Legislative & Regulatory Update

Covering initiatives on Governor Kelly Armstrong's ambitious property tax reform plan and its implications for credit unions, alongside DakCU's support for Senate Bill 2028.

Governor’s Bold Property Tax Relief Plan: What It Means for Credit Unions
In his State of the State Address, Governor Kelly Armstrong unveiled an ambitious property tax reform plan aiming to eliminate property taxes for most primary residences within a decade. By increasing the Primary Residence Credit to $1,000 annually and using Legacy Fund earnings to provide an additional $550 per residence, the total relief will reach $1,550 annually by 2027 and over $2,000 by 2029. Local property tax budget increases will also be capped at 3% annually, encouraging fiscal discipline.
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For credit unions, the proposal presents both opportunities and challenges. Reduced property taxes could improve members’ financial stability, increase savings, and reduce delinquencies on loans. However, the reliance on Legacy Fund earnings raises questions about the sustainability of essential services like education and infrastructure, which are vital to the communities credit unions serve.

DakCU recognizes the potential benefits but emphasizes the need for careful scrutiny to ensure this reform supports long-term economic health. Credit unions remain committed to empowering members and fostering community growth, even as policies like this reshape the state’s financial landscape. DakCU will actively monitor the proposal’s progress to advocate for balanced solutions that align with the credit union mission.

This reform represents a pivotal moment for North Dakota, and credit unions will continue to play a central role in shaping a financially stable and inclusive future for all.
 

DakCU advocacy team ready for the 69th North Dakota Legislative Session.

​DakCU Supports Senate Bill 2028
The Dakota Credit Union Association (DakCU) testified in support of Senate Bill 2028, a measure designed to enhance transparency, efficiency, and collaboration within North Dakota’s financial regulatory framework. This legislation ensures the prudent appropriation of the Financial Institutions Regulatory Fund, promotes joint budgetary oversight by the State Banking Board and State Credit Union Board, and streamlines reporting requirements to bolster accountability. DakCU joined Chairman Brian Barta and Rick Clayburgh, CEO of the North Dakota Bankers Association, in supporting this critical initiative. We are pleased to report that SB 2028 passed out of committee unanimously, reflecting broad support for these measures.

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For more information or to share your perspectives, feel free to contact me.  

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