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North Dakota Initiated Measure 4, Prohibit Taxes on Assessed Value of Real Property Initiative (2024)
| North Dakota Initiated Measure 4 | |
|---|---|
 | |
| Election date November 5, 2024 | |
| Topic Taxes and Property | |
Status Defeated | |
| Type Constitutional amendment | Origin Citizens |
North Dakota Initiated Measure 4, the Prohibit Taxes on Assessed Value of Real Property Initiative, was on the ballot in North Dakota as an initiated constitutional amendment on November 5, 2024. It was defeated.
A "yes" vote supported prohibiting the state and local governments from levying taxes on the assessed value of any real or personal property except for those designed to pay for bonded indebtedness. |
A "no" vote opposed prohibiting the state and local governments from levying taxes on the assessed value of any real or personal property except for those designed to pay for bonded indebtedness. |
Election results
|
North Dakota Initiated Measure 4 |
||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
| Yes | 130,038 | 36.54% | ||
|
|
225,889 | 63.46% | ||
Overview
What would Initiated Measure 4 have done?
- See also: Text of measure
This measure would have prohibited the state and local governments from levying taxes on the assessed value of any real or personal property except for those designed to pay for bonded indebtedness. The measure would not have prohibited taxes levied on other aspects of a property such as square footage. The measure would have limited the debt of a political subdivision (such as counties, cities, and towns) to 2.5% of the value of real property in the subdivision. Incorporated cities would have been able to raise the debt limit to 4% through a two-thirds supermajority vote and school districts would be able to raise the debt limit to 5% through a simple majority vote. Cities would have been able to become indebted by an additional 2% for water and sewer projects. A political subdivision would not have been able to issue general obligation bonds to be paid back through property taxes after January 1, 2025.[1]
Under the measure, the state government would have been required to replace property tax revenue to local governments in an amount equal to the amount of tax revenue levied on personal property, minus taxes levied for the purpose of paying for bonds, as of 2024.[1]
What did supporters and opponents say about the measure?
- See also: Supporters and Opponents
End Unfair Property Tax was the committee registered in support of Initiated Measure 4. The initiative was sponsored by former Rep. Rick Becker (R). Becker said, “Many people, including myself, believe that amongst the taxes, property tax is a fairly immoral tax. Private property is the foundation of a free society. The ability for the government to take away something that you should rightfully own is improper. I’m shocked at how much property tax is going up this year. It’s just crazy to me. Let’s call it wasteful unnecessary spending. We have a chance to take that away from state legislators and convert it to actual tax relief for citizens by eliminating the property tax.”[2]
Keep it Local ND opposed the ballot initiative. Organizations that endorsed the opposition campaign included the North Dakota Fire Chiefs Association, School Board Association, Sheriffs and Deputies Association, EMS Association, the North Dakota AFL-CIO, the Greater North Dakota Chamber, the North Dakota Farmers Union, and the North Dakota League of Cities. Keep it Local ND stated, “If it sounds too good to be true, it probably is; this measure would be detrimental to our economy, our citizens, and our state as a whole. There is no well vetted plan to make up the estimated $1.329 billion per year to cover property taxes to fund essential services. Let’s fight to keep control local; the state legislature has no business deciding what our cities and our counties need.”[3]
Has a similar measure been voted on before?
- See also: Measure 2 (2012)
In 2012, an initiative, Initiated Measure 2, appeared on the June 12 ballot. The measure was defeated with 76.54% of voters against the measure. It would have eliminated property taxes and would have required the state legislature to replace local governments' property tax revenue with state tax revenue.[4]
The measure was supported by a group called Empower the Taxpayer formed by Minot, North Dakota resident Robert Hale. Hale said he modeled the measure on a 2009 legislative proposal from State Rep. Dan Ruby (R-38) to eliminate property taxes as a source of state revenue.[5]
The measure was opposed by Keep it Local ND, the State Chamber of Commerce, the North Dakota League of Cities, Association of Realtors, AFL-CIO, Association of Counties, the Farmer's Union, and the Petroleum Council.[6]
Text of measure
Ballot title
The ballot title for the measure was as follows:[7]
| “ | This initiated measure would amend sections 1, 14, 15, and 16 and repeal sections 4, 5, 7, 9 and 10 of Article X of the North Dakota Constitution. It would prohibit political subdivisions from levying any tax on the assessed value of real or personal property, except for the payment of bonded indebtedness incurred through a certain date, and would require the state to provide replacement payments to political subdivisions of no less than the current real property tax levies. It would limit the debt of a political subdivision to an amount not to exceed two and one-half percent of the full and true value of the real property in the political subdivision; however, by a vote, an incorporated city could increase its indebtedness to four percent and a school district could increase its indebtedness to five percent. It would allow an incorporated city to become indebted in an amount not exceeding two percent of its full and true value for water and sewer projects. It would require a political subdivision incurring indebtedness to provide for annual revenues to pay the debt payments when due and would prohibit a political subdivision from issuing general obligation bonds secured with tax levied on the assessed value of property.
The estimated fiscal impact of this measure is $3.15 billion increase in biennial expenditures to the state beginning in the 2025-2027 biennium. Yes – Means you approve the measure as summarized above. No – Means you reject the measure as summarized above.[8] |
” |
Constitutional changes
- See also: Article X, North Dakota Constitution
The measure would have amended sections 1, 14, 15, and 16 and repeal sections 4, 5, 7, 9, and 10 of Article X of the North Dakota Constitution. would have amended[9]
Note: Hover over the text and scroll to see the full text.
Section 1.
1. TheExcept as provided in subsection 2, the legislative assembly and all political subdivisions may not raise shall be prohibited from raising revenue to defray the expenses of the state through the levying of a any tax on the assessed value of real or personal property.
2. A political subdivision may continue to levy tax on the assessed value of real property if the tax was dedicated for the payment of bonded indebtedness incurred before the end of the thirty-day period following the date this amendment was approved by the voters, until such debt is paid.
3. The state shall provide annual property tax revenue replacement payments to political subdivisions in an amount equal to no less than the amount of tax levied on real property by the political subdivisions, excluding tax levied on real property for the payment of bonded indebtedness, during the calendar year in which this amendment was approved by the voters.
Section 14. 1. Notwithstanding any other provision in the constitution, and for the purpose of promoting the economic growth of the state, the development of its natural resources, and the prosperity and welfare of its people, the state may issue bonds and use the proceeds thereof from the bonds to make loans to privately or cooperatively owned enterprises to plan, construct, acquire, equip, improve, and extend facilities for converting natural resources into power and generating and transmitting such power, and to acquire real and personal property and water and mineral rights needed for such facilities.
2. The state may issue general obligation bonds for this purpose to an amount which that , with all outstanding general obligation bonds, less the amount of all money on hand and taxes in process of collection which are appropriated for their payment, will not exceed five percent of the full and true value of all of the taxable real property in the state, to be ascertained by the last assessment made for state and county purposes: but nothing herein shall. The provision does not increase or diminish the limitations established by other provisions of the constitution on the amount of bonds therein authorized to be issued.
3. The state may also issue revenue bonds for the purpose of providing part or all of the funds required for any project undertaken under subsection 1, payable solely from sums realized from payments of principal and interest on money loaned for such project, and from other similar projects if so determined by the legislaure legislative assembly and from the liquidation of security given for such payments. Revenue bonds issued for any project shall may not exceed the cost thereof of the project, including all expenses reasonably incurred to complete and finance the project, but shall may not be subject to any other limitation of amount.
4. The full faith and credit of the state shall must be pledged for the prompt and full payment of all bonds issued under subsection 2. Its obligation with respect to bonds issued under subsection 3 shall must be limited to the prompt and full performance of such covenants as the legislature legislative assembly may authorize to be made respecting the enforcing of the provisions of underlying loan agreements and the segregation, accounting, and application of bond proceeds and of loan payments and other security pledged for the payment of the bonds. All bonds authorized by subsections 1 to 3, inclusive, shall must mature within forty years from their respective dates of issue, but may be refunded at or before maturity in such manner and for such term and upon such conditions as the legislature legislative assembly may direct. Any such bonds may, but need not be, secured by mortgage upon real or personal property acquired with the proceeds of the same or any other issue of general obligation or revenue bonds, or upon other property mortgaged by the debtor. Pledges of revenues and mortgages of property securing bonds of any issue may be prior or subordinate to or on a parity with pledges and mortgages securing any other issue of general obligation or revenue bonds, as determined by the legislature legislative assembly from time to time in conformity with any provisions made for the security of outstanding bonds.
5. The legislature legislative assembly shall pass such laws as are appropriate to implement this amendment.
6. If any subsection of this amendment, or any part of a subsection, or any application thereof to particular circumstances should be held invalid for any reason, such invalidity shall may not affect the validity of all remaining provisions of this amendment which may be given effect without that which is declared invalid, as applied to any circumstances and for this purpose all subsections and parts of subsections and applications thereof are declared to be severable.
Section 15. The debt of any county, township, city, town, school district, or any other political subdivision, shall never may exceed five per centum two and one-half percent upon the assessed full and true value of the taxable real property therein; provided that any incorporated city may, by a two-thirds vote, may increase such indebtedness three per centum one and one-half percent on such assessed full and true value beyond said five per centum the two and one-half percent limit, and a school district, by a majority vote may increase such indebtedness five two and one-half percent on such assessed full and true value beyond said five per centum the two and one-half percent limit; provided also that any county or city by a majority vote may issue bonds upon any revenue-producing utility owned by such county or city, or for the purchasing or acquiring the same or building or establishment thereof, in amounts not exceeding the physical value of such utility, industry or enterprise.
In estimating the indebtedness which a city, county, township, school district, or any other political subdivision may incur, the entire amount, exclusive of the bonds upon said revenue-producing utilities, whether contracted prior or subsequent to the adoption of this constitution, shall must be included; provided further that any incorporated city may become indebted in any amount not exceeding four per centum two percent of such assessed full and true value without regard to the existing indebtedness of such city for the purpose of constructing or purchasing waterworks for furnishing a supply of water to the inhabitants of such city, or for the purpose of constructing sewers, and for no other purposes whatever. All bonds and obligations in excess of the amount of indebtedness permitted by this constitution, given by any city, county, township, town, school district, or any other political subdivision shall be void.
Section 16. Any city, county, township, town, school district, or any other political subdivision incurring indebtedness shall, at or before the time of so doing, provide for the collection of an annual tax revenues sufficient to pay the interest and also the principal thereof when due, and all laws or ordinances providing for the payment of the interest or principal of any debt shall be are irrepealable until such debt be paid. A political subdivision may not issue general obligation bonds secured with tax levied on the assessed value of property on or after the effective date of this amendment.
Section 4. All taxable property except as hereinafter in this section provided, shall be assessed in the county, city, township, village or district in which it is situated, in the manner prescribed by law. The property, including franchises of all railroads operated in this state, and of all express companies, freight line companies, dining car companies, sleeping car companies, car equipment companies, or private car line companies, telegraph or telephone companies, the property of any person, firm or corporation used for the purpose of furnishing electric light, heat or power, or in distributing the same for public use, and the property of any other corporation, firm or individual now or hereafter operating in this state, and used directly or indirectly in the carrying of persons, property or messages, shall be assessed by the state board of equalization in a manner prescribed by such state board or commission as may be provided by law. But should any railroad allow any portion of its railway to be used for any purpose other than the operation of a railroad thereon, such portion of its railway, while so used shall be assessed in a manner provided for the assessment of other real property.
Section 5. Taxes shall be uniform upon the same class of property including franchises within the territorial limits of the authority levying the tax. The legislative assembly may by law exempt any or all classes of personal property from taxation and within the meaning of this section, fixtures, buildings and improvements of every character, whatsoever, upon land shall be deemed personal property. The property of the United States, to the extent immunity from taxation has not been waived by an act of Congress, property of the state, county, and municipal corporations, to the extent immunity from taxation has not been waived by an act of the legislative assembly, and property used exclusively for schools, religious, cemetery, charitable or other public purposes shall be exempt from taxation. Real property used for conservation or wildlife purposes is not exempt from taxation unless an exemption is provided by the legislative assembly. Except as restricted by this article, the legislative assembly may provide for raising revenue and fixing the situs of all property for the purpose of taxation. Provided that all taxes and exemptions in force when this amendment is adopted shall remain in force until otherwise provided by statute.
Section 7. The legislature may by law provide for the levy and collection of an acreage tax on lands within the state in addition to the limitations specified in article X, section 1, of the constitution. The proceeds of such tax shall be used to indemnify the owners of growing crops against damages by hail, provided that lands used exclusively for public roads, rights of way of common carriers, mining, manufacturing or pasturage may be exempt from such tax.
Section 9. The legislative assembly may provide for the levy of a tax upon lands within the state for the purpose of creating a fund to insure the owners of growing crops against losses by hail. The legislative assembly may classify lands within the state, and divide the state into districts on such basis as shall seem just and necessary, and may vary the tax rates in such districts in accordance with the risk, in order to secure an equitable distribution of the burden of the tax among the owners of such lands.
[8]
Readability score
- See also: Ballot measure readability scores, 2024
Using the Flesch-Kincaid Grade Level (FKGL) and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The secretary of state wrote the ballot language for this measure.
The FKGL for the ballot title is grade level 15, and the FRE is 35. The word count for the ballot title is 236.
Support
End Unfair Property Tax led the campaign in support of the initiative.[10]
Supporters
Former Officials
- Former State Rep. Rick Becker (R)
Arguments
Opposition
Keep it Local ND led the campaign in opposition to the initiative. The organization provided a full list of coalition members here.
Opponents
Unions
Organizations
- AARP of North Dakota
- Chiefs of Police of North Dakota
- Greater North Dakota Chamber
- Health Policy Consortium
- North Dakota AFL-CIO
- North Dakota EMS Association
- North Dakota Fire Chiefs Association
- North Dakota League of Cities
- North Dakota Petroleum Council
- North Dakota School Boards Association
- North Dakota Sheriff’s and Deputies Association
Arguments
Campaign finance
End Unfair Property Tax registered to support the initiative. The committee reported $28,610 in contributions.[11]
Keep It Local registered to oppose the initiative. The committee reported raising $1.89 million.[11]
| Cash Contributions | In-Kind Contributions | Total Contributions | Cash Expenditures | Total Expenditures | |
|---|---|---|---|---|---|
| Support | $28,610.00 | $0.00 | $28,610.00 | $27,767.99 | $27,767.99 |
| Oppose | $1,475,554.17 | $414,003.76 | $1,889,557.93 | $1,877,275.70 | $2,291,279.46 |
| Total | $1,504,164.17 | $414,003.76 | $1,918,167.93 | $1,905,043.69 | $2,319,047.45 |
Support
The following table includes contribution and expenditure totals for the committee in support of the initiative.[11]
| Committees in support of Initiated Measure 4 | |||||
|---|---|---|---|---|---|
| Committee | Cash Contributions | In-Kind Contributions | Total Contributions | Cash Expenditures | Total Expenditures |
| End Unfair Property Tax | $28,610.00 | $0.00 | $28,610.00 | $27,767.99 | $27,767.99 |
| Total | $28,610.00 | $0.00 | $28,610.00 | $27,767.99 | $27,767.99 |
Donors
The following were the top donors who contributed to the support committee.
| Donor | Cash Contributions | In-Kind Contributions | Total Contributions |
|---|---|---|---|
| Jim Bullis | $20,000.00 | $0.00 | $20,000.00 |
| Chad Wachter | $5,000.00 | $0.00 | $5,000.00 |
| Ron Knutson | $5,000.00 | $0.00 | $5,000.00 |
Opposition
The following table includes contribution and expenditure totals for the committee in opposition to the initiative.[11]
| Committees in opposition to Initiated Measure 4 | |||||
|---|---|---|---|---|---|
| Committee | Cash Contributions | In-Kind Contributions | Total Contributions | Cash Expenditures | Total Expenditures |
| Keep It Local | $1,475,554.17 | $414,003.76 | $1,889,557.93 | $1,877,275.70 | $2,291,279.46 |
| Total | $1,475,554.17 | $414,003.76 | $1,889,557.93 | $1,877,275.70 | $2,291,279.46 |
Donors
The following were the top donors to the opposition committee.
| Donor | Cash Contributions | In-Kind Contributions | Total Contributions |
|---|---|---|---|
| National Education Association | $404,000.00 | $0.00 | $404,000.00 |
| AFT | $300,000.00 | $0.00 | $300,000.00 |
| North Dakota United | $0.00 | $203,069.31 | $203,069.31 |
| National Association of Realtors | $200,000.00 | $0.00 | $200,000.00 |
Methodology
To read Ballotpedia's methodology for covering ballot measure campaign finance information, click here.
Polls
- See also: 2024 ballot measure polls
- Are you aware of a poll on this ballot measure that should be included below? You can share ballot measure polls, along with source links, with us at editor@ballotpedia.org.
| North Dakota Initiated Measure 4, Prohibit Taxes on Assessed Value of Real Property Initiative (2024) | ||||||
|---|---|---|---|---|---|---|
| North Dakota News Cooperative, WPA Intelligence | 09/28/2024-9/30/2024 | 500 RV | ± 4.4% | 28% | 40% | 33% |
| Question: "An initiated measure that would eliminate property taxes." | ||||||
Note: LV is likely voters, RV is registered voters, and EV is eligible voters.
Background
Property taxes in North Dakota
Property taxes in North Dakota are assessed at one half (50%) of the true and full value of a property. The tax rates are 4.5% for residential property and 5% for agricultural and commercial property.[12]
All property is subject to property tax unless specifically exempt. Counties collect locally assessed real property owned by individuals or businesses and distribute revenue to the county, cities, townships, and school districts, as well as other taxing districts. Counties also collect taxes on centrally assessed property, which includes railroads, investor-owned public utilities, pipelines, and airlines.[13]
The following chart from the North Dakota Tax Commissioner shows property tax data from the year 2022:[14]
Measure 2 (2012)
In 2012, an initiative, Initiated Measure 2, appeared on the June 12 ballot. The measure was defeated with 76.54% of voters against the measure. It would have eliminated property taxes and would have required the state legislature to replace local governments' property tax revenue with state tax revenue.[15]
The measure was supported by a group called Empower the Taxpayer formed by Minot, North Dakota resident Robert Hale. Hale said he modeled the measure on a 2009 legislative proposal from State Rep. Dan Ruby (R-38) to eliminate property taxes as a source of state revenue.[16]
The measure was opposed by Keep it Local ND, the State Chamber of Commerce, the North Dakota League of Cities, Association of Realtors, AFL-CIO, Association of Counties, the Farmer's Union, and the Petroleum Council.[17]
Path to the ballot
The state process
In North Dakota, the number of signatures required to qualify an initiated constitutional amendment for the ballot is equal to 4 percent of the population of the state. North Dakota is unique in using the population to determine signature requirements for initiatives and referendums. Petitioners may circulate a petition for one year following the secretary of state's initial approval. The signatures must be submitted at least 120 days prior to the election.
The requirements to get an initiated constitutional amendment certified for the 2024 ballot:
- Signatures: 31,164
- Deadline: Each initiative has its own signature deadline of one year after it was approved for circulation. The final deadline to submit signatures regardless of a petition's approval date was July 8, 2024.
Once the signatures have been gathered, the secretary of state verifies them using a random sample method. Since North Dakota does not have a voter registration system, the secretary of state may use "questionnaires, postcards, telephone calls, personal interviews, or other accepted information-gathering techniques" to verify the selected signatures.
Details about this initiative
- The initiative was filed by former North Dakota Representative Rick Becker (R) June 19, 2023. It was approved for signature gathering on June 26, 2023, with 31,164 valid signatures due before midnight on February 12, 2023, to qualify for the 2024 primary ballot. To qualify for the November 2024 ballot, signatures were due by June 29, 2024.[18]
- Proponents submitted around 41,000 to the secretary of state's office on June 28, 2024.[19]
- On August 2, 2024, the North Dakota Secretary of State's office certified that proponents submitted 35,720 valid signatures and qualified for the ballot.[20]
Signature gathering cost
Sponsors of the measure hired Public Appeal to collect signatures for the petition to qualify this measure for the ballot. A total of $35,574.22 was spent to collect the 31,164 valid signatures required to put this measure before voters, resulting in a total cost per required signature (CPRS) of $1.14.
How to cast a vote
- See also: Voting in North Dakota
See below to learn more about current voter registration rules, identification requirements, and poll times in North Dakota.
See also
External links
- Full text/approved petition
- Timeline
- North Dakota Secretary of State: Ballot Petitions Being Circulated
Footnotes
- ↑ 1.0 1.1 North Dakota Secretary of State, "North Dakota Prohibiting all political subdivisions from levying any tax on real or personal property except for bonded indebtedness until paid initiative full text," accessed July 1, 2023
- ↑ My Dakotan, "End Property Tax Effort Ongoing ," accessed August 14, 2024
- ↑ Keep It Local ND, "Home," accessed August 14, 2024
- ↑ Associated Press, "ND property tax abolition backers challenged," June 22, 2011
- ↑ Bismarck Tribune, "Republicans hold Measure 2 discussion," May 16, 2012
- ↑ Bismark Tribune, "Group outlines opposition to Measure 2," February 1, 2012
- ↑ North Dakota Secretary of State, "Initiated Measure 5 Official Ballot Language," accessed September 2, 2024
- ↑ 8.0 8.1 8.2 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source. Cite error: Invalid
<ref>tag; name "quotedisclaimer" defined multiple times with different content Cite error: Invalid<ref>tag; name "quotedisclaimer" defined multiple times with different content - ↑ Cite error: Invalid
<ref>tag; no text was provided for refs namedOverview - ↑ End Unfair Property Tax, "Home," accessed October 3, 2024
- ↑ 11.0 11.1 11.2 11.3 North Dakota Campaign Finance, "End Unfair Property Tax," accessed July 16, 2024
- ↑ NDACO, "Understanding Property Taxes," accessed July 11, 2024
- ↑ North Dakota Tax Commissioner, "Learn about property tax," accessed July 11, 2024
- ↑ North Dakota Tax Commissioner, "2022 property tax statistics," accessed July 11, 2024
- ↑ Associated Press, "ND property tax abolition backers challenged," June 22, 2011
- ↑ Bismarck Tribune, "Republicans hold Measure 2 discussion," May 16, 2012
- ↑ Bismark Tribune, "Group outlines opposition to Measure 2," February 1, 2012
- ↑ North Dakota Secretary of State, "Ballot Petitions Being Circulated," accessed July 1, 2023
- ↑ KFGO, "Backers of property tax ballot measure submit signatures for verification," accessed June 30, 2024
- ↑ North Dakota Monitor, "Property tax measure approved for November ballot," accessed August 2, 2024
- ↑ North Dakota Secretary of State, "Q: What are voting hours in North Dakota?" accessed August 12, 2024
- ↑ Justia, "2023 North Dakota Century Code, 16.1-01-03. Opening and closing of the polls," accessed August 14, 2024
- ↑ 23.0 23.1 North Dakota Secretary of State, “North Dakota….The Only State Without Voter Registration,” accessed April 24, 2023
- ↑ North Dakota Secretary of State, “Voter Registration in North Dakota,” accessed August 12, 2024
- ↑ 25.0 25.1 25.2 North Dakota Secretary of State, "ID Requirements for Voting," accessed August 12, 2024
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