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Coalition Opposed to Elimination of Property Tax Continues to Grow

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Monday, April 30, 2012   

BISMARCK, N.D. - The number of groups opposing the proposed elimination of property taxes in North Dakota continues to grow. Coalition members include such diverse groups as the North Dakota Chamber of Commerce, the School Board Association and the Fraternal Order of Police.

AARP of North Dakota is also opposed. Spokesman Josh Askvig says eliminating the property tax will likely mean other taxes will have to be raised.

"The North Dakota Tax Department said if we just replaced the $812 million annually, you'd probably have to double the sales tax, if you did just sales tax. You would probably have to triple the income tax. And so, is it really going to be tax relief, or a tax shift?"

Askvig says another major flaw with the proposal is that if the property tax is eliminated, it would take away the funding decisions that are currently made on the local level.

"If you eliminate property taxes, now you have to go to the state legislature and not only convince people in Bismarck and legislators in Bismarck, but legislators in Fargo, legislators in Williston, legislators in Devils Lake and Grand Forks and across the state. Pretty soon, the state is trying to make decisions about what is going to happen in each local subdivision."

Askvig says the change away from local decisionmaking could have a major impact on services, especially those that affect seniors.

"Senior service providers, home delivered meals, congregate meals, or police, fire and emergency services, which a lot of seniors find very important - all these things could find themselves facing significant difficulties in getting funded or figuring out how they will be funded."

Those in favor say eliminating the property tax would make North Dakota more attractive to businesses. The vote on Measure 2 is set for June 12.

Information on the proposal is available at www.keepitlocalnd.com.




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