Measure 4 abolishes fixed asset tax based on the assessed value of real estate. This would require the state to annually fund local governments an amount equal to or greater than the property taxes they levy in the 2024 tax year.
Those who supported the bill argue that the Legislature failed to address voters’ concerns about rising property taxes. Opponents say the measure strips local control and provides no alternative plan for property tax revenue.
The Legislature estimates the measure will cost the state $3.15 billion over the 2025-2027 period, based on estimates from the tax commissioner. Supporters of the bill argue that the numbers are inflated, saying the actual cost would be about $2.32 billion per two-year budget cycle.
The text of the ballot paper is as follows:
This initiated action amends Sections 1, 14, 15, and 16 of Article 10 of the North Dakota Constitution; It repeals Article 10. It prohibits a political subdivision from imposing any tax on the appraised value of real or personal property, except for the payment of bonded debts incurred by a specified date, and states that a political subdivision may It requires the provision of alternative payments above the current amount. Imposition of real estate tax. This limits the liability of a political subdivision to an amount not to exceed 2.5 percent of the true value of the full amount of real property within the political subdivision. However, by voting, incorporated cities can increase their debt to 4% and school districts can increase their debt to 5%. This would allow incorporated cities to incur debts of no more than 2% of the true value of their entire water and wastewater services. The bill would require indebted political subdivisions to come up with revenue to pay their debts by the due date, and would require political subdivisions to pledge a tax on the assessed value of their assets. It would prohibit the issuance of general obligation bonds.
With this measure,
Eliminate property tax based on the appraised value of real estate.
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