HB 1158 Summary

• Creates a new $500 primary residence credit against property tax for individuals owning and occupying a dwelling as their primary residence in North Dakota, effective for tax years 2024-2025 only.

• Expands the homestead tax credit by increasing income limits from $22,000 to $40,000 for the highest exemption tier and adjusting maximum reductions upward for elderly and disabled homeowners.

• Reduces individual income tax rates across all filing statuses, with new brackets ranging from 1.10% to 2.90% for single filers and implementing a 0.00% rate for the lowest income bracket.

• Appropriates $158.225 million for property tax relief during fiscal years 2023-2025, including $103.225 million for primary residence credits, $53.5 million for homestead credits, and $1.5 million for information technology and advertising expenses.

• Establishes a legislative tax relief advisory committee to study income and property tax relief options, including analysis of flat tax rates and tax structure adjustments, with findings due to the 69th legislative assembly.