January 15, 2017, Legislative Report for Week 2 from Rep. Rick Holman, ND District 20 

TAX AND MONEY ISSUES:

On Thursday we visited with the tax department on proposed changes to the current 12% property tax rebate. Instead of rebating 12% of all property tax classifications it will apply only to the current county social services levy and provide $275 million dollars to cover those costs. For example, Traill County levies 16 mills for a total of $716,000 per year. Grand Forks County levies 19 mills to raise 5 million dollars. The proposed plan would have these costs picked up by the state with a lowering of the property tax assessment that is now paying those costs.  Any county receiving less than they did with the previous 12% will receive a supplemental payment to make up the difference. Taxpayers will see no difference in their tax bill as a result of this change. This plan is much the same as the tax rebate that is currently being done with the school aid formula. The delivery of county services will not change. 

In the past, there have been ballot measures to eliminate the Treasurers Office from the Constitution. It failed. Senator Mathern in his campaign for State Treasurer made it one of his issues and now there is a bill coming forward to study the issue and see if we again should let the voters decide. Currently, nearly all financial issues of state government including state agency budgets are handled by the Office of Management and Budget (OMB) and the Bank of North Dakota (BND). Our hearings on budgets have two fiscal experts present; one from the Legislative Council and another from the OMB. Seldom do we see anyone from the Treasurers Office. We'll see where that one goes as North Dakotans don't usually like change.  

House Bill 1130 will be heard on Monday the 16th. It is an attempt to fix the funding problem for our nursing homes by adding what is called a provider assessment. It would return to past practice of charging a different rate for Medicaid and non-Medicaid residents. In most ND facilities, about half of the residents are Medicaid supported. This proposed 5% fee on private pay residents would solve the funding problem but is receiving resistance from those who see it as an additional tax. Hopefully some compromise plan will develop to solve the nursing home funding issue.  

Be sure to contact me if you have questions. 

Email: rholman@nd.gov, text or call (701) 238-1124 

Drive safely, Rick Holman