LISTEN: Grand Forks Mayor Brandon Bochenski’s conversation with Scott Hennen
GRAND FORKS, N.D. – Grand Forks Mayor Brandon Bochenski is putting together a plan to decrease property taxes in his city.
It would reduce them by 27% for primary residences by increasing the city’s sales tax and franchise fees.
“We don’t really have a high homeownership rate. With the university, with a lot of manufacturing jobs and with the military, we have a lot of people that live in apartments. We’ve looked at how do we make it a little more affordable and how do we give an opportunity to get away from these companies buying up all the rental houses?” Bochenski said on “What’s On Your Mind?” on The Flag.
Grand Forks’ sales tax is at 7.25% while East Grand Forks’ is at 8.375% and Fargo’s is at 7.75%.
Bochenski would raise fees by 1% to 3%. The city charges utilities those fees to run gas, electric and cable lines and they pass that onto users. Bochenski pointed out University of North Dakota, nonprofits, hospitals and data centers don’t pay property taxes, but pay franchise fees.
Last year the North Dakota Legislature passed a bill to give a $1,600 primary residence credit for homeowners. It also caps future increases in property tax budgets to 3% for cities, counties, school boards and park boards.
“In the last 10 years, there was only twice where we would have butted up against the cap, but in the years prior and after that, we had negative numbers or low 1% type of growth,” Bochenski explained.
