Measure 4 to Repeal Property Taxes in North Dakota

Imagine never again receiving a property taxA property tax is primarily levied on immovable property like land and buildings, as well as on tangible personal property that is movable, like vehicles and equipment. Property taxes are the single largest source of state and local revenue in the U.S. and help fund schools, roads, police, and other services. bill. That’s the alluring prospect being offered to North Dakota voters this November. It sounds appealing — really appealing. However, when a deal sounds too good to be true, it’s wise to investigate further. If voters scrutinize Measure 4, they may not like what they discover.

Understanding Measure 4: The Potential Impact on North Dakota’s Property Tax

Measure 4 proposes to repeal the property taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. — a tax that generates over $1.5 billion each year for local governments. The measure suggests no concrete replacement plan, aside from shifting this significant burden to the state government.

Funding Gaps: The Financial Challenge of Repealing Property Taxes

This shift poses a major issue; $1.5 billion is roughly equal to the combined revenue from North Dakota’s income and sales taxes. Replacing property tax revenue likely implies state legislators would need to consider doubling the current income and sales taxA sales tax is levied on retail sales of goods and services and, ideally, should apply to all final consumption with few exemptions. Many governments exempt goods like groceries; base broadening, such as including groceries, could keep rates lower. A sales tax should exempt business-to-business transactions which, when taxed, cause tax pyramiding. rates. Voters deserve transparency on how this revenue gap would be addressed before making a decision.

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The ramifications of Measure 4 extend beyond simple tax elimination; they encompass critical questions about state funding and public services. It’s essential for voters to understand the broader implications fully.