With state tax collections down significantly, some lawmakers have suggested the state’s efforts to buy-down local property taxes might have to be changed – or scrapped.
But many legislators say the money is there – and should not be diverted elsewhere.
"I believe there is a 100% chance property tax relief will continue," said Rep. Craig Headland (R-Montpelier), the chairman of the House Finance and Taxation Committee. "There's a bucket set aside that should have $300 million in it by the time we get to Bismarck (for the 2017 Session). I believe we will fully fund property tax relief at the level that it's been funded."
The ranking Democrat on the Senate Finacne and Taxation Committee agrees. Sen. Jim Dotzenrod (D-Wyndmere) says it's a matter of setting priorities.
"To a lot of us, that is one of the highest priorities we have in our system of statewide tax and revenues," Dotzenrod said. "How do we set up a system that uses the state's ability to raise revenue and share that with the local subdivisions, which is property tax relief."
Dotzenrod says in a time of squeezed state revenues, money allocated to property tax relief should not be shuttled off to other programs.
"Anything we do to abandon or back away from that is going to be, in a way, a tax increase form property owners," Dotzenrod said. "We can't just say, 'Well, we're going to shed this expense -- it's one we can get rid of.' What we would be doing is handing the bill to somebody else."
Headland says some discussion will revolve around keeping the current method of buying-down property tax – or having the state take over funding of all social service programs – some of which are now borne by the counties.
"I can agree with the argument that property tax is not really a revenue source that is proper to fund social service programs," Headland said. "However, that's the way it has been done. And change is sometimes difficult."
Headland says the Legislature will take a very hard look at those programs, and get the costs narrowed down.
