1 week Ago By Ron Runsvold
Now that the ill-conceived Measure 4 that would have eliminated local real estate taxes based on value has been defeated, it’s time to discuss changes to the property tax system. First, decisions including the financing of those decisions should be made at the local level. Ideally, the Legacy Fund should be used to make financing available to local entrepreneurs as repayable start-up capital to attract employers to North Dakota, not to fund local governments.
Yes, property tax can be arbitrarily leveled and can also be an undue burden on older homeowners. I suggest that dollar amount increases in assessments for single-family owner-occupied real property be limited to the annual increase in the CPI; after 20 years of continuous occupation by the owner, the dollar amount of the tax should be frozen; and if the 20-year owner-occupant is 65 years or more older no tax should be levied. The levy amount should be adjusted, of course, to reflect any improvements to the property.
A note on special assessments: I see no reason to not utilize the tax-free borrowing power of the city to finance the initial installation of the city provided infrastructure including but not limited to streets, water, sewer and the like. The ultimate purchaser should have the option to pay off the amounts or continue to pay them annually along with the property tax levy. Once the property is sold, however, repairs, upgrades, or improvements to the infrastructure should be paid for from the city’s general fund and not levied against the property.
Ron Runsvold lives in West Fargo..
