WHAT'S ON YOUR MIND
By Scott Hennen
Host of “What’s On Your Mind?” Radio Show
heard on the Flag Family Network including KTGO 1090AM in Watford City, Williston and Tioga, North Dakota
North Dakota 69th legislative session is underway and North Dakotans are set to receive significant tax relief. In his first State of the State address Tuesday, Governor Kelly Armstrong proposed a 3 fold increase in additional tax relief for primary residence owners.
“We can afford it. The people of North Dakota are demanding it. This plan is real relief and it is real reform,” Armstrong said. “It’s responsible, achievable and durable. It creates Legacy Fund buy-in. And it is the single most impactful thing we can do for the citizens of North Dakota this session.”
That’s good news. It’s clear that Armstrong and legislators have heard the frustrated taxpayers loud and clear. While the most recent Property Tax relief initiative was defeated (Measure 4 lost big) no one in the Capitol believes the pace of increased taxes that property owners are paying is sustainable.
Armstrong was adamant during his Gubernatorial campaign that any package must include property tax reform in addition to relief. He delivered on that promise by proposing caps on spending for local government. Any fair review of your property tax tab confirms that schools, cities and counties are the big spenders. Despite increased valuations each year in most communities, it’s never enough. Without spending restraint there will never be true relief. The plan provides reform by capping future increases in local property tax budgets at 3% per year. If growth in enrollment or population requires more revenue, the local subdivisions simply need to convince voters that it is necessary. If all of the annual 3% increase isn’t used, the remainder of it can be carried forward for up to five years. “This will encourage cities, counties, schools and park districts to budget prudently and plan ahead”, the governor said.
To be sure the final product will likely be different as the Legislative branch gets the final vote. There are over 50 different bills with various attempts at achieving the same goal. But the Armstrong proposal was well received by most of the legislators I talked to on Tuesday.
“This is $483 million of additional relief” said Representative Mike Nathe of Bismarck. “It’s important to remember that. If you review your 2024 property tax statement you’ll notice that the state is already paying down your property taxes.” He’s right. That’s a whopping $1.3 billion dollars every biennium. Plus the state sends another $350 million in infrastructure and social services funding. All thanks to the bounty of North Dakota’s oil and gas industry which funds over 50% of the taxes paid in North Dakota.
“It’s a great start” said District 29 Representative Craig Headland, the chairman of the powerful House Finance and Tax committee. “I’m appreciative of having this collaboration with the Governor and we’ve talked to him about
this idea. I have questions about sustainability but we’ll go through the process and try to
get the best package that suits the public “, said Hedland.
This sustainability concern will require more certainty on the future of oil and gas production in North Dakota. More on that in my next column.
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