Examples of average annual saving for various properties under the plan would be as follows:

House valued at $100,000 - $180
House valued at $200,000 - $361
Farm or ranch - $183 (average per section)
Commercial property valued at $150,000 - $150
Commercial property valued at $300,000 - $300

The bill further reduces the property taxes for low income seniors by increasing funding for the homestead property tax credit by 80 percent. Qualifying seniors making up to $10,000 will pay no property taxes, and those making up to $17,000 will be eligible for a partial reduction of their property tax liability in addition to the ten percent reduction that all resident property tax payers will receive.

The bill also includes a provision to eliminate the marriage penalty tax. Currently, many married couples are penalized with a higher tax rate on their personal income tax.

“As legislators it is always important to remember that this money belongs to the people of North Dakota,” said House Majority Leader Rick Berg (R – Fargo). “Returning the peoples money will not only provide much needed relief, it will also stimulate our economy.”

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