State officials estimate that Measure 4 will cost North Dakota $3.15 billion in lost revenue over two years. Daniel Hale, chief economist at Realtor.com, warned that while North Dakota’s property tax system may benefit from reform, eliminating it completely could create even greater challenges. .
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North Dakota voters rejected Measure 4, which would have repealed the personal property tax, with 63.5 percent voting against the measure during the election. new york post reported Thursday. Critics argued that the plan would significantly erode funding for essential public services.
Measure 4 This law is intended to prohibit state and local governments from imposing taxes on personal property, except for those used to pay bonded debts. The average effective property tax rate paid by North Dakota homeowners in 2023 was 0.99%, according to Atom Data Solutions.
State and local governments collected approximately $760 billion in property taxes in 2023. This is a 31% increase from 2018. US Census Bureau data.
State officials estimate that Measure 4 will cost North Dakota $3.15 billion in lost revenue over two years. Daniel Hale, chief economist at Realtor.com, warned that while North Dakota’s property tax system may benefit from reform, eliminating it completely could create even greater challenges. .
“North Dakota’s proposal to eliminate property taxes does not specify what would replace it,” Hale said. “North Dakota’s property tax could be reformed, but eliminating it completely could create bigger problems than what property owners currently face.”
Bill 4 was also supported by former Republican state Rep. Rick Becker, who called property taxes “deeply immoral” and said it was “inappropriate for the government to take something that rightfully belongs to you,” according to the paper. insisted. new york post.
The action comes from more than 80 state organizations, including the North Dakota Fire Chiefs Association, School Boards Association, North Dakota Sheriff’s Deputies Association, Paramedics Association, North Dakota AFL-CIO, and the Greater North Dakota Chamber. faced strong opposition. The groups warned that repealing property taxes would deprive local governments of vital revenue, forcing them to cut services or raise new taxes to make up for the shortfall.
The measure was one of several property tax-related measures placed on ballots nationwide during the general election. If the bill passed, North Dakota would have become the first state to eliminate personal property taxes, but other states, including Florida and Georgia, have also approved measures to eliminate personal property taxes. Limit annual property tax increases. Meanwhile, voters in Oklahoma rejected a proposal to create a new special tax district.
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