A pair of lawmakers are competing to return part of North Dakota's budget surplus as property tax rebates.
Legislation sponsored by Rep. Dave Weiler, R-Bismarck, would set aside $15 million in rebates for people who paid property tax last year on a home they owned. The money would be apportioned according to how much property tax each homeowner paid, Weiler said.
Rep. Kenton Onstad, D-Parshall, has a competing plan, which would return 5 percent of a person's property tax payment and apply to homes and farmland. Onstad has set aside more than $20 million for his proposal, which would benefit only North Dakota residents.
Both bills got their first hearing Tuesday before the House Finance and Taxation Committee.
Sara Hewson, a Tax Department property tax specialist, said the department was not sure what each property owner would receive as an average rebate.
North Dakotans are upset about property tax increases, Weiler said.
"It's a small way to try to control long-term spending," he said of his proposal.
"All the other types of spending are just going to raise the bar for the next time we come (to the Capitol)."
North Dakota's treasury is expected to have a $126 million surplus when the state's current two-year budget period ends June 30.
"A rebate, to me, is an admission of guilt. You've charged too much," said Rep. Arlo Schmidt, D-Maddock.
Rep. David Drovdal, R-Arnegard, questioned whether the state should focus on property taxes, since the revenues go to local governments and not the state treasury. Rebates of state-collected taxes, such as sales or income taxes, would make more sense, Drovdal said.
Nancy Sand, a spokeswoman for the North Dakota Education Association, opposed both bills, saying they would take away money from state programs. "The citizens of North Dakota have a lot of needs," Sand said.
Weiler's bill is HB1157. Onstad's measure is HB1446.
Posted in State-and-regional on Tuesday, January 25, 2005 6:00 pm Updated: 6:42 pm.
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