Dems push against efforts to reduce property tax credit approved during 2013 session, ensure county social services bill supplements — rather than supplants — existing property tax relief
(BISMARCK, N.D.) – Senators Tim Mathern, D-Fargo and Jim Dotzenrod, D-Wyndmere today announced an effort to restore the full 12 percent property tax credit approved during the 2013 legislative session and ensure the anticipated state assumption of county social services results in a further reduction of property taxes at the local level.
The duo’s action comes in response to recent Senate amendments to SB 2005, which would reduce the 12 percent property tax credit approved last session to 11 percent. Relatedly, SB 2206 directs the state to assume responsibility for county social services. Rather than deepening property tax relief, however, the reduction in local mill levies caused by the assumption of county social services would be entirely offset by the reduction of the property tax credit if SB 2005 passes in its current form.
“Essentially, what the majority is proposing is to pare back the property tax credit to pay for a reduction in corporate income taxes,” said Mathern. “While we appreciate North Dakota businesses and their contribution to our economy, we believe reducing property taxes should be the focus.”
“When it comes to property tax relief, we are committed to maintaining the full 12 percent property tax credit approved last session and, in addition, ensuring a dollar-for-dollar property tax reduction at the local level by having the state take on the important role of funding social services now provided by counties,” added Mathern. “That’s more than just straightforward property tax relief, it’s also an important step towards property tax reform.”
“Property tax relief should be our first priority with regard to tax cuts,” added Senator Dotzenrod. “We understand during this uncertain time of low oil prices that our budget needs to balance, but we can extend existing property tax relief while also providing a deeper reduction by eliminating mill levies county social services. That may mean we dial back corporate or individual income tax cuts a bit, but on balance we believe that is what the people prefer.”
With regard to other tax cuts presently being considered by the Legislature, SB 2349, which received a “do pass” recommendation from the Senate Appropriations Committee on Monday, would reduce corporate income taxes by $25 million and cut individual income taxes by $100 million. By contrast, cost to the state of taking on social services presently paid for at the county level is slightly over $23 million.
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