FOR IMMEDIATE RELEASE
Contact: Don Canton or Don Larson
Hoeven, Legislators Announce $116 Million Property Tax Relief Plan
BISMARCK, N.D. – Gov. John Hoeven was joined by Sen. Dwight Cook and Rep. Wes Belter today to announce a $116 million property tax cut plan for North Dakota property owners. The plan would provide tax relief for residential property in the amount of 10 percent, for agricultural property in the amount of 5 percent, and for commercial property in the amount of 5 percent. This means over the next biennium North Dakota homeowners would receive $77 million, businesses would receive $22 million, and farmers and ranchers would receive $17 million in property tax relief, according to Hoeven.
Examples of average annual saving for various properties under the tax relief plan would be as follow:
· House valued at $100,000 – $180.00
· House valued at $200,000 – $361.00
· Farm or ranch– $183 (average per section)
· Commercial property valued at $150,000 – $150.00
· Commercial property valued at $300,000 – $300.00
“In addition, we have pledged at least $60 million in new funding to K-12 education, which will also help take the pressure off property taxes,” Hoeven said. “Between our property tax relief plan and our additional funding for K-12 education, we are bringing more than $175 million to reduce the burden of property taxes on our citizens. Our commitment to create a good business climate, and our aggressive economic development efforts, are building a growing economy, which makes this kind of tax relief possible.”
“In light of North Dakota’s strong economy and revenue growth, we are in a good position to provide property tax relief to our citizens,” said Rep. Belter. “This plan is an equitable way we can return some of those revenues to the people of North Dakota.” Belter is the chairman of the House Finance and Taxation Committee and will be the primary sponsor of the legislation in the House of Representatives.
“Property taxes are clearly the greatest tax concern of North Dakotans,” said Sen. Cook. “I welcome the Governor’s leadership and help in getting sound and meaningful tax relief passed in the next legislative session.” Cook is a member of the Senate Finance and Taxation Committee, and will be the primary sponsor of the legislation in the Senate.
Also joining the group was Tax Commissioner Cory Fong, who assisted in developing the plan.
“We worked together to develop a plan that is fair, simple, and sustainable without a tax increase,” Fong said. “Most importantly, this plan results in direct relief to the property owner, and is easy to implement.”
Hoeven and the legislators said direct relief would be calculated by county and dispersed by the state. The property tax relief deduction would be shown on property owners’ annual property tax statements. Funding for the plan will come from recurring revenue sources currently accumulating in the state’s reserve funds, which are projected to sustain growth even with property tax relief funding in place.
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