25.0044.

01000

Sixty-ninth
Legislative Assembly BILL NO.
of North Dakota

Introduced by

Representative Louser

1 A BILL for an Act to create and enact a new section to chapter 15.1-02 and a new section to
2 chapter 57-15 of the North Dakota Century Code, relating to state funding for nonpublic schools
3 and limitations on property tax levies by taxing districts without voter approval; to amend and
4 reenact sections 15.1-27-02, 15.1-27-04.1, and 57-15-01.1, subsection 1 of section 57-15-14,
5 section 57-15-14.2, and subdivision c of subsection 1 of section 57-20-07.1 of the North Dakota
6 Century Code, relating to required reports, the state school aid funding formula, and school
7 district levy authority; to repeal sections 15.1-27-04.2, 15.1-27-04.3, 15.1-27-15.1, and
8 15.1-27-20.2 of the North Dakota Century Code, relating to adjustments to state aid payments;
9 and to provide an effective date.

10 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:

11 SECTION 1. A new section to chapter 15.1-02 of the North Dakota Century Code is created
12 and enacted as follows:
13 Nonpublic schools - State funding - Administration and enforcement by the
14 superintendent of public instruction.
15 1. A nonpublic school shall register with the superintendent of public instruction as
16 instructed under subsections 2 and 3 and meet the requirements under subsections 4
17 and 5 to receive state funds under this section in an amount equal to eighty percent of
18 the corresponding payment per weighted student unit in section 15.1-27-04.1.
19 2. A nonpublic school shall submit a registration form provided by the superintendent of
20 public instruction to the superintendent of public instruction on or before June thirtieth
21 to receive state funds for the school year beginning that year.
22 3. A nonpublic school registering for state funding for the first time shall participate in an
23 informational session describing the requirements under subsection 2 on or before

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1 March first to receive state funds for the school year beginning that year. The
2 superintendent of public instruction shall facilitate the informational session.
3 4. To receive state funds under this section, a nonpublic school:
4 a. Shall submit to the superintendent of public instruction student performance data
5 and district finance facts as authorized under section 15.1-02-08.
6 b. Shall comply with:
7 (1) An intervention by the superintendent of public instruction for chronically
8 low-performing schools as authorized under section 15.1-02-23.
9 (2) All requirements:
10 (a) Of public school districts under chapter 15.1-07.
11 (b) Related to students and safety under chapter 15.1-19.
12 (c) Related to special education under chapter 15.1-32.
13 (d) Related to English language learners under chapter 15.1-38.
14 c. Must be free, open, and accessible to school-aged children under subsection 1 of
15 section 15.1-06-01.
16 d. Shall obtain certification of approval from the superintendent of public instruction
17 under section 15.1-06-06.
18 e. Shall permit a youth patriotic society to speak to students as required under
19 section 15.1-06-14.1.
20 f. Shall elect a school board that shall comply with the provisions of chapter
21 15.1-09.
22 5. A nonpublic school that receives state funds under this section is a public entity as
23 defined in section 44-04-17.1 and subject to open records and meetings requirements
24 under chapter 44-04.
25 6. The superintendent of public instruction shall enforce the requirements under
26 subsection 4. If the superintendent determines a school is not complying with this
27 section, the superintendent may:
28 a. Withhold state funding from the school;
29 b. Require the school to develop and implement a corrective action plan; or
30 c. Appoint a receiver to oversee the school's operations.

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1 7. The superintendent of public instruction may create rules to administer and enforce
2 this section.
3 SECTION 2. AMENDMENT. Section 15.1-27-02 of the North Dakota Century Code is
4 amended and reenacted as follows:
5 15.1-27-02. Per student payments - Required reports.
6 1. The superintendent of public instruction may not forward state aid payments to a
7 school district beyond the September payment unless the district has filed the
8 September tenth fall enrollment report with the superintendent.
9 2. The superintendent of public instruction may not forward state aid payments to a
10 school district beyond the October payment unless the district has filed the following
11 with the superintendent:
12 a. The June thirtieth student membership and attendance report;
13 b. An annual school district financial report; and
14 c. The personnel report forms for licensed and nonlicensed employees.
15 3. On or before December fifteenth, each school district shall file with the superintendent
16 of public instruction the taxable valuation and mill levy certifications. If a district fails to
17 file the taxable valuation and mill levy certifications by the required date, the
18 superintendent of public instruction may not forward to the district any state aid
19 payments to which the district is entitled, until the taxable valuation and mill levy
20 certifications are filed.
21 SECTION 3. AMENDMENT. Section 15.1-27-04.1 of the North Dakota Century Code is
22 amended and reenacted as follows:
23 15.1-27-04.1. Baseline funding - Establishment - Determination of state aid. (Effective
24 through June 30, 2025) (Retroactive application - See note)
25 1. To determine the amount of state aid payable to each district, the superintendent of
26 public instruction shall establish each district's baseline funding. A district's baseline
27 funding consists of:
28 a. All state aid received by the district in accordance with chapter 15.1-27 during the
29 2018-19 school year;
30 b. An amount equal to the property tax deducted by the superintendent of public
31 instruction to determine the 2018-19 state aid payment;

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1 c. An amount equal to seventy-five percent of the revenue received by the school

2 district during the 2017-18 school year for the following revenue types:
3 (1) Revenue reported under code 2000 of the North Dakota school district
4 financial accounting and reporting manual, as developed by the
5 superintendent of public instruction in accordance with section 15.1-02-08;
6 (2) Mineral revenue received by the school district through direct allocation from
7 the state treasurer and not reported under code 2000 of the North Dakota
8 school district financial accounting and reporting manual, as developed by
9 the superintendent of public instruction in accordance with section
10 15.1-02-08;
11 (3) Tuition reported under code 1300 of the North Dakota school district
12 financial accounting and reporting manual, as developed by the
13 superintendent of public instruction in accordance with section 15.1-02-08,
14 with the exception of revenue received specifically for the operation of an
15 educational program provided at a residential treatment facility, tuition
16 received for the provision of an adult farm management program, and
17 beginning in the 2021-22 school year, seventeen percent of tuition received
18 under an agreement to educate students from a school district on an
19 air force base with funding received through federal impact aid, and an
20 additional seventeen percent of tuition received under an agreement to
21 educate students from a school district on an air force base with funding
22 received through federal impact aid each school year thereafter, until the
23 2024-25 school year when sixty-eight percent of tuition received under an
24 agreement to educate students from a school district on an air force base
25 with funding received through federal impact aid must be excluded from the
26 tuition calculation under this paragraph;
27 (4) Revenue from payments in lieu of taxes on the distribution and transmission
28 of electric power;
29 (5) Revenue from payments in lieu of taxes on electricity generated from
30 sources other than coal; and

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1 (6) Revenue from the leasing of land acquired by the United States for which
2 compensation is allocated to the state under 33 U.S.C. 701(c)(3);
3 d. An amount equal to the total revenue received by the school district during the
4 2017-18 school year for the following revenue types:
5 (1) Mobile home tax revenue;
6 (2) Telecommunications tax revenue; and
7 (3) Revenue from payments in lieu of taxes and state reimbursement of the
8 homestead credit and disabled veterans credit; and
9 e. Beginning with the 2020-21 school year, the superintendent shall reduce the
10 baseline funding for any school district that becomes an elementary district
11 pursuant to section 15.1-07-27 after the 2012-13 school year. The reduction must
12 be proportional to the number of weighted student units in the grades that are
13 offered through another school district relative to the total number of weighted
14 student units the school district offered in the year before the school district
15 became an elementary district. The reduced baseline funding applies to the
16 calculation of state aid for the first school year in which the school district
17 becomes an elementary district and for each year thereafter. For districts that
18 become an elementary district prior to the 2020-21 school year, the
19 superintendent shall use the reduced baseline funding to calculate state aid for
20 the 2020-21 school year and for each year thereafter.
21 2. a. The superintendent shall divide the district's baseline funding determined in
22 subsection 1 by the district's 2017-18 weighted student units to determine the
23 district's baseline funding per weighted student unit.
24 b. For any school district that becomes an elementary district pursuant to section
25 15.1-07-27 after the 2017-18 school year, the superintendent shall adjust the
26 district's baseline funding per weighted student unit used to calculate state aid.
27 The superintendent shall divide the district's baseline funding determined in
28 subsection 1 by the district's weighted student units after the school district
29 becomes an elementary district to determine the district's adjusted baseline
30 funding per weighted student unit. The superintendent shall use the district's
31 adjusted baseline funding per weighted student unit in the calculation of state aid

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1 for the first school year in which the school district becomes an elementary
2 district and for each year thereafter.
3 c. Beginning with the 2021-22 school year and for each school year thereafter, the
4 superintendent shall reduce the district's baseline funding per weighted student
5 unit. Each year the superintendent shall calculate the amount by which the
6 district's baseline funding per weighted student unit exceeds the payment per
7 weighted student unit provided in subsection 3. For the 2023-24 school year the
8 superintendent shall reduce the district's baseline funding per weighted student
9 unit by forty percent of the amount by which the district's baseline funding per
10 weighted student unit exceeds the payment per weighted student unit for the
11 2023-24 school year. For each year thereafter, the reduction percentage is
12 increased by an additional fifteen percent. However, the district's baseline funding
13 per weighted student unit, after the reduction, may not be less than the payment
14 per weighted student unit provided in subsection 3.
15 3. a. For the 2023-24 school year, the superintendent shall calculate state aid as the
16 greater of:
17 (1) The district's weighted student units multiplied by ten thousand six hundred
18 forty-six dollars;
19 (2) One hundred two percent of the district's baseline funding per weighted
20 student unit, as established in subsection 2, multiplied by the district's
21 weighted student units, not to exceed the district's 2017-18 baseline
22 weighted student units, plus any weighted student units in excess of the
23 2017-18 baseline weighted student units multiplied by ten thousand
24 six hundred forty-six dollars; or
25 (3) The district's baseline funding as established in subsection 1 less the
26 amount in paragraph 1, with the difference reduced by forty percent and
27 then the difference added to the amount determined in paragraph 1.
28 b. For the 2024-25 school year and each school year thereafter, the superintendent
29 shall calculate state aid as the greater of:
30 (1) The district's weighted student units multiplied by eleven thousand
31 seventy-two dollars;

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1 (2) One hundred two percent of the district's baseline funding per weighted
2 student unit, as established in subsection 2, multiplied by the district's
3 weighted student units, not to exceed the district's 2017-18 baseline
4 weighted student units, plus any weighted student units in excess of the
5 2017-18 baseline weighted student units multiplied by eleven thousand
6 seventy-two dollars; or
7 (3) The district's baseline funding as established in subsection 1 less the
8 amount in paragraph 1, with the difference reduced by fifty-five percent for
9 the 2024-25 school year and the reduction percentage increasing by fifteen
10 percent each school year thereafter until the difference is reduced to zero,
11 and then the difference added to the amount determined in paragraph 1.
12 4. After determining the product in accordance with subsection 3, the superintendent of
13 public instruction shall:
14 a. Subtract an amount equal to sixty mills multiplied by the taxable valuation of the
15 school district, except the amount in dollars subtracted for purposes of this
16 subdivision may not exceed the previous year's amount in dollars subtracted for
17 purposes of this subdivision by more than twelve percent, adjusted pursuant to
18 section 15.1-27-04.3; and
19 b. Subtract an amount equal to seventy-five percent of all revenue types listed in
20 subdivisions c and d of subsection 1. Before determining the deduction for
21 seventy-five percent of all revenue types, the superintendent of public instruction
22 shall adjust revenues as follows:
23 (1) Tuition revenue shall be adjusted as follows:
24 (a) In addition to deducting tuition revenue received specifically for the
25 operation of an educational program provided at a residential
26 treatment facility, tuition revenue received for the provision of an adult
27 farm management program, tuition received for the education of
28 high-cost and special education students, and tuition received under
29 an agreement to educate students from a school district on an
30 air force base with funding received through federal impact aid as
31 directed each school year in paragraph 3 of subdivision c of

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1 subsection 1, the superintendent of public instruction also shall reduce

2 the total tuition reported by the school district by the amount of tuition
3 revenue received for the education of students not residing in the
4 state and for which the state has not entered a cross-border education
5 contract; and
6 (b) The superintendent of public instruction also shall reduce the total
7 tuition reported by admitting school districts meeting the requirements
8 of subdivision e of subsection 2 of section 15.1-29-12 by the amount
9 of tuition revenue received for the education of students residing in an
10 adjacent school district.
11 (2) After adjusting tuition revenue as provided in paragraph 1, the
12 superintendent shall reduce all remaining revenues from all revenue types
13 by the percentage of mills levied in 2022 by the school district for sinking
14 and interest relative to the total mills levied in 2022 by the school district for
15 all purposes.
16 5. The amount remaining after the computation required under subsection 4 is the
17 amount of state aid to which a school district is entitled, subject to any other statutory
18 requirements or limitations.
19 6. On or before June thirtieth of each year, the school board shall certify to the
20 superintendent of public instruction the final average daily membership for the current
21 school year.
22 7. For purposes of the calculation in subsection 4, each county auditor, in collaboration
23 with the school districts, shall report the following to the superintendent of public
24 instruction on an annual basis:
25 a. The amount of revenue received by each school district in the county during the
26 previous school year for each type of revenue identified in subdivisions c and d of
27 subsection 1;
28 b. The total number of mills levied in the previous calendar year by each school
29 district for all purposes; and
30 c. The number of mills levied in the previous calendar year by each school district
31 for sinking and interest fund purposes.

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1 Baseline funding - Establishment - Determination of state aid. (Effective after

2 June 30, 2025)
3 1. To determine the amount of state aid payable to each district, the superintendent of
4 public instruction shall establish each district's baseline funding. A district's baseline
5 funding consists of:
6 a. All state aid received by the district in accordance with chapter 15.1-27 during the
7 2018-19 school year;
8 b. An amount equal to the property tax deducted by the superintendent of public
9 instruction to determine the 2018-19 state aid payment;
10 c. An amount equal to seventy-five percent of the revenue received by the school
11 district during the 2017-18 school year for the following revenue types:
12 (1) Revenue reported under code 2000 of the North Dakota school district
13 financial accounting and reporting manual, as developed by the
14 superintendent of public instruction in accordance with section 15.1-02-08;
15 (2) Mineral revenue received by the school district through direct allocation from
16 the state treasurer and not reported under code 2000 of the North Dakota
17 school district financial accounting and reporting manual, as developed by
18 the superintendent of public instruction in accordance with section
19 15.1-02-08;
20 (3) Tuition reported under code 1300 of the North Dakota school district
21 financial accounting and reporting manual, as developed by the
22 superintendent of public instruction in accordance with section 15.1-02-08,
23 with the exception of revenue received specifically for the operation of an
24 educational program provided at a residential treatment facility, tuition
25 received for the provision of an adult farm management program, and
26 beginning in the 2025-26 school year, eighty-five percent of tuition received
27 under an agreement to educate students from a school district on an
28 air force base with funding received through federal impact aid, until the
29 2026-27 school year, and each school year thereafter, when all tuition
30 received under an agreement to educate students from a school district on

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1 an air force base with funding received through federal impact aid must be
2 excluded from the tuition calculation under this paragraph;
3 (4) Revenue from payments in lieu of taxes on the distribution and transmission
4 of electric power;
5 (5) Revenue from payments in lieu of taxes on electricity generated from
6 sources other than coal; and
7 (6) Revenue from the leasing of land acquired by the United States for which
8 compensation is allocated to the state under 33 U.S.C. 701(c)(3); and
9 d. An amount equal to the total revenue received by the school district during the
10 2017-18 school year for the following revenue types:
11 (1) Mobile home tax revenue;
12 (2) Telecommunications tax revenue; and
13 (3) Revenue from payments in lieu of taxes and state reimbursement of the
14 homestead credit and disabled veterans credit.
15 e. Beginning with the 2020-21 school year, the superintendent shall reduce the
16 baseline funding for any school district that becomes an elementary district
17 pursuant to section 15.1-07-27 after the 2012-13 school year. The reduction must
18 be proportional to the number of weighted student units in the grades that are
19 offered through another school district relative to the total number of weighted
20 student units the school district offered in the year before the school district
21 became an elementary district. The reduced baseline funding applies to the
22 calculation of state aid for the first school year in which the school district
23 becomes an elementary district and for each year thereafter. For districts that
24 become an elementary district prior to the 2020-21 school year, the
25 superintendent shall use the reduced baseline funding to calculate state aid for
26 the 2020-21 school year and for each year thereafter.
27 2. a. The superintendent shall divide the district's baseline funding determined in
28 subsection 1 by the district's 2017-18 weighted student units to determine the
29 district's baseline funding per weighted student unit.
30 b. For any school district that becomes an elementary district pursuant to section
31 15.1-07-27 after the 2017-18 school year, the superintendent shall adjust the

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1 district's baseline funding per weighted student unit used to calculate state aid.
2 The superintendent shall divide the district's baseline funding determined in
3 subsection 1 by the district's weighted student units after the school district
4 becomes an elementary district to determine the district's adjusted baseline
5 funding per weighted student unit. The superintendent shall use the district's
6 adjusted baseline funding per weighted student unit in the calculation of state aid
7 for the first school year in which the school district becomes an elementary
8 district and for each year thereafter.
9 c. Beginning with the 2021-22 school year and for each school year thereafter, the
10 superintendent shall reduce the district's baseline funding per weighted student
11 unit. Each year the superintendent shall calculate the amount by which the
12 district's baseline funding per weighted student unit exceeds the payment per
13 weighted student unit provided in subsection 3. For the 2023-24 school year the
14 superintendent shall reduce the district's baseline funding per weighted student
15 unit by forty percent of the amount by which the district's baseline funding per
16 weighted student unit exceeds the payment per weighted student unit for the
17 2023-24 school year. For each year thereafter, the reduction percentage is
18 increased by an additional fifteen percent. However, the district's baseline funding
19 per weighted student unit, after the reduction, may not be less than the payment
20 per weighted student unit provided in subsection 3.
21 3. a. For the 2023-242025-26 school year, the superintendent shall calculate state aid
22 as the greater of:
23 (1) The district's weighted student units multiplied by teneleven thousand
24 sixfour hundred forty-sixfour dollars;
25 (2) One hundred two percent of the district's baseline funding per weighted
26 student unit, as established in subsection 2, multiplied by the district's
27 weighted student units, not to exceed the district's 2017-18 baseline
28 weighted student units, plus any weighted student units in excess of the
29 2017-18 baseline weighted student units multiplied by teneleven thousand
30 sixfour hundred forty-sixfour dollars; or

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1 (3) The district's baseline funding as established in subsection 1 less the

2 amount in paragraph 1, with the difference reduced by fortyseventy percent
3 and then the difference added to the amount determined in paragraph 1.
4 b. For the 2024-252026-27 school year and each school year thereafter, the
5 superintendent shall calculate state aid as the greater of:
6 (1) The district's weighted student units multiplied by eleven thousand
7 seventy-twoseven hundred forty-six dollars;
8 (2) One hundred two percent of the district's baseline funding per weighted
9 student unit, as established in subsection 2, multiplied by the district's
10 weighted student units, not to exceed the district's 2017-18 baseline
11 weighted student units, plus any weighted student units in excess of the
12 2017-18 baseline weighted student units multiplied by eleven thousand
13 seventy-twoseven hundred forty-six dollars; or
14 (3) The district's baseline funding as established in subsection 1 less the
15 amount in paragraph 1, with the difference reduced by fifty-fiveeighty-five
16 percent for the 2024-25 school year and the reduction percentage
17 increasing by fifteen percent each school year thereafter until the difference
18 is reduced to zero, and then the difference added to the amount determined
19 in paragraph 1.
20 4. After determining the product in accordance with subsection 3, the superintendent of
21 public instruction shall:
22 a. Subtract an amount equal to sixty mills multiplied by the taxable valuation of the
23 school district; and
24 b. Subtract subtract an amount equal to seventy-five percent of allthe sum of
25 revenue types listed in subdivisionsparagraphs 1, 2, 4, 5, and 6 of subdivision c
26 and subdivision d of subsection 1. Before determining the deduction for
27 seventy-five percent of all revenue types, the superintendent of public instruction
28 shall adjust revenues as follows:
29 (1) Tuition revenue shall be adjusted as follows:
30 (a) In addition to deducting tuition revenue received specifically for the
31 operation of an educational program provided at a residential

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1 treatment facility, tuition revenue received for the provision of an adult

2 farm management program, tuition received for the education of
3 high-cost and special education students, and tuition received under
4 an agreement to educate students from a school district on an
5 air force base with funding received through federal impact aid as
6 directed each school year in paragraph 3 of subdivision c of
7 subsection 1, the superintendent of public instruction also shall reduce
8 the total tuition reported by the school district by the amount of tuition
9 revenue received for the education of students not residing in the
10 state and for which the state has not entered a cross-border education
11 contract; and
12 (b) The superintendent of public instruction also shall reduce the total
13 tuition reported by admitting school districts meeting the requirements
14 of subdivision e of subsection 2 of section 15.1-29-12 by the amount
15 of tuition revenue received for the education of students residing in an
16 adjacent school district.
17 (2) After adjusting tuition revenue as provided in paragraph 1, the
18 superintendent shall reduce all remaining revenues from allthe revenue
19 types by the percentage of mills levied in 20222024 by the school district for
20 sinking and interest relative to the total mills levied in 20222024 by the
21 school district for all purposes.
22 5. The amount remaining after the computation required under subsection 4 is the
23 amount of state aid to which a school district is entitled, subject to any other statutory
24 requirements or limitations.
25 6. On or before June thirtieth of each year, the school board shall certify to the
26 superintendent of public instruction the final average daily membership for the current
27 school year.
28 7. For purposes of the calculation in subsection 4, each county auditor, in collaboration
29 with the school districts, shall report the following to the superintendent of public
30 instruction on an annual basis:

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1 a. The amount of revenue received by each school district in the county during the
2 previous school year for each type of revenue identified in subdivisions c and d of
3 subsection 1;
4 b. The total number of mills levied in the previous calendar year by each school
5 district for all purposes; and
6 c. The number of mills levied in the previous calendar year by each school district
7 for sinking and interest fund purposes.
8 SECTION 4. AMENDMENT. Section 57-15-01.1 of the North Dakota Century Code is
9 amended and reenacted as follows:
10 57-15-01.1. Protection of taxpayers and taxing districts.
11 Each taxing district may levy the lesser of the amount in dollars as certified in the budget of
12 the governing body, or the amount in dollars as allowed in this section, subject to the following:
13 1. No taxing district may levy more taxes expressed in dollars than the amounts allowed
14 by this section.
15 2. For purposes of this section:
16 a. "Base year" means the taxing district's taxable year with the highest amount
17 levied in dollars in property taxes of the three taxable years immediately
18 preceding the budget year;.
19 b. "Budget year" means the taxing district's year for which the levy is being
20 determined under this section;.
21 c. "Calculated mill rate" means the mill rate that results from dividing the base year
22 taxes levied by the sum of the taxable value of the taxable property in the base
23 year plus the taxable value of the property exempt by local discretion or
24 charitable status, calculated in the same manner as the taxable property; and.
25 d. "Property exempt by local discretion or charitable status" means property
26 exempted from taxation as new or expanding businesses under chapter 40-57.1;
27 improvements to property under chapter 57-02.2; or buildings belonging to
28 institutions of public charity, new single-family residential or townhouse or
29 condominium property, property used for early childhood services, or pollution
30 abatement improvements under section 57-02-08.

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1 e. "Taxing district" means any political subdivision, other than a school district,
2 empowered by law to levy taxes.
3 3. A taxing district may elect to levy the amount levied in dollars in the base year. Any
4 levy under this section must be specifically approved by a resolution approved by the
5 governing body of the taxing district. Before determining the levy limitation under this
6 section, the dollar amount levied in the base year must be:
7 a. Reduced by an amount equal to the sum determined by application of the base
8 year's calculated mill rate for that taxing district to the final base year taxable
9 valuation of any taxable property and property exempt by local discretion or
10 charitable status which is not included in the taxing district for the budget year but
11 was included in the taxing district for the base year.
12 b. Increased by an amount equal to the sum determined by the application of the
13 base year's calculated mill rate for that taxing district to the final budget year
14 taxable valuation of any taxable property or property exempt by local discretion or
15 charitable status which was not included in the taxing district for the base year
16 but which is included in the taxing district for the budget year.
17 c. Reduced to reflect expired temporary mill levy increases authorized by the
18 electors of the taxing district. For purposes of this subdivision, an expired
19 temporary mill levy increase does not include a school district general fund mill
20 rate exceeding one hundred ten mills which has expired or has not received
21 approval of electors for an extension under subsection 2 of section 57-64-03.
22 d. Reduced by the amount of state aid under chapter 15.1-27, which is determined
23 by multiplying the budget year taxable valuation of the school district by the
24 lesser of the base year mill rate of the school district minus sixty mills or fifty
25 mills, if the base year is a taxable year before 2013.
26 4. In addition to any other levy limitation factor under this section, a taxing district may
27 increase its levy in dollars to reflect new or increased mill levies authorized by the
28 legislative assembly or authorized by the electors of the taxing district.
29 5. Under this section a taxing district may supersede any applicable mill levy limitations
30 otherwise provided by law, or a taxing district may levy up to the mill levy limitations

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1 otherwise provided by law without reference to this section, but the provisions of this
2 section do not apply to the following:
3 a. Any irrepealable tax to pay bonded indebtedness levied pursuant to section 16 of
4 article X of the Constitution of North Dakota.
5 b. The one-mill levy for the state medical center authorized by section 10 of article X
6 of the Constitution of North Dakota.
7 6. A school district choosing to determine its levy authority under this section may apply
8 subsection 3 only to the amount in dollars levied for general fund purposes under
9 section 57-15-14 or, if the levy in the base year included separate general fund and
10 special fund levies under sections 57-15-14 and 57-15-14.2, the school district may
11 apply subsection 3 to the total amount levied in dollars in the base year for both the
12 general fund and special fund accounts. School district levies under any section other
13 than section 57-15-14 may be made within applicable limitations but those levies are
14 not subject to subsection 3.
15 7. Optional levies under this section may be used by any city or county that has adopted
16 a home rule charter unless the provisions of the charter supersede state laws related
17 to property tax levy limitations.
18 SECTION 5. AMENDMENT. Subsection 1 of section 57-15-14 of the North Dakota Century
19 Code is amended and reenacted as follows:
20 1. Unless authorized by the electors of the school district in accordance with this section,
21 a school district may not impose greater levies than those permitted under section
22 57-15-14.2.
23 a. In any school district having a total population in excess of four thousand
24 according to the last federal decennial census there may be levied any specific
25 number of mills that upon resolution of the school board has been submitted to
26 and approved by a majority of the qualified electors voting upon the question at
27 any regular or special school district election.
28 b. In any school district having a total population of fewer than four thousand, there
29 may be levied any specific number of mills that upon resolution of the school
30 board has been approved by fifty-five percent of the qualified electors voting
31 upon the question at any regular or special school election.

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1 c. After June 30, 2009, in any school district election for approval by electors of
2 increased levy authority under subsection 1 or 2, the ballot must specify the
3 number of mills proposed for approval, and the number of taxable years for which
4 that approval is to apply. After June 30, 2009, approval by electors of increased
5 levy authority under subsection 1 or 2 may not be effective for more than ten
6 taxable years.
7 d. The authority for a levy of up to a specific number of mills under this section
8 approved by electors of a school district before July 1, 2009, is terminated
9 effective for taxable years after 2015. If the electors of a school district subject to
10 this subsection have not approved a levy for taxable years after 2015 of up to a
11 specific number of mills under this section by December 31, 2015, the school
12 district levy limitation for subsequent years is subject to the limitations under
13 section 57-15-01.1 or this section.
14 e. For taxable years beginning after 2012:
15 (1) The authority for a levy of up to a specific number of mills, approved by
16 electors of a school district for any period of time that includes a taxable
17 year before 2009, must be reduced by one hundred fifteen mills as a
18 precondition of receiving state aid in accordance with chapter 15.1-27.
19 (2) The authority for a levy of up to a specific number of mills, approved by
20 electors of a school district for any period of time that does not include a
21 taxable year before 2009, must be reduced by forty mills as a precondition
22 of receiving state aid in accordance with chapter 15.1-27.
23 (3) The authority for a levy of up to a specific number of mills, placed on the
24 ballot in a school district election for electoral approval of increased levy
25 authority under subdivision a or b, after June 30, 20132024, must be stated
26 as a specific number of mills of general fund levy authority and must include
27 a statement that the statutory school district general fund levy limitation is
28 seventyten mills on the dollar of the taxable valuation of the school district.
29 f. The authority for an unlimited levy approved by electors of a school district before
30 July 1, 2009, is terminated effective for taxable years after 2015. If the electors of
31 a school district subject to this subsection have not approved a levy of up to a

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1 specific number of mills under this section by December 31, 2015, the school
2 district levy limitation for subsequent years is subject to the limitations under
3 section 57-15-01.1 or this section.
4 SECTION 6. AMENDMENT. Section 57-15-14.2 of the North Dakota Century Code is
5 amended and reenacted as follows:
6 57-15-14.2. School district levies. (Effective for taxable years through December 31,
7 2024)
8 1. The board of a school district may levy a tax not exceeding the amount in dollars that
9 the school district levied for the prior year, plus twelve percent and the dollar amount
10 of the adjustment required in section 15.1-27-04.3, up to a levy of seventy mills on the
11 taxable valuation of the district, for any purpose related to the provision of educational
12 services. The proceeds of this levy must be deposited into the school district's general
13 fund and used in accordance with this subsection. The proceeds may not be
14 transferred into any other fund.
15 2. The board of a school district may levy no more than twelve mills on the taxable
16 valuation of the district, for miscellaneous purposes and expenses. The proceeds of
17 this levy must be deposited into a special fund known as the miscellaneous fund and
18 used in accordance with this subsection. The proceeds may not be transferred into
19 any other fund.
20 3. The board of a school district may levy no more than three mills on the taxable
21 valuation of the district for deposit into a special reserve fund, in accordance with
22 chapter 57-19.
23 4. The board of a school district may levy no more than the number of mills necessary,
24 on the taxable valuation of the district, for the payment of tuition, in accordance with
25 section 15.1-29-15. The proceeds of this levy must be deposited into a special fund
26 known as the tuition fund and used in accordance with this subsection. The proceeds
27 may not be transferred into any other fund.
28 5. The board of a school district may levy no more than five mills on the taxable valuation
29 of the district, pursuant to section 57-15-15.1, for purposes of developing a school
30 safety plan in accordance with section 15.1-09-60. The proceeds of this levy must be

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1 deposited into a special fund known as the school safety plan fund and used in
2 accordance with this subsection.
3 6. Nothing in this section limits the board of a school district from levying:
4 a. Mills for a building fund, as permitted in sections 15.1-09-49 and 57-15-16; and
5 b. Mills necessary to pay principal and interest on the bonded debt of the district,
6 including the mills necessary to pay principal and interest on any bonded debt
7 incurred under section 57-15-17.1 before July 1, 2013.
8 School district levies. (Effective for taxable years beginning after December 31, 2024)
9 1. The board of a school district may levy a tax not exceeding the amount in dollars that
10 the school district levied for the prior year, plus twelve percent, up to a levy of
11 seventyno more than ten mills on the taxable valuation of the district, for any purpose
12 related to the provision of educational services. The proceeds of this levy must be
13 deposited into the school district's general fund and used in accordance with this
14 subsection. The proceeds may not be transferred into any other fund.
15 2. The board of a school district may levy no more than twelve mills on the taxable
16 valuation of the district, for miscellaneous purposes and expenses. The proceeds of
17 this levy must be deposited into a special fund known as the miscellaneous fund and
18 used in accordance with this subsection. The proceeds may not be transferred into
19 any other fund.
20 3. The board of a school district may levy no more than three mills on the taxable
21 valuation of the district for deposit into a special reserve fund, in accordance with
22 chapter 57-19.
23 4. The board of a school district may levy no more than the number of mills necessary,
24 on the taxable valuation of the district, for the payment of tuition, in accordance with
25 section 15.1-29-15. The proceeds of this levy must be deposited into a special fund
26 known as the tuition fund and used in accordance with this subsection. The proceeds
27 may not be transferred into any other fund.
28 5. The board of a school district may levy no more than five mills on the taxable valuation
29 of the district, pursuant to section 57-15-15.1, for purposes of developing a school
30 safety plan in accordance with section 15.1-09-60. The proceeds of this levy must be

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1 deposited into a special fund known as the school safety plan fund and used in
2 accordance with this subsection.
3 6. Nothing in this section limits the board of a school district from levying:
4 a. Mills for a building fund, as permitted in sections 15.1-09-49 and 57-15-16; and
5 b. Mills necessary to pay principal and interest on the bonded debt of the district,
6 including the mills necessary to pay principal and interest on any bonded debt
7 incurred under section 57-15-17.1 before July 1, 2013.
8 SECTION 7. A new section to chapter 57-15 of the North Dakota Century Code is created
9 and enacted as follows:
10 Limitation on levies by taxing districts without voter approval.
11 1. Notwithstanding that a taxing district may have unused or excess levy authority under
12 any other provision of law, this section supersedes and limits that authority. For
13 purposes of this section, "taxing district" means any political subdivision empowered to
14 levy taxes. This section may not be interpreted as authority to increase any property
15 tax levy authority otherwise provided by law and must be applied to limit any property
16 tax levy authority to which a taxing district may otherwise be entitled. Property taxes
17 levied in dollars by a taxing district may not exceed the amount the taxing district
18 levied in dollars in the preceding taxable year by more than three percent, except:
19 a. When property and improvements to property which were not taxable in the
20 preceding taxable year are taxable in the current year, the amount levied in
21 dollars in the preceding taxable year by the taxing district must be increased for
22 purposes of this section to reflect the taxes that would have been imposed
23 against the additional taxable valuation attributable to that property at the mill rate
24 applied to all property in the preceding taxable year.
25 b. When a property tax exemption existed in the preceding taxable year which has
26 been reduced or no longer exists for the current taxable year, the amount levied
27 in dollars in the preceding taxable year by the taxing district must be increased
28 for purposes of this section to reflect the taxes that would have been imposed
29 against the portion of the taxable valuation of the property which is no longer
30 exempt at the mill rate applied to all property in the preceding taxable year.

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1 c. When property that was taxable in the preceding taxable year is not taxable for
2 the current taxable year, the amount levied in dollars in the preceding taxable
3 year by the taxing district must be reduced for purposes of this section by the
4 amount of taxes that were imposed against the taxable valuation of that property
5 in the preceding taxable year.
6 d. When a temporary mill levy increase, excluding an increase under this section,
7 authorized by the electors of the taxing district or mill levy imposition authority
8 under state law existed in the previous taxable year but is no longer applicable or
9 has been reduced, the amount levied in dollars in the previous taxable year by
10 the taxing district must be adjusted to reflect the expired temporary mill levy
11 increase and the eliminated or reduced mill levy under state law before the
12 percentage increase allowable under this subsection is applied.
13 2. The limitation on the total amount levied by a taxing district under subsection 1 does
14 not apply to:
15 a. New or increased property tax levy authority that was not available to the taxing
16 district in the preceding taxable year, including property tax levy authority
17 provided by state law or approved by the electors of the taxing district.
18 b. Any irrepealable tax to pay bonded indebtedness levied under section 16 of
19 article X of the Constitution of North Dakota. Any tax levied for this purpose must
20 be excluded from the mill rate applied under subdivisions a through c of
21 subsection 1.
22 c. The one-mill levy for the state medical center authorized by section 10 of article X
23 of the Constitution of North Dakota. Any tax levied for this purpose must be
24 excluded from the mill rate applied under subdivisions a through c of
25 subsection 1.
26 d. The levy, not to exceed one mill, for the Garrison Diversion Conservancy District,
27 authorized by section 57-15-26.8.
28 e. Taxes or special assessments levied to pay the principal and interest on any
29 obligations of any political subdivision, including taxes levied for deficiencies in
30 special assessment and improvement district funds and revenue bond and
31 reserve funds.

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1 f. Taxes levied pursuant to law for the proportion of the cost to any taxing district for
2 a special improvement project by general taxation.
3 g. Taxes levied under sections 40-24-10, 40-43-01, and 57-15-41, and chapter
4 61-16.1.
5 3. A levy exceeding the percentage increase limitation under subsection 1 may be
6 imposed upon approval of a ballot measure, stating the percentage of the proposed
7 property tax levy increase percentage compared to the percentage limitation under
8 subsection 1, by at least sixty percent of the qualified electors of the taxing district
9 voting on the question at a regular or special election of the taxing district. A levy
10 exceeding the percentage increase limitation under subsection 1 may be approved by
11 electors for not more than one taxable year at a time.
12 4. A city or county may not supersede or modify the application of the provisions of this
13 section under home rule authority.
14 SECTION 8. AMENDMENT. Subdivision c of subsection 1 of section 57-20-07.1 of the
15 North Dakota Century Code is amended and reenacted as follows:
16 c. Provide information identifying the property tax savings provided by the state of
17 North Dakota. The tax statement must include a line item that is entitled
18 "legislative tax relief" and identifies the dollar amount of property tax savings
19 realized by the taxpayer under chapter 50-34 for taxable years before 2019,
20 chapter 50-35 for taxable years after 2018, and chapter 15.1-27.
21 (1) For purposes of this subdivision, legislative tax relief under chapter 15.1-27
22 is determined by multiplying the taxable value for the taxable year for each
23 parcel shown on the tax statement by the number of mills of mill levy
24 reduction grant under chapter 57-64 for the 2012 taxable year plus the
25 number of mills determined by subtracting from the 2012 taxable year mill
26 rate of the school district in which the parcel is located the lesser of:
27 (a) FiftyOne hundred ten mills; or
28 (b) The 2012 taxable year mill rate of the school district minus sixty mills.
29 (2) Legislative tax relief under chapter 50-35 is determined by multiplying the
30 taxable value for the taxable year for each parcel shown on the tax
31 statement by the number of mills of relief determined by dividing the amount

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1 calculated in subsection 1 of section 50-35-03 for a human service zone by

2 the taxable value of taxable property in the zone for the taxable year.
3 SECTION 9. REPEAL. Sections 15.1-27-04.2, 15.1-27-04.3, 15.1-27-15.1, and
4 15.1-27-20.2 of the North Dakota Century Code are repealed.
5 SECTION 10. EFFECTIVE DATE. Section 1 of this Act becomes effective on January 1,
6 2026. Sections 4, 5, 6, and 7 of this Act are effective for taxable years beginning after
7 December 31, 2024.

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