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Proposal would cap home-rule sales, use and gross-receipts taxes at 3%; cities, counties urge caution
Summary
House Bill 1552 would limit home-rule political subdivisions to a 3% cap on local sales, use or gross-receipts taxes; local governments warned a statutory cap would limit local control and asked the committee to reject the proposal or consider targeted alternatives.
Representative Craig Hedlund opened a Finance and Taxation Committee hearing on House Bill 1552, saying the bill would cap sales, use and gross-receipts taxes levied under home-rule authority at 3 percent. Hedlund said the intent is to protect state competitiveness and state revenue streams while giving predictability about the local sales-tax ceiling.
Witnesses representing cities and counties urged the committee to reject a statutory cap. Bill Wilkin of the North Dakota League of Cities…
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