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States Project Highest Tax Revenues in 5 Years — and North Dakota Considers Property Tax Ban

While U.S. states expect to collect higher tax revenue in the coming year that combined would top pre-recession levels, according to a survey released Tuesday, North Dakota is considering a ban on property tax, the New York Times reports.

“I would like to be able to know that my home, no matter what happens to my income or my life, is not going to be taken away from me because I can’t pay a tax,” Susan Beehler, an advocate of abolishing the property tax, said in the Times report.

North Dakotans who support the measure argue that the tax is “unpredictable, inconsistent, counter to the concept of property ownership and needless in a state that, thanks in part to wildly successful oil drilling, finds itself in the rare circumstance of carrying budget reserves,” according to the Times.

As States Project Highest Tax Revenues in 5 Years, North Dakota Considers Property Tax BanA worker hangs from an oil derrick outside of Willisburg, N.D. Many say that North Dakota is experiencing the largest oil boom in recent history (AP photo)

“When did we come to believe that government should get rich and we should get poor?” Beehler asked.

On a national level, total tax revenue is forecast to rise 4.1 percent to $690.3 billion in the 2013 budget year, according to a twice-yearly survey by the National Governors Association and the National Association of State Budget Officers. It’s the third straight year of revenue growth and $10 billion more than the budget year that ended June 2008, according to the Associated Press.

Total state spending would increase by 2.2 percent and remain below pre-recession levels, the report said.

“The thing we’re definitely seeing is stability,” said Scott Pattison, executive director of the budget officers’ group. Only eight states were forced to close unexpected mid-year budget gaps this year, he said, compared to 39 states two years ago.

Arizona, Ohio, and Michigan are anticipating some of the biggest increases in tax revenue next year. In Ohio, tax revenue is projected to rise to $17.6 billion next year, an 8.6 percent increase from the current budget year.

Others states are seeing less improvement. Iowa, Illinois and Arkansas are among those forecasting small increases.

And even though California is forecasting higher revenue, the state is struggling to close a $16 billion budget deficit and is considering cutting programs. So are many other states. Aid from the federal government is dropping and demand for health care, education, and other services is rising.

The issue of state and local government job cuts inflamed the presidential campaign last week. President Barack Obama on Friday urged Republicans in Congress to approve legislation he has proposed that would enable more teachers and police officers to keep their jobs.As States Project Highest Tax Revenues in 5 Years, North Dakota Considers Property Tax Ban

Since August 2008, when state and local government employment peaked, local governments have cut 528,000 jobs. State governments have shed 134,000.

Layoffs are slowing at the state level. State governments added an average of 3,000 jobs a month in the past six months, after cutting an average of 5,200 in the preceding six months. Still, the cuts aren’t entirely over: states cut 5,000 jobs in May.

The biggest layoffs have been at the local level, particularly in public schools. Local governments rely on property taxes, which are still declining as property values fall in the wake of the housing bust.

And this is where opponents of abolishing the property tax in North Dakota make their strongest argument: the needs of the public sector.

“This is a plan without a plan,” said Andy Peterson, president and chairman of the North Dakota Chamber of Commerce, in the Times report. “But this solution is a little like giving a barber a razor-sharp butcher knife — and by the way, this barber is blind — and asking him or her to give you a haircut. You’ll get the job done, but you might be missing an ear or an eye.”

Apparently, the ballot measure has been met with opposition by the people of North Dakota. Even Gov. Jack Dalrymple (R-ND) opposes the property tax ban.

“It’s mind-boggling, really,” he said, referring to the effects of a property tax ban, “We’d be changing everything, frankly.”

As States Project Highest Tax Revenues in 5 Years, North Dakota Considers Property Tax BanGov. Jack Dalrymple (R-ND)

Still, even if the ban fails, two things have been accomplished: a) the measure has made a strong impression on conservative circles and b) residents in favor of the property tax ban have finally forced North Dakota politicians to tackle the property tax issue.

“I have to say that we totally understand that North Dakotans are very concerned about their property tax payments,” Gov. Dalrymple said. “You have a tension there, and people say this can’t keep on.”

Update: The people of North Dakota rejected the measure by an overwhelming majority.

“More than 76% voted ‘no’ in Tuesday’s initiative to get rid of the property tax, according to returns from the North Dakota Secretary of State,” CNNMoney reports.

“The proposal, known as Measure 2, would have amended the state’s constitution. If it had been approved, North Dakota would have been the only state without a property tax,” the report adds.

Click here to read the full Times report.

The Associated Press contributed to this report.

Comments (58)

1 2
  • neoconenemy
    Posted on June 12, 2012 at 5:18pm

    ‘Even Gov. Jack Dalrymple (R-ND) opposes the property tax ban.’

    still think Republicans are for small government? Republicans should be fighting to ELIMINATE taxes not cut them. Republicans cut taxes so democrats can come back and raise them again. Eliminating taxes is much more effective in constraining government. Libs would have a much tougher time imposing new taxes rather than simply raising the ones that already exist. I hope ND eliminates the property tax. They should eliminate the income tax if they can as well. If republicans are really for small government lets see. Guys like Rick Perry in Texas say they have cut taxes when in reality they have raised taxes in the form of fees and property taxes in Texas are rally high. Most of the jobs created in Texas (over 150000) have been government jobs. There go those small government republicans!!

    Report Post »  
    • black9897
      Posted on June 12, 2012 at 6:13pm

      Exactly. Get rid of all of them. All taxation is theft. If you want my money you can earn it on a voluntary basis! Not sticking a gun to my head and making me pay.

      Report Post » black9897  
    • JThunder
      Posted on June 13, 2012 at 12:02pm

      Move along, nothing to see here.

      Report Post » JThunder  
  • PASSIONFORCHRIST
    Posted on June 12, 2012 at 4:30pm

    Property taxes were implemented for cities when they grew big. The taxes provided for: public school, fire department, police and only for that city. BUT THE STATES HAVE CONFISCATED THESE PROPERTY TAXES TO “RE-DISTRIBUTE “(YA RIGHT) THROUGH OUT THE STATE.

    Report Post »  
  • nighttrainno9
    Posted on June 12, 2012 at 4:29pm

    If you are paying property tax, you do not own your land.
    You are renting it from whomever your paying taxes to
    which is against the constitution. In this country we have the
    right to own our land outright. Property tax should be banned in
    every state under the constitution. Income tax is also illegal,
    the only tax provided by the constitution is the corporate tax.
    Stand up Americans this is our country, the thieves in govt.
    have bullied us way too long.

    Report Post »  
    • poweruser19
      Posted on June 13, 2012 at 2:46am

      better start paying attention to what is happening with “agenda 21”…..

      Report Post »  
    • nzkiwi
      Posted on June 13, 2012 at 8:11am

      I should add that the many people on this site, like myself, who live outside America should try that as well. This has been going on for 20 years now, and the hooks are in good and deep.

      Report Post »  
    • nzkiwi
      Posted on June 13, 2012 at 10:15am

      I don’t know where my first post went, but now the second post makes no sense. And the Blaze won’t let my repeat post go through.

      Doesn’t matter, I suppose. It‘s only my little opinion and it’s not all that important.

      Report Post »  
    • Jaycen
      Posted on June 13, 2012 at 7:24pm

      Spot on, Nighttrainn09. I’ve been saying that ever since I first heard of “property taxes”.

      Report Post » Jaycen  
  • WINNEBAGOMAN
    Posted on June 12, 2012 at 3:50pm

    This is a horrible idea. Ban personal income tax! That stifles growth. Passing a ban on property tax will only encourage land gluttons into buying large parcels to sit on until their price goes up to whatever amount they want. That land will be wasted. Undeveloped. I, personally, would only agree to see such legislation pass ONLY if we brought back squaters’ rights, in that if privately owned land sat idle for over 7 years another person can assume ownership of that property (at a fair value- market value), whether or not the original land owner agrees to it, if and only if the purchaser develops the land within 3 years.

    Report Post » WINNEBAGOMAN  
    • The_Jerk
      Posted on June 12, 2012 at 3:59pm

      Property tax should be banned and illegal everywhere. Once you pay for your land and your house, you should not be forced to pay rent to a government. With property taxes, you are always a tenant of the government. You own nothing.

      Report Post »  
  • AmazingGrace8
    Posted on June 12, 2012 at 3:27pm

    I would love to hear from Sarah Palin on this subject. There are pros & cons and she has a proven track record about $$$ sharing with the citizens of the state. After I hear from her, I will have more information to ponder about this matter. Just saying.

    Report Post »  
  • rsanchez1
    Posted on June 12, 2012 at 3:18pm

    North Dakota is a model for the nation, developing its energy reserves to bring prosperity to its people and reducing tax burdens on its citizens. This should show Obama and Romney that easing restrictions on development of coal, natural gas, and oil development will result in prosperity, and will create more jobs than the current president claims he “saved” with all his bailouts.

    Report Post »  
  • jtm45
    Posted on June 12, 2012 at 3:15pm

    Repeal the property Tax! They will spend the surplus(by hiring thousands more bureaucrats with hugh pensions and benefits) unless you demand a refund of overpayment and when you get in a bust cycle or say Obama is re-elected and finds your oil riches are all illegal and confiscates the money and property and gives it to China for loan repayment{ could it really happen?} hey,why can the government Tax you into homelessness? you folks out west need to lead by example and not some psychosis fear that property taxes are necessary

    Report Post » jtm45  
  • Independent4233
    Posted on June 12, 2012 at 3:12pm

    If you get sick and can’t pay property taxes you will be evicted from your property no matter if you own it free and clear.

    And if you refuse to leave the premises, because you have paid for it and it has been in your family for years, it doesn’t matter one iota to the fat bureaucrats. The county Gestapo will send a swat team out to evict you. And if you do not leave and you resist them, THEY WILL KILL YOU.

    You do not own your home.

    The government owns it.

    You pay the government rent, in the form of property taxes, in order to live there.

    American settlers came to the US because they were not safe and secure in their own homes.

    THEY ARE STILL NOT SAFE AND SECURE IN THEIR OWN HOMES.

    Report Post »  
    • taxpro4u03
      Posted on June 12, 2012 at 7:24pm

      You are correct — here’s WHY — (intentional deceit is also known as FRAUD, which makes ALL contracts null and void from their SOURCE) —-> The First Virginia Land ‘grant’ of 1608 is still in effect :-) It‘s considered ’Crown property,’ owned by the Pope when he VOIDED the Magna Carta of 1215 — stems from buying tickets out of hell…. read some of this and follow it back… All the way to the LAST Ptolomey ‘king,’ Cleopatra… there’s a REASON there are three city-states in the Empire of Cities (London, D.C., Vatican City) and all THREE share the same central ‘oblisk’ — find out WHY as you do your own homework… Labeling something a ‘conspiracy theory’ simply to marginalize doesn’t change FACTS.
      http://www.apfn.org/apfn/bcolony.htm

      Report Post »  
  • jtm45
    Posted on June 12, 2012 at 3:07pm

    Repeal the property tax! The government baffoon bureaucrats will spend it regardless, if they hire thousands more government workers(bureaucrats)they become part of the Demon Rat voting machine and they will have lucrative pension and health care deals unatainable in the private sector that you will be forced to pay by the politicians they elect and if it all goes away,say if Obama is re elected and decides you have illegal operations going on, you will be stuck. Also, you need to set a example for the rest of the country. Keep the Scott Walker momentum going.

    Report Post » jtm45  
  • inferno
    Posted on June 12, 2012 at 3:03pm

    The two taxes that keep people from obtaining economic independance are the income tax, state and federal (taxing ones labor), and property tax. No doubt people who rent believe they are exempt from paying property taxes. In reality, they are in fact paying property taxes, as[part of their monthly rent.

    Report Post »  
  • PROSECUTE_PUBLIC_SERVANTS__FOR_CONSTITUTIONAL_TREASON
    Posted on June 12, 2012 at 3:00pm

    State gov.’s need to vote to keep federal tax money at home and have citizens pay federal tax into a state trust. We can starve the Washington criminals by withholding our tax and placing in the hands of the States. With no tax revenue how can the federal gov. borrow? They can’t. Washington would be a ghost town overnight.

    Report Post »  
    • neoconenemy
      Posted on June 12, 2012 at 5:21pm

      I’ve always been a big fan of starve the beast philosophy. Voting will never work as idiots will flock to the polls and cancel out your vote. Starving the beast is the only non violent resistance that will save us. If only we were courageous enough.

      Report Post »  
  • tharpdevenport
    Posted on June 12, 2012 at 2:39pm

    I heard about this yesterday (and today) on Rush’s show, where he pointed out it‘s looking like they’ll vote against it because they’ve been talked into believing the government may need that money later.

    This is incredible. I got a better idea, if they buy that bunk, then how about they vote that down and have a new re-worded one that says property tax will be suspended until such time as an emergency arises and the voters vote again to re-instate it, that way they have that bunk they bought into, and also ZERO property tax.

    Report Post » tharpdevenport  
  • duketurner
    Posted on June 12, 2012 at 2:39pm

    If they do that, I will move there buy a couple sections and build a nice homestead. . Cold is cold, but saving $10,000 a year by not throwing money down the drain (paying property taxes which are thrown down the drain by state politicians) is worth it. Summers are nice and snowmobiling is fun.

    Report Post » duketurner  
    • hauschild
      Posted on June 12, 2012 at 2:57pm

      I can’t move there yet, but would certainly purchase a home there and rent it out for now. So, I’d be right behind ya. I nearly went out there a few weeks back for a “scouting” trip. I wanted to buy 5 years ago (because I knew then what was on the horizon in ND – low numbers of slackers coupled with energy production = good times at least short-term), but couldn’t swing it.

      Report Post »  
  • love the kids
    Posted on June 12, 2012 at 2:37pm

    I guess my question is; if republicans have blocked every piece of legislation that the Dems have tried to put forth, then wouldn’t the Repubs get the credit for the Tax revenue in?
    Which is it Dems? We stopped everything, which means that everything should be dying, but when something goes right, you take credit for it.

    Report Post »  
  • highfiber
    Posted on June 12, 2012 at 2:35pm

    I’m a conservative who lives in ND. If the property tax is abolished, then the state government has to come up with money to dole out to all the local cities and schools who get their funding through property taxes. I voted to keep the property tax, because we’ve had oil booms before. The government lowered or eliminated taxes then too, and eventually the oil boom stopped. It could happen again, especially with liberals and progressives in office at the federal level. If the oil boom turns to a bust because of the EPA, or Obama, or for any other reason, we’d have to start all over with the taxes again, but at a higher rate. We have a surplus in the state right now, but that could be wiped out in a heartbeat. As long as they don’t RAISE the taxes, then I’m for keeping it the way it is, and again, I’m a conservative. Other states (at least Vermont) have banned fracking. If they (or Obama if he wins in Nov.) ban it here, it’ll wipe out 1/3 of our economy. We have oil/gas, coal, and farming. Obama’s against all 3 of those industries. He could wipe out this state’s whole economy with his EPA and all their regulations. The property tax is a little insurance for the local communities so they don’t have to get all their money from the state. We’re doing very well right now, but that could all end if conservatives don’t get the White House back.

    Report Post »  
    • mtcountrygrl
      Posted on June 12, 2012 at 2:41pm

      If you are truly conservative, you need to re-consider your position. Property taxes are not constitutional. You can never own your property if the government can continue to tax it at un-predictable rates and then seize your property if you cannot pay. Also, property taxes are raised by mob rule vote, constantly (levies anyone). Imagine if your neighbors could regularly raise your income taxes because they want a new gym at the school. Property taxes are one of the largest infringes on liberty at the state level.

      Report Post »  
    • duketurner
      Posted on June 12, 2012 at 2:42pm

      Didn’t you guys in ND have a chance to vote on your state constitution. Why didn’t you vote to free yourself from the overbearing Federal Government and go with freedom. Then you could farm, mine, mill, trade however you wish.

      Report Post » duketurner  
    • hauschild
      Posted on June 12, 2012 at 2:54pm

      If local communities didn’t spend frivolously, there would be ZERO need for property tax.

      I don’t care how much I thought my community might need it, there are always other options to accomplish monetary goals when reasonable minds are involved.

      Remember this line from Ben:

      Those would trade liberty for security deserve neither. In this case, security is money for public screwls that really wouldn’t be necessary if more reasonable minds prevailed. But, many of us sacrifice liberty because we’re lazy.

      Report Post »  
    • highfiber
      Posted on June 12, 2012 at 3:30pm

      ND has only a 5% state sales tax. We have low automobile insurance rates. We have lower medical insurance rates (comparing to MN, for example). Our property taxes are much lower than MN. Where do people think that the money for road repair, bridge repair, etc comes from? We live in a small town and have 2 lots with a house, a very large garage, and a big back yard. Our property taxes are under $300 annually. We have a small business in a different small town. We have 3 lots where our business is, and pay just over $300 annually in property taxes. What’s so horrible about that, considering one is residential, one is business, and all our other taxes/insurances are lower than many other states? Also, our housing costs are lower than other states (not counting the western part of the state where the oil boom is.)…. If the property taxes are eliminated, then they’ll just raise the sales tax, or tax something else anyway.

      Report Post »  
    • hauschild
      Posted on June 12, 2012 at 4:48pm

      @Highfiber

      So, what is your point? That property taxes are necessary? But why, if that’s all you pay? Sounds to me like with your low property taxes, it makes it even more possible to completely abolish this sham that’s been perpetrated on the American citizen for way too long.

      Remember, there are plenty of people that could get along just fine if their local governments packed up and got our of their lives. Not everybody feels the need to trade liberty for security.

      Report Post »  
  • Individualism
    Posted on June 12, 2012 at 2:10pm

    Wow i would buy some land and a house in that state if there was no property tax so than i actually own forever after paying for it.

    Report Post » Individualism  
    • mtcountrygrl
      Posted on June 12, 2012 at 2:37pm

      Property tax is unconstitutional. You can never own your property if the government can keep taxing it every year. And can raise that tax at any time, and seize your property if you cannot pay. There is no right to own property, as long as there is a property tax.

      Report Post »  
    • girlnurse
      Posted on June 12, 2012 at 2:57pm

      Ive literally given away pieces of land that I owned outright because I got sick of paying the huge tax bills! I will NEVER own a piece of property or house again because you really do NOT own it! The government does…its a crock. They get enough in income tax and sales tax…maybe they should start dismanteling some of the HUGE government bureocracies that handle those taxes..
      How bout the lotto money in Ca thats supposed to go to schools…ugh

      Report Post » girlnurse  
    • Maxim Crux
      Posted on June 12, 2012 at 6:13pm

      mtcountrygrl…I agree with you completely on this issue. You are absolutely right.

      Report Post »  
  • American Capitalist
    Posted on June 12, 2012 at 2:05pm

    Now that is something I can support!!

    Report Post » American Capitalist  
  • BurntHills
    Posted on June 12, 2012 at 1:42pm

    out on the range, we are extorted ‘more than’ $5 A DAY to our county in prop tax just to be able to live on our ancestral 1860 homestead. you bet we’d like to enjoy our home again without this paying the county GOVT an extortion fee to BE ALOWED TO LIVE HERE. [most of it goes to a dying liberal school dist .. all of us prefer to HOMESCHOOL... and a pittance says it goes to -totally- nonexistant road maintenance]

    Report Post » BurntHills  
  • progressiveslayer
    Posted on June 12, 2012 at 1:34pm

    The state prospers when the boot of government is off the necks of business,shocking I know for our progressive friends to understand such a simple concept.

    Report Post » progressiveslayer  
    • CatB
      Posted on June 12, 2012 at 1:52pm

      You should not have to worry about losing your home because of taxes … I think this is a wonderful idea. Hope they pass it and others states follow .. Florida could bring back home sales bigtime doing this.

      Report Post »  
    • progressiveslayer
      Posted on June 12, 2012 at 2:29pm

      That‘s true you shouldn’t have to worry about losing your property because of taxes and it should go nationwide with the ban on property taxes.Property taxes are part of the communist manifesto in that you never really own your property ie if you fail to pay the tax the state will seize the property.

      Report Post » progressiveslayer  
  • Hickory
    Posted on June 12, 2012 at 1:21pm

    Every state should have a contingency fund that could carry them at least a couple of years in case of economic collapse. Zero property taxes are not the answer no more than excessive property taxes.

    Report Post » Hickory  
    • hauschild
      Posted on June 12, 2012 at 2:01pm

      Wouldn’t a contingency fund be covered or borrowed from the Fed? How many natural disasters over the course of time might occur that couldn’t be reasonably covered by short-term borrowing?

      Property taxes are unconstitutional, in my opinion. You can have YOUR property confiscated forever by the government if you happen not to pay your taxes. How is that essentially not thievery???

      Report Post »  
    • ZBrooks
      Posted on June 12, 2012 at 2:12pm

      Do I own a piece of property if the government can just deed the land to itself? How am I not a renter? Liberty relies on property rights, hence the reason Karl Marx wrote that it was necessary to impose a property tax on the people.

      Report Post »  
  • MDDAWG
    Posted on June 12, 2012 at 1:17pm

    It doesn’t matter how much taxes the states collect. They will find a way to spend it on more programs. This will be mostly progressive/liberal controlled states. They will still screw the public property tax payor.

    Report Post » MDDAWG  
  • hauschild
    Posted on June 12, 2012 at 1:16pm

    If this happens in North Dakota, I’d purchase a home there ASAP. Was considering it anyway because of the low population (which means little overhead long-term and not much riff-raff), but this would be a deal-sealer.

    Report Post »  
  • Gonzo
    Posted on June 12, 2012 at 1:16pm

    Obama would stop the oil drilling, put up windmills and tax the crap out of everyone in the state. “Because the private sector is doing fine.”

    Report Post » Gonzo  
    • BurntHills
      Posted on June 12, 2012 at 1:29pm

      obama would allow his ‘private army’ to starve, ghetto, homeless and slaughter every single Christian American Conservative if he could get away with it.

      Report Post » BurntHills  
  • jackact
    Posted on June 12, 2012 at 1:16pm

    The new dialogue of constitutional America.
    The words, ‘ban property taxes’.
    Get used to it.
    :)

    Report Post »  
    • hauschild
      Posted on June 12, 2012 at 1:57pm

      It would be nearly impossible in any other state – especially Midwestern states and their love affair with the public sector.

      And, sadly, I don’t think it could last long once implemented, because as this country has proven, people tend to get way too soft over time when things are going well. They begin focusing on stupid things like reducing classroom size – which means billions more in pension obligations down the line.

      I think IF the government sector changes to absolutely ZERO pension benefits, then having no property taxes could be feasible. But, hand it to the progressives: They’ve created a beast all but impossible to starve.

      Report Post »  
  • Mutiny
    Posted on June 12, 2012 at 1:15pm

    I love it. Wish we could do something like that in my state, but we have too many living off the government for that.

    Report Post » Mutiny  
    • BurntHills
      Posted on June 12, 2012 at 1:53pm

      census says 66% of this very rural county is on fed govt welfare and 66% of that is on fed govt disability. we have had over 18% unempl. here since 2009. it‘s over 90mins to the ’factory towns’ and most that do punch a time clock work there without complaint. we have severely depleted small farm towns falling into disrepair but we also have almost non-existant crime and almost no minorities. everyone knows everyone else.

      of 1800+ households in the entire county, which does not have a single factory or industry left, only some 600 of us pay the county property tax and state taxes.. and we workers have to support the rest.

      Report Post » BurntHills  
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