Senator Grama questions impact of property tax reforms on low-income residents

The North Dakota Senate Finance and Taxation Committee convened on April 16, 2025, to discuss key issues surrounding property tax deductions and voter-approved mill levies. The meeting highlighted concerns regarding the impact of current tax policies on low-income property owners and the complexities of managing voter-approved funding.

Senator Grama initiated the discussion by addressing the challenges of property tax deductions, particularly focusing on the "skin in the game" aspect. He noted that the proposed deductions primarily benefit individuals with property taxes below $2,200, which includes a significant number of mobile home users. With a deduction structure that includes a 75% benefit capped at a $500 floor, Senator Grama expressed concern that the current targeting may not effectively assist those who need it most.

The conversation then shifted to the issue of voter-approved mill levies. Senator Grama pointed out that many of these levies are intertwined with the general fund, making it difficult to isolate and address them individually. He explained that while some levies, such as school bond issues, are more straightforward to identify and manage, the majority are not easily segregated, complicating efforts to reform or adjust them.

The committee's discussions underscored the ongoing challenges in balancing property tax relief with the complexities of funding mechanisms approved by voters. As the committee continues to explore these issues, the implications for low-income property owners and the management of public funds remain critical points of focus.