FARGO, N.D. – Fargo Mayor Dr. Tim Mahoney is happy Governor Kelly Armstrong signed a property tax relief bill into law, but believes the city may have issues with budget requirements.
The law requires cities, counties, school boards and park boards to cap future increases in local property tax budgets by three percent over the previous year.
“As the city grows, we’re increasing the size of the city, the services we need. Seven out of the last 10 years, that cap would not have worked for us,” Mahoney explained.
Mahoney says Fargo has a growth factor of four-and-a-half to five percent.
“When we put the three percent cap on local property tax budgets, I think there were a lot of locals that were a little concerned about it, but I can tell you this: their taxpayers are concerned about the massive increase in their property tax bills and their valuation,” North Dakota Governor Kelly Armstrong said.
The property tax law allows citizens to vote on approving a property tax increase of more than three percent. Mahoney says he doubts voters would approve of increasing their own taxes.
