State officials estimate that Measure 4 will cost North Dakota $3.15 billion in lost revenue over two years. Realtor.com Chief Economist Danielle Hale warned that while North Dakota’s property tax system could benefit from reform, eliminating it entirely would pose even greater challenges.
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North Dakota voters rejected Measure 4, a proposal to eliminate the personal property tax, with 63.5 percent voting against the measure during the election. The New York Post report on Thursday. Critics argue that the plan will severely undermine funding for essential public services.
Measure 4 is intended to prevent state and local governments from levying taxes on personal property, except for those used to pay bonded debts. By 2023, North Dakota homeowners are paying an effective property tax rate of 0.99 percent, according to Attom Data Solutions.
State and local governments collected nearly $760 billion in property taxes by 2023, a 31 percent increase from 2018, based on US Census Bureau data.
State officials estimate that Measure 4 will cost North Dakota $3.15 billion in lost revenue over two years. Realtor.com Chief Economist Danielle Hale warned that while North Dakota’s property tax system could benefit from reform, eliminating it entirely would pose even greater challenges.
“North Dakota’s proposal to eliminate the estate tax doesn’t specify what the alternative will be,” Hale said. “North Dakota’s property tax may be reformed, but eliminating it completely would cause more problems than property owners currently have.”
Measure 4 was also sponsored by Rick Becker, a former Republican state legislator, who argued that the property tax was “misbehaving” and “the ability for the government to take something that rightfully belongs to you is wrong,” according to the report. The New York Post.
The measure faced strong opposition from more than 80 state organizations, including the North Dakota Fire Chiefs Association, the School Board Association, the North Dakota Sheriffs and Deputies Association, the EMS Association, the North Dakota AFL-CIO and the Greater North Dakota Chamber . The organizations have warned that eliminating the property tax would deprive local governments of significant revenue, forcing them to cut back on services or raise new taxes to accommodate it.
The measure was one of several property tax-related measures on the ballot across the country during the general election. Although North Dakota would be the first state to eliminate the personal property tax if the measure passes, other states, including Florida and Georgia, have approved measures to reduce annual tax increases. Meanwhile, Oklahoma voters rejected a proposal to create special tax districts.
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