A BILL for an Act to amend and reenact subsection 1 of section 57-02-08.9, section 57-20-09, and subsection 1 of section 57-55-03 of the North Dakota Century Code, relating to the order of application of the primary residence credit and discount for early payment of tax; and to provide an effective date.

North Dakota SB 2405 changes the order in which property tax benefits are applied to ensure that a five percent discount for early payment is calculated before the primary residence credit. This adjustment primarily affects homeowners and mobile home residents who qualify for both the early payment discount and the primary residence credit, as it alters how these reductions interact on their final tax bill. The bill amends state code to explicitly require that the early payment discount be applied first, while the primary residence credit is then applied to reduce any remaining property tax liability. These changes take effect for ad valorem property taxes in taxable years beginning after December 31, 2025, and for mobile home taxes in taxable years beginning after December 31, 2026.