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<blockquote data-quote="Sluggo" data-source="post: 493098" data-attributes="member: 667"><p>From what I recall from the last go around, the constitution would only contain what is not legal. Any replacement for property tax would just be ND law and the new approach would have to be constitutional. Just like the first amendment doesn’t specifically say you can burn the flag in protest, it just says we have freedom of expression. </p><p>I think we have to pass the amendment and then that would force the legislature to come up with the solution. That’s what they are elected to do.</p><p></p><p>Here are some options from ChatGPT:</p><p></p><p>Here are the principal options North Dakota could use to replace the revenue lost from exempting primary residences from property taxes.</p><p></p><table style='width: 100%'><tr><th>Option</th><th>Description</th><th>Advantages</th><th>Disadvantages</th></tr><tr><td><strong>1. Oil & Gas Tax Revenue</strong></td><td>Dedicate a larger share of oil production and extraction taxes to local governments.</td><td>No new taxes; benefits from North Dakota's natural resources.</td><td>Revenue fluctuates with oil prices and production.</td></tr><tr><td><strong>2. State General Fund</strong></td><td>Replace local revenue through annual state appropriations.</td><td>Keeps taxes unchanged for residents; flexible.</td><td>Competes with education, healthcare, infrastructure, and other priorities.</td></tr><tr><td><strong>3. Higher State Sales Tax</strong></td><td>Increase the state sales tax rate (or broaden the tax base).</td><td>Broad tax base; relatively easy to administer.</td><td>More regressive; affects residents and visitors alike.</td></tr><tr><td><strong>4. Higher Income Tax</strong></td><td>Increase individual and/or corporate income tax rates.</td><td>Based more on ability to pay.</td><td>Could affect competitiveness and discourage investment.</td></tr><tr><td><strong>5. Local Option Sales Taxes</strong></td><td>Allow cities and counties to increase local sales taxes.</td><td>Local control over funding.</td><td>Creates differences between communities and may shift shopping elsewhere.</td></tr><tr><td><strong>6. Increased Taxes on Second Homes and Commercial Property</strong></td><td>Leave taxes in place or increase them on non-primary residences and business property.</td><td>Protects homeowners while preserving local revenue.</td><td>Increases costs for businesses, landlords, and renters.</td></tr><tr><td><strong>7. Consumption Taxes</strong></td><td>Increase taxes on fuel, tobacco, alcohol, gaming, lodging, or luxury purchases.</td><td>Can target discretionary spending or visitors.</td><td>Revenue may be insufficient by itself.</td></tr><tr><td><strong>8. User Fees</strong></td><td>Increase fees for services such as permits, utilities, parks, waste collection, or licenses.</td><td>Users pay for services they receive.</td><td>Doesn't generate enough revenue to replace property taxes on its own.</td></tr><tr><td><strong>9. Spending Reductions</strong></td><td>Reduce local government expenditures to match lower revenues.</td><td>No tax increases.</td><td>May reduce public services, delay maintenance, or require staffing reductions.</td></tr><tr><td><strong>10. Combination Approach</strong></td><td>Use several of the above sources together.</td><td>Spreads the burden and reduces reliance on any one revenue source.</td><td>More complex and requires legislative coordination.</td></tr></table><h3>Possible Revenue Package</h3><p>A balanced replacement plan might include:</p><p></p><ul> <li data-xf-list-type="ul"><strong>50%</strong> from increased distributions of oil and gas tax revenue.</li> <li data-xf-list-type="ul"><strong>25%</strong> from state general fund appropriations.</li> <li data-xf-list-type="ul"><strong>15%</strong> from a modest increase in the state sales tax.</li> <li data-xf-list-type="ul"><strong>10%</strong> from efficiency measures and targeted user fees.</li> </ul><p>This approach avoids placing the entire burden on one source and helps stabilize funding during fluctuations in energy prices.</p><p></p><h3>Another Option: Create a Permanent Trust Fund</h3><p>North Dakota could also establish a <strong>Homeowner Property Tax Replacement Trust Fund</strong>, capitalized with oil tax revenues or budget surpluses. Investment earnings from the fund would be distributed annually to local governments to replace taxes on primary residences. This could reduce long-term dependence on annual legislative appropriations while taking advantage of the state's resource wealth.</p></blockquote><p></p>
[QUOTE="Sluggo, post: 493098, member: 667"] From what I recall from the last go around, the constitution would only contain what is not legal. Any replacement for property tax would just be ND law and the new approach would have to be constitutional. Just like the first amendment doesn’t specifically say you can burn the flag in protest, it just says we have freedom of expression. I think we have to pass the amendment and then that would force the legislature to come up with the solution. That’s what they are elected to do. Here are some options from ChatGPT: Here are the principal options North Dakota could use to replace the revenue lost from exempting primary residences from property taxes. [TABLE] [TR] [TH]Option[/TH] [TH]Description[/TH] [TH]Advantages[/TH] [TH]Disadvantages[/TH] [/TR] [TR] [TD][B]1. Oil & Gas Tax Revenue[/B][/TD] [TD]Dedicate a larger share of oil production and extraction taxes to local governments.[/TD] [TD]No new taxes; benefits from North Dakota's natural resources.[/TD] [TD]Revenue fluctuates with oil prices and production.[/TD] [/TR] [TR] [TD][B]2. State General Fund[/B][/TD] [TD]Replace local revenue through annual state appropriations.[/TD] [TD]Keeps taxes unchanged for residents; flexible.[/TD] [TD]Competes with education, healthcare, infrastructure, and other priorities.[/TD] [/TR] [TR] [TD][B]3. Higher State Sales Tax[/B][/TD] [TD]Increase the state sales tax rate (or broaden the tax base).[/TD] [TD]Broad tax base; relatively easy to administer.[/TD] [TD]More regressive; affects residents and visitors alike.[/TD] [/TR] [TR] [TD][B]4. Higher Income Tax[/B][/TD] [TD]Increase individual and/or corporate income tax rates.[/TD] [TD]Based more on ability to pay.[/TD] [TD]Could affect competitiveness and discourage investment.[/TD] [/TR] [TR] [TD][B]5. Local Option Sales Taxes[/B][/TD] [TD]Allow cities and counties to increase local sales taxes.[/TD] [TD]Local control over funding.[/TD] [TD]Creates differences between communities and may shift shopping elsewhere.[/TD] [/TR] [TR] [TD][B]6. Increased Taxes on Second Homes and Commercial Property[/B][/TD] [TD]Leave taxes in place or increase them on non-primary residences and business property.[/TD] [TD]Protects homeowners while preserving local revenue.[/TD] [TD]Increases costs for businesses, landlords, and renters.[/TD] [/TR] [TR] [TD][B]7. Consumption Taxes[/B][/TD] [TD]Increase taxes on fuel, tobacco, alcohol, gaming, lodging, or luxury purchases.[/TD] [TD]Can target discretionary spending or visitors.[/TD] [TD]Revenue may be insufficient by itself.[/TD] [/TR] [TR] [TD][B]8. User Fees[/B][/TD] [TD]Increase fees for services such as permits, utilities, parks, waste collection, or licenses.[/TD] [TD]Users pay for services they receive.[/TD] [TD]Doesn't generate enough revenue to replace property taxes on its own.[/TD] [/TR] [TR] [TD][B]9. Spending Reductions[/B][/TD] [TD]Reduce local government expenditures to match lower revenues.[/TD] [TD]No tax increases.[/TD] [TD]May reduce public services, delay maintenance, or require staffing reductions.[/TD] [/TR] [TR] [TD][B]10. Combination Approach[/B][/TD] [TD]Use several of the above sources together.[/TD] [TD]Spreads the burden and reduces reliance on any one revenue source.[/TD] [TD]More complex and requires legislative coordination.[/TD] [/TR] [/TABLE] [HEADING=2]Possible Revenue Package[/HEADING] A balanced replacement plan might include: [LIST] [*][B]50%[/B] from increased distributions of oil and gas tax revenue. [*][B]25%[/B] from state general fund appropriations. [*][B]15%[/B] from a modest increase in the state sales tax. [*][B]10%[/B] from efficiency measures and targeted user fees. [/LIST] This approach avoids placing the entire burden on one source and helps stabilize funding during fluctuations in energy prices. [HEADING=2]Another Option: Create a Permanent Trust Fund[/HEADING] North Dakota could also establish a [B]Homeowner Property Tax Replacement Trust Fund[/B], capitalized with oil tax revenues or budget surpluses. Investment earnings from the fund would be distributed annually to local governments to replace taxes on primary residences. This could reduce long-term dependence on annual legislative appropriations while taking advantage of the state's resource wealth. [/QUOTE]
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