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Interim Legislative committee looking at property tax reform

An interim Legislative committee has begun discussions on how to provide property tax relief.

A proposed initiated Constitutional amendment would eliminate the property tax – meaning local governments would have to go to the legislature to ask for state money to pay for police and fire departments, streets and other items.

Sen. Dean Rummel (R-Dickinson) told the interim Tax Relief Advisory Committee – lawmakers could look at options.

"I guess I would like to have some movement here, to show that we are seriously looking at property tax reductions, without eliminating them," Rummel said. "I have a grave concern about coming up with $2.5 billion if that were to happen."

Rep. Craig Headland (R-Montpelier) said he would like the Committee to delve into the reasons why the property tax keeps increasing.

"Committing the state to just paying more, to keep the property tax down, is what we've done in the past — and it hasn't been effective," Headland said. "I think we need to dive into some type of reform, where that automatic increase doesn't automatically equate to increases in everybody's property tax."

Sen. Brad Bekkedahl (R-Williston) saids lawmakers could look at capping local property tax increases.

The committee is tasked with making recommendations to the 2025 legislative session.

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