HB 1176 - Understanding North Dakota's 3% Cap on Property Tax Revenue Growth
Property taxes have become an important topic of discussion
across North Dakota in recent years. During the 2025 legislative session, state
lawmakers passed House Bill 1176, which created new property tax relief
programs and established limits on how much property tax revenue local
governments can increase each year.
One of the most significant changes was a 3% annual property tax revenue cap
for counties and other local governments.
This does not mean an individual property tax statement
cannot increase by more than 3%; it prohibits the taxing entity from increasing
the total property tax levied by more than 3% in total.
Property tax revenue growth is now limited to 3% annually, even when the cost
of providing services may increase more than that.
The law was intended to help slow the growth of property taxes for property
owners across North Dakota.
What Services Does Morton County Provide?
Morton County provides many public services residents rely on every day, including:
- Road and bridge maintenance
- Snow removal
- Sheriff's Office and correctional services
- Emergency Management and 911 services
- Elections
- Public health programs
- Prosecuting
- Recording services
- County parks
- Weed Control
- Veterans’ Services
- Extension Service
These services operate year-round and are affected by inflation and rising costs, similar to households and businesses.
How Does This Affect Morton County Budgeting?
Morton County’s budget is built using available revenue,
operational costs, infrastructure needs, and state requirements.
While the new law limits most annual property tax revenue growth to 3%, Morton
County continues to manage rising costs for:
-Fuel and utilities
-Heavy equipment and vehicle replacement
-Road construction materials
-Employee wages and health insurance
-Technology and public safety equipment
Like other counties across North Dakota, Morton County must operate within the
requirements established under state law while continuing to provide essential
local services.
What Could Residents Notice?
As Morton County continues planning future budgets within
the requirements established under state law, residents may notice:
-Delayed road or bridge projects
-Longer replacement cycles for equipment and vehicles
-Changes in the timing of facility or infrastructure improvements
-Increased focus on long-term budget planning and prioritization
Morton County continues working to provide essential local services while
operating within state budget requirements.
How Residents Can Stay Informed
County budgets are developed through a public process and
are shaped by state law, local needs, and available revenue.
Morton County is currently developing proposed budgets for 2027, and budget
discussions and public meetings will take place in the coming months.
Residents who want to learn more about county services and budgeting can:
-Attend Morton County Commission meetings
-Review public meeting agendas and budget information
-Follow county updates and public notices
-Participate in budget discussions during public meetings
Additional county meeting information and materials are available at:
https://www.mortonnd.gov/meetings