Bismarck Tribune Editorial: Tax relief proposal workable
Sunday, October 01, 2006
Gov. John Hoeven characterizes his property tax relief proposal as simple and basic. It is that. It’s also restrained and workable.
County tax officials would figure a residential property owner’s bill in the normal way and take 10 percent off the top. Owners of farm land and commercial property would get a 5 percent reduction.
The state would then reimburse the counties with the total amount that they have discounted. Decisions about spending and tax mill levies are local matters, and nothing in the governor’s proposal changes that.
The plan could be altered by the Legislature in the upcoming session, but it likely would be a mistake to make the formula more complicated.
It would be an effective approach to giving relief to property owners statewide, because they do pay too much in property tax.
It also would be a responsible way of spending down the $500 million surplus in the state treasury and anticipated revenues.
Taxpayers might delight in having an even deeper cut in their annual statement, but state support of K through 12 public education should have a valid claim on a good chunk of the surplus. Hoeven also would like a prudent amount of the surplus retained to cushion the state during fiscal bumps.
A competing idea has been floated to reduce the total amount of taxes North Dakotans pay by making a cut in the state’s share of the sales tax, or by cutting the sales tax by a smaller percentage and giving a bit of help on property tax.
That dog won’t hunt.
If you would like to view the article, please visit http://www.bismarcktribune.com/articles/2006/10/01/news/opinion/editorials/doc451ed2b74c8d4767877534.txt
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