What Would Burgum’s Budget do to Your Property Taxes?

Governor Doug Burgum outlined what he wants in his 2019-2021 budget and it has left people with a lot of questions. The basic principle is to call for between a 5-10% budget cut depending on agency size while identifying an additional 3% just in case. In addition, agencies were asked to cut employees by 5%. The cuts will likely raise the concerns of education and behavioral health professionals who have whispered about lawsuits in the past because the state is failing to meet Constitutional obligations. The other elephant in the room, what will this do to your property taxes?

Last year, Burgum declared the state would be pulling out of the 12% property tax buy-down program. The Legislature eagerly complied and cut the tax break most North Dakotans have been begging for. They then tried to convince property owners that the relief would still be there because the state would be taking over the expense of County Social Services. The idea; the State pays and the County reduces your property tax. The state mandates these services are available, why shouldn’t they pay for them?

There are two problems with what the Legislature approved. One is the social service takeover didn’t equal the amount of relief from the 12% buy-down program. People already noticed their property taxes went up this year following the legislature’s move. Second is the fact this move isn’t permanent. The Legislature only passed a two-year pilot project. They will need to make it permanent through additional action.

By calling for additional cuts and pointing to depleted reserves after the Legislature left town in 2017, will these politicians have the will to find the resources necessary to make the social services takeover permanent? Or, will it be eliminated at the completion of the pilot project putting the burden back on the counties and thus your property taxes? Legitimate questions that should be asked of every candidate for the Legislature in 2018.

People like House Majority Leader Al Carlson will shout that the state doesn’t levy property taxes. They don’t. But, they have meddled with the tax for years in ways outside of levying them. The Legislature even forced counties to place a line on our property tax statements saying how much the state lowered our property taxes. “Please give us credit!” was the collective ring in the Capitol chambers. Now they’re trying to claim that pulling away state resources isn’t to blame for your rise in property taxes. They can’t have it both ways.

It isn’t just the Legislature, however. Burgum hasn’t seemed real committed to property tax relief. The irony is perhaps nobody has received bigger breaks than Burgum himself and his downtown Fargo developments. While voters press legislative candidates on their stance regarding property tax relief, they should also contact the Governor’s office and tell him to ensure the relief they have wanted for years isn’t forgotten as his budget takes shape.