North Dakota Senate Majority Leader David Hogue says he still believes property tax relief should also include property tax reform.
But Hogue (R-Minot) said a blanket three percent cap on property tax increases for political subdivisions probably isn’t the way to go. He said in some political subdivisions, three percent caps would work, but not in some others.
"We're going to try and use a scalpel, instead of some blunt instrument, and say, 'Alright, there are certain political subdivisions that don't have as much dependence on property tax as an overall part of their revenue pie, and so they can probably adapt to a cap that's less than three,'" Hogue said. "But there are political subdivisions that cannot adapt to that three percent."
Hogue said larger cities and counties can rely on sales taxes and other fees, while the smaller entities can’t.
"Primarily the rural political subdivisions have less flexibility to adapt," Hogue said.
Gov. Armstrong proposed three percent caps on property tax increases.
