North Dakota – Gov. Kelly Armstrong signed his first bill of the 2025 legislative session, expanding eligibility for North Dakota’s $500 property tax credit. This new law will allow an estimated 3,900 additional residences to qualify for the credit.

Senate Bill 2201, passed during the 2025 session, broadens the eligibility of the primary residence tax credit, which was first introduced in 2023. Under this expansion, primary residences held by trust, life estates, and those under contract for deed will now qualify for the property tax credit.

Gov. Armstrong emphasized the importance of this expansion as part of a broader effort for property tax relief and reform in North Dakota. “Signing this bill into law ensures the property tax relief approved last session is available to all primary residence owners as intended,” Armstrong said. He also thanked the sponsors and the state Tax Commissioner’s Office for their efforts in correcting the oversight and extending the tax relief to more homeowners in the state.

The bill was introduced by Sen. Mark Weber of Casselton, who chairs the Senate Finance and Taxation Committee, and was 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. Both the House and Senate unanimously approved the bill, which is 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,” said Sen. Weber. “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 is expected to save taxpayers up to $1.9 million during both the 2023-25 and 2025-27 biennia. An emergency clause in the bill allows those newly eligible to apply immediately.