BISMARCK, N.D. (NewsDakota.com) – Gov. Kelly Armstrong signed his first bill of the 2025 legislative session, expanding eligibility for the state’s $500 property tax credit on primary residences to allow an estimated 3,900 additional residences to qualify for the credit.

Senate Bill 2201 expands the primary residence tax credit, first approved in 2023, to allow for the inclusion of primary residences held by trust, life estates and property being purchased under a contract for deed.

“As we continue to work on a broader property tax relief and reform package, signing this bill into law ensures the property tax relief approved last session is available to all primary residence owners as intended,” Armstrong said. “We appreciate the bill sponsors and state Tax Commissioner’s Office for their efforts to fix this issue and expand tax relief for North Dakota homeowners, making our state a more affordable place to live, work and raise a family.”

The bill was introduced by Sen. Mark Weber of Casselton, who chairs the Senate Finance and Taxation Committee, and co-sponsored by Senate Majority Leader David Hogue, House Majority Leader Mike Lefor, House Finance and Taxation Committee Chairman Craig Headland, and the chairs of the Senate and House appropriations committees, Sen. Brad Bekkedahl and Rep. Don Vigesaa.

The House and Senate both unanimously approved SB 2201. The bill makes the expanded eligibility retroactive to taxable years 2024 and 2025.

“This bill corrects an oversight from last session and rightfully allows primary residences held in trust to be eligible for the primary residence credit on their 2024 and 2025 property taxes,” Weber said. “The goal of the primary residence credit was to allow all homeowners – assuming they live in those homes – to receive that relief, and this bill ensures that can happen.”

The expanded eligibility will save taxpayers up to $1.9 million in both the 2023-25 and 2025-27 biennia. An emergency clause in the bill allows those newly eligible to apply immediately.

“I’m pleased with the outcome, and we look forward to working with eligible individuals to ensure their application for both the 2024 and 2025 property tax years are processed and credit received,” state Tax Commissioner Brian Kroshus said. “I encourage them to apply online at tax.nd.gov/prc or contact us directly at 877-649-0112 to connect with a property tax credit specialist.”