2/8/2012:
In his inaugural address in 1925, Governor A. G. Sorlie stated, "Taxes upon our lands and properties have, during the past ten years, increased one, two and sometimes three hundred percent; so that their payment has become a tremendous burden upon our citizens; almost too grievous to be borne, and the unmarked line between legitimate taxation and unwarranted confiscation of our properties has at least been approached." His words echoed those of the North Dakota Taxpayers Association, which formed on December 20, 1922 with a purpose of examining how state tax dollars were spent.
Almost ten years later, on this date in 1932, concerned citizens from Burleigh County learned that a Burleigh County Taxpayers Association had been organized. Approximately two hundred persons gathered at the Burleigh County Courthouse and formed an association whose primary aim was to keep a watchful eye on the expenditure of public money and the levy and assessment of taxes and also to disseminate information regarding such matters. They were to make recommendations to public officials and other interested parties and take action when necessary regarding the administration of public affairs.
The Taxpayers Associations across the state had a significant effect on taxation and public spending. A series of initiatives were introduced in 1932. The salaries of county officials were reduced and became based on county population. The salaries of district judges were reduced by $500 per year. Travel expenses for county and state officials were reduced, and the salaries of elected state officials were reduced by twenty percent.
It was a time when the national economy was weakening, and North Dakota’s mostly rural population was feeling the effects. Money to pay taxes was hard to come by. A significant initiated measure, which was also passed in 1932, reduced the valuation of property for taxation from seventy-five percent of its value to fifty percent. Since property taxes funded schools, the measure brought many school districts to insolvency. To counteract the loss of revenue, the 1933 Legislature passed the Emergency Replacement Revenue Act, which was basically a 2% sales tax on businesses. So, despite the efforts of the Taxpayers Associations, the taxes didn’t go away, they just came in another form. Like Ben Franklin said many years ago, "...nothing can be said to be certain, except death and taxes.”
Dakota Datebook written by Jim Davis
Sources:
History of North Dakota by Elwyn B. Robinson 1982
The Bismarck Tribune February 8, 1932