North Dakota's $1,600 tax credit erases bills for 50,000 homeowners

When House Bill 1176 cleared the Legislature with overwhelming support last spring—86-4 in the House and 46-0 in the Senate—lawmakers estimated the increased primary residence credit would wipe out property taxes for about 25% of eligible households. Recent data from State Tax Commissioner Brian Kroshus reveals the relief has far exceeded expectations: 30% of eligible households, or approximately 50,000 homes, now owe zero property tax after applying the $1,600 credit. That represents an additional 34,000 households freed from property tax bills compared to the previous $500 credit, which left only 16,000 households owing nothing in 2024. Beyond those 50,000 households, another 95,000 North Dakota homeowners will see smaller bills this year. A random sample of 50 property tax statements from 15 counties shows an average reduction of 46%, with four households achieving zero tax liability. Even excluding those four outliers, the average savings reached 41%, underscoring the broad-based impact of the reform. Gov. Armstrong highlighted the scale of relief by noting the 34,000 newly freed households represent roughly the population of Bismarck itself. The $409 million relief package for the 2025-2027 biennium draws from earnings of North Dakota's $12 billion Legacy Fund—the state's oil tax savings account—making the program sustainable and scalable. Rep. Mike Nathe of Bismarck, who introduced the bill, emphasized the long-term structure: as the Legacy Fund grows, the state can increase the credit in future legislative sessions. "We've listened to the people of North Dakota," Nathe said. "They wanted property tax relief. We've done that with the $1,600 credit, and it's a sustainable program." The reform package also imposed a 3% annual cap on local property tax budget increases, with unused percentages carrying over for up to five years. Because local budgets were already set for 2025, the full impact of the levy cap will appear for the first time on 2026 property tax statements. Additional measures expanded the renter's refund program from $400 to $600 and increased the disabled veterans tax credit from $8,100 to $9,000 in taxable value. Legislative leaders credited the oil industry's contribution through the Legacy Fund, with House Majority Leader Mike Lefor calling the package "true property tax reform," while Senate Majority Leader David Hogue predicted the permanent tax relief would encourage home ownership across North Dakota communities.