Dakota Beacon

It’s tax time again. A lot of folks don’t like taxes in general, and property taxes in particular. There are more than a few disgruntled souls making noise, but, is there a revolt?

At this point inevitably Measure 2 comes up. Measure 2 proposes to amend the North Dakota Constitution Article X Sections 2, 4, 14, 15 and 16 and repeals Sections 5, 6, 7, 9 and 10. North Dakotans get to vote June 12 yea or nay on this initiated measure. The net effect would eliminate property taxes and acreage taxes.

Is the abolition of property taxes an idea whose time has come, or is it merely an idea? Ideas, after all, are a dime a dozen.

The arguments supporting Measure 2 are laid out in the book “Property Tax Revolution.” This is the magnum opus of Empower the Taxpayer (http://www.empowerthetaxpayer.org). As such, it’s heavy on “wherefore” but light on “how-to.” Underlying documents include The Beacon Hill Institute Report -- Eliminating Property Taxes in North Dakota and the North Dakota Pork Report.

“Property Tax Revolution” makes some good points. Abolishing property taxes certainly protects home and land ownership from state confiscation for unpaid taxes. It makes a really good point in that repealing the property tax would potentially curtail funding of special interest groups. And, it makes a really, really good point in that abolishing property taxes would probably slow the growth of government.

How these advantages would come to pass remain debatable with no guaranteed payoff. Legislative formulation for revenue distribution is complex at best and is centered in Bismarck. Unless I’ve missed something in reading both the proposed measure and “Property Tax Revolution”, central financing of local jurisdictions by the North Dakota legislature is still political in nature when determining and formulating “legally imposed obligations.” The devil is always in the details. (The blinding “success” of the McCain-Feingold bill to get money out of political campaigns comes to mind.)

The argument rests in part on tenuous support of an unspoken assumption. Unquestionably the lion’s share of North Dakota’s financial surplus rests squarely on oil production. Oil in the ground isn’t worth much until it is extracted. The oil industry is dynamic. If any federal agency puts the kibosh on the oil industry, or when the recently opened Texas fields become more lucrative and economical for production than the Bakken and attention turns south, how long will the billion dollar surplus last to fund the North Dakota budget? Nice rhetoric and constitutional amendments will not replenish the treasury.

Overcoming fear of change rests with the advocates of Measure 2. Reticence to change is human nature. Reticence to change, in the case of not supporting Measure 2, should not make John Q public sound like the bad guy if they are uncomfortable with Measure 2.

Measure 2 could have been marketed better by quietly building allies among various centers of influence in the state. Selling an idea is arguably more effective than changing minds through quarrelsome reproach. Even the North Dakota Taxpayers Association, a fiscally conservative voice of the taxpayer, remains neutral on Measure 2.

Without good marketing, who will willingly follow through? The proponent attitude toward the legislature has to be more than “The people passed it; you fix it.” Through good marketing, community and state leaders will help convince the voters to pass the measure because the leaders know how to implement it -- and why.

Finding revolutionaries to create a revolt is not the same as leading revolutionaries passionate about their cause. The first requires conveying and instilling passion to make a revolution happen. The second recognizes that many people have the passion but need direction. The frog in the water may be getting hot but is not yet passionate enough to jump out of the pot.

Measure 2 will take one of two paths. Either it will pass on June 12. Or, it will be defeated. If defeated, proponents should try, try again. This is often only the beginning of the life cycle for a significant measure. Next time, market it better.

Dennis M. Patrick can be contacted at P. O. Box 337, Stanley, ND 58784 or (JavaScript must be enabled to view this email address).