The Pied Piper is back, hoping that taxpayers will sign petitions to place a repeal of the property tax on the ballot in 2024.

Repealing the property tax was soundly defeated 10 years ago, attracting only 25% of the vote. Since nothing has changed since 2012, local governments are being forced to go through the cost of informing citizens a second time.

As the primary sponsor of the move, U. S. Senate candidate Rick Becker of Bismarck alleges that the state has so much money that it could be used to replace the property tax. Moving money in itself is beyond Becker’s simple approach.

The property tax is a mainstay of local revenue for townships, cities, counties, school districts and certain special entities.

Respond to Needs

With other revenue sources frozen in place, the property tax is the only source of revenue through which local governments can respond to the particular needs of each governing unit. This local flexibility is critical for the operation of local government.

Removing the property tax from local governments will make them more dependent on state control. Ordinarily, conservatives like Becker have touted local control and “government closest to the people governs best.” What happened?

Now Becker proposes to give the state more control over local government by choking its only flexible revenue source. We will end up with more “one size fits all” legislation that will actually fit none.

Killing Options

Through the years, the legislature has given local governments the ability to impose new mill levies for optional services, provided the people have voted to approve such mill levies. Under Becker’s proposal, these special levies will be wiped out.

Becker talks liberally about new revenue sources to replace the property tax repeal.

According to Forum Reporter Melissa Van Der Stad, Becker has thrown out several new funding sources: special assessments, sales tax, user taxes and the Legacy Fund.

These sources are no better than the property tax. In fact, special assessments and the sales taxes are regressive and shift the total tax burden to low-income classes.

There are significant properties that will escape a tax responsibility. Railroads, gas & electric companies, airlines, manufacturers, windmills and numerous others that will certainly crop up in a statewide discussion of the proposed repeal.

Summary of Problems

To be clear in summary:

If this measure is on the ballot, township, county, city, school boards will have to spend thousands of dollars in time and money to fight this encroachment on their jurisdictions.

Repealing the property tax would cripple the ability of local government to fund local problems.

Repealing the property tax would result in a new tax war to find replacement revenue sources.

Repealing the property tax would result in a relief for some, e.g. utilities, and increases for others.

Repealing the property tax would eliminate scores of options local governments now have to add services their constituents want.

Repealing the property tax would eliminate the property tax breaks for farmers, veterans, disabled and seniors.

Becker’s Echo Chamber

Becker claims that he gets more complaints about the property tax than for any other tax. It is possible he is in an echo chamber.

To make this move, more facts are needed, for example a scientific poll of North Dakotas as to whether or not they wish to repeal the property tax.

There is little question that voters would soundly defeat the repeal just as they did 10 years ago. So why waste thousands of dollars to repeat what we already know?

Lloyd Omdahl is a former lieutenant governor of North Dakota and former political science professor at the University of North Dakota, Grand Forks.