Does North Dakota law limit how much counties can increase property tax revenue each year?

Does North Dakota law limit how much counties can increase property tax revenue each year?
Photo by Dillon Kydd on Unsplash.

Yes.

North Dakota law limits how much counties can increase property tax levies from one year to the next. 

The North Dakota News Cooperative is partnering with Gigafact to produce timely fact briefs, which are quick, evidence-based fact checks about trending claims relevant to North Dakota.

Legislation passed in 2025 established a general cap of 3% on annual growth in the total property tax levy for counties and most other local taxing entities. The limit applies to revenue raised from existing taxable property and is intended to slow the growth of property taxes while providing greater predictability for taxpayers. 

Revenue generated from newly taxable property is excluded from the cap, allowing collections to grow beyond 3% due to new construction or development without voter approval. Counties may exceed the 3% levy limit only if voters approve a higher increase through a local election. 

The cap applies to counties, cities, townships, and park districts, while school districts are subject to separate provisions. The limit does not restrict spending funded by non-property-tax sources such as state aid, federal funds, grants, or fees.

This fact brief is in response to online conversations such as this one.

Sources:
North Dakota Office of the Governor - Gov. Armstrong signs historic property tax relief and reform package
North Dakota Legislative Assembly - House Bill 1176  

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