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Petitions to abolish property tax approved for circulation

BISMARCK – Proponents of changing North Dakota’s constitution to prohibit the levying of property taxes will be able to circulate petitions to get a measure on the ballot.

North Dakota Secretary of State Michael Howe on Thursday approved the format of a petition to initiate a constitutional measure on the ballot related to prohibiting all political subdivisions from levying any tax on real or personal property, except for bonded indebtedness until paid.

The state would be responsible for replacing lost revenues from property taxes.

Former Bismarck legislator Rick Becker is chairing the measure sponsoring committee. He led a similar effort in 2020 that failed to gain enough traction during the pandemic.

“I am pleased that the petition has been approved,” Becker said. “Many North Dakotans are eager to sign the petition that will put a measure on the ballot, which will free them from the burden of property taxes and the worry of ever being kicked out of their home after retirement for the inability to pay our always-increasing tax.”

Proponents have until June 29, 2024, to collect at least 31,164 valid signatures and submit them to the Office of the Secretary of State for review.

Supporters would need to gather the signatures by Feb. 12 to get on the June 2024 primary ballot. They would need to submit signatures by next June 29 to place the measure on the November 2024 ballot.

Specifics of the proposed measure are:

– Requires the state to provide replacement payments to political subdivisions of no less than the amount of tax levied on real property during 2024.

– Limits the debt of a political subdivision to no more than 2.5% of the value of real property in the political subdivision, although a city can increase the indebtedness to 4% with a two-thirds vote of the people. A school district can increase its debt limit to 5% with a majority vote of the people.

– A city can take on additional debt equal to 2% of its valuation for water and sewer projects.

– Political subdivisions could not issue general obligation bonds that are secured by property taxes after Jan. 1, 2025.

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