ND House OKs bill ending multiple property tax breaks by cities
BISMARCK—A bill to prevent cities from utilizing multiple property tax incentives simultaneously and to set out a process for approving property tax incentives beyond five years cruised through the North Dakota House without any debate.
Senate Bill 2166 passed the House by a 75-17 vote.
SB2166 would prevent the tax incentives known as Tax Increment Financing districts and Renaissance Zones from being applied to parcels of property at the same time.
The bill's carrier on the House floor told the chamber a key goal of SB2166 was keeping communities from allowing double-dipping on TIF and Renaissance Zone incentives.
The bill also creates a process in which a city can grant property tax incentives.
Cities would be required to send notification letters to their county commission chairman chair and the president of any local school district impacted by a proposed tax incentive that's to last for more than five years.
Counties and school boards would need to reply within 30 days and provide the reason why if they choose not to participate and whether they'd wish to negotiate with the city over the incentive. If no response is provided within 30 days, the government entity would be assumed to be willing to participate.
The House added language to bar TIF dollars from being authorized in areas already receiving Renaissance Zone dollars after July 31 of this year.
Another House amendment keeps the division of community services for the North Dakota Department of Commerce from authorizing Renaissance Zones after July 31 of this year that includes parcels of land included in TIF districts.
SB2166 passed the Senate by a 38-8 vote in February. The Senate must move to concur with the amendments or move the bill to conference committee.