LEGISLATORS: Property tax facts from local representatives
Property taxes are a concern of everyone who owns property. The following are some facts when you are discussing the issue of property tax. Fact #1: The state of North Dakota does assesse one mill of property tax for the Medical School at the Uni...
Property taxes are a concern of everyone who owns property. The following are some facts when you are discussing the issue of property tax.
Fact #1: The state of North Dakota does assesse one mill of property tax for the Medical School at the University of North Dakota, other than that, the state does not levy property tax. Property tax is a local tax. Fact #2 Starting in 2007, the State of North Dakota has increased its contribution to local property tax relief through picking up 115 mills of public k-12 education and a 12% buy down of the local property tax liability. The 115 mills were permanent, however, the 12% was to help the local property tax payer because the state had the revenue. The total amount of property tax relief for the 2015-17 biennium equaled $1,254 million (1.25 billion), which was 20% of the $6.2 billion General Fund Budget. If the State of North Dakota had done nothing with property taxes from 2007 to the current time, then the property tax payer would have paid the total $1.25 billion over the past two years. Fact #3 replacing the 12% buy down with the 20 mill County Social Services was not equal, because most counties levied around 11 to 13 mills, therefore, the state replaced approximately $242 million with $142 million. This is equal to a 7.5% buy down and depending on what the local political subdivision levies for property taxes will be the key, however if everything would stay the same, it would mean an approximate annual increase of $30 on a $100,000 home, $60 on a $200,000 home and $90 on a $300,000 home. Fact #4 During the next (2017-19) biennium the State of North Dakota has appropriated a total of $1,362.4 million (1.36 billion) for the 115 mills of k-12 school funding and the 20 mill take over for the County Social Services. The total property taxes paid for services in the State of North Dakota equals $3.5 billion and the State pays $1.36 billion of that amount, which equals 39%, and is the responsibility of the State of North Dakota. Fact #5 The $1.36 billion of property tax take over by the State of North Dakota is embedded in the $4.33 billion total General Fund Appropriation for the 2017-19 biennium. $1.36 billion is 31.4% of $4.33 billion, which means that the property tax payers of North Dakota receive a benefit of 31.4% of the State General Fund Budget. Fact #6 The State of North Dakota has appropriated $3.5 billion over the past six years as one time funding to build roads and help communities with building streets. These one-time infrastructure appropriations have taken the pressure off the backs of property tax payers, because if the state funding had not pick up the cost to build roads and streets the responsibility would have fallen on the property tax payer. Fact #7 Prior to 2007 the State of North Dakota did not do any type of property tax relief. When you add up the 115 mills for K-12 and the 20 mills for County Social Services that equals 135 mills, which generates over $1.36 billion per biennium, and it has been permanently eliminated from the local property tax payer and will be the responsibility of the state.
Representative Vicky Steiner Representative Mike Lefor Senator Rich Wardner