For Immediate Release: May 15, 2012

North Dakota's Measure 2 is Reckless and Misguided
Constitutional Property Tax Ban Would Damage State’s Economic Potential

PDF of this press release (2pp.)

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A proposal to amend North Dakota's constitution to ban property taxes would lock North Dakota into a risky, uncharted course of action and leave the state's schools at the mercy of the highly volatile oil industry, according to a new report from the Center on Budget and Policy Priorities, a Washington, DC-based policy research institution.

"North Dakota has the opportunity to build upon today's oil-driven economic boom to create a strong economy and quality of life for future generations," said Michael Leachman, co- author of the report. "Measure 2 would squander that opportunity and instead lock North Dakota into a risky, uncharted path."

Should Measure 2 pass, North Dakota would be the only state to place a constitutional ban on property taxes or otherwise permanently eliminate them.

Under Measure 2, North Dakota would:

  • experience major disruptions to schools, cities, and counties across the state because the property tax is a key source of funding for each of them;
  • leave its schools financially dependent on highly-volatile oil revenues;
  • face threats to the quality of basic local services such as police and fire protection, courts, libraries, and immunizations (or face pressure for local tax increases), particularly in faster-growing parts of the state, because state funds to localities to replace property tax revenues could well erode over time;
  • provide a windfall to out-of-state property owners and the federal government rather than keeping it in state; and
  • waste an historic opportunity to invest heavily in the state's children and in the public infrastructure that forms the building blocks of a vibrant future economy and quality of life.

"Claims that Measure 2 will bring a huge economic surge – on top of the current boom – to North Dakota just don't hold up," said Leachman. "North Dakotans shouldn't be swayed by these false promises."

The full report, North Dakota's Measure 2: High Risk for Little Reward, is available at http://www.cbpp.org/cms/index.cfm?fa=view&id=3776.

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The Center on Budget and Policy Priorities is a nonprofit, nonpartisan research organization and policy institute that conducts research and analysis on a range of government policies and programs. It is supported primarily by foundation grants.

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  1. Shannon Spillane
    Shannon Spillane

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    Phone: 202-408-1080

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