701-566-9300As discussed in an earlier missive, this committee is working to identify alternatives for modifying our state property tax. In the face of a probable referral measure which would put the elimination of our current property tax on the November ballot, one committee member is recommending that the committee support his idea of doubling the primary residential forgiveness from $500 to $1,000. As he stated, “One way or another there is going to be significant property tax reform.”
Public schools, counties and cities had representatives testify as to why they oppose passage of the referral which is rumored to have the signatures required to get on the ballot. North Dakota Association of Counties Executive Director Aaron Birst told the committee that counties levy about 23% of total property tax, schools 40% and cities 38%. Townships levy 2.4%. League of Cities Executive Director Matt Gardner mentioned that it might be a good idea to keep in mind that our state’s total tax burden comes in at around 6.8% to rank as the eighth lowest tax state in the country. He broke it down as .9% for income tax, 2.4% property tax and 3.4% sales tax. I believe he also stated that if the referral passed and the legislature decided to make it up with sales tax, it would go from 5% to 11%.
At the end, a citizen testified that he is part of a group that wants to incrementally change our property tax system (they are against the referral) and will bring a bill to that effect. As they mentioned last meeting, if the referral passes, a lot of work on bills will go in the dumpster and it will be a scramble to figure it all out. They have two more meetings scheduled before their final report to Legislative Management this autumn.