In 2025, the ND legislature imposed a 3% limit on property tax revenues that impacted local governments for 2026 budgets and beyond. In exchange, the state is increasing the primary resident property tax credit from $500 to $1,600 annually. We reached out to Regional Council board members to learn how this impacted their recently completed budgeting process.
Small City Perspective
Cavalier Mayor Lacey Hinkle stated, “This cap on all budget increases is not sustainable for communities like ours. Cities are facing rising costs across every essential area from health insurance to infrastructure maintenance and basic operational expenses. These increases far outpace the 3% limit, leaving local governments with difficult choices that can impact public safety, city services and community quality of life.”
“We urge state leaders to recognize that responsible growth and fiscal stability require flexibility,” said Hinkle. “Without adjustments to this cap, municipalities will continue to struggle to meet the needs of their residents while maintaining the level of service and investment our communities deserve.”
County Perspective
Amy Suda, Walsh County Commissioner and President of the RRRC, indicated that the cap did not have a significant impact for 2026, but foreshadows that it will in future years. The immediate impact was buffered by a $600,000 transfer from the county’s general fund in 2025 for capital investment. Walsh County provided transparency of the budget process with a live stream of their meetings as well as a library of past meetings available on YouTube. This stream enables the context that cannot be found simply in written minutes. Suda shared, “It’s amazing how many people watch.” The county will be improving this content by marking the agenda topics within the saved meeting videos.
