Cass County Auditor advocates eliminating school taxes to address budget cap challenges

The North Dakota Senate Finance and Taxation Committee convened on March 17, 2025, to discuss critical issues surrounding property tax bills and the implications of proposed tax reforms. A significant focus of the meeting was the impact of school taxes and special assessments on homeowners, particularly in light of rising property valuations and new developments.

County Auditor Brandy highlighted that school districts account for nearly half of property tax bills, with the county receiving 18%. She expressed concern that special assessments, especially on long-established homes, are contributing to financial strain for homeowners. Brandy advocated for the elimination of school taxes and special assessments from property tax bills as a more effective form of tax relief for property owners.

The discussion also addressed the proposed budget caps aimed at controlling local government spending. While some legislators support a cap of 6%, Brandy warned that any form of tax cap could severely limit local control and hinder the county's ability to provide essential services. She emphasized the need for a cap that considers unique local costs, such as public safety and infrastructure, rather than relying solely on the consumer price index (CPI).

Brandy detailed the financial challenges facing Cass County, including a projected deficit of $6.9 million due to the costs associated with a new jail expansion and unfunded mandates from the legislature. She noted that 66% of the county's budget is dedicated to public safety, with salaries and benefits making up a significant portion of expenses. The county relies heavily on property taxes for revenue, with limited alternative funding sources.

In conclusion, Brandy urged the committee to consider the broader implications of tax caps on local governments, emphasizing the potential long-term effects on service delivery and fiscal health. The meeting underscored the ongoing debate over property tax reform and its impact on local communities in North Dakota.