Tax staff present exemption valuations; primary residence credit projections exceed current appropriation

State tax staff told the committee that initial estimates of exempt property value and growing uptake of the primary residence credit will have material budget implications for the state and counties.

Shelly Myers, state supervisor of assessments, said a workbook distributed to 37 counties produced an estimated $28.5 billion in exempt property value across those counties (methodologies varied by property type and involved per‑acre land values, square‑foot construction cost estimates and depreciation). She noted that counties have not all reported and that the statewide true and full value (centrally plus locally assessed) is roughly $128 billion; the exempt property estimates for the 37 counties are included inside that statewide total.

Tax Commissioner Brian Crotches reported on the primary residence credit: $207.5 million was dispersed to counties in the last cycle, and he projected biennial needs could reach about $415 million, with the appropriation formula and legacy‑fund earning assumptions leaving an initial appropriation estimate of about $408.9 million. "The program will absolutely remain whole," Crotches told the committee, adding that additional appropriation action would be taken if necessary.

Realtor and practitioner concerns: Representatives of the North Dakota Association of Realtors urged clearer guidance for realtors and buyers on transfer and proration of the credit when homes change hands and requested clearer notification from the tax office after a parcel’s verification. Realtors also asked whether the tax commissioner could exercise limited flexibility when a closing occurs shortly after the April 1 application deadline so buyers in fast turnovers and foreclosures are not penalized for timing.

Committee action: Members asked the tax department and commissioners to deliver more detailed breakdowns by county and by property type (for example, farmstead home vs. farm plant buildings) and to provide the number of primary residence applications and final cost estimates after the April application window closes.