North Dakota Has 8th Highest Property Tax Rates In The Nation
In terms of property taxes as a percentage of property value according to data from the Tax Foundation:
There is no doubt about it. Property taxes are a problem in North Dakota.
The real problem is that few people in North Dakota understand why it’s a problem, which is something illustrated by all the demands that property taxes be fixed from the state level.
The state of North Dakota does not levy the property tax. The state of North Dakota gets no revenues from the property tax. Thus, the state of North Dakota cannot raise or lower the property tax. That must be done from the local level. The only thing the state government can do is send bailout money to localities in the state in the hopes of defraying their spending thus allowing room for property tax reductions.
But such arrangements are problematic. First, there are few guarantees that local political leaders will, in fact, lower property taxes upon receiving statewide funds. Second, there is the loss of local control. All bailouts create the expectation for more bailouts. If local authorities get used to state funds bailing out their profligate spending eventually those state funds are going to start coming with strings attached. Just as federal dollars flowing into the state comes with strings attached.
And every one of those strings means a little less control at the local level and a little more power for the far-away state government.
If North Dakotans want to lower their property taxes they need to petition their local political leaders to lower spending. That may be a painful process, but in the long run it’s preferable to statewide property tax bailouts.
