Tax Reform and Relief Advisory Committee

Studies

Study economic development tax incentives as provided in Section 54-35-26. (NDCC § 54-35-26)

(1176 § 27) The Legislative Management shall appoint a legislative Tax Reform and Relief Advisory Committee during the 2025‑26 interim to study property tax reform and relief. The committee must consist of three members of the Finance and Taxation Standing Committee of the House of Representatives, three members of the Finance and Taxation Standing Committee of the Senate, one member of the Appropriations Committee of the House of Representatives, and one member of the Appropriations Committee of the Senate, appointed by the respective Majority Leaders of the House of Representatives and the Senate. The Legislative Management shall designate the Chairman of the committee. Based on information provided by the Tax Department and input from local taxing districts, the study must include consideration of historical property tax relief provided by the Legislative Assembly; the estimated and actual fiscal impact of the property tax relief provided by the 69^th Legislative Assembly; information from the Tax Commissioner and local taxing district representatives regarding the progress of implementing the primary residence credit and primary residence certification process; information and analysis from the Tax Commissioner regarding the impact of the property tax levy limitation under Section 22 on taxing districts; the feasibility and desirability of revising the content of the real estate tax statement to improve transparency in property taxation, which may include a review of the statutory requirements related to the contents and delivery of the real estate tax statement, available historical real estate tax statements, and information regarding any administrative costs associated with updates to the real estate tax statement; and information and analysis from the Tax Commissioner, State Supervisor of Assessments, and local taxing district representatives related to tax exempt property. By April 1, 2026, the Tax Commissioner shall gather and analyze information from local taxing districts necessary to conduct an analysis of the impact of the levy limitation, including action taken by the taxing districts to implement the levy limitation; taxing district property value increases, separated by increases on existing property and new property; the number of taxing districts required to reduce the taxing district's total levy in dollars to comply with the levy limitation, including the method used by the taxing district to reduce the total levy in dollars and which levies were impacted by the total levy reduction; and suggestions for improvement of the levy limitation. The Tax Commissioner shall provide a summary of the findings to the committee no later than June 1, 2026.

(1483 § 2) Consider studying the oil extraction tax exemption for production from a stripper well property or an individual stripper well. The study must include consideration of the number of oil wells and amount of oil production qualifying for the exemption, the estimated fiscal impact of the exemption, and alternative tax policies for stripper well properties or stripper wells. The study may include input from the Tax Commissioner, the Director of the Department of Mineral Resources, and representatives of the oil and gas industry.

Reports

Receive a report from the Tax Commissioner by June 1, 2026, regarding a summary of the information gathered from local taxing districts for an analysis of the impact of the approved levy limitations, including action taken by the taxing districts to implement the levy limitation; taxing district property value increases, separated by increases on existing property and new property; the number of taxing districts required to reduce the taxing district's total levy in dollars to comply with the levy limitation, including the method used by the taxing district to reduce the total levy in dollars and which levies were impacted by the total levy reduction; and suggestions for improvement of the levy limitation. (2025 House Bill No. 1176 § 27)

Receive an annual report from the Department of Commerce's Division of Community Services on renaissance zone progress. (NDCC § 40-63-03(2))

Receive an annual report from the Department of Commerce compiling reports from cities that have a renaissance zone included in a tax increment financing district. (NDCC § 40-63-03(10))

Receive a report from the Tax Commissioner by April 1 of each year regarding a statewide report of property tax increase. (NDCC § 57‑20‑04)

Receive a report from the Tax Commissioner by June 1 of each year summarizing the information provided by taxpayers that received a sales tax exemption for raw materials, single-use product contract systems, and reagents used for biologic manufacturing. The report must include a comparison of the information received in the current calendar year with data received in the preceding calendar year. (NDCC § 57-39.2-04.19)