North Dakota Needs $20 Million More For Homeowner Tax Credits

(Photo by Mary Steurer/North Dakota Monitor)

(North Dakota Monitor) – North Dakota can expect a key property tax relief program to cost about $430 million for the 2025-2027 budget cycle — about $20 million more than what the state planned to spend.

The 2025 legislature set aside $408.9 million for the primary residence credit for the two-year budget cycle, State Tax Commissioner Brian Kroshus said.

“That discussion was had during the last session, that I don’t think this is enough,” he told state lawmakers at a  meeting of the Tax Reform and Relief Advisory Committee. “We were given every assurance that if we need to ask for additional funds, they will be found.”

The credit, created in 2023, subsidizes property taxes for most homeowners. Initially it provided a $500 discount every year, but lawmakers in 2025 increased that amount to $1,600 as part of a major property tax relief package, House Bill 1176.