Measure 2 is not like the first and last questions North Dakotans will vote on this June. Imagine a world without property taxes… it’s a minor sort of utopian vision.
From the perspective of those with fixed incomes or uncertain crop yields, property taxes are morally questionable; how can you tax someone when you don’t actually know they’re good for it? Certainly nobody should be putting up the family home or farm for auction or mortgage just to pay taxes.
From an urban planning standpoint, wild variation in property taxes inspires urban flight. We’ve got a situation in Cass County now where there’s a dozen different “cities” that are just subdivisions that don’t want to pay Fargo taxes. But Fargo still pays the lion’s share for the emergency services and infrastructure the region depends on to support a cushy ring of suburbs. That’s not fair, either.
Property taxes cause enough trouble, if all this measure said was “Property taxes are prohibited”, I’d seriously consider voting for it. But saying such a thing requires a lot of cleaning up afterward and Measure 2 meddles with that part of the equation too.
If the legislature started from a clean slate, and everyone was banging at the door for a solution, the simplest way to clean up the mess would be a bill giving expanded local taxation powers: sales, income, that sort of thing. Local governments would still tax and budget as they always have. Instead, Measure 2 assumes that the legislature is going to handle the budget for the entire state forever, and sets present revenues in stone, something that almost certainly will cause entire cities to break down within ten years. It’s specifically designed for minimum flexibility and responsiveness, so that the our civic institutions choke from the bottom up.
And as upsetting and often unfair as they may be for the average person, property taxes are quite fair and useful for a few key problems: You shouldn’t be able to build a million-dollar mansion and never pay a dime on it. You shouldn’t be able to buy up thousands of hectares and just leave them be. Already, rampant speculation in the west has made it impossible for regular people to afford to live out there. If the marginal cost of land ownership is zero, the situation is only going to get worse
A vote for Measure 2 is a vote for an overworked, overpowered legislature, funding 2031 needs with 2011 budgets, whilst foreigners buy and hold every scrap of land they can. I’m voting NO.