North Dakotans offered $500 tax relief amid ongoing debates over property taxation

Property taxes have been a contentious issue in North Dakota, with many homeowners advocating for reduced or eliminated taxes. A $500 tax relief credit is now available, and lawmakers assure that the application process is streamlined.

“They should be able to have their application submitted in less than two minutes,” said Tax Commissioner Brian Kroshus to The North Dakota Monitor.

Eligibility for the credit includes those who own and occupy a dwelling as their primary residence. There is one credit per household. Last year, 138,000 households—about 90% of eligible homeowners—applied for this credit. Families living in trust-owned homes, previously excluded from the program, can now apply. Those living outside their home for health reasons are also eligible if their residence isn’t rented out.

Returning applicants will find the process easier, while first-time applicants need to provide a parcel number and proof of identity.

The $500 credit was established in 2023 amidst growing demands to ban property taxes entirely. However, Measure 4, which proposed eliminating property taxes statewide, was defeated in November 2024. Only Alaska has some areas without property taxes due to low populations not included in federal surveys.

Proponents argued that rising residential taxes linked to increasing home valuations were burdensome. In 2024, North Dakota's median tax bill for owner-occupied homes was $2,455 on a median home value of $246,700. The state's effective property tax rate ranks it 20th nationally.

North Dakota farmer Neal Messer expressed concerns about eliminating property taxes without an alternative plan due to its impact on essential services like schools and emergency services. Realtor.com Chief Economist Danielle Hale echoed these concerns: “The North Dakota proposal to eliminate property taxes does not specify what the alternative will be.”

Property taxes fund local government services nationwide. In Fargo, they constitute 40% of the budget. State and local governments collected about $760 billion in property taxes in 2023—a significant increase since 2018.

Despite rising home valuations and subsequent tax bills causing discontent among homeowners nationwide, efforts continue to address these issues through assessment limits and new legislation in several states.

In North Dakota's political landscape, Governor Kelly Armstrong has proposed using oil company earnings tax revenue to offset potential losses from a residential tax ban: “It would eliminate property taxes for an entire class of homeowners who need that relief the most,” he stated according to the Associated Press.