§ 57-15-01.2 — Limitation on levies by taxing districts without voter approval

North Dakota § 57-15-01.2

• Jurisdiction: North Dakota
• Title 57: Taxation
• Ch. 57-15: Tax Levies and Limitations

Text

1. a. Notwithstanding that a taxing district may have unused or excess levy authority
under any other provision of law, this section supersedes and limits that authority.
This section may not be interpreted as authority to increase any property tax levy
authority otherwise provided by law and must be applied to limit any property tax
levy authority to which a taxing district may otherwise be entitled. Property taxes
levied in dollars by a taxing district may not exceed the greater of the base year
levy increased by the allowable percentage limit or the adjusted year levy
increased by the allowable percentage limit.
b. Excluding any negative excess percentage increase, a taxing district may carry
forward an excess percentage increase to be used in any of the five succeeding
taxable years. An excess percentage increase may be used only once to increase
the limitation under subdivision a and may not be carried forward beyond five
taxable years. The oldest unused excess percentage increase must be applied
first.
2. The limitation under subsection 1 does not apply to:
a. New or increased property tax levy authority that becomes available to the taxing
district in the current taxable year resulting from:
(1) A change in state law.
(2) Approval by the electors of the taxing district.
b. Property tax levy authority increased above zero mills in the current taxable year
by the governing board of the taxing district, provided the levy authority was not
previously used.
c. Any irrepealable tax to pay bonded indebtedness levied under section 16 of
article X of the Constitution of North Dakota.
d. The one-mill levy for the state medical center authorized by section 10 of article X
of the Constitution of North Dakota.
e. The levy, not to exceed one mill, for the Garrison Diversion Conservancy District,
authorized by section 57-15-26.8.
f. Taxes or special assessments levied to pay the principal and interest on any
obligations of any political subdivision, including taxes levied for deficiencies in
special assessment and improvement district funds and revenue bond and
reserve funds.

g. Taxes levied to pay bonds, evidences of indebtedness, or obligations of any
political subdivision, including taxes levied to pay evidences of indebtedness
under chapter 57-47 issued by the Bank of North Dakota from the infrastructure
revolving loan fund.
h. Taxes levied pursuant to law for the proportion of the cost to any taxing district for
a special improvement project by general taxation.
i. Taxes levied under sections 40-24-10, 40-43-01, 57-15-28, 57-15-41, and
57-15-48 and chapter 61-16.1.
j. Taxes levied by a school district under subsection 5 of section 57-15-14.2.
3. a. Except as provided in subdivision b, a majority of the qualified electors in a taxing
district voting on the question at a statewide general election may approve a
ballot measure to authorize the taxing district to impose a property tax levy
exceeding the limitation under subsection 1 for four taxable years at a time,
beginning with the taxable year after the general election during which the ballot
measure was approved. The ballot measure must state the proposed percentage
increase and the proposed dollar amount increase exceeding the limitation under
subsection 1. The procedure under this subsection applies only to authorization
of a property tax levy exceeding the limitation under subsection 1.
b. A majority of the qualified electors in a township voting on the question at an
annual township meeting may approve a property tax levy exceeding the
limitation under subsection 1 for four taxable years at a time, beginning with the
taxable year during which the annual township meeting vote under this
subdivision is held. The notice and voting procedures applicable to the approval
of a township tax levy under section 57-15-19 and approval of increased township
general fund levy authority under section 57-15-20 apply to the vote under this
subsection. The electors of the township voting on the question must be notified
of the proposed percentage increase and the proposed dollar amount increase
exceeding the limitation under subsection 1 before the vote.
4. For taxable year 2025, a city may levy an amount equal to the amount levied in dollars
in the preceding taxable year under sections 40-05-19 and 57-15-42 as part of the levy
under section 57-15-08 without including the dollars levied for this purpose as part of
the limitation under subsection 1.
5. A city or county may not supersede or modify the application of this section under
home rule authority.
6. For purposes of this section:
a. "Adjusted year levy" means amount of property tax levied in dollars by the taxing
district in the preceding taxable year adjusted as follows:
(1) When property and improvements to property which were not taxable in the
preceding taxable year are taxable in the current year, the amount levied in
dollars in the preceding taxable year by the taxing district must be increased
to reflect the taxes that would have been imposed against the additional
taxable valuation attributable to that property at the mill rate applied to all
property in the preceding taxable year, excluding the mill rate associated
with:
(a) Any irrepealable tax levied to pay bonded indebtedness levied under
section 16 of article X of the Constitution of North Dakota.
(b) A tax levied for the one-mill levy for the state medical center
authorized by section 10 of article X of the Constitution of North
Dakota.
(2) When a property tax exemption existed in the preceding taxable year which
has been reduced or no longer exists for the current taxable year, the
amount levied in dollars in the preceding taxable year by the taxing district
must be increased to reflect the taxes that would have been imposed
against the portion of the taxable valuation of the property which is no longer
exempt at the mill rate applied to all property in the preceding taxable year,
excluding the mill rate associated with:

(a) Any irrepealable tax levied to pay bonded indebtedness levied under
section 16 of article X of the Constitution of North Dakota.
(b) A tax levied for the one-mill levy for the state medical center
authorized by section 10 of article X of the Constitution of North
Dakota.
(3) When property that was taxable in the preceding taxable year is not taxable
for the current taxable year, the amount levied in dollars in the preceding
taxable year by the taxing district must be reduced by the amount of taxes
that were imposed against the taxable valuation of that property in the
preceding taxable year.
(4) When a temporary mill levy increase, excluding an increase under this
section, authorized by the electors of the taxing district or mill levy
imposition authority under state law existed in the preceding taxable year
but is no longer applicable or has been reduced, the amount levied in dollars
in the preceding taxable year by the taxing district must be adjusted to
reflect the expired temporary mill levy increase and the eliminated or
reduced mill levy under state law before the percentage increase allowable
under this subsection is applied.
b. "Allowable percentage limit" means three percent.
c. "Base year levy" means the highest amount of property tax levied in dollars by a
taxing district in the three taxable years immediately preceding the current
taxable year.
d. "Excess percentage increase" means the difference, rounded to the nearest
hundredth of a percent, between:
(1) The allowable percentage limit; and
(2) The difference between the actual amount of property tax levied in dollars
and the greater of the base year levy or the adjusted year levy with the
resulting difference under this paragraph divided by the greater of the base
year levy or adjusted year levy.
e. "Proposed percentage increase" means the difference, rounded to the nearest
hundredth of a percent, between:
(1) The difference between the amount of property tax in dollars proposed to be
levied by the governing board of the taxing district and the greater of the
base year levy or the adjusted year levy with the resulting difference under
this paragraph divided by the greater of the base year levy or adjusted year
levy; and
(2) The allowable percentage limit.
f. "Taxing district" means any political subdivision empowered to levy taxes.