The Greater North Dakota Chamber met for their policy summit, discussing several measures that could affect business interests in the state. A panel was assembled to discuss measure 4, the property tax elimination bill.
Senator Brad Bekkedal from Williston was on the panel. He says, if the measure passes, the state will have to pick up the bill, and that could cost 3.15 billion dollars; over half of the current general fund spending.
Bekkedal says the measure could do a lot more than just raise other forms of taxes.
"We have to fund state government first, so that's what you're going to see happen if the measure passes. You'll also see elimination of capital projects and equipment purchases because you can't afford to buy anything new if you don't have them the ability to afford to manage what you already have. And this is the same in other government entities and businesses as well. You'll probably see no new employees and no new programs established. You will then go to reduce or eliminate grants informing your distributions to the political subdivisions. For most political subdivisions, if that is a large target, you will see a net reduction in money going back to political subdivisions."
Another panelist, Representative Vicky Steiner has served on the finance and taxation committee for the state. She doesn’t believe the measure will pass, but she says North Dakota is equipped to handle whatever happens.
"The sky is not falling if it passes, the sky is not falling if it's defeated. We are able to work with it on either side."
The panelists speculated on other ways the state could change if measure 4 passes and they went through ways the state could relieve some of the burden of property taxes.
Representative Steiner recommended soft caps on taxation and an increase in gas taxes, which would spread the burden around more evenly.
"Whether the measure passes or if it's defeated, I think it's dangerous to ignore the fact that this is a passion for these voters; even if it's defeated, we cannot ignore it."