It’s that time of year, when the words “property taxes” are a big topic of conversation. It’s that time when your local governments are setting their budgets for 2018 and are making tough budget decisions. Each county, city, school and park board are all setting their budgets based on needs and public support for services.
There are some important changes in the upcoming budget cycle
that will impact your property taxes based on legislative actions this past
session. Your local decision-makers are taking those changes into consideration.
Counties, like state government, are experiencing significant reductions in
non-property tax revenues that have been impacted by changes in our state’s
economy.
The biggest change for taxpayers however is the loss of the
12 percent state-paid property tax credit. You may recall from your last
several property tax statements that there has been a line stating: “Less: 12%
state-paid tax credit.” Lawmakers recognized last session that this tax credit
was not sustainable for the future with the dramatic reduction in state oil tax
revenues, so they repealed it in favor of a smaller but more permanent form of
property tax reform. Going forward, the state will fund county social services.
We feel this is appropriate because counties have no control over social
services. These services and their costs are controlled by federal and state
mandates. For that reason, counties do not feel property taxes are the
appropriate source of revenue. 
This is a two-year pilot project. Over the next two years, counties
will not levy for social services and instead those services will be funded with
state dollars. Prior to this legislative action, counties were allowed under
state code to levy up to 20 mills for social services. Since each county levied
a different amount, the amount of property tax relief will differ
county-by-county and may not equal what citizens received under the 12 percent property
tax buy down plan.
It’s important to recognize the level of property tax relief
provided by the Legislature over the last several years. Lawmakers’ actions to
fund social services is in addition to the commitment they have made to reduce
the property tax burden by funding a greater share of the local cost of
education. Together they total $1.3 billion in property tax relief in the next
biennium. The tax relief they have passed on to you will be noted on the top of
your tax statement.
Local governments make their decisions based on feedback from
the public. And that’s very important. Local governments have transparency.
You, the public, are notified of their meetings. They are open to anyone, and you
receive a notice if they plan to increase any mills to balance the budget. Your
voice does matter in this process.
Property taxes fund pretty much every service you depend on
at the local level. It is law enforcement protection, jails, local highway and
road maintenance, snow removal, elections, fire protection, ambulance, public
schools, public health, transit, local parks and recreation, county fairs and
so much more. I hope this information
helps you understand your property taxes and the changes that may affect them.
*This Letter to the Editor was forwarded to North Dakota newspapers
