Property Taxes May End, A National First

(DailyAnswer.org) – Voters in North Dakota are set to make a big decision in November: whether to get rid of the state’s property taxes entirely. If they approve the measure, known as Measure 4, North Dakota would become the first state in the country to eliminate property taxes—a move that could inspire others to follow their lead.

Measure 4 wouldn’t just remove the state’s property tax; it would also prevent cities and towns from creating their own. Rick Becker, the head of the group End Unfair Property Tax, believes this could be a game-changer. “Once one state steps outside that box, others will see it’s possible,” Becker said. “The sky won’t fall, and it might encourage more states to give it a shot.”

While no state has yet repealed property taxes, some have shown interest. Nebraska, Texas, and Michigan have all floated the idea, but proposals in Nebraska and Michigan didn’t make it to the ballot—fueling debates about the feasibility of such measures.

Becker argues that property taxes are one of the most unfair taxes around, calling them “the least moral” of all. However, opponents of Measure 4 disagree and warn that the proposal is too extreme. Chad Oban, the leader of Keep It Local, a group fighting against the measure, said, “I think we’ll defeat it, but if it passes, other states will start thinking about doing the same thing.”

A recent poll found that 28 percent of voters in North Dakota support Measure 4, while 40 percent are against it. The remaining third are still undecided. North Dakotans rejected a similar attempt to get rid of property taxes back in 2012, but supporters think this time might be different due to rising frustration over the taxes.

It’s worth noting that property taxes are a huge source of income for local governments across the country. In 2023, U.S. municipalities collected around $363 billion from property taxes on single-family homes—a 7 percent jump from the year before. North Dakota’s property tax rate currently sits at 0.99 percent of a home’s market value, which is higher than the national average of 0.87 percent—raising questions about the impact of losing such revenue streams.

Whether Measure 4 passes or not, the outcome will be closely watched by other states. The results could mark the start of a major shift in how local governments raise money.

Copyright 2024, DailyAnswer.org