District 30 legislative candidates Nancy Guy, Tom Decker and Daphne Ghorbani have come out in favor of Democratic gubernatorial candidate Ryan Taylor’s property tax plan. The 2011 Republican controlled legislature failed to enact meaningful property tax reductions.
Taylor’s proposed plan includes a $100,000 reduction in the true and full value of residential and agricultural property in addition to the existing homestead tax credit. Renters may also qualify for a $900 tax credit. Taylor’s plan would be paid for from the state’s nearly $2 billion budget surplus.
“Property tax reform in the last legislative session consisted of only an artificial cap on the taxing authority of cities and counties. That was not a direct form of property tax relief for property owners and did nothing for renters. Taylor’s proposal does not have an adverse effect on cities, counties and townships. Rather, the tax saved by the property owner is paid to the taxing entity with North Dakota’s surplus – ensuring that all North Dakota citizens benefit from our state’s booming economy,” Guy said.
The District 30 team notes that Taylor’s plan is especially needed as housing shortages creep eastward to Bismarck due to the energy boom in western North Dakota.
According to the candidates, lower income and those living on fixed incomes are those hardest hit by high property taxes.
“A renter’s tax credit will help renters living in areas where rents are creeping up due to housing shortages, which is happening right here in Bismarck,” Decker said.
Ghorbani added that a renter’s tax credit also helps those on fixed incomes who pay a disproportionate share of their income for rent.
Taylor’s $100,000 reduction in true and full values will help Bismarck area homeowners whose home values have been artificially inflated by energy boom-induced housing shortages. The percentage saved on taxes most benefits those who own property valued at less than $250,000.
According to Guy, it is that group who are least able to pay the taxes. With this plan in place the average Bismarck resident will save $1422 per year on their taxes.