Property tax relief proposal has merit

North Dakota Tax Commissioner Ryan Rauschenberger recently unveiled his proposal for more than $1.3 billion in property tax relief. The move would increase state-funded property tax relief from $857 million to $1.36 billion in the next two years, roughly $500 million more than what was approved during the 2013 legislative session.

Rauschenberger’s opponent for the tax commissioner’s seat in the upcoming November election, Democratic-NPL candidate Jason Astrup, agrees, saying that providing additional property tax cuts is a good idea. He cautioned that it must be balanced with funding the large infrastructure needs of the state at the

same time.

The proposal would give owners of a $200,000 home an average of $2,000 in annual tax savings. It also includes a 25 percent, across-the-board property tax credit, up from 12 percent approved during the 2013 legislative session. The 25 percent increase represents a $500 million savings to taxpayers in 2015-17, according to Rauschenberger.

In addition to property tax relief and credits, Rauschenberger’s proposal expands the Homestead Tax Credit from $20 million to $50 million, and includes changing the income threshold from $42,000 to $63,000. It also excludes Social Security benefits from income calculations.

Considering the state’s growing economic base and increased revenues from taxes, giving back directly to state residents by reducing tax rates is appropriate. Rauschenberger’s proposal is likely the first of many that will be offered in the months preceding the November election. Political posturing aside, the time is right to consider not only temporary tax-relief measures, but long-term relief as well.

In December, Gov. Jack Dalrymple announced a task force to consider permanent property tax reform. Although North Dakota residents have experienced approximately $1.5 billion in property tax relief since 2009, Dalrymple believes lasting reform is needed. We agree.

North Dakota has a number of infrastructure needs to address, many the result of burgeoning oil production in the western reaches of the state and a growing population. Meeting those needs in order to ensure public safety requirements are met, desired quality-of-life levels in the state are sustained and an attractive environment for commerce is present, is critical to a healthy populace and vibrant economy.

Predictably, during times of surplus, requests for public funds often exceed available supply. Remaining fiscally responsible while still addressing taxpayer needs to the extent possible is a reasonable objective. While only a starting point, Rauschenberg’s proposal does that and has merit.

Property tax relief initiatives that benefit residents rather than funneling unneeded funds through state government, particularly at a time when a budget surplus is being experienced, is a more efficient way to drive the state’s economy. As long as education, human services and infrastructure needs in the state are met along the way, it’s the right approach.