North Dakota voters made their decision on Measure 4, a proposal to abolish personal property taxes, with 63.5 percent voting against the measure during the election. Critics of the plan argued that it would severely undermine funding for essential public services.
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The New York Post reported that Measure 4 aimed to prohibit state and local governments from levying taxes on personal property, except for those used to pay for bonded indebtedness. In 2023, North Dakota homeowners paid an average effective property tax rate of 0.99 percent, according to Attom Data Solutions.
Based on U.S. Census Bureau data, state and local governments collected approximately $760 billion in property taxes in 2023, marking a 31 percent increase from 2018.
State officials estimated that Measure 4 would cost North Dakota $3.15 billion in lost revenue over two years. Realtor.com Chief Economist Danielle Hale cautioned that while reforming North Dakota’s property tax system could be beneficial, completely eliminating it could pose even greater challenges.
Rick Becker, a former Republican state legislator, supported Measure 4, arguing that property taxes were “fairly immoral” and that the government’s ability to take away property ownership was improper.
Despite the support for Measure 4, over 80 state organizations, including the North Dakota Fire Chiefs Association and the School Board Association, opposed the measure. They warned that eliminating property taxes would deprive local governments of crucial revenue, potentially leading to service cuts or new taxes to make up for the shortfall.
While North Dakota rejected Measure 4, other states like Florida and Georgia approved measures to limit annual property tax increases. Meanwhile, Oklahoma voters turned down a proposal to create new special tax districts.
Contact Richelle Hammiel for more information.