By Mike Moen
BISMARCK, N.D. (Prairie News Service) – North Dakota’s legislative session is in the rearview mirror, and the impact of hundreds of bills that were approved is still being assessed.
That includes by county governments, getting ready for property tax changes.
Of the nearly 1,100 bills introduced this year, North Dakota lawmakers approved more than 600. As expected, a property tax relief package was among them.
Aaron Birst – executive director of the North Dakota Association of Counties – said going in, they knew this would be a big challenge for policymakers to address, with all eyes in the state watching.
“If anybody says they 100% know what the best taxing mechanism is for services, I’ve got a bridge to sell you,” said Birst, “because nobody really knows.”
Birst said the association embraces provisions that give money back to property owners. However, local governments are still bracing for a 3% cap on the annual property tax increase they propose.
Lobbyists were able to squeeze in some flexibility for local governments. Residents in a taxing district do have the option to vote for an exemption from the annual cap.
In a ballot question last fall, North Dakota voters rejected the idea of largely doing away with local property tax collection.
Despite that failure, lawmakers sensed an appetite for reform. Birst said county governments have to be sensitive to what residents are feeling, while still trying to meet their needs.
“Property tax is essential,” said Birst, “that is the number one lifeline that we have for dollars coming in to provide services.”
The relief package also places limitations on how much money school districts can raise through property taxes. Overall, the Legislature approved a two-year, $20-billion budget.
Property tax relief accounts for nearly $500 million of that total, with money from the state’s Legacy Fund covering that portion of the spending plan.
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