North Dakota will vote on whether to become America’s first state without property taxes — but here’s why this historic move could come back to haunt locals

Growing frustration with rising property taxes has fueled support for the measure, with advocates claiming it will provide long-needed relief and help make real estate more affordable.

The ballot question is straightforward, yet it carries serious implications: should North Dakota scrap property taxes altogether, fundamentally altering how local governments are funded?

By shifting this responsibility to the state, the measure would dismantle a primary revenue stream for counties and municipalities, raising concerns about how — and if — these services would continue unaffected.

Measure faces a long road

With the election right around the corner, voters in the traditionally conservative state are trending towards a no vote. North Dakota voters rejected a similar proposal in 2012, and the 2024 edition is facing similar voter headwinds.

A North Dakota Monitor poll from late September indicated that 40% of voters plan to vote against it, with 28% in favor — while a significant one-third remain undecided.

Opponents, including Republican Governor Doug Burgum, argue that property taxes are crucial for funding schools, emergency services, infrastructure, and other public services.

Removing this dependable revenue stream would destabilize budgets across counties and cities, potentially putting essential services at risk.

“It's complete misinformation to say that if you vote for that thing, that somehow that you're ending property taxes, you're stopping property taxes; you won't,” Burgum said at a recent gathering in the North Dakota town of Watford City.

“What you will do, is, you will cause someone else to pick up the tab, that's what this whole thing is about. It's about who's going to pay for it, it doesn't lower the cost of delivering anything in our state, it just shifts the burden to somebody else."

How property taxes sustain communities

Property taxes are the backbone of local government funding in the U.S., underwriting everything from schools and police departments to road maintenance and fire protection.

In sparsely populated North Dakota, property tax revenue is particularly crucial, especially where alternative funding sources are scarce.

In 2023 alone, U.S. cities collected more than $363 billion in property taxes from single-family homes, marking a nearly 7% increase.

North Dakota residents pay a slightly above-average property tax rate, but significantly less than those in high-tax states like Illinois or New Jersey.

Supporters of the measure propose that the state step in to replace the lost local revenue, though details remain scarce on how these “replacement payments” would be funded or allocated.