North Dakota voters to decide on eliminating property tax

[WestVirginiaRebel]

Fox News:

Pushing the bounds of the anti-tax movement that erupted with the formation of the Tea Party three years ago, North Dakota voters on Tuesday are set to decide whether to abolish their state's local property taxes.

Polls show the proposed constitutional amendment facing stiff opposition in the state.

But if it did pass, North Dakota would be the first state to eliminate the local taxes. And the vote would immediately trigger a legislative scramble, as governments across the state would have to figure out how to deal with the sudden revenue shortfall.

Under Measure 2, property taxes would be eliminated and the Legislature would be ordered to supply replacement revenue to the local governments that depend on them. The state Tax Department estimated the needed sum would be more than $800 million annually.

A businessman who helped pull the campaign together said he remains hopeful despite the public opinion surveys.

"I am not an optimist unrealistically. I just have listened to too many people say they are supporting us," Robert Hale said. "I hope the people who have been frustrated with what's going on vote that way ... I put the time and effort into it for that reason, and so did everyone else who (backed the measure)."

The proposal gained currency in part because of North Dakota's economic prosperity, fueled by an energy boom that has left the state treasury with surpluses greater than $1 billion. The state has had the nation's lowest unemployment rate, and the measure's supporters say North Dakota government could afford to replace the local revenues.

Legislators predicted if voters endorsed the amendment, Gov. Jack Dalrymple would have to quickly call a special session to deal with the aftermath.

"The more that people understand what this measure is all about, the more they seem to reject it," said Andy Peterson, president of the North Dakota Chamber of Commerce, which opposed the amendment. "We're hearing from folks who think their property taxes are too high, but they agree this is not the answer."

The amendment was put on the ballot by a citizens' group called Empower the Taxpayer, led by Hale and Charlene Nelson, a Casselton activist. More than 27,000 North Dakota voters signed petitions demanding the vote.

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Tax revolt.