North Dakota House Passes Aid Overhaul

Bill to Raise Taxes on Sales, Income Faces Senate Fight

The North Dakota House has approved a bill that would force sweeping changes to the state’s school finance structure and could potentially resolve a 2003 lawsuit by low-wealth districts challenging the school funding formula.

The measure, which passed the Republican-controlled House 49-41 last month, would nearly eliminate local school property taxes and raise the necessary $285 million for the general education fund through a higher sales tax and a surcharge on income taxes.

It is expected to face heated debate this month in the Senate, which is also...