Q&A from the Legislative Lowdown

When we gathered to update you on the status of the bills and issues you care about at the Legislative Lowdown on Feb. 27, you had questions! We promised to answer all of them, and we are close. We will update this document in the days to come in order to provide answers to every question asked.

If I have no other option except to get my prescriptions that I can afford from Canada, how do I go about doing that?
Prescription Connection is a program of the ND Insurance Department that assists citizens of all ages in acquiring prescriptions that might otherwise be unattainable. A person may be eligible for assistance through the Prescription Connection program if he or she meets the following requirements:

• You must be a North Dakota resident.

• You do not qualify for any state assistance programs for prescription drugs.
• A person You have low income and/or you have financial challenges affording your prescriptions
  

For more information or to schedule an appointment, contact the Prescription Connection program online or call (888) 575-6611.                

Does the insulin cap for public employees include public employee retirees?
SB 2140 aims to provide a $25 cap on insulin and supplies. The bill, if passed as currently structured (3/2/2023), would only, at first, apply to those covered under the North Dakota Public Employees Retirement System (NDPERS) health plan. So if a retiree has health insurance coverage through NDPERS health plan, then yes they would be covered if the bill passes into law.

Also, it is worth noting that under a newly passed federal law, Medicare prescription drug plans that cover insulin, regardless of previous employer, now have a cap of $35/month in insulin copays. This is due to the AARP backed federal law that passed Congress and was signed into law in 2022. Read more about this benefit here.

Can you address the status of the prescription bill (disappointed it was not passed)?
SB 2031, the PERS prescription drug reference rate pilot project bill, received a DO NOT PASS recommendation by the committee, after they failed to adopt amendments that would have changed the language of the bill from Canadian reference price to Medicare negotiated prices, on a vote of 4-2. The Senate failed to pass the bill by a vote of 14 yes, 33 no on 2/2/23.

Is there any service or department that can help a person who has been the victim of a Romance Scam? Or a support group of some type?
Contact the AARP Fraud Watch Network at 877-908-3360 or aarp.org/fraudwatchnetwork.

What is your opinion on “saved” passwords on the Internet? For example, Google-saved passwords…is it safe? If so how? Where do I find out a “real” authentic answer?
You can find great information on passwords here.

Will the legislature leave the ND Income Tax alone or will the tax be reduced or eliminated?
There are various proposals addressing income tax reductions. The two that seem to have the most momentum are HB 1158 and HB 1118.

According to the fiscal analysis done for the legislative session HB 1158 will adjust the current 5 income tax brackets into a single bracket. North Dakota taxable income amounts below $74,750 (married filing jointly) or $44,725 (single filers) will not be subject to individual income tax. North Dakota taxable income amounts above the specified amounts will be subject to a 1.5% individual income tax rate.

HB 1118 also shrinks the tax brackets from 5 down to one and places a 1.99% tax rate for individuals, trusts, and estates. Additionally, this bill provides an income tax credit equal to a taxpayers liability up to $800 for single filers, and $1600 for married filing jointly.

Both passed the North Dakota House of Representatives and now will be considered by the ND Senate.

Please explain in depth the Homestead Tax credit as it exists now and the changes that are proposed.
The North Dakota Homestead Property Tax Credit and Renter’s Refund provides property tax credits to qualifying North Dakotans who are 65 years of age or older OR individuals with a permanent or total disability. The current program provides graduated relief that reduce property taxable valuations dependent upon income. The amount of relief decreases as income goes up. The program provides relief for those whose income is below $42,000. You can read more about the program at the North Dakota Office of the State Tax Commissioner brochure here.

There are a couple of proposals to expand the existing Homestead Property Tax Credit program SB 2136 and HB 1211.

SB 2136 expands the tax credit to anyone (over the age of 65 or who is totally or permanent disabled) with income below $100,000 would be eligible for 100% reduction in property taxes up to the cap on taxable valuation. The bill also increases the taxable valuation cap to $9,000 (up from the current rate of $5,625 of taxable valuation) and removes the asset limit.

HB 1211 expands the graduated eligibility brackets (for those over the age of 65 or who is totally or permanent disabled) up to a cap of $96,000. This bill also removes the asset limit and provides an automatic inflator that recalculates the graduated brackets every year based on the consumer price index.

AARP has offered support for both proposals and will continue to push for an expansion of the Homestead Property Tax Credit and Renter’s Refund.

What is valued with Asset Caps and where can we go for help with application?
According to the ND Century Code Section 57-02-08.1 subsection 1. g. “A person is ineligible for the exemption under this subsection if the value of the assets of the person and any dependent residing with the person exceeds five hundred thousand dollars, including the value of any assets divested within the last three years.” You should consult with your tax professional on additional advice about the asset caps and how they may apply to your individual situation.

You can find more information about the Homestead Property Tax Credit and assistance in filing at either the ND Office of State Tax Commissioner (tax.nd.gov) or your local assessor or county director of tax equalization (list of local assessor or county director of tax equalization).

As a senior, my rent keeps going up every year. Are there any rent incentives to help me?
The North Dakota Homestead Property Tax Credit and Renter’s Refund also applies to North Dakota renters who meet eligibility requirements. The same income requirements used for the Homestead Property Tax Credit apply up to the current cap of $42,000. You can read more about the program at the North Dakota Office of the State Tax Commissioner brochure here.

Is there anything being proposed to assist with property tax such as school taxes/funding being paid by the state?
SB 2066 has been introduced and passed by the ND Senate. The bill would provides increased state funding for K-12 education and a corresponding decrease in the amount a school district may levy for the costs of education. The bill’s sponsor testified that the bill would provide property tax relief to about 25% of your property tax bill. You can learn more about this bill here.  

Property tax for me went up over $1000. Why don’t we get break on property tax? It would help me stay in my house.
The Homestead Property Tax Credit and Renter’s Refund are property tax credits available to eligible North Dakotans. Individuals may qualify for a property tax credit or partial refund of the rent they pay, if one of the following requirements is met:

• 65 years of age or older, OR
• An individual with a permanent or total disability
  
  • Proof of total disability must be established by a certificate from a licensed physician or a written determination of disability from the Social Security Administration or federal or state agency authorized to certify an individual’s disability.
  • There is no age requirement for those with permanent or total disability.
  • A homeowner or renter with disability must meet the same requirements, except for age, as a senior citizen homeowner or renter

To learn more, go to www.tax.nd.gov/homestead

Answers coming soon:

• A bill that would give some relief to seniors over 65, would be to have property taxes frozen as long as they remain in their homes. This helps to stay in our homes longer as we age. Is this being considered?
• Why am I paying federal income taxes on my pensions? Josh
• Will tax credit be available for everyone? Paid family leave/PERS pension protection/benefits increase/seem to be for government employees only. What about small business or any business owners? What about the rest of us who are self-employed?

Because Medicare and Social Security are in danger in the US Congress, how can we make our Senators and Congressman support our needs in ND?
Leaders in both parties – President Biden, former President Trump, Speaker McCarthy, Majority Leader Schumer, and Leader Jeffries – agree with AARP that Social Security and Medicare must not be cut as part of a debt debate. It is outrageous to suggest cutting Social Security and Medicare in any deal. AARP will fight any cuts to the Social Security and Medicare benefits workers and retirees have paid into and earned.

Sign up here to stay engaged and join AARP in fighting to protect your hard earned benefits you can join our online AARP Activist list where you'll receive the AARP Advocate, a free monthly e-newsletter; e-mail action alerts on the issues you care about; and the latest news on Congress and the White House.

Answers coming soon:

• Do any of the bills relate to paid family leave?
• Is there a resource to help those giving up their job to take care of a parent?

Can you review the content of HB1532 – School Voucher bill?
HB 1532 is a bill that would establish an educational reimbursement program or voucher for parents who send their children to private schools to receive cost reimbursements for tuition expenses. The bill would appropriate up to $24 million to provide the reimbursements for those parents who complete the required forms and process the bill establishes. The bill also mandates a legislative study of the issue to see how other states operate voucher programs and the impact of the funding for non-public schools on public education. You can read more about the bill here.

What is being done with the teachers’ retirement fund?
Four (4) bills have been introduced this session that relate to the Teachers Fund For Retirement (TFFR). Three of those bills, one would make adjustments to the board’s authority (HB 1219), one would provide an exception for retired military personnel (HB 1150), and a bill to provide changes related to a retired teacher returning to work in a critical shortage area (SB 2258) have all passed during the first half of the session and will be considered during the second half. There was one additional bill (HB 1271) related to retired teachers returning to employment that did not pass during the first part of the session. There are no bills making large scale changes to the TFFR benefit structure as have been proposed to PERS at this time.

Over-the-counter hearing aids. Where can we specifically can we buy them and how does it work? Don’t you need a prescription?
As part of AARP’s ongoing federal work, we backed the bipartisan law that required the FDA to issue regulations that would give millions of Americans more affordable solutions to hearing loss: over-the-counter hearing aids. AARP has a great article from October 2022, that outlines how over-the-counter hearing aids are different from prescription ones and resources to help you decide what’s best for you.

Answers coming soon:

• Is there any legislation proposed that helps make hearing aids more affordable?
• Will AARP weigh in on 80 mph speed limit?
• We heard about two bills, one to outlaw voting by mail, and another to outlaw COVID-19 vaccines. Are these bills dead (I hope so!)?
• Define public employees – are they those who worked in state government exclusively?
• How do we find out how our state representatives voted on these and other bills?
• When is the next AARP Day at the Capital?