Bismarck, N.D. – The North Dakota Watchdog Network is hoping the state legislature again revisits the matter of property tax reform, believing there was perhaps an “unintentional” provision passed that would impact future tax collections.
On WDAY’s The Jay Thomas Show, the group’s Dustin Gawrylow explained why they’re taking issue with the 3-percent annual cap on property taxes that can be levied by localities.
Based on the new law, Gawrylow says local governments can apply that percentage to the highest amount of tax collected going back three years.
In places like Burleigh County, a 1-cent sales tax was recently passed to offset the cost of certain government services, which already lowered property taxes.
Listen: Dustin Gawrylow with WDAY’s Jay Thomas
Based on the new formula, Gawrylow argues that Burleigh and other counties will eventually end up collecting lower amounts of property tax down the line, since the 3-year tax-collecting high will most likely be much lower in the future.
“We’re going to be up the creek because we did the responsible thing,” said Gawrylow. “Now, state policy is to make it more difficult [for local governments] and to punish them for doing the right thing.”
While criticizing the alleged oversight, Gawrylow is also giving the legislature the benefit of the doubt.
“”Either it was an honest mistake and they didn’t realize and ask anybody how it would affect counties, or it was intentional,” said Gawrylow.
The package of bills included an up to $1,600 property tax credit for private homeowners.
