Urgent Property Tax Reform: Governor Calls for Swift Action Now!
Screenshot Photo Gov. Kelly Armstrong addresses the Legislature in Bismarck on Tuesday.
Governor Kelly Armstrong has set the stage for transformative change in North Dakota with bold proposals aimed at capping local government spending and boosting the primary residence tax credit. In his compelling address at the opening session of the 2025 Legislature, he made it clear that real property tax relief is not just an option—it’s a necessity for every North Dakota homeowner.
“Providing real property tax relief and real reform must be our top priority,” Armstrong passionately declared. “But it doesn’t end there. With our rapid growth comes new challenges, from mental health services to overcrowded jails that threaten the safety of our streets. We must tackle these issues head-on with innovative solutions.”
Armstrong acknowledged the efforts already made to alleviate property taxes, citing various methods from buydowns to tax credits. Yet, he was candid: “To be honest, it hasn’t worked very well. It’s costly, and frustration levels are at an all-time high.” With over 50 bills already introduced this session, he emphasized the urgency of action: “We cannot afford to get stuck in analysis paralysis. We must act decisively to deliver real property tax reform!”
His game-changing proposal includes a cap on spending growth at 3%, with any unused portion able to roll over for up to five years. “This will encourage our cities, counties, schools, and park districts to budget wisely and plan for the future,” Armstrong explained.
Additionally, he proposed increasing the primary residence credit from $500 to a whopping $1,000 annually, costing the general fund $310 million. Best of all, this relief would be automatic—no application needed! By leveraging a dedicated stream from the Legacy Fund’s earnings, every homeowner stands to gain. “As the Legacy Fund flourishes, so will our homeowners’ prosperity. This could mean a total combined relief of $1,550 each year for the next biennium, and at least $2,000 in subsequent years.”
Armstrong further detailed that as the Legacy Fund continues to grow, any excess revenue would be split evenly between additional property tax relief and reducing ongoing costs to the general fund. “Ultimately, this will alleviate the financial burden on future Legislatures, and as the Legacy Fund expands, it will cover the entire cost of this plan,” he asserted.
With combined measures that include an expanded Homestead Tax Credit, Armstrong is confident that most property taxes could be eradicated over the next decade. He urged legislators to prioritize property tax relief as the first bill that reaches his desk. “This will impact every aspect of our budget. The people of North Dakota are demanding it, and we can afford it. This plan represents genuine relief and reform that is responsible, achievable, and sustainable.”
Beyond tax relief, Armstrong laid out a comprehensive vision for the state, advocating for educational savings accounts that empower parental choice in K-12 education, enhanced support for charter schools, and a generous $50 million investment in university challenge grants—$20 million more than previously proposed.
He also called for increased investments in diversion programs to reduce prison costs, along with more funding for addiction recovery programs like Free Through Recovery and Community Connect. In a strategic move, he appointed Jonathan Holth as the new commissioner of Recovery and Re-entry, emphasizing a renewed commitment to rehabilitation.
On the energy front, Armstrong is pushing for expanded oil production, enhanced oil recovery techniques, and greater pipeline infrastructure to market natural gas. He stressed the importance of supporting value-added agriculture and expanding the Farm to School initiative to connect local producers with school lunch programs.
“We must evaluate how our investments in housing, daycare, and workforce development are being utilized. It’s time to streamline these programs and ensure they meet the needs of our communities, big and small,” he urged.
Additionally, he announced plans to dissolve five boards and commissions that have been inactive for over a year, advocating for a more efficient government structure. “Fewer boards mean more action,” he concluded.
