Impact of Measure 2
Abolishing Property Taxes
North Dakota Office of State Tax Commissioner
Cory Fong, Tax Commissioner
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%
Did you know that....
www.nd.gov/tax701.328.7088
Office of State Tax CommissionerCory Fong, Tax Commissioner
North Dakota State Tax System Like a 3-Legged Stool (2010)
Collections (in Millions $)
1.Sales/Use Taxes = $776.4 35.8%(State)
2.Income Taxes = $576.3 26.6% (State)
3.Property Taxes = $816.2 37.6%(Local)
Regional Comparison
www.nd.gov/tax701.328.7088
Office of State Tax CommissionerCory Fong, Tax Commissioner
Fargo 5.7% Billings 5.6% Minneapolis 10%
Sioux Falls 5.2%
Cheyenne 4.4%
Omaha 9% US Average 8.7%
0%
2%
4%
6%
8%
10%
1.0%2.4% 2.7%
2.1%2.9%
2.8%
2.6%
5.1%
2.4%1.6%
4.4%3.9%
1.5%
1.5%
2.4%
2.2%
1.9% 1.9%
0.4%0.6%
0.7%
0.4%
0.6%
0.6% 0.5%
Income Property Sales Auto
Perc
en
t of
incom
e g
oin
g t
o t
axes
Major Taxes as a Percent of Income
Family of 3 - $50,000 per year
SOURCE: Tax Rates and Tax Burdens in the District of Columbia – A Nationwide Comparison 2009, Government of the District of Columbia
What Do Property TaxesCurrently Support?
www.nd.gov/tax701.328.7088
Office of State Tax CommissionerCory Fong, Tax Commissioner
Schools; 45.1%
Cities; 20.9%Coun-
ties; 29.9%
Misc. Districts,
1.6%
Townships, 2.2%
State, 0.3%
Schools Cities CountiesMisc. Districts Townships State
shift to
Abolishing Property Taxes =Tax Shift
www.nd.gov/tax701.328.7088
Office of State Tax CommissionerCory Fong, Tax Commissioner
shift to
primarily oil/gas taxes
Schools
CitiesCountiesTownships
Misc Districts
SalesIncomeOil/GasAlcohol &
TobaccoLottery &
GamingFinancial
InstitutionOther State
Resources
If property tax is abolished, ►the lost revenue would need to be replaced
Sales tax rate would double
Current rate New rate5% 10%
Impact on other Tax Rates
www.nd.gov/tax701.328.7088
Office of State Tax CommissionerCory Fong, Tax Commissioner
If property tax is abolished,
►the lost revenue would need to be replaced
Individual Income Tax rates would increase 279% over 2011 rates
►Across the board increases!
2011 rates New rates1.51% 5.72%2.82% 10.69%3.13% 11.85%3.63% 13.75%3.99% 15.11%
Impact on Tax Rates
www.nd.gov/tax701.328.7088
Office of State Tax CommissionerCory Fong, Tax Commissioner
If property tax is abolished, ►the lost revenue would need to be replaced
Corporation Income Tax rates would increase 720% over 2011
rates
2011 rates New rates1.68% 13.9%4.23% 34.6%5.15% 42.2%
Impact on Tax Rates
www.nd.gov/tax701.328.7088
Office of State Tax CommissionerCory Fong, Tax Commissioner
Questions?
www.nd.gov/tax701.328.7088
Office of State Tax CommissionerCory Fong, Tax Commissioner
Office of State Tax Commissioner►[email protected]►www.nd.gov/tax►701.328.7088 or 877.328.7088►600 E Boulevard Ave, Dept. 127
Bismarck ND 58505-0599