BISMARCK – The North Dakota State Legislature voted Monday to change rules for counties receiving Grant and Per Diem program funding.
Senate Bill 2162 would allow counties to continue to receive GPD funding without levying property tax by a total of 10 mills for county road and bridge, farm to market and federal aid road, and county road purposes.
Rep. Jeremy Olson, R-Dis. 26, Arnegard, said the 2011 state legislature voted to withhold GPD funds from counties that did not levy at least 10 mills for their road and bridge fund.
“This bill would remove the requirement for the levying of 10 mills and leave the option up to the county commission of each county,” said Rep. Olson. “To understand this a little better, we need to go back to the time when the gross production tax was first set up. The tax is considered a payment in lieu of property tax as it is assessed on production and not a tax on the physical asset.”
Olson said the bill could potentially provide property tax relief with no fiscal impact to the state. He added that the Association of Counties spoke in favor of the bill, and no one spoke in opposition in committee.
SB2162 passed by a vote of 86 to 7 and will be sent to the governor’s desk for consideration.
