ND legislators unveil plan to lower property taxes

Another property tax relief plan has been unveiled by a group of North Dakota Republican legislators.

The proposal would build upon the buy down of mills on the K-12 formula adopted in 2013.  Under the change the state would fund 85% of education funding rather than the current 70% level – the equivalent of 30 mills.  The goal is to achieve a 25% reduction in property taxes.

The Legacy fund would be the main funding source.   The program would not extend to cities…counties…or park districts.  The proposal also freezes property valuations for two years.

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Meanwhile…Bismarck Democratic Senator Tracy Potter is suggesting an income tax credit for property taxes.  Potter says the plan would equate to about $100 to $200 million dollars in direct biennial tax relief.

Governor Doug Burgum has proposed eliminating state income taxes for lower-earning North Dakotans while shrinking them for higher earners to a small flat tax.  Burgum says it would save taxpayers about $250 million annually.