BISMARCK, N.D. – North Dakota Governor Kelly Armstrong outlines plans on property taxes and mental health during his first State of the State Address.
He wants the Legislature to cap future increases in property tax budgets by three percent. If that isn’t used, the remainder can be carried over for up to five years.
“This will encourage cities, counties, schools and park districts to budget prudently and plan ahead. Those who say that the state shouldn’t be involved in capping local budgets, when this package is approved, the state will be paying for over 50 percent of the local share of property taxes. We absolutely have a say in their growth,” Armstrong said.
Armstrong also proposes increasing the existing primary residence property tax credit of $500 to $1,000 per year that will cost $310 million. He would also like to create a primary residence classification so the relief can be automatic and won’t require homeowners to file for it. The governor also would like to use legacy fund earnings to provide more money to the primary residence credit. Armstrong says the funding stream will grow as the fund grows giving North Dakota homeowners a direct stake in the overall success in the legacy fund. The total combined primary residence relief is expected to be $1,550 per year for the next two years and at least $2,000 per year for the following two years.
“The sustainable part of our plan is that when the legacy fund earnings stream grows to more than $2,000 per year, every additional dollar will be split evenly between more property tax relief and increasing the ongoing general fund expense of providing that relief. This will eventually lower the general fund’s ongoing cost to zero ensuring we don’t saddle future Legislatures with having to this tax relief. As the legacy fund grows, it will eventually cover the entire cost of this plan,” Armstrong explained.
Armstrong announced a new Commissioner of Recovery and Reentry. He will appoint Director of Recovery Reinvented Jonathan Holth. Armstrong says the new position will operationalize the relationship between the Legislature, Department of Corrections and Rehabilitation, county jails, law enforcement, the judicial system, tribal partners and addiction counselors.
Armstrong is also looking to reduce the number of state boards and commissions that aren’t being used. He says a bill will be introduced to create a task force to look into which boards need to be ended or combined and find out which are essential. Armstrong says he signed an executive order to get rid of five boards and commissions that haven’t met for a year.
Click here to watch Governor Armstrong’s State of the State Address.
