State officials estimated that Measure 4 would cost North Dakota $3.15 billion in lost revenue over two years. Realtor.com Chief Economist Danielle Hale cautioned that while North Dakota’s property tax system might benefit from reform, eliminating it entirely could create even greater challenges.
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North Dakota voters rejected Measure 4, a proposal to abolish personal property taxes, with 63.5 percent voting against the measure during the election, the New York Post reported Thursday. Critics argued that the plan would severely undermine funding for essential public services.
Measure 4 aimed to prohibit state and local governments from levying taxes on personal property, except for those used to pay for bonded indebtedness. In 2023, North Dakota homeowners paid an average effective property tax rate of 0.99 percent, according to Attom Data Solutions.
State and local governments collected approximately $760 billion in property taxes in 2023, a 31 percent increase from 2018, based on U.S. Census Bureau data.
State officials estimated that Measure 4 would cost North Dakota $3.15 billion in lost revenue over two years. Realtor.com Chief Economist Danielle Hale cautioned that while North Dakota’s property tax system might benefit from reform, eliminating it entirely could create even greater challenges.
“The North Dakota proposal to eliminate property taxes does not specify what the alternative will be,” Hale said. “The property tax in North Dakota could stand to be reformed, but getting rid of it entirely could create bigger problems than property owners currently face.”
Measure 4 was also championed by Rick Becker, a former Republican state legislator, who argued that property taxes were “fairly immoral” and “the ability for the government to take away something that you should rightfully own is improper,” according to the New York Post.
The measure faced strong opposition from over 80 state organizations, including the North Dakota Fire Chiefs Association, the School Board Association, the North Dakota Sheriffs and Deputies Association, the EMS Association, the North Dakota AFL-CIO and the Greater North Dakota Chamber. These groups warned that eliminating property taxes would deprive local governments of crucial revenue, forcing them to either slash services or raise new taxes to make up the shortfall.
The measure was one of several property tax-related measures on ballots nationwide during the general election. While North Dakota would have been the first state to eliminate personal property taxes if the measure passed, other states, including Florida and Georgia, approved measures to limit annual property tax increases. Meanwhile, Oklahoma voters rejected a proposal to create new special tax districts.