Key Takeaways
- If this measure passes, North Dakota would have to pay approximately $1.329 billion more per year to make up for lost property taxes that provide vital public services, including schools, police and fire protection, snow removal, libraries, etc.
- This measure would put an end to local control. All school districts and other political subdivisions will be forced to go to Bismarck to beg the legislature to fund a new school, hire additional firefighters, or improve their roads.
- In essence, the state Legislature would become your new school board, city council/commission, park board, county commission, and township board. Therefore, allowing legislators who know nothing about your community to make decisions on your behalf.
As we begin the 2024 tax season, I wanted to remind our members of some opportunities available to them as property owners and provide an update on the petition to eliminate property taxes in North Dakota.
During the 2023 legislative session, in an effort to ease the burden on property owners in the state, legislators passed the Primary Residence Credit. The credit provides all North Dakota homeowners with the option to apply for a state property tax credit through the North Dakota Office of State Tax Commissioner.
Homeowners with an approved application may receive up to a $500 credit against their 2024 property tax obligation. To be eligible for the credit, you must own a home (house, mobile home, town home, duplex, or condominium) in North Dakota, and reside in it as your primary residence.
There are no age restrictions or income limitations for this credit. The deadline to apply is March 31, and the application can be found by scanning the QR code below.
We encourage all our members who own a primary residence to apply.
Next up is something that has the potential to impact every ND United member, and not in a good way. Currently, there is a petition being circulated to eliminate property taxes in North Dakota. While we understand many in the state are upset about the increases in property taxes, demolishing the entire system without a clear plan to replace the lost revenue property taxes generate is not the answer. The adage, “if something sounds too good to be true, it probably is,” is appropriate to describe the initiated ballot measure abolishing property taxes. While no one enjoys paying them, taxes, especially property taxes, are crucial to the growth of North Dakota.
The property taxes you pay are critical to the development of your community as they fund the public services available to you as a resident. If this measure passes, North Dakota would have to pay approximately $1.329 billion more per year to make up for lost property taxes that provide vital public services, including schools, police and fire protection, snow removal, libraries, etc.
Proponents of the measure claim that we can continue to have great public services, a few of which are listed above, while simply not having to pay property taxes. They often claim that we can use the Legacy Fund (current balance around $9 billion) and eliminate pork and waste. The specifics on these funding sources are limited and come painfully short of making up the shortfall.
The biggest concern is that the measure would take away local control of local budgets. Instead of local county and city officials listening to the concerns of their constituents and ensuring that their annual budgets meet the needs of the community, all school districts, counties, cities, and other political subdivisions will be forced to go to Bismarck to beg the legislature to fund a new school, or additional firefighters, or improved sewer systems, or enhanced police protection, or roads. In essence, the state Legislature would become your new school board, city council/commission, park board, county commission, and township board. And the new boss will be nothing like the old boss because the new boss does not live in the communities affected by their decisions.
Local control is a principle that most North Dakotans cherish. The passage of this ill-conceived Constitutional measure will end local control.
The petition is still gathering the requisite number of signatures to appear on the November ballot. We encourage all of you to NOT sign this petition, and to discuss the severe ramifications to our communities if it were to pass. There is still time to keep this off the ballot, and that requires everyone understanding what it could mean for our state. While a similar measure was defeated in 2012 by a large margin, early polling indicates the vote will be much, much closer this time if it gets on the ballot.
